A utility token is a token issued in order to finance development of a company/organization. Ubrica proposes to build science and technology parks for translation and commercialization of science in Africa. They are like digital coupons which facilitate purchase. A utility token’s value is dependent on the product it represents. Ubrica will issue 2 billion ubricoins, to develop the science and technology parks, which may be sold as tokens.
Differences between a utility token and a security token
- Security tokens gives the buyer ownership right or shares of the company while utility tokens give buyers access to the company’s products.
- Security tokens can be termed as investments which means that buyers can get profits while utility tokens do not promise to bring profits.
- Security tokens are bounded by legal regulations while utility tokens are not bounded by the law
- Utility tokens derive value from the quality of goods and services that is, the higher the quality of goods or services, the higher the value of the token and vice versa while security gets its value from external tradable assets.
Use cases for utility tokens in science and technology parks
In relation to science and technology parks, people who purchase the Ubrica utility tokens will gain access to products produced by innovators and researchers in the parks.
The sale of utility tokens will enable Ubrica to acquire funds. Money gotten from the sale of the tokens will be used to purchase necessary equipment for the science and technology parks which will thereafter be used for production of the product.
As an added advantage, holders of the token will be able to purchase products directly from the parks at a much lower price as compared to people who do not have the tokens and purchase goods directly from the market.
The tokens also inspire loyalty among buyers in the sense that they will purchase the product because they hold a token which allow the buyers to get them at low prices.
Utility tokens also offers the producer a ready market for their goods because people who bought the utility tokens will be drawn to buy their products due to discounted prices. This will also ensure that there is a steady market for the goods.
Soko janja also plays a key role in the development of the parks because goods produced in the parks will be sold on soko janja. Token holders who purchase the goods on soko janja will get rewards. Other buyers who will not have purchased the token will still receive rewards for the use of ubricoin and trading in soko janja
In the event that all the ubricoins have been sold out and the demand is still high, token holders may be able to sell their tokens to other buyers. This gives the initial buyers of the token an advantage such that they can be able to sell their tokens at a higher price than they bought it and thus making profits. This should however not be mistaken for security tokens because there exists no certain guarantee that there will be a high demand for the tokens.
Utility tokens will help in the development of science and technology parks which in turn will encourage many researchers and innovators to develop new technology. Science and technology parks not only benefits the producer and consumer of the products but also the entire community where people from the local community may get new technology to improve their lives. An example of this is invention of a new pesticide which instantly kills army worms without damaging the plants or polluting the environment. The inventor will receive the necessary chemicals required to make the pesticide with money acquired the token sale event, the token holder will be able to buy the pesticide from the inventor at a low price, and the community will benefit from the pesticide invention because their crops will not be attacked by the worms.
In conclusion, buying of utility tokens provides a mutually beneficial relationship between the buyer, the developer and the community.
Ustawi Biomedical Research Innovation and Industrial Centers of Africa
We are a life science and health production (LSHP) organization. We sponsor investments in life science comprising pharmaceuticals and medical devices, and fully integrated health production by building sustainable one health communities involving people co-operating in a retail network combined with health delivery system. In addition, we sponsor investments in specialized real estate for life science and health production.