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Fundamental Change: A New Branch in Development

The long quiet period since the rebranding of the TKEY has worried most of our customers and investors, thousands of incoming questions in social networks, hundreds of appeals to support, misunderstanding, what is next, and what will be the path of brand development? In this article, we’ll talk about the most important things.

Changing the TKEY-Quota Concept

A TKEY-quota is a unit of account in TkeyNet’s corporate payment network. Previously, it assumed that private owners of TKEY-quotas would be able to spend, buy and sell their shares to corporate clients who need to execute transactions within the network or trade them with private players via a web interface.

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During closed testing, the model proved unsuitable, as the increase in the cost of the TKEY-quota reduces demand and in the future leads to its absence.

The value of the TKEY-quota having regulated by the market and sold through owners (users); for corporate players, the top priority is to execute low-cost transactions, while for TKEY-holders, it is to benefit from the sale.

Thus, corporate players are interested in receiving a TKEY quota at a low price, when as owners of the TKEY quota are interested in selling at a high price—this leads to a conflict of interest.

An increase in the cost of the TKEY quota would be unprofitable for corporate players, which means there would be no demand for purchase. Such a model leads to inefficiency and destruction of infrastructure; both sides bear high risks and losses.

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The choice before us is to sacrifice the benefits of private clients or corporate players. For a long time, the board of directors has found a solution that preserves the interests of both parties.

New Concept

The new concept is to separate private and corporate players.

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Corporate customers

The TKEY-quota is now used as part of the software (services) and is bundled directly from the company. This model makes it possible to exclude high risks since there is no price for a TKEY quota.

Individual customers

The TKEY-quota that the owners have will become a tokenized share of the company. The asset is now secured by the equivalent of a company’s share in the traditional market; this means that the owner can exchange a tokenized TKEY share for a company share to join its shareholders and receive a profit share of the TKEY company’s.

Before (TKEY-quota)After (A
tokenized share)
secured by the number of transactionssecured by the equivalent of the company’s shares
can be exchanged for the company’s share
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The new concept contributes company’s development in the corporate market and accelerated growth, while owners can benefit from the acquisition or sale of tokenized shares. Since the value of the asset will depend directly on the performance and financial position of the company. The company will provide a platform for the purchase, sale, and redeeming of tokenized shares of TKEY for all participants in 2022.

Reducing the Emissions of Assets and the Circulation of Tokenized Shares

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The reduction in the emission of assets is due to the purchase of the company TKEY-quota from customers (formerly owners of the main pool) and signed agreements under which the former owners of the TKEY-quota will become part of the company’s shareholders; the remainder of the emissions of the tokenized shares of TKEY 10,000,000 will be automatically allocated to all TKEY owners in a 1:1 ratio.

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Burning of Tokenized TKEY Shares

Each owner has the right to redeem (exchange) a tokenized share of TKEY from the company to take possession of a TKEY share of a private company; this process involves burning the tokenized asset out of circulation, which leads to a decrease in the number of tokenized assets; participants can buy and sell tokenized shares, and submit redemption requests.

Suppose the owner of 1,000,000 tokenized assets decides to redeem (take possession of the company’s shares), then 9,000,000 tokenized assets will remain in circulation. After the legal change of rights, it will not be possible to exchange shares in the reverse order for tokenized assets, but the participant has the right to sell his share of the company; this will require the services of a broker on the secondary market, and also the payment of taxes from the sale of shares.

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Changing the Company Development Policy

The outdated concept of the TKEY-quota required the company to create and develop products in two directions: for the corporate and individual sectors; such a model hindered the active development of the brand and created a conflict of interest, which affects the profitability of both sides (users, business).

The TKEY ecosystem has competitive advantages, which is the leitmotif for the development of products based on our technology for the corporate sector; there are stable digital banks on the market, the company’s creation of products for end-users requires significant time resources and investment to scale up the new services in the B2C market.

The new tokenized share model allows the company to focus on the development and introduction of technologies in the corporate market, while private holders of tokenized assets (former TKEY-quota owners) to expose to new, heretofore inaccessible opportunities.

TKEY Implements its Solutions

The company will publish lists of companies that have implemented and used our technologies; customers can use their services and experience all the benefits of our technologies.

Results

  • The TKEY-quota will not be available to private clients; in return (the former owners of the TKEY-quota) will receive tokenized shares in a ratio of 1:1.
  • The emissions of the tokenized share are 10,000,000 will be automatically distributed among all former owners of the TKEY-quota.
  • The emission is reduced upon redeeming assets (registration of legal rights) to the company’s shares.
  • The platform (shareholders’ office) for trading tokenized shares of TKEY will be released by the company in the first quarter of 2022.
  • The price of tokenized shares is regulated by the market; the recommended starting price is $ 1.00.
  • The company in the next three years will develop only in the corporate market.

Detailed information will be published in January 2022.


Have a nice day,
TKEY Team

Page last updated: 22 December 2021