Rook Tokens + You
Alongside the Rook platform, we’re also launching Rook Tokens to our early users. The earlier you sign up, the more tokens you’ll eventually receive. The more tokens you have, the more upside you’ll get down the road. In the future Rook tokens can be traded on crypto exchanges. Want to know more about how tokens work? Read on.
What is a Token?
The word “token” is a catch-all term to describe any crypto asset. Technically, all cryptocurrencies (like Bitcoin, Ethereum, and Solana) are tokens. The term has a broader meaning, however, and has increasingly come to refer to crypto assets that run on top of existing blockchains. Chainlink and Aave are two examples of crypto projects (formally referred to as “protocols”) built on top of another blockchain. Each of them has a token that provides value to the greater protocol.
Tokens help users of decentralized applications do everything from earning interest on their money, buying and selling NFTs, to investing in real estate. Since these tokens are crypto assets, they not only provide functionality, but they can also be traded just like any other cryptocurrency.
Types of Tokens:
- DeFi tokens: DeFi tokens aim to reproduce traditional financial-system functions (lending, saving, insurance, trading, etc) through blockchain protocols.
- Governance tokens: Governance tokens are specialized DeFi tokens that act as voting rights. These types of tokens can be very valuable, as the more governance tokens you hold, the more votes you get in deciding the future of the protocol.
- Non-Fungible Tokens (NFTs): NFTs are tokens that represent real ownership rights to a unique digital or real-world asset. Since they exist on the blockchain, NFTs cannot be duplicated or transferred without that activity being recorded publicly. This means that the “real” owner of an NFT can always be traced. Recently, NFTs have been used to sell unique or limited release virtual assets like artwork and collectibles.
- Security tokens: Security tokens are the crypto equivalent of traditional securities like stocks and bonds. They can represent a fractional interest in any asset and can be purchased without the need for an intermediary like a broker.
- Utility tokens: A utility token provides a holder with access to a service or product reserved only for token holders. Some protocols require users to hold utility tokens in order to use any of their services.
Why do you Want Tokens?
When a company issues tokens, they become available for trading on a crypto exchange (essentially a stock market for cryptocurrencies). This provides liquidity to token holders because anyone can sell their tokens (or purchase additional tokens) at any time. Those who believe that the token will become more valuable in the future can hold on to their tokens and, just like with traditional stocks, if they’re right, the value of their stake will increase. Those who want to turn their tokens into cash can sell them anytime on the exchange.
What are Rook Tokens?
Initially, Rook will issue “points” to investors who sign up. These points will later be converted to Rook Tokens once we finalize our token strategy. The earlier you sign up, the more valuable your points will be when they get converted to Rook Tokens. You earn points by interacting with the platform. The more you do, the more points you will receive. Since points will eventually be converted into tokens, those who accrue more points initially will reap more upside in the long run.
Other crypto protocols have employed a similar strategy of depositing, or “airdropping”, tokens to early adopters of their services. A recent example that made headlines was the Ethereum Name Service (ENS). ENS gave out governance tokens to anyone who had purchased a domain name from the service in the past. These governance tokens shot up in value from $30 to $84 in just two days. Many holders were surprised with a five figure pay-day just for being early users of the service.
As we grow, tokens will be awarded for a variety of actions including: investing in properties on the platform, inviting others to join Rook, and simply interacting with listings. Our goal is to take feedback and work closely with our community to craft our token strategy as the platform evolves.