The main reasons are the following:
- The VANM ecosystem is based on Ad Mining and Ad Creation. Both services complement each other and create an unmistakable economic system that does not require a foreign currency. Ads expire as they are consumed, also referred to as ad mining, thus there is also a market for VANM tokens as means of payment.
- There are several ways to earn existing crypto currency such as Bitcoin but there is only one way to earn VANM tokens - Ad Mining. This allows the VANM ecosystem to maintain itself without any external incentive to draw money from the system.
- Every new community network needs kickstarting incentives until the point when new users pay for themselves. This would imply either owning a large stake of pre-existing cryptocurrencies or underdeliver on community-kickstarting-incentives. Choosing a pre-existing cryptocurrency is economically unviable in that regard:
- VANM needs to have the option to chain-fork (snapshot) the VANM token to another blockchain. This would mean crediting individuals with newly issued VANM tokens, who never had any stake in the VANM ecosystem. There is no current plan to execute a mainnet fork any time soon. This is an option for future scalability needs that would need to be carried out thoughtfully. Network security is our greatest virtue.
- The entire VANM core team will receive 10% of all tokens as soon as the Smart Conract triggers this after 2 years and the core services are live according to the VANM roadmap. This is a financing instrument for a startup to pay its developers. VANM tokens only have value when the product is actually great and ready for the market. It is therefore an incentive for the core developers to develop the best possible product.
- Mining or staking other currencies competes directly with VANM’s value creation method ad mining. The profitability of ad mining should not depend on aspects outside of the VANM ecosystem.
- Although this statement may apply to a small group of users in the early days of cryptocurrencies, it can no longer be said today.
- Most cryptocurrencies have superior fraud resistance compared to conventional fiat-money-based payment systems. Anonymity can only be achieved, if tokens were obtained anonymously and never used. Theoretically it is possible to track all illicit activities back to the user with blockchain technology. These aspects contradict the preferences of criminal organizations.
- A deep understanding is completely unnecessary. VANM tokens stand for a certain value just like conventional currencies.
- All you need to know is that VANM tokens are owned by their users and each user holds their private keys in the hot wallet of the integrated app or in any other ERC20-compatible wallet - an example is the VANM VAULT offline hardware wallet.
- Lost VANM tokens cannot be refunded and the VANM team has no way to manipulate individual balances.
- VANM tokens are a convenient payment method directly from a mobile device, a payment method that is becoming more and more popular. All taxable events can be tracked in a blockchain explorer. It is simple, convenient and fraud-proof.
- Easy bookkeeping by tracking all transactions in the VANM app.
- Accepting VANM can attract new customer who want to spend their VANM tokens somewhere rather than creating ads themselves.
- Accepting VANM can be a potential competitive advantage over vendors who don’t accept VANM.
VANM tokens are treated like any other foreign currency:
If a company accepts a foreign currency, it is simply converted into the local currency at the daily exchange rate and then booked. Here, a cryptocurrency offers a further advantage over state issued fiat currencies, as payments are 100% traceable on the blockchain. VANM can thus provide any businessman with an overview of payments received with corresponding conversion, which can simply be forwarded to tax authorities.
Extract from the letter from the Federal Ministry of Finance to the supreme tax authorities of the federal states dated 27 February 2018: "With its ruling of 22 October 2015, the ECJ decided that the exchange of conventional currencies into units of the so-called virtual currency Bitcoin and vice versa is a service against payment within the meaning of Art. 2 Para. 1 Letter c) of the VAT Directive. c MwStSysRL, which falls under the tax exemption according to Art. 135 Para. 1 Letter e MwStSysRL. (...) The use of Bitcoin is equated with the use of conventional means of payment insofar as they serve no purpose other than that of a pure means of payment. Bitcoin's dedication to the mere payment of fees is therefore not taxable. In the case of payment with Bitcoin, the remuneration of the service provider is generally determined by the equivalent value in the currency of the member state in which the service is provided and at the time at which this service is performed. In analogous application of Art. 91 (2) of the VAT Directive, the conversion shall take place at the last published selling rate (e.g. on corresponding exchange portals on the Internet). This must be documented by the businessman providing the service".
- Payment applications alone have proved insufficient to convince the public of the superiority of decentralised ledgers. Similar to the Internet in the 1990s, the big impact came years later in the form of social media, streaming and online shops. This brought convenience and features that had not existed before, while the underlying technology was being used.
- An ecosystem that can build on the benefits of blockchain technology while providing much needed services and maintaining usability could be what the email or search engine of its time was for the introduction of blockchain.
Since it is impossible for VANM to stop or freeze transactions, there is no direct way to prevent the use of VANM tokens for such activities. However, unlike the VANM token, VANM services are not based on a fixed blockchain architecture, which allows illegal or harmful content to be filtered or blocked.