Brand tokens
Brand tokens are almost exactly the same as ST tokens, with a few exceptions. Similarities and differences between brand and social tokens were summarized by the table below:
Brand tokens
Social tokens
They can be minted at any time and in any quantity by CDO ecosystem participants.
They are minted once, upon account creation, in a fixed amount.
They can be freely named.
Their names displayed on the Candao network are based on originating NFT ID attributes. Their names displayed on the Candao network are based on originating NFT ID attributes.
Upon activating, all minted brand tokens are moved to the liquidity pool.
Upon activating, all minted ST tokens are moved to the liquidity pool.
An owner can increase the number of brand tokens in the liquidity pool provided that he/she also supplies an equivalent number of CDO tokens based on the current brand token price. The owner can’t remove liquidity.
There is no possibility to add or remove additional liquidity (e.g. by minting new ST tokens).
The owner can reserve the right of preemption (5% of the total liquidity pool supply).
The owner can reserve the right of preemption (5% of the total liquidity pool supply).
Brand tokens can be subjected to additional customization; for example, owners can choose their icon, name, abbreviation, and even include links to external products in their metadata.
These customizations are saved in a separate "Brand NFT" stored on-chain, similarly to the way ST token attributes are read from the NFT ID.
Brand tokens can be connected with anything-products, social profiles, webpages, or campaigns, and are intended to be promotional, value-bearing, speculative assets.
Example 1:
Mark and Steven decided to launch their business (a legal advisory firm) on the Candao network and seek clients through Matchify. They also decided to mint 1000 "Mark and Steven legal advisors" brand tokens and activate the liquidity pool with an initial total valuation of 1000 CDO tokens (1 brand token = 1 CDO). Seeing the potential of having their own tokens, they’ve announced that anyone holding 100 brand tokens of their company will participate in yearly dividends covering 10% of their annual income as advisors. Over time, Mark and Steven became well-known legal advisors, and their annual income has surpassed $10 million. Early owners of their Brand Tokens who bought and held at least 100 tokens are now participating in a share of 1 million USD in yearly dividends.
Example 2: Joane is a music creator. She recently released a new album and also decided to use Candao Brand Tokens to promote it. She minted 100 brand tokens for 100 CDO and made a public promise that anyone holding these tokens would participate in 50% of their profits made on future royalties connected with this album. At first, her music wasn’t very popular, but over time, she gained over a million subscribers on Youtube. Her Brand Tokens are now perceived as an attractive investment.
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