There are three steps to creating a Branded Token "BT" economy powered by OST:
- Set Conversion rate of your BT to OST (in alpha, BT to OST⍺).
- Setup Transaction Types
- Mint Tokens
One of the core principles of OST is enabling you to create and manage your own crypto-backed Branded Tokens without worrying about many of the technical, regulatory, and legal challenges involved with having your crypto tokens traded on public crypto exchanges. The way we solve that is to lock BT's from trading on secondary markets and base their value entirely on $OST which is a publicly traded token.
In OST KIT⍺ you will mint your own Branded Token on OpenST test side blockchains, by staking OST⍺ on Ethereum testnet. OST⍺ is a test version of the OST cryptocurrency that tracks the public market value of OST. Branded Tokens are only tradable within your ecosystem or for OST⍺. The staking of OST⍺ functions as a reserve against your token, backing the value of your tokens.
The first step towards creating your BT is to set the conversion rate from BT to OST (in alpha, BT to OST⍺). Once set, this conversion rate cannot be changed, as it is a guarantee to persons who earn or acquire your token that it will always be exchangeable for a set amount of $OST (in alpha, BT to OST⍺).
The simplest way to set your conversion rate is to consider how much $USD you would like 1 of your Branded Tokens to initially be worth. In OST KIT⍺ this amount will fluctuate as the price of OST/OST⍺ fluctuates, but you can use our OST Price Oracle to set your transaction values in fixed $USD amounts such that the amount of BT required for each transaction adjusts as the price of OST/OST⍺ fluctuates. For example, if you want each "upvote" in your app to be worth $0.10, the amount of BT transferred for each upvote will auto-adjust as the price of OST/OST⍺ fluctuates.
ABOVE ALL don't stress too much the conversion rate. It establishes the fixed rate of exchange between your BT and OST, but there's really no wrong decision here as what matters more is the value you assign to each transaction in your economy.