What is the purpose of the ERT token?
Short answer: Tokenized reputation
Longer one: It’s a token that has actual utility, outside of being used as payment method needlessly replacing ether. Actually, all payments in the network are done with ether. The token represents reputation, which has monetary value since the token is traded on the free market. It’s used for staking, aligning initiatives, moderating, taking job offers and just holding to get proportionally some of the fees the system collects.
What is the utility of the ERT Token?
It depends on what role you have in the network.
For the freelancer, the more Ethearnal Reputational Tokens he has, the more contracts he is likely to land. Hence, more money in his pocket. Also, he needs them to be able to enter into smart contracts with employers since he needs to stake some of them.
For the employer, he needs them to be able to hire people since he needs to stake the same amount the freelancer does.
For the moderator, he needs them to be able to moderate, since he stakes proportionally as well. By moderating, he earns more tokens, which he can sell if he chooses so. So, he needs them in order to make money via moderation.
For the token holder, other than the expected appreciation due to the few demand vectors we’ve implemented, they effectively give them revenue share of all system profit proportional to their tokens. He can also use them to vote if we should get more money released from the smart ICO contracts or claim a refund.
Who will buy the tokens?
– People who want to make extra income via moderating
– People who believe in our solution and believe the token will appreciate due to its real utility
– People who would like to get a percentage of the profits of this project that has the potential to disrupt a $1T+ industry
– Pure speculators looking to make a quick flip. That is unavoidable.
How does Ethearnal make money?
Ethearnal, the company, doesn’t. It’s being paid via this ICO to deliver a project, and once it does, it is not expected to make more money from users. The network has a 0% to 1% fee and that goes back to the system to support the proper initiatives. However, we, as founders, have awarded ourselves 25% of the tokens. 5% of those will go to bounties and awards for freelancers in the system. The remaining 20% we keep and will profit from, like any other token holder. This aligns our economic initiative with the success of the project.
How freelancers will use the market:
They have three options:
Just list their skillset and hourly rate, and wait for people to find/hire them.
Create gig listings with specific tasks they would do for predefined amounts of money, and wait for people to orders those gigs.
Actively search/browse employer’s offers and apply for them. In later releases they will have the option to be notified when an offer meeting their criteria is published.
How will employers use the market?
Search/browse available talent and gigs.
Publish their own offers and wait for someone to apply for them.
What are the taxes for selling/buying on Ethearnal?
Upon successful completion of a job (no arbitrage needed) 1% is deducted from the value of the contract. However, this is used to buy ERT tokens on the free market, which are then split between both parties. So, freelancers and employers get back 0.5% in ERT tokens. This means that the effective fee for the freelancer is 0.5%, and the employer gets 0.5% back in tokens, which is a slight initiative for them to use this system over others. This may or may not bring more work for the freelancer, and thus offset the already small fee.
When arbitrage is needed, 1% is deducted before releasing the money to the winning side. This is shared between token holders in ether directly. However, the winner of the dispute gets the rep tokens of the minority mods that voted against him. This might or might not offset the 1% fee.
How I can start working as a moderator?
You just need to buy enough ERT tokens to be able to meet the minimum stake requirement for a dispute in your competence. Every creator of an offer can choose his own stake requirement. You need to stake 5% to 33.4% of that in ERT.
How much will I make as a moderator?
You will more than double your staked ERT tokens for every dispute you resolve correctly, then you can sell them immediately and just leave enough to stake on other cases.
What if the outcome of a dispute can’t be voted on with a simple yes or no?
The smart contract that both sides enter into can be made with milestones with predefined amounts for each milestone. In those cases, except the binary yes or no, moderators will be voting which milestone is achieved. The dispute solution will affect the funds until this milestone. The rest will be refunded back to the employer.
Can I use just ether at Ethearnal?
Yes, but only for offers that don’t require any reputation staked. It’s up to the offer creator to set that value so, if there are any that choose to set 0, you can. Also, the moderators won’t have economic initiatives to get involved in a potential dispute, so you are hoping to have enough moderators willing to work for free.
Can moderators be bribed or persuaded to be on my side?
Yes, but you will have to convince the majority to do so. If they just vote honestly they will at least double their rep tokens. So, they will probably demand more than that from you as a bribe, so they have initiative to act maliciously. So, you have to bribe 51% of the mods with at least double the rep at stake, which is at least 102%. So, it’s cheaper for you to just lose your ERT tokens staked. However, if you are an employer you have ether in escrow as well, so bribing might still be viable for you. That can be countered by freelancers, by requiring much higher amount of ERT at stake in the first place.
Does it mean that if I use Ethearnal, I don’t have to pay taxes?
If you are employer, you don’t really pay any taxes. You actually get 0.5% “cash back” in one of the possible cases as ERT tokens. If you are a freelancer, you get 0.5% to 1% deducted from your payment.
Can you see on the platform if a freelancer bought or earned his reputation tokens?
It can be seen on the blockchain if the rep tokens came from Ethearnal smart contracts or just funded directly. Even if we don’t implement it, 3rd party services can offer it. We do plan to implement it though.
Are the tokens earned as freelancers and the ones earned as employers the same? If not, are they interchangeable?
Yes, it’s the very same, fungible token.
Can I use my rep tokens somewhere else?
Not really, but you can cash them out at an exchange at any time.
What makes you think you can execute this project?
Between the two founders, we have 26 years of experience in various online businesses and have been on both sides of the freelancing model. We’ve been into bitcoin since 2012, and into Ethereum since its ICO.
We are building this because this is what we would like to use. Since it’s finally possible to be done, we believe we are in the right position to collect the pieces.