This post is being written in response to some comments I have received from collective members. I think this information needs to be shared with the entire collective.
First, to clarify some facts about AICoin.
The AICoin model as written into the original whitepaper does not allow for unlimited repurchase of tokens. The amount of capital available for token repurchase is based on a percentage of the new equity high profits applied on a monthly basis. AICoin made new equity highs in May of 2018 and therefore the capital available for repurchase is apportioned on a monthly basis and then when exhausted it waits for the next time the conditions for repurchase are met. That is why during the first part of the bear market, while bitcoin was falling AICoin kept its value until June of 2018 when the model was no longer achieving equity highs and the price of the token started to follow the rest of the market.
A Two Part Strategy
Also, remember that there were two parts to the original strategy, both the trading of the currency market and the investment in AI and blockchain companies. Taking an equity stake in an early stage company is something where the expectation of the value of the investment to be seen in 3 to 7 years.
Strategy Addition: The Token Investment Pool
The collective also added the Token Investment Committee to the model. You can see the holdings Steve and Ludovic have created in the weekly performance reports that Yasir posts here. They have shifted the strategy from buying tokens during subscription phase to looking for tokens that are executing their strategies well and are in post launch, trading at a deep discount due to the bear market.
Where is the value of profit to token holders?
Decisions regarding loyalty bonus payouts to token holders are a matter of the vote (you can check the record of the vote on the blockchain or on the dashboard). To date we have asked token holders twice if they want some of the new profits diverted to bonus payouts and both times the collective has voted not to award loyalty bonuses. We will continue to periodically put this issue to the vote and the policy may very well change if that is what the token holders want.
Token economics follows the laws of supply and demand, like anything else. Listing the token on other exchanges is not a panacea. It is listed on ForkDelta and I think at least one other exchange, but in a market where there are literally hundreds of options, it is raising the demand for the token that will drive an increase in the price while we wait for the bear market to end.
New initiatives to stimulate token price
To this end the collective has given us the ability to offer a $250,000 pool to model traders to see if we can find profitable ones that will once again generate more profit in the token pool. For the trader to take part in the competition they must buy and hold 10,000 XAI for the duration of their participation. I have started to announce this internally, but I am also speaking to three crypto focused agencies to bring this to a broader international audience. Initial feedback from people is that this opportunity may be quite attractive and while it will take a couple of months to get this project online it may very well stimulate the price of XAI.
Additional benefits of XAI to token holders
XAI can already be used as collateral to back trading on the Panxora exchange but, as mentioned earlier on this thread, this has difficulties because it is trading at such a discount. One feature we are considering introducing is the ability to use AICoin as commission to trade on the Panxora exchange. Commissions paid for in XAI would benefit from a 50% reduction in the commission paid. Initially, this would be provided by email request where the token holder would email [email protected] and request that a certain number of tokens be applied to a commission account (the XAI still belong to the owner while in the account and can be transferred back until they are used to pay commission). This would be used (with the 50% discount on commission) until the amount was depleted, at which time the token holder could either purchase more XAI to be applied to their commission account or move some into the commission account from their main address. This will formally go live on February 18th, though anyone can request this service in advance by email.
We will continue to look for ways to improve the price of the token, and we encourage the collective to keep this dialogue open as you are doing here.