TE-FOOD‘s token (TECoin) circulation will serve more separate use cases in the system.
Token utility
According to the utility token types by William Mougayar, TECoin will have more utility types:
Toll: To use TE-FOOD’s blockchain traceability ledger, supply chain participants will need to pay for transactions using the token.
Value exchange: There is a lot of information provided by certain type of supply chain companies, which is valuable for other supply chain companies. (Example: if and when a calf was treated with vaccines or antibiotics is a valuable information for the cattle farms which buy the calf. Normally they don’t have this information, and they needlessly treat the animals with vaccines and antibiotics. This can lead to overuse of antibiotics. If they can get this information for a cheap price, the cattle farm can avoid the redundant activity, thus saving money. This income goes to the information provider (the calf farm).)
Value exchange: Consumers get tokens as reward for using the TE-FOOD consumer mobile app in retail, reading the QR code and viewing the food history, this way, the system incentives conscious consumer behavior.
Right: Token holders can rate supply chain companies with which they are in connection, so the system can maintain a supply chain company scoring system.
Growth in number of transactions
As the number of business customers grows, so grows the demand for TECoin in the system. The number of countries TE-FOOD is implemented shows both governmental and private implementations.
Processes
Buying transactions
- Supply chain participants indicate the number of transactions they want to buy in the TE-FOOD B2B app.
- To cover the cost of the desired number of transactions, they buy TECoins for fiat money or cryptocurrency on the TECoin Market, and store it in their TECoin wallet.
- The smart contract automatically
- deducts 10% of the TECoin tokens, and transfers 9% to the TE-FOOD Reimbursement wallet (for supply chain reimbursements), 1% to the TE-FOOD Consumer Rewards wallet (for rewarding conscious consumers),
- calculates the number of transactions on a fixed USD-transaction exchange rate,
- sells the remaining 90% on the TECoin Market at market price,
- transfers the received ETH to TE-FOOD’s ETH wallet as OPEX.
- On the private blockchain, TE-FOOD deposits the purchased transactions to the supply chain participant’s Transaction wallet.
Supply chain reimbursements
- Each time a supply chain participant buys transactions, 9% to the TE-FOOD Reimbursement wallet, 1% to the TE-FOOD Consumer Rewards wallet.
- Daily once, an algorithm selects the supply chain companies to distribute the tokens.
- The smart contract automatically
- calculates the number of transactions on a fixed USD-transaction exchange rate,
- sells the remaining TECoins on the TECoin Market at market price,
- transfers the received ETH to TE-FOOD’s ETH wallet as OPEX.
- On the private blockchain, TE-FOOD deposits the transactions to the selected supply chain members’ transaction wallet.
Rewarding conscious consumers
- Consumers check the TE-FOOD tracked food product’s QR code using the B2C mobile app.
- A smart contract automatically transfers a pre-specified amount of TECoin tokens from the TE-FOOD Consumer Reward wallet to the Consumer’s TECoin wallet as reward.
Paying for value added information
- Supply chain companies (value providers) can set a price / item on specific food related data they provide.
- If other supply chain companies (the buyers of the value providers) want to obtain those information, a smart contract
- deducts the total price (value added information unit price (defined by the seller) multiplied by the actual number of the received tracked goods) from their TECoin wallet,
- transfers the TECoins to the value provider’s TECoin wallet.
Selling tokens
- Supply chain participants and consumers can sell their excess tokens on the TECoin Market. It creates a selling offer on the TECoin Market.
- When a matching buying offer is present, the deal is written in a smart contract.
- The seller’s TECoins are transferred to the buyer’s TECoin wallet.