On January 1, we dropped our new BMJ Reward Token, and we intend to kickstart the next wave of growth across the crypto industry. Read more here.
Premium members can receive BMJ tokens each month (airdropped to their crypto wallets), which they can spend on great crypto merchandise that’s not available anywhere else in the world. See rewards here.
Our mission is to welcome the next 100 million investors into crypto. Our BMJ reward token is not an investment, but an easy “on ramp” to welcome more people into crypto.
In today’s post, I’ll talk about the tokenomics we’ve designed into our BMJ reward token, which we hope will become a new industry standard for usability and transparency.
Two Words: Earn and Burn
In a nutshell, when your monthly Premium subscription renews, you earn tokens. When you redeem your tokens for rewards, you burn tokens.
This is a big step forward for the crypto industry.
Instead of complex, confusing token schemes nobody understands, it’s so simple that it’s obvious.
- When money goes in, we create tokens.
- When money goes out (in the form of redeeming a reward), we destroy tokens.
We call this “earn and burn.”
You only earn tokens when your membership renews.
We burn tokens when you redeem them for rewards.
Earning and burning keeps the supply in check, instead of constant and continual inflation, as most crypto projects do.
Earn and burn. Earn and burn. Earn and burn. Say it three times fast!
This focus on real revenue (earning) and real rewards (burning) means the BMJ token represents something radically new to crypto.
It measures a new metric we’re calling Real Revenue Earned.
Real Revenue Earned: A New Metric for Crypto
Let’s zoom out to the wider crypto landscape, where few crypto projects make money. Even fewer are profitable.
But for crypto projects that are earning real dollars, from real customers, wouldn’t it be awesome if you could see how much they are earning?
This is the transparency the industry so desperately needs, especially now.
Our hope is that reward tokens can provide a model for companies to use: they mint tokens only when they receive real revenue. (To keep things simple, imagine $1 received = 1 token minted.)
That means, by looking at their on-chain wallet, you can see how much they’re earning each month, as well as their total earnings to date.
This metric – Real Revenue Earned, or RRE – shows you how much money a company or crypto project is earning, simply by looking at total tokens minted.
This design is better than most tokens, which are minted by the billions, with very little rhyme or reason (except that the founders always maintain a hefty percentage).
This design is better than most reward programs, which are black boxes. If you were an investor in Amazon, wouldn’t you want to know how much they were earning in Prime fees?
RRE is radically transparent, and that is 100% in the spirit of crypto.
A Vision of Fair Tokenomics
Stablecoins have flourished, in part, because they are simple to understand: you put $1 in, you get 1 stablecoin out. That’s fair.
Similarly, we’ve kept our reward program simple to understand.
We only mint when real money is received: we don’t artificially create tokens to reward other behaviors, like reading articles or sharing a tweet. This is critical to maintaining the economic integrity of the system, and it’s simple for users to understand.
In other words: value in, value out.
This sets BMJ Reward Tokens apart from security tokens, speculative tokens, and the like. This simple principle – value in, value out – is not just easy to understand. It’s fair.
This also means no premining: tokens are only created when economic value is created. No junk.
We call this approach “Fair Tokenomics,” where every reward point actually reflects fresh capital. If you want to see the strength of the program, or the size of the community, just look at total tokens minted.
Fair Tokenomics means tokens are created only when real money is earned.
We anticipate that the BMJ Reward Token, with its Fair Tokenomics and Real Revenue Earned, will kickstart two great movements:
1) Reward programs will begin moving to blockchain. Reward programs (from frequent flyer miles to Starbucks Rewards) are such an obvious use case for blockchain that we know they will flourish. We hope they will be designed with Fair Tokenomics and RRE in mind.
2) Companies will begin sharing Real Revenue Earned (using Fair Tokenomics), which will give crypto companies the transparency the blockchain industry needs to rebuild confidence. By sharing RRE, crypto projects will be even more transparent than traditional companies … not by regulation, but by design.
In short, BMJ Reward Tokens are reward points, set free on the blockchain.
It’s a grand experiment; we hope you’ll join us.
More columns to come this week on our journey to bring this token to life. Tomorrow we’ll talk about why we chose Ethereum (not another blockchain or Layer 2 solution), to launch our history-making token.
Stay tuned – it’s going to be rewarding.
Continue on to Part 3 in this series: Why We Chose Ethereum >>
