A Breakdown of the ThinkCoin Whitepaper Pt 2/6



A Breakdown of the ThinkCoin Whitepaper

Pt 2/6


The TradeConnect Economy
Users of the TradeConnect Network that want to buy and sell on the network and have unrestricted access to all available features on the platform will need to have ThinkCoin tokens. These tokens are the unit of buying and selling in the new economy. Traders can buy and sell on this network when they transfer fiat currency or other cryptocurrencies into TCO, this will give the traders an opportunity to buy and sell on the different markets available on the network.
TradeConnect Token Economy
The network structure will give chance for a diverse token economy that is not based on commissions alone but on various models that are market-neutral. The revenues are primarily generated through Connect Fees, Margin Lending, the sale of Digital Personas and Token Listings.
Connect Fee
Offering all participants in a market a level playing field, to show fairness and transparency is the most beneficial way to serve a buying and selling community, and the people who add more value to the system are duly rewarded for their efforts. All fees are divided into two pools daily, this is done to ensure fairness and transparency during distribution and these fees are distributed at a specific time every day. The two daily pools are referred to as Makers and Takers.

Makers – A participant in the network that is ready to trade actively in a particular market.
Takers – A participant that uses a given price to place a trade on the network.

In comparison to the present exchanges or brokerages that keep most of the generated fees during buying and selling, makers and takers of the TradeConnect network will get back 75% of all connect fees. The percentage of buying and selling completed in a day will determine what each pool will get and the participant’s daily allocation.

Margin Lending
Margin Trading is a type of trading that gives participants the chance to borrow funds that are presently not available in the wallet. There are risks attached to margin lending but they can be avoided through proper management, also there are some advantages attributed to this practice.
Two major challenges of current margin lending:
Limited Margin Funding Pool – Any users can become the margin liquidity provider on these platforms, this leads to a significant potential for negative balance because tokens are taken from smaller wallets that do not possess the capital to lend properly.

Margin Lending Liquidity Gaps – Participants may decide to use margin funds to buy or sell big amount of assets when markets are in hyperactive periods, this sometimes poses a big threat to the structure of the exchange’s capital because margin lending pool of credit is quickly used up.

Solutions
Qualified Margin Lenders – A deep stress test will be conducted on the wallet, with the use of personal scoring engine to rate providers of margin liquidity when compared to other exchanges that lend anyone who offer to give out their unused wallet balances.

Mid Market Lending Rate – A group of verified margin lending providers on the network will determine the lending rate daily.

Digital Personas
This is a concept created by Trade Connect, here each participant is tagged by these digital personas, these personas give participants unique scores allowing them to build a profile over time, this profile building will allow participants both in the makers and takers pool to bid for the right type of trade.
This will give Liquidity Providers on the network a chance to pay the highest amount they can afford for the right kind of trade and alleviate their charges overall. For every successful persona sold, TradeConnect will be able to keep the additional spread percentage the Maker bid during the sale.

Token Listings
With the geometric growth being experienced by the blockchain sector, a new marketplace is growing not only for buying and selling but also for listing and facilitating liquidity for digital tokens and ICOs. TradeConnect will have a share in the percentage of a new coin that wants approval and listing from TradeConnect.
Tokens and cryptocurrencies
TradeConnect will start by using the cryptocurrencies that are most liquid as collateral, depending on their size and available market liquidity. The wallet will start by supporting the following cryptocurrencies:
1. ThinkCoin(TCO)
2. Bitcoin
3. BitCoin Cash
4. Ethereum
5. LiteCoin
6. Dash
7. Monero
ThinkCoin (TCO) - an asset-backed token
TCO will be created as an asset-backed token, it will have values equivalent to fiat currencies like USD, GBP, AUD, JPY e.t.c. for the available TCO that is kept in the network.
This will give stability to the price of TCO, give liquidity to both makers and takers, and also allow participants that want to exchange TCO for fiat currencies a venue to buy and sell.

Check out the ANN page here and website here 
Personal Bitcointalk Profile

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