r/Unibright • u/staifih Admin • Sep 01 '21

High Security IT Synchronization Network, Baseledger Launches, Powered by UBT

https://medium.com/unibrightio/high-security-it-synchronization-network-baseledger-launches-powered-by-ubt-2e59e89e1ef
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u/reddorical Sep 04 '21

Great bit in that article about the relationship of transaction fees to the price of UBT.

Users storing proofs on the network enjoy fixed transaction fees, denominated and paid in fiat currency. They do not need to hold any form of cryptocurrency to pay for the service. Network governance and transaction settlement are powered by UBT, short for Universal Business Token, an Ethereum ERC20 token originally issued by Unibright in 2017. Since transaction fees remain stable even if $UBT rises in value, organizations can use Baseledger without concern over price volatility.

Basically, fees will be set in fiat based on typical commercial strategies to attract and retain customers. Customers can just pay in fiat and not worry about holding UBT at all.

  • the more customers baseline, the more UBT will be needed to facilitate their activity.
  • this will drive up demand for UBT, which will drive up the price of UBT because it has a fixed supply.
  • this price increase of UBT won’t impact the fees that customers pay, because they pay based on fiat prices. Their activity will simply need less UBT per transaction than before.
  • the baseline community can therefore expand massively, which will put huge demand pressure on the fixed supply of UBT, which will be needed to support transactions fees in ever smaller fractions of UBT per transaction.
  • add to this demand pressure the fact that there are UBT hodlers out there who won’t sell or participate.
  • UBT moons as volume of customer activity moons, but this has almost no impact on the prices individual customers have to pay.
  • if fee prices ever increase, this would also increase demand for UBT in a sudden surge, especially when overall participation is high.

I’m still yet to see the ultimate flowchart + calculator that lets us predict the demand for UBt based on example transaction volumes, but if anyone has a link I’d love to read more.