TaaS (token as a service) is an Ethereum-based cryptocurrency that aims to offer benefits to the users without dealing with risks and technical barriers. The platform is a last-generation closed-end fund (CEF) that makes use of Ethereum standards along with cryptographic audit technology to offer complete transparency and safety to the users. A closed-end fund (CEF) is a type of fund (asset) that is issued to the participants in one go using fundraising activities like ICO (initial coin offering). ICO is the means to raise capital for a new crypto venture by trading tokens.
The World Economic Forum published a report in 2016 predicting the growth of blockchain in the global financial system. Trading in the traditional market, especially mutual funds, was easy at the time, as it offered low cost, professional portfolio management, and diversification services. However, this type of fund transfer raised several problems, like human governance, inflicting conflict of interest, lack of adequate knowledge, and transparency. Thus, TaaS was developed in the market as an innovative solution aiming to offer transparent trading facilities with minimal risks.
Unlike traditional CEFs, which offer a fixed number of funds benefits in the market, TaaS seeks to issue tokens that are developed on the profit-sharing smart contract model. Smart contracts are just like regular contracts, however; instead of being drafted on paper, these contracts run in the form of protocols on the blockchain. The smart contract feature allows the token holders to attain 50% of the platform’s revenue. Further, 25% of this revenue is held back to grow the capital pool and attract new participants. As a result, the platform claims to increase the net asset value (NAV) of the token in time by eliminating the barriers to entry and allowing users to trade on the platform with safety.
According to the whitepaper, the platform also offers a hedging facility to the users where they can participate in trading around 700 cryptocurrencies. In this way, the platform fulfills the diversification needs of the users. The reserve fund strategy used by TaaS initiates re-funding of the platform without any secondary funding. The platform maintains a low-risk portfolio with Bitcoin in the system. The platform claims that Bitcoin will offer liquidity to the ecosystem in times of turbulence. Thus, 10% of the capital raised is transferred to the reserve fund of TaaS. This reserve fund also involves profits obtained from a 25% capital pool. This fund is further used to benefit the participants in the long run.
TAAS is the native utility token available on the platform. The token is utilized by individuals to participate in the activities occurring on the platform. The token offers proof of membership (PoM) to the users. This PoM provides one year of access to the Kepler platform to the users. The platform burned the tokens that were not sold in the ICO to concentrate the power in the hands of initial participants. Burning is the process of removing coins from circulation by sending them to an inaccessible wallet address, thereby increasing the value of the token.
With the smart contract offering safety of transactions, the cryptographic audit (CA) technology offers transparency on the platform. CA is a bundle of monitoring tools that allow any individual present in the market to validate the trading history and portfolio balance. CA involves snapshots of blockchain, proof of reserves, and view-only API (application programming interface) key, which increases the security standards of the token.
To offer minimum risks to the users, the platform aims to use the Kepler intelligence system and analytical platform, which gives clues about the crypto market in relation to the Bitcoin cycle. This application makes it easier for the users to initiate transactions accordingly on the platform.
