The ELUM Token
The ELUM is a Cryptocurrency token that represents a tradable utility. For Elumicate, the token is rewarded to those that acquire data and then used for those that want access to that data. The holder of the token may choose to use it personally, or alternatively trade it with someone who desires to gain access to the data.
On Mainnet, the value of the token will be determined by the open market. For the current Testnet phase, the token holds no value and cannot be traded on any open markets. Its purpose is strictly for testing. We've set an arbitrary and very low price of 1/1000th of an IOTX to ensure all participants can easily purchase and stake ELUM tokens when mining. This in no way represents the actual value of the token when launched on Mainnet.
Our Goal with Testnet is to make sure that all the functions are working as expected, including, mining, token transactions, data storing, communication security, camera pool integrity and blockchain transactions. We encourage all participants to test functionalities and report any issues you may find.
The Elumicate Network’s architecture requires the exchange of ELUM tokens in order to gain access to accumulated data. This is why Elumicate miners get rewarded in tokens in the first place. As data is accumulated, tokens are acquired. These tokens can then be used to access the accumulated data. Miners may choose to exchange the token for data credits, hold on to it, or sell it on the open market to allow someone else to gain access to stored data.
The token’s value at the time of redemption for data credits is directly proportional in terms of USD. As an example, if the token market value is $100, and a token is redeemed for data credits, the redeemer receives $100USD of value in the form of data credits, which can then be exchanged for accumulated data at any time.
The token has a limited supply that will never increase, a set release schedule that includes halving periods, a token burn mechanism, and distribution dependent on the number of active miners at each epoch. This means as the number of miners grows, the token rewards per miner decreases.
Simply put, the token is backed by the data and since the data is extremely valuable, so is the token. As the use cases, demand, and importance of the data grows, so does the value of the token.