Bancor is creating a system of fully liquid smart tokens for non-technical users. Users will be able to create their own smart tokens through a messenger like interface. The newly user created currencies will have value because of their underlying use and a reserve that each smart token is backed by. The reserve of these currencies can be any other ERC20 token. The name Bancor comes from a reference in a proposal by Keynes planning to issue a supranational currency today the Special Reserve drawing right (SDR) which is managed by the IMF is beginning to have parallels with the original Bancor idea.
Will there be auditors of the Swiss Foundation and the Ltd?
The foundation will be audited, the Ltd. will need to issue audited budgets and plans like all entities collaborating with foundation.
Will the smart contracts that run Bancor be audited?
3 separate audits from top auditors in the world including 2 from Ethereum Foundation
In what stage is the software development?
It is currently live in beta via our bounty program at app.bancor.network. Each bounty token is a tradable ERC20 smart token that, post ICO, will be exchangeable for Bancor tokens.
How will the ICO proceeds be deployed?
A percentage of them will go to fund the reserves of the BANCOR smart token contract. A percentage to funding the first token changers, ETFs, high-potential community currencies, and other early smart tokens. A percentage to operating costs & hiring and building the Bancor protocol and tech itself.
Who will have the power to change the composition of the reserve currencies of a smart token after it has been created?
The only way to ‘destroy’ a smart token is to liquidate every single one of said smart tokens in exchange for their reserve currency. We may, in the future, build the ability to for creators of smart tokens to change the CRR of their smart token’s reserves (so that, for example, a token basket creator can adjust the percentages of his investment according to changes in the market).
Can a token have a cap on the number of tokens issued?
This is up to the smart token creator. A token can have a cap if the creator want it to.
Potentially there will be the same smart tokens with the same underlying reserves, but with different price exchange structures.
Are there any restrictions on the number of reserve currencies a token can hold?
None at all.
How many reserve currencies can a Bancor token be backed by, is there a limit?
No limit.
My understanding is that Bancor’s system will work through a series of Etherum smart contracts. What are the future planned developments?
Yes to Bancor being able to hold currencies from other blockchains in the future. ETH is just the first one. As for fiat, it will be able to hold them if they are tokenized. Bancor doesn’t have any plans to create our own blockchain.
How will users be able to move their smart tokens around?
Smart tokens work like any other ERC20 compliant token.
How will users be able to find the difference between the reserve currencies and the current value of the smart token?
Users will be able to easily do that via a simple query in our future UX, based on the reserve token.
When will the ICO start/end. Will it have a cap?
We’ll be announcing details on this around the 29th of May 2017.
Is Bancor an inflationary/deflationary currency?
Users can continually mint new BANCOR without limit by depositing ETH in the BANCOR smart token contract. However the cost of minting new BANCOR rises every time someone does it (and falls when they liquidate BANCOR for ETH).
What is the decision on the allocation of reserve to the Bancor smart token based on?
Well, every smart token requires a reserve, as it is the reserve that gives the token asynchronous price discovery and full liquidity.
Where can users find more information about Bancor?
We thank Eddy Azar for the interview.
