Understanding the Token and Business Model of CORA
As a token holder, it is fundamentally important to understand the concept and use case of the token. In this article, we will attempt to share and educate on all the details regarding the business aspect and the design of CORA token.
CORA Token Design
CORA token is an ERC20 token that enables users to upvote on Corra.Finance. People need to upvote in order to push their NFT to the front page and gain more visibility on the platform. It is an essential ingredient to a successful NFT auction on Corra.Finance. The only way to obtain CORA is through purchasing on exchanges. Based on this concern, we have designed a model that balances the price of CORA leveraging traditional theories from economics:
As prices decrease, it becomes cheaper for Corrators to upvote their NFT, which increases the usage of CORA tokens. Each time a CORA token is used, it will be burnt by the end of the month, which permanently reduces the total supply of CORA in the market and stimulates the price of CORA to a new market equilibrium. On the other hand, if prices increase, then it benefits the investors and the growth of the community. More growth equates to more users on our platform, which in turn benefits the Corrators selling NFTs on our platform.
Here is an example:
If there are 1000 CORA in the market, and the current market price of 1 CORA is $10, then the price for 1 upvote on Corra is $0.1 (1 upvote = 0.01 CORA by design).
If the price of CORA drops to $5, then for Corrators (NFT Creators on Corra) the price of upvote has just increased from $0.1 per upvote to $0.05 per upvote.
Knowing this information, Corrators would go and purchase the discounted upvotes on the open market (by purchasing CORA), and use them to upvote their NFT. If a Corrator used 1000 upvotes, that is 10 CORA consumed.
Every CORA consumed will be burnt from the total supply. Burning token means that it will disappear from the network forever (the CORA smart contract can only burn, not print).
Going back to our example, 10 CORA consumed means that 10 CORA will be burnt from the total supply, decreasing the total supply from 1000 CORA to 990 CORA. The reduction in supply will then drive the price up until a new price equilibrium is formed. However, this new equilibrium will no longer be $10, because the price will account for the decrease in CORA supply in the total market. Over time, CORA will become more scarce because there is a shortage of CORA in the market compared to before, creating a new equilibrium each time CORA is consumed as an upvote.
As long as more Corrators are consuming upvotes using CORA, there will be lesser CORA in the market over time, and the decrease in supply will organically stimulate the market to a higher price point.
CORA Business Design
How is Corra.Finance Different from Other NFT Platforms
Corra.Finance approaches NFT very differently compared to other NFT platforms in the market. Almost all NFT platforms today serve first-hand, primary sources, and exclusive products. Corra is servicing the opposite of that. We are servicing a new market sector that has rarely been explored in the NFT market. Specifically, we are serving secondary sources or what we call “existing data” on the Internet, such as existing Twitter tweets, Facebook posts, Facebook videos, Instagram photos, Tik Tok videos, Soundcloud music, or just about any existing digital content that you have posted or shared on the Internet in the past ten years. Hence, we like to say that we are “monetizing digital content on the Internet.” There are certain pros and cons to going this route, but we do believe that this will be a much larger market than most NFT platforms are targeting today.
For most people in the NFT market, NFT seems like a toy or a fad for high-end celebrities. But Corra.Finance is trying to prove them wrong. NFT can in fact be for anyone, regardless of your age, income level, ethnicity, job, or anything else. We know this, because there are already existing cases like the “Disaster Girl”, a college student who NFTed a meme and sold it for $500,000. There just has not been a platform that catered to that audience until Corra came along. Our NFT market is so new, that the market is still figuring out on what else you can do with the technology. Corra.Finance would like to produce more cases like the “Disaster Girl” and actually say that we have fundamentally changed people’s lives by enabling them to sell their digital content in the form of NFT. Zoe Roth, the student who launched “Disaster Girl” was able to pay off her college debt because of this. This is why Corra.Finance exists, and this is why want to be different. We fundamentally believe this is the future.
How will the NFTs on Corra.Finance be profitable if the product is not rare?
The team at Corra.Finance understands the fundamentals of what makes NFT valuable. That is why we have developed a model that allows each user to build their own story by allowing anyone to aggregate their NFT into a bundle of NFTs. For example, you can combine several NFTs from employees of different crypto exchanges to form a bundled NFT, making it super rare. It is rare because you know the likelihood of these exchanges coming together is rare, so of course, your new NFT is super rare on the market. The combination and the story are endless. We leave it up to the Corrators to decide what combination makes sense. As long as it is a rare combination, and you can tell a good story, there will be demand and interest in the market. We know this because previous digital art NFT has sold for millions, whether it was through a bundle of NFT or a combination of previous art.
If Corrators make money, Corra makes money! By generating a new set of NFT using existing low-cost NFT, we are introducing a new concept of monetization for our users. We believe this will enable our users to make a lot of money, which also generates revenue for Corra.Finance.