Coywolf
In this litepaper, we: a) Formally establish the emergent blockchain concept of a Transfer of Value token (“TOV”). b) Spotlight attributes of prominent tokens that prevent them from achieving the functionality of “pure” TOVs. c) Argue that fair launch memecoin/community tokens on high-throughput Proof of Stake chains provide the best “ingredients” for organically evolving into a TOV.
We are living through a financial revolution, reorganization, and reckoning. In only 15 years, blockchain has radically restructured global value paradigms:
- Bitcoin shattered state monopolization of currency issuance.
- DeFi shattered Wall Street monopolization of asset management.
- USDC and Tether shattered the banks’ monopolization of bestowing access to the US dollar, the world’s most powerful currency.
Blockchain has rewritten the rules as to who can create value, who can connect to that value, and who can build those connections. Yet, the revolution remains young and incomplete. To achieve blockchain’s fullest potential requires the dawning of the age of Transfer of Value (TOV) tokens.
A Transfer of Value token is simply a token one party (a sender) can transmit to another party (a recipient) for the purposes of value exchange. Optimally, a TOV possesses the following attributes:
- The transfer is fast: Must take place within less than a second, even if tens of thousands of other parties are attempting similar transactions simultaneously.
- The transfer is low-cost: Must cost a negligible fraction of the value transfer itself.
- The token supply is hard-capped: Must have a hard-cap with no remint function to allow the market to control token valuation.
- The token supply is widely, fairly, and fully distributed: Should not be dominated by a few parties.
- The token contract is not alterable by any individual nor centralized party: Must not be alterable to ensure trust and stability.
- The token’s primary purpose is for Transfer of Value: Must primarily represent a digital instrument of value transfer.
- The token is future-friendly: Must not exacerbate current global issues and should be adaptable to future technological advancements.
Many tokens have been used as Transfer of Value tokens, including Bitcoin, Ethereum, stablecoins, and even NFTs. However, none have achieved pure TOV status due to deficiencies in their core attributes. The document provides detailed analysis of why Bitcoin, stablecoins (USDC), and Solana are not true TOVs.
Memecoins, or community coins, are tokens launched with no intended utility beyond accruing value due to their memetic attributes. The document argues that a true TOV will originate as a memecoin due to the following reasons:
- Ease of Minting: Incredibly simple to create.
- Significant Buy-In: Can achieve significant adoption quickly.
- Community Coalescence: Genuine communities have begun to form around successful memecoins.
The document provides a hypothetical scenario of how a memecoin could become a TOV and emphasizes that memecoins are future-friendly due to their decentralized and community-driven nature.
The litepaper acknowledges potential skepticism but reinforces the argument that a memecoin could become the world’s TOV token. As global technology advances, a high-throughput digital currency will be needed, and a memecoin could fulfill this role.
This document is provided for informational purposes only and does not constitute financial or investment advice.
For more detailed information, please refer to the full litepaper included in this repository.