- Why is SocialGood Able to Improve Society?
- Why Will SocialGood Continue to Grow in Popularity Globally?
- SG’s Patented Asset Value Rising Mechanism
- Coin Issuance Plan
- History & Achievements
3. SG’s Patented Asset Value Rising Mechanism
Our underlying vision to “make society better” is by providing all consumers with promising assets free of charge.
In order for SG to maintain and increase its assets’ value, the Social Good Ecosystem™ is designed in the following way:
- In addition to setting the issuance limit of SG, our company will avoid increasing the amount of coins issued as much as possible.
- It is designed so that the number of SG holders can increase exponentially.
- It is designed to provide economic incentives for SG holders not to sell SG.
Such a mechanism at which the coin is designed to maintain the asset value has been patented in Japan as a business model patent, and international patents applications have been filed.
(1) Virtuous Cycle
As SG users increase, SG’s “asset value” and the SocialGood Cashback service’s “value as a platform” rises and, in addition to this, a virtuous cycle is realized.
The Virtuous Cycle’s Mechanism
As users increase, partner retail stores sales increase. The number of retail stores participating in the ecosystem will also increase. As a result, the operating company’s advertising revenue increases.
Using this as the source of Shopping Mining™, the operating company can return even more value back to its users. For this reason, users will continue to increase.
Depending upon how much users increase, the value of the coin will rise since our coin has an issuance limit. As the coin value increases, the operating company’s coin sales will also increase. As a result, the operating company will be able to use this as a source to return even more value back to users. This will result in even more users.
In this way, network effect works in both the consumer market and the cryptoasset market. In other words, it is a “double network effect.” This will make a win-win situation for all users, companies, and the operating company.
(2) Designed to Keep and Raise SG’s Asset Value
The operating company does not ever guarantee that the future value of SG will rise. However, when comparing SG to other coins, SG has multiple features that allow for users to increase easily and to make it likely for the value of SG to rise.
1．With “Shopping Mining™,” You Can Obtain Zero-Cost Investment Assets for Free
SG, through the SocialGood Cashback Service provided by the operating company, allows users to get SG for free in accordance to the purchase price just by buying items they like at partner companies, such as Amazon, Alibaba, Apple, and eBay.
All investors can profit when they sell SG, which they received for free in the first place, in the market. Therefore, it is, so to speak, “Free Capital.”
2．The Operating Company Guarantees the Exchange Value
A user who has received SG through “Shopping Mining™,” under certain conditions, can request the operating company to repurchase their SG for fiat through cryptocurrency exchanges, for example, using the exchange rate at the time the coin was granted (e.g., 1 SG = US$10).
The price of listed SGs fluctuates, but the operating company guarantees the value of SG obtained through “Shopping Mining™.” This is covered by both advertising revenue from partner companies that the operating company obtains when users shop with “SocialGood Cashback” and coin sales revenue.
Users who have obtained SG through “Shopping Mining™” will request the operating company to buy their SG if the SG price drops, and sell it in the market if the SG price goes up.
Even in the unlikely event that the operating company closes and the guarantee is lost, since the initial Free Capital was obtained at zero cost in the first place, there is no risk to the user.
Therefore, there is little motivation for users to sell the SG they get immediately.
3．Long-term Holding Incentives
Bitcoin holders cannot receive any economic value during the holding period (they only profit when it’s sold). Therefore, depending upon price fluctuations, bitcoin is likely to be sold. On the other hand, users of SG can enjoy economic benefits during the holding period.
In particular, with SG, depending upon the holding period and the amount of SG, it is possible for users to receive a higher cash back value than usual, and for users to be able to participate in Shopping Mining™ at premium retail stores that ordinary users cannot participate in.
In this type of loyalty program, the short-term SG sellers will decrease. In other words, like stable shareholders, the number of long-term SG holders will increase. This results in a tightened supply and demand, leading to an increase in SG’s asset value.
4．The Operating Company’s Continuous Buyback
Funded by the continuous coin sales and revenue from advertising, the operating company will continuously repurchase SG from the market in order to be able to grant it to users.
This is illustrated in the following diagram.
The Coin’s Value Rising Mechanism
To cover the SG required for Shopping Mining™, SG will be bought back from the market as much as possible rather than issuing new coins, in order to maintain SG’s healthy asset value.
Yet, in regards to buying back SG, so as to not fall under price manipulation, an appropriate internal control system has already been established.
(3) All Parties Have an Incentive to Increase SG Users
As shown below, all parties have an incentive to increase in SG user numbers.
- Since SG holders realize that the “increase in SG users leads to the rise in the value of SG,” there is an incentive to recommend people they know to shop at Amazon, Alibaba, Apple, and eBay via “SocialGood Cashback.”
Also, since all users will only get SG for free, there is no risk for anyone to introduce the people they know.
- Partner retailers: If the operating company conducts a campaign where “if users shop at Company A now, they will get 20% cash back,” this will lead to sales promotions for Company A. It is possible to plan various campaigns at which Company A can expect more sales than the advertising expenses incurred to pay the operating company. In general, retail sales are known to increase by 20% -30% when discount campaigns are implemented. Therefore, affiliated retailers have an incentive to introduce “SocialGood Cashback” to their own customers proactively.
- Cryptocurrency exchange companies: SG can be obtained free of charge just by shopping via "SocialGood Cashback." In order to exchange SG, it is necessary to open a cryptocurrency exchange account. Therefore, from the point of view of cryptocurrency exchange companies, SG will act as a “bridge” that will bring people who have never been interested in cryptocurrency before to the cryptocurrency world. Therefore, cryptocurrency exchange companies have an incentive to actively promote “SocialGood Cashback” in order to increase the number of new accounts opened.
- Operating Company: Since the growing user numbers increase the “coin’s market cap,” “coin sales,” and “advertising sales,” there is an incentive to actively increase the user numbers. For the team, if the coin’s market cap reaches US$5 billion, there will be an economic incentive to provide new coins (similar to a stock option).
- Society: The more the Social Good Ecosystem™ expands, the better it is for society because a portion of all the sales generated in the ecosystem are automatically donated to organizations that contribute to society.
Especially since SG holders, retailers, cryptocurrency exchanges, the operating company and society will all be put into a Win-Win situation, SG users will steadily increase.
(4) Comparing SocialGood with Bitcoin & Libra
Since Bitcoin has an issuance limit, it has asset value. However, there is no exchange value guarantee. Libra’s operating company guarantees the exchange value with fiat. However, Libra does not have asset value.
SocialGood (SG) has both asset value and an exchange value guarantee.
SG Coin: Comparison Chart