How to create a business (a service or a product) whose price organically fluctuates according to supply and demand, using crypto tokens

in business •  7 years ago 

When you buy a gallon of milk, you know for sure that it costs $3.40. It doesn't matter if you buy it today or tomorrow. Maybe a couple of years down the line, it costs $3.90.

Even then, the price rise of 50 cents didn't happen because some cashier in a supermarket negotiated that price and all the customers agreed. These prices were set by executives inside a boardroom. It took a lot of discussion, market research, trials and errors to come up with this new price. In the mean time, the company producing milk had to deal with a few losses before arriving at an appropriate price point.

The prices shouldn't have to be set this way. Companies shouldn't have to spend so much time and energy into setting an appropriate price.

This problem can be dealt with, using cryptos. Here's my idea.

Sell a token (say, Milk-token or MLT) in a crypto exchange. Then, sell milk in exchange for these tokens. You can peg 1 gallon of milk with 1 MLT. That means, anyone holding 1 MLT is entitled to 1 gallon of milk, from your company.

I can see a few use-cases for such a business model. From the customer's side,

  • A customer can purchase a large number of milk-tokens in advance, instead of buying large quantities of milk.
  • It will be possible for customers to buy smaller quantities of milk i.e buy exactly as much as they need, instead of being forced to buy 1/2 gallon or 1 gallon at a time

From the company's side, here are some pros

  • This could potentially cut down costs of packaging and transport, by allowing customers to buy exactly how much they need
  • Since Milk-tokens in circulation eventually end up with the manufacturer, they would hold the majority of tokens in circulation. This can still let them control the price via in exchange by setting key resistance levels

I'm not saying this idea for a business model is without caveats. If you can think of cons, let me know in the comments. Let's have a discussion.

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Nice idea. Sellers from my region. will criticise you for such opinion. But to think of it, it will make marketing unstable. There won't be any fixed price attached to goods. And you can end up making a huge loss, by buying in whole sale and later funding out that crypto price crashed down. It's just an opinion

That's true. It's like pegging the value of a service to a deflationary currency. Nice callout!

Nice package😍😍😘