On $DNA Tokenomics

10 July, 2019 by

We suggest ignoring the price of the $DNA token for now. It is not related yet to anything except speculation, and as a utility coin – the sole currency of the Gene-Chain – it should not be speculated upon. It should be used in commerce, and it is being used that way a bit more every day. For now, given that we refused to pay “market-making” bribes to Okex and Kucoin, who then delisted us, and due to the hack of Cryptopia and its subsequent bankruptcy, there remain six known places to buy and sell the token, and it is still available world-wide. For researchers who need it for their studies, it is a buyer’s market. For people selling data on our platform, “hodling” their earnings may make sense for now as well until the market for it becomes more stable. In general, the daily price of $DNA does not matter to the commerce ocurring on the platform given that people set their prices in USD and the pricing in $DNA is automatically adjusted according to the current global average of the coin based on trade on various exchanges. No matter how low the price of the token goes, how closely it approaches 0$, the price in $DNA of the data being bought and sold on our platform will reflect the number of equivalent $DNA necessary to complete the trade at the set USD price.

$DNA Tokenomics as conceived is now working

Our primary focus, as always, remains on continuing to create volume of trade of genetic data on the Gene-Chain which we are succeeding at doing. Every day more users join. Our viral marketing is reaching customers of Direct-To-Consumer (DTC) testing companies like 23andMe and Ancestry, and they are uploading and even selling data. The number of transactions for data now exceeds 150, the number of users exceeds 1000, and the number of files available for searching and buying by researchers is now over 750. The current growth rate is predicatable and dependent only on the amount we spend on our marketing to Gene-Chain users and our current capital raise focuses on growing that number significantly. Moreover, we have several partnerships both signed and in the works that we expect to significantly increase the numbers of datasets on the platform. One such partnership (for which we have signed a memorandum of understanding) promises to deliver as many as 100,000 new users within about 2 years, and others, involving our new “Active Studies” partnerships promise to deliver new channels and incentives for user growth. Finally, our upcoming B2B product, being created for the Microsoft Store, will provide yet another means by which we expect to acquire potentially large numbers of users. In sum: our product is growing and we are confident of its future and the growth of data volume on our data exchange.

But of course the price of $DNA can be upsetting, as is the current exchange rate of the Peso for those of us living in Mexico whenever it drops. Many of our customers email or message me every time the price moves, and I try to remind them each that $DNA is still in its infancy, and that over time, as its use grows in conjunction with growing commerce on the Gene-Chain, our $DNA will be needed by more people doing more research. We have embraced tokenomics, but we are not in the token business. We are in the genomic data market business, using a token-based market. We aim to create a thriving model of utlity tokenomics, something that many blockchain projects are struggling to do. We remain mindful of the need for people to have a liquid asset. One reason we are happy to remain committed to our cryptocurrency model, rather than, say, Amazon Gift cards or difficult-to-trade shares in a Public Benefit Corporation, is because we want the Gene-Chain to help put wealth in the hands of people who contribute to science in a way that they can actually use. Thus, we created a model that is flexible, adjustible, and fair, and we continue to work with exchanges and others to provide more liquidity. In fact, it is possible today to take one’s earning on the Gene-Chain and cash them in for your local fiat. No other genomic blockchain company is providing this yet.

We will keep you updated as we move forward, and I hope you’ll share our great excitement and confidence that we built the right thing at the right time, and in the right way to create a whole new economy of genomic data and help allocate justice and wealth to those who provide the data our future of precision medicine needs.

your truly,

David and the team

« Back to the blog