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What are Voucher Currencies?
Whilst Vow is a free floating token whose value rises and falls with supply and demand, Voucher currencies are the fixed value tokens of the Vow ecosystem, for example v£, v$,v€.
Voucher Currencies are minted under a set of conditions by smart contracts.
They exist initially as ERC777 compliant tokens on the Ethereum blockchain but can later be bridged between blockchains.
When Voucher Currencies are to be used within Reward Programmes or other real world applications, they are locked on Ethereum and mirrored in a layer 2 solution called Aventus.
Once mirrored onto layer two the Voucher Currencies become, and behave, exactly like digital fixed value discount vouchers. For transparency, all movements of Voucher Currencies are recorded on the blockchain and proofs posted to Ethereum, however on layer 2 they can operate in a decentralised, or centralised manner, depending on the current legal framework of their host country.
Although it is naturally preferable to operate in a fully decentralised manner, the ability to operate Voucher Currencies, through community appointed MVD's, in a centralised manner is a strategic consideration that will allow the Ecosystem to grow without unwarranted regulatory restriction.
Voucher Currencies are issued and accepted with the highest level of decentralisation by smart contracts paid for by any MVD appointed Retailer or nodes.
They are not e-money, or stored value of any kind. They are not issued by central parties or guaranteed by any central party either.
They are the first and only decentralised currency, which is (1) decentralised in its issuance, and (2) locked to a fixed value within the ecosystem.
Voucher Currencies are collateralised algorithmically by demand; off-chain by goods and services of participating retailers and; on chain by retailer's staking a 20% deposit of the free floating governance token Vow.
On layer 2, Voucher Currency transactions are almost instant and gas free to end users.