How to Create Your Own Token
Tokenization has gained appeal with the rising count of Businesses embracing Blockchain technology. The existence of open-source Blockchain platforms added more popularity to Crypto Token Development. In the present scenario, tokens are not just a buzz but a wide array of industries are leveraging them to scale their business.
Why do I Create a Token for My Business?
- To give customers a reason to understand your Business USP
- To stand out from the competition
- To raise money by selling the tokens to the customers
- To generate a brand value among your customers
How Do I Create a Token for My Business?
Every business strives to stand out from its competition. Apart from marketing, advertisement, and sales strategy, businesses have started tokenizing their assets. Here’s a guide to creating your own token.
Define Your Token Properties
Before you begin developing your token, it is crucial to decide the purpose of your crypto token i.e. what it will do. If the purpose of the token is to attract investors, the token should have the inherent property of ERC-20 Standard.
If you are planning to create a Non-fungible token(NFT), the token standard will be ERC-721 which will inherit different parameters.(If you are choosing Ethereum Blockchain)
Choose a Blockchain Platform
The Blockchain platform is one of the important factors while creating a Crypto token. For crypto token, choose a Blockchain platform that meets your requirements. There are 3 types of Blockchain networks to be considered for Crypto token development which are Private, Public, or Consortium.
If you are looking for a Blockchain network that is private and permissioned both, then there are three dominant platforms which are Ethereum — Quorum and Hyperledger Besu, Hyperledger Fabric, and Corda. Also, to ensure you choose the correct Blockchain platform look for a Blockchain Development company like RWaltz that offers Blockchain Consultation.
Choose a Consensus Mechanism
The consensus mechanism is at the core of the Blockchain network and ensures fault tolerance and security of the Blockchain system. When choosing a consensus protocol, it is crucial to consider the type of Blockchain network.
Crash-tolerant, Byzantine Consensus, Incentivized Consensus, and non-incentivized consensus are a few types of consensus mechanisms. Multiple consensus mechanisms have been developed to enhance the performance of Blockchain networks. Some of the names are Proof of Stake (PoS), Proof of Authority (PoA), Proof of Elapsed Time (PoET), etc.
Develop a Smart Contract
A smart contract is a piece of self-executable code stored on Blockchain that runs when pre-defined conditions are met. Ethereum was the 1st Blockchain to introduce smart contracts and that’s possibly the main reason behind deploying the majority of tokens on Ethereum.
If you are a developer, you can develop the smart contract code for your token. But generally smart contracts need experts to deploy them. Thus, a company with expertise in smart contract development services can be the best fit for this. When you choose a smart contract development service provider, ensure that the company offers a smart contract audit too. Auditing your smart contract will help you to deploy a vulnerability-free smart contract code.
Decide the Tokenomics:
In addition, the smart contract needs to have a code that depicts the transfer fees of a token. The token owner needs to decide what percentage of the token purchase amount will be automatically deducted as tax. for eg: if the 10% of the token purchase amount is the transaction fee, then it’s is the owner's decision to sort the 10%, 1% might be added to the developer's wallet, 3% might be added to the marketing wallet, 2% can go to liquidty, etc. Also define the demand and supply characteristics of the Token.
A few Blockchain platforms don’t provide pre-built APIs. Make sure your token has all the required APIs. If the Blockchain platform is not providing the desired APIs then look for 3rd Party Blockchain API Providers.
Make Your Crypto Token Legal
Once your Crypto Token is completely developed, make sure it satisfies the laws of international crypto regulations. This will ensure the crypto tokens are preserved and the sudden changes in the market won’t affect the tokens.
Crypto Tokens are gaining momentum across industries by scaling the business. Enterprises are leveraging the power of tokenization to create a brand recall for their customers.
If you wish to create a token for your business, make sure you follow the tips mentioned above. If you are looking for a Token Development Company, RWaltz is the right choice for you. Scroll yourself to our services and dive in to explore how we can help you.
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