1

I'm tinkering with Ethereum tokens to & their associated contracts. I'm getting my head around all but want to clarify my understanding with you (posting here in the view that it will also be of use to someone else):

1- you create a token (i.E: mrt token) which can be either fixed supply or minted (along with other controls such as freezing & seizing, etc).

You can at this stage trade mrt tokens between accounts but cannot exchange them for say Ether.

2- set up a democratic association (or undemocratic depending on your requirement). This defines the rules to which the token operates.

3- create a crowdsale - this sets the framework for your token to be converted into other currency such as ether

I've got a feeling I'm 95% right but I'm missing something somewhere?

1

1- you create a token (i.E: mrt token) which can be either fixed supply or minted (along with other controls such as freezing & seizing, etc).

You can at this stage trade mrt tokens between accounts but cannot exchange them for say Ether.

Yes, but it actually depends on the rules you set for your token. Some ICOs block token exchange between users even after some time after the crowdsale to prevent massive dumping, for example.

2- set up a democratic association (or undemocratic depending on your requirement). This defines the rules to which the token operates.

Yes, tokens could be used by the issuer for the decision-making process of the organization. How that is set up is up to the token issuer.

3- create a crowdsale - this sets the framework for your token to be converted into other currency such as ether

Not precisely. The crowdsale sets the framework as to what the tokens initial price will be and how the total supply of tokens will be distributed among contributors. After a successful crowdsale, the company might list their tokens on an exchange and let the token price depend on the market.

| improve this answer | |
  • OK. Thanks for firming this up. I need to look a little more into point 1. So, depending on how I've set up point 1, I don't necessarily need point 2 or 3? – Mr T Dec 24 '17 at 15:27
  • If you intend to launch an ICO the bare minimum you need is the token contract that defines de properties of the token, its supply, etc. And the crowdsale contract that defines how these tokens will be initially distributed – pabloruiz55 Dec 24 '17 at 16:16

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.