Scarcinomics: Why Oz is Joining the Revolution

3 min read
February 14, 2023 by
Russell Stanley Geronimo

Hey there Oz community!

My name is Russell Stanley Geronimo. I’m the Chief Legal Officer of Oz and I work actively with our founders in engineering the Oz token and designing our product offerings.

What makes Oz stand out is the fact that there is no reading material that can prepare one for what we are trying to do in the world. We’ve launched the first token-enabled residency in the world, the first token that grants you a tax-reduced, privacy- and asset-protected living, and the first token to offer real estate access coupled with a second citizenship in other countries.

But we are just getting started.

If you’ve seen our Bonifacio Global City office in the Philippines, you will see floor-to-ceiling glass windows filled with diagrams of corporate and contractual structures — this is the international legal backend of our Oz token.

We adapt and move things fast. We resolve problems in the blink of an eye. A startup is a perpetual motion machine. The only way to cope up is to detach and not to fixate on today’s work product.

I said we are just getting started. What’s next?

This year, Oz is participating in a new movement called Scarcinomics.

Scarcinomics is a collaborative effort by members of the digital assets community who are passionate about promoting true utility tokens and ending the prevalence of shitcoins and tokens with no real world benefits or no real use cases. The movement is a community initiative that aims to provide a recommended procedure and method of token design that avoids token classification as a security or investment contract and delivers real products or services in exchange for tokens.

Through the collaborative intellectual contributions of various technology, legal, educational and finance experts and specialists and other digital asset stakeholders, Scarcinomics ensures pure utility tokens become legally enforceable obligations to deliver real products or services in the real world.

Gone is the era when token issuers make vague promises of opaquely defined “benefits” and “rewards”. Think of concert tickets, gift certificates, and discount coupons that give you access to something of tangible value. That’s what true utility tokens are all about. In short, they are simply digital vouchers.

Like any voucher, these utility tokens are prepaid products and services. Like any voucher, they are an outstanding liability of the issuer to deliver these products and services. Like any voucher, they can be redeemed. And finally, like any voucher, they can be bought and sold in a secondary market.

The movement proposes a dynamic pricing model for utility tokens that takes into account the scarcity of products and services that the tokens can purchase, and the scarcity of the supply of tokens that can chase after these products and services. Changes in token price are based on actual demand for real products and services, not on market speculation or hype.

All the principles and standards of Scarcinomics are documented in the Scarcinomics Guidebook, which is a live document subject to continuous improvement and input from the worldwide digital assets community. The Scarcinomics Foundation is being organized as a decentralized autonomous organization (DAO) linked to a registered non-profit organization in the US. The foundation will provide accreditation for token developers and issuers who plan to issue pure utility tokens and serve as the official community for the promotion of the Scarcinomics movement. The movement is gathering the first 100 founding members.

Oz is in the process of signing on as the first token issuer that follows Scarcinomics.

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