A deeper look into the workings of Tael and Techrock.
Tael is on the verge of a new phase focused on adoption, sales, and real-world usage. For you, as a Tael (ticker: WABI) token holder, it is important to know how Tael and Techrock each play their part in the ecosystem and how our real-world sales and partnerships translate to you.
Over the coming weeks, we will publish several articles on major aspects of our ecosystem, detailing how things work.
This episode covers the Actors in the Ecosystem and elaborates on how each party indirectly adds value to Tael in a seamless cycle.
The different players in the ecosystem.
The flow of Tael incorporates four different ‘actors’, each playing an important role in the ecosystem.
These are the four actors:
1. Consumers: They are rewarded with loyalty tokens through simple acts such as ‘touching’ products, verifying product authenticity, utilizing referrals, and more (find further details in our previous ecosystem article). Consumers drive the demand for authentic safe goods, as we’ve covered in this previous article.
2. Brands & Merchants: They purchase Tael to utilize as a marketing tool: increase consumer loyalty, drive purchasing decisions, gain data insights, and much more. By using the Taels, they gather valuable data about consumer behavior and run targeted marketing promotions tailored to their customers’ needs.
In general, consumer products companies spend around 20% of revenues on marketing their products to consumers. We focus on relatively premium products, where marketing budgets can be closer to 30% of revenues. Brands and merchants in our ecosystem use Taels for this marketing.
3. Exchanges: Their main function is to provide liquidity for other actors in the ecosystem. Having a high-quality exchange as part of our ecosystem is important for the smooth functioning of the entire system.
4. Techrock: The company that secures quality consumer products with proprietary NFC and Hyperledger-based technology, and sells them to consumers. Taels/Shijifen (more on the difference between these two terms can be found here) are integral parts of the Techrock platform and crucial to the platform’s growth and success.
Growth of the ecosystem reduces the supply of Tael while simultaneously increasing demand.
A growing number of users translates into more Tael locked in user wallets, as available Taels are spread across the userbase. At the same time, a growing number of Brands & Merchants selling through Techrock (aided by their sales growth) increases the marketing budgets allocated towards Tael-based consumer marketing. Effectively, this drives demand even further.
In addition to that, more users generally leads to more Brands & Merchants joining the ecosystem, which leads to a more expansive product assortment, more marketing campaigns and, as a result, more users. This is the positive growth spiral of our ecosystem.
Volatility in the price of Tael.
The varying levels of supply & demand of Tael tokens inside this ecosystem will cause the price/value of the token to fluctuate. This unique consumer feature does not impede the ability of Brands & Merchants on any level, as Brands & Merchants have an option to perform all Tael purchasing and redemption activities instantaneously in fiat, avoiding any FX exposure.
This allows Brands & Merchants to budget costs ahead in their traditional fashion, while also being easy to implement. If merchants prefer to keep Taels on their balance sheet, this is also an option for them.
Consumers holding Tael/Shijifen are exposed to price fluctuations. This is part of the design of the system. It is fun gamification for risk-taking consumers and drives risk-averse consumers to spend their points faster (thus growing sales and pushing the growth spiral further).
Moreover, in both cases, consumers open the APP to check their balance (and points value) more often because of the value fluctuation of their points, similar to how a lot of people frequently check CoinMarketCap. This drives engagement, sales and ecosystem growth even further.
Example of all parties engaging in the ecosystem:
Mrs. Wang (Consumer) purchases a product for her newborn on the Techrock shop. We know the package she has bought typically runs out around 15 days after opening. Because of our label, we know exactly when she has opened the product. 14 days later, she gets a reminder through one of the promotional efforts of a Manufacturer to repurchase the depleted product again. The Manufacturer pays Taels for this data and uses some Taels to give a 10% rebate on the product to Mrs. Wang.
By the time her newborn reaches an age where infant food is no longer necessary, a new opportunity arises to entice her to purchase $100 worth of supplements made by another Manufacturer. As a promotional effort, the Manufacturer offers 25% off the product price as a rebate in Taels. Techrock hosts the campaign for them. When Mrs. Wang buys the supplements for $100, the Manufacturer buys $25 worth of Taels and sends it to Mrs. Wang. Techrock facilitates the transaction and the Manufacturer spends its marketing budget in the same way it has always done.
Mrs. Wang touches the product with her smartphone to authenticate (for which she receives a few more Taels bought off the exchange) and enjoys the authentic supplements. She later returns because of her desire for verifiable authenticity, but also because whatever she chooses for her next purchase will come with a $25 discount in Taels (depending on changes in Tael’s market price).
And all of that… by simply touching to authenticate.
[Note: for simplicity and understandability’s sake, the terms Tael & Shijifen are occasionally used interchangeably. Please read about the specific usage of both terms in the linked article to avoid confusion.]
This is episode three in a series of articles regarding the ecosystem:
Our next episode will focus on explaining the Demand & Supply of Tael.
For questions or support 7 days a week, check out:
Website | https://rock.tech/ & https://taelpay.com/
Twitter | https://twitter.com/Taelpay
Medium | https://medium.com/@Taelpay
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