2. Assets Tokens¶
User Issued Assets (UIAs)
Freely traded tokens created by individuals used for a variety of use-cases, such as stock, miles, event tickets or reputation points.
Market-Pegged Assets (MPA)
These SmartCoins track the value of an underlaying asset, such as Gold, or U.S. Dollar. Smartcoins can be created by anyone contracting with the LocalCoin ecosystem and putting sufficient LLC (at least 175%) into the so called contract for difference as collateral.
Exchange Backed Assets (EBA)
This kind of asset is commonly known as I owe you (IOU). It represents the right to withdraw the same amount (minus fees) of a backing asset from a central entity. Often they are issued by a bank, an exchange or an other financial institute to represent deposit receipts.
A flexible mixture between UIA and MPA that allows 3rd parties to create their own customized MPAs.
Fee Backed Assets
An FBA is a token that pays you a fraction of the transaction fees generated by a particular feature that has been funded independent of LocalCoin.
Prediction Market Asset
A prediction market is similar to a MPA, that trades between 0 and 1, only. After an event, a price feed can be used to determine which option to take and participants can settle at this price.