TUT token launch (2): the business model

When you design a functional token (utility token) you start from a basic and inescapable premise: the token must be able to be used naturally, the more the better, but as an aspirin, not a vitamin. We are going to explain this concept because it is one of the most important ones for the success in the adaptation of a token.

1. Vitamin utility tokens are meh...

Most of the tokens usage is optional, and many times that's great but it is not a sufficient condition to guarantee adoption.

For example: Let's say any course paying with TUTs will always cost 10% less. Ok it sounds good, sure there will be people who will take advantage of it however sometimes spending on flowers can be more than on the wedding dress,  especially for low-priced products and muggle users. Most of the vitaminized tokens are that,  vitamins; If you have the shots great, if not nothing happens either. You can live without them.

2. Aspirin tokens are cooler

When the use of the most demanded services is limited being able to do it only with tokens, things change. Let's see 4 real examples.

In relation to teachers, we have a historical demand to promote or sponsor their courses, like Google's SEM. We have a lot of traffic and we could do many formats (sponsored searches, banners, campaigns ...); therefore, these services will only be hired by teachers with tokens.

In relation to students, perhaps the most valuable service we offer in the crypto environment is information: access to critical information before others about investments, tokens, airdrops, networks or cafes with industry figures. It is often said that 'we have made a lot of Tutelliano earn a lot of money, and it is simply because we have shared the right information at the right time. Well, the group we have for this, that of SuperTutellianos can only be accessed with a minimum staking of 15,000 TUTs (if you are interested, contact me privately).

In relation to startups, the project financing service that we launch together with the token (Launchpad) is only accessible to it via TUT tokens (specifically via the TUT-BTC liquidity token). Again, if you want to get either financing (you are the company / project that enters the Launchpad) or the project token (you are an investor), the only way to do it is through TUTs.

Therefore, if you incentivize the use of your token as an imperative to access certain services, the demand for tokens is real and is not based on simple speculation.

3. TUT as a DeFi asset that captures value

In addition to the demand for tokens due to the natural evolution of our business, we launch the TUT token accompanied by basic DeFi staking and farming services (and later advanced staking, but we will talk about this in another post) so that DeFi users who believe in the project but are not going to use our products can contribute and participate. This is very relevant, especially in relation to the crypto community outside the Hispanic environment.

Under this scenario, we encourage the deposit of tokens in both types of contracts with very interesting APRs during the first 3 years (with returns that can exceed 400% per year), reducing interest in the short-term sale, promoting direct staking. (20%) and, above all, rewarding the liquidity contribution to the pool (80%). This is where most of the incentives will go, to make the protocol and the token a very liquid asset.

This ratio may be modified by a future DAO, but we will also talk about this in another post.

4. Our vision: TUT as the educational token of the education sector

But the thing does not end here. Why is a university or educational centre not going to be able to benefit from the TUT and everything that we have set up? From my point of view, if a third party wants to "tokenize their University" they can do it in 2 ways:

• Spend their life, money and time - as we have done -, creating proper infrastructure for it, or.
• Buy a package of TUT tokens and hire us to simply integrate our smart contracts into their front-end and connect our incentive system to their back-end. Although it sounds very technical to us this is simple, fast and cheap.

This way the school gets huge advantages:

• No investment in infrastructure, just TUT tokens and a small integration.
• Tokenize your business in a few weeks, with the TUT token running among your students.
• Be the first (or one of the first) to do something like this, standing out from your competitors.

In short, the token is born with previous development of more than 4 years and with very clear ideas from the team and the community. In the meantime, you can learn more about the TUT token in our whitepaper or in our Tokenization and DeFi Bootcamps.