An additional buffer is required to account for price movement in JNT, as well as the price of the asset the contract is denoted in (in this case, USD). As the token appears on exchanges across geographies, Jibrel Network Token (JNT) will be able to deliver its utility and the team will be able to undertake pilot programs. This post discusses the underlying mechanics of the network, the required set-up phase, and the on-boarding process of network participants. Jibrel AG is a registered entity in Zug, Switzerland and is responsible for the development of the network. Jibrel team has undertaken the necessary legal and compliance measures to ensure a fully compliant token sale. Jibrel is gradually building the infrastructure to automate the consumer banking funnel.
In the event that the underlying value of the asset deviates, or the JNT pledge becomes insufficient, the Partner is required to provide additional JNT. The user sends 1 BTC (valued at US$ 11,000 at the time) into the smart contract, and receives one US$ 10,000 CryptoDepository Receipt token. Three provided by Jibrel Strategic Partners, and three provided by the Jibrel Network infrastructure / Jibrel DAO. In the event of a crash in the traditional economy, the Jibrel AG Fund will maintain a sufficiently diverse and robust off-chain portfolio (e.g. US Treasury Bills, CDs, etc.) and increase its digital asset holdings (on-chain).
JNT to USD
In addition, certain standards have not been defined for Ethereum / ERC20, so the team built out the necessary components and standards and submitted them on relevant Ethereum Improvement Proposals (EIPs). I.e. A licensed broker will be able to send treasury bill tokens to buyers, but the buyers will only be able to send it back to the broker (no other wallets) — as they are not licensed to resell the treasury bill. But up until blockchains and cryptocurrencies, the piping was missing. To formally launch Jibrel, the Jibrel Network Token Sale began on Nov. 27, ultimately closing its hard cap a full month ahead of schedule on Dec. 27—demonstrating a clear industry belief in their cryptofiat token model. To round out this system, Jibrel needed to create a system for these assets to transfer among currencies easily, as well as a safe place to store the sensitive information.
CryptoDepository Receipts (CryDRs)
This contract is subsequently purchased by a user on the network, using BTC / ETH. These are individuals or other entities that aim Jibrel to hedge against volatility by obtaining stable tokens. We imagine many of the participants of our token sale are eager to get their hands on their Jibrel Network Token (JNT). For this reason, certain jurisdictions such as US, Singapore and China will not be allowed to participate in the token sale. A tethered token cannot be backed by ETH or BTC, as they are too volatile. If Jibrel were to issue tethered tokens and hold ETH or BTC, it would be susceptible to market / credit risks.
“Smart contracts are a way to execute certain commands in a decentralized way, and be able to remove trusted intermediaries, or middlemen, from the equation.” Ten percent of these, 20 million JNT, were allocated for the token presale and 60 percent, or 120 million, for the token main sale. The team receives 15 percent, or 30 million JNT, while advisors and partners get another 10 percent, 20 million JNT. JNT will be listed on multiple exchanges to make it easier for users to acquire.
You are able to use it to create an address to send or receive JNT tokens. You can also store ETH, BNT, GNT, KNC, OMG and REP tokens in the wallet. To implement this system, we need to create accessibility pools for Network Users, Partners and the Jibrel DAO. For this reason, JNT transfers will be unrestricted on February 1st, 2018–12PM GMT, as the network moves towards its first operational pilot.
- “We actually sat down and analyzed how all these wallets were built, and we’ve come to so many steps where we’re like, ‘Why did they build it like this?'”Barghuthi said.
- The team receives 15 percent, or 30 million JNT, while advisors and partners get another 10 percent, 20 million JNT.
- While the off-chain fund will not directly hold all the assets it issues on-chain, it will always maintain a one to one value and correlation.
- Jibrel provides traditional financial assets such as currencies, commodities, debt instruments and securities, as standard ERC-20 tokens, on the Ethereum blockchain.
How Is the Jibrel Network Token Distributed?
Most wallets have to make the decision to either sacrifice security or usability. In parallel to back-end development, the front-end team has been busy refreshing all the Jibrel’s look and feel, as jibrel network token well as developing the Jwallet. We demonstrated how the treasury bill could be held by a specific set of users, and could only be sold by a subsect of those users.
In the future, Users will be able to exchange JNT for a wide range of assets. With no robust Ethereum wallets available, with numerous hacks in the last few weeks alone, the team sought out to build its own. “We actually sat down and analyzed how all these wallets were built, and we’ve come to so many steps where we’re like, ‘Why did they build it like this?'”Barghuthi said. JWallet was conceived after the Jibrel team surveyed the crypto wallet landscape and decided that they needed to build one with a higher degree of security. To keep users safe, all the Jibrel Smart Contracts were audited by New Alchemy, its security partner. For further security, the financials of Jibrel are reviewed as well as audited by PwC, its financial transparency partner.
Ethereum introduced the concept, but now a host of other blockchain networks employ them, including Cardano, NEO, TRON, Qtum, among many others. Each of these networks implements smart contracts through their own “in-house” tokens. What Jibrel is doing is figuring out how you could enable this same system, but with traditional currencies.
This is overseen by a collection of smart contracts known as the Jibrel DAO. While the off-chain fund will not directly hold all the assets it issues on-chain, it will always maintain a one to one value and correlation. For example, by holding USD, Jibrel can represent numerous currencies on-chain, which are pegged to the US Dollar in the real-world. “We’re translating real-world regulation into solidity code and deploying it so that these token transfers can always be KYC compliant without a regulator intervening,” Barghuthi said. “It’s governance without governance. We can ensure that we still meet the KYC standards, the anti-money laundering, the anti-terrorism financing standards—all without killing the decentralized dream.”