What it it that makes the ELUM token so valuable or invaluable?
ELUM is backed by Real world outdoor data pertaining to human activity. This data is instrumental in helping many sectors and industries in achieving their goals, which will ultimately lead to a better overall quality of life for us all. The value of the data we seek to digitize is extremely significant in different ways, including monetary and humanitarian.
Let’s use traffic data as an example. Why does traffic data hold any value?
We could ask that question to your city mayor, who needs to make important decisions relating to the city’s growth and infrastructure plans. Or the city planners and engineers who need to come up with solutions around growth and congestion issues. Maybe ask the person with a dream of starting their own small business who is looking for the optimal location, or the marketers and advertisers who understand the importance of message placement. Perhaps the landlords and retail establishments seeking to find and provide optimal locations could offer their opinion as well.
What about real time accident data. Why does this hold value?
We should ask your local fire department who are obligated to have a team present at every fender bender because they don’t have the data they require to know if they are needed on site. Or the person who is injured badly and needs immediate assistance, where a few seconds will make the difference between life and death. Perhaps the police, 911 dispatch, ambulance driver, or insurance adjuster will provide an informed opinion on the importance and value of this data.
This same exercise could be done for data related to conflict detection, flood watch, road obstructions, and so much more.
The amount of time, resources, and money currently being spent on solving existing issues is very significant. Unfortunately, the data they are purchasing at this moment is outdated and inaccurate.
How exactly is the ELUM token connected to this data?
The Elumicate Network’s architecture requires the exchange of ELUM tokens in order to gain access to accumulated data. This is why Elumicate miners get rewarded in tokens in the first place. As data is accumulated, tokens are acquired. These tokens can then be used to access the accumulated data. Miners may choose to exchange the token for data credits, hold on to it, or sell it on the open market to allow someone else to gain access to stored data.
The token’s value at the time of redemption for data credits is directly proportional in terms of USD. As an example, if the token market value is $100, and a token is redeemed for data credits, the redeemer receives $100USD of value in the form of data credits, which can then be exchanged for accumulated data at any time.
The token has a limited supply that will never increase, a set release schedule that includes halving periods, a token burn mechanism, and distribution dependent on the number of active miners at each epoch. This means as the number of miners grows, the token rewards per miner decreases.
Simply put, the token is backed by the data and since the data is extremely valuable, so is the token. As the use cases, demand, and importance of the data grows, so does the value of the token.
The ELUM token is already being mined by BETA testers and we will be onboarding the wait list soon! Be sure to visit https://www.elumicate.com to sign up, join us on twitter to stay updated, and join the community chat on discord!