The Exchangeability of tokens in the market

It is important to recognise that all smart tokens use the same reserve token, and so come together to form a network under a common reserve. This reserve token and its value can be described as a network token, capturing and using the combined value of every smart token which sits under it.

This network token is essentially what we call a “token for tokens”, and is what allows all the smart tokens underneath it to be used so interchangeably – mainly because it sits at the top, monitoring and ensuring that the value of the smart tokens is standardized.

As demand for smart tokens increases demand for the network token, the price of the network token is directly linked to the value of its individual smart tokens. What this means is that we must use a stable coin as a common reserve token in order to maintain a stable value. This common reserve token means that the market price of smart tokens is not affected by price fluctuations in the reserve token value, no matter how much movement these is in buying and selling shares.