The BBS Token ($BBS) is a crucial element of the BBS Network. I think its importance and inseparability from the network infrastructure is sometimes overlooked. Some, myself included, have thought of it like a share of a company. But $BBS is more than that — it is integral to the network’s functionality as a digital ecosystem. Let’s explain what the BBS token actually is, and why it operates more like a currency than most digital assets.

What is $BBS? 

$BBS is a digital token, that can currently operate on three blockchains: Ethereum, Binance Smart Chain and EOS. There is a limited supply of 1 billion BBS tokens. Now, it’s important to note that $BBS is not just a digital token extrinsically associated with the BBS network. Rather $BBS is integral to the network. It’s inherently connected to it. $BBS is what enables for economic activity on the BBS Network. You can buy ad space in $BBS, your posts are rewarded in $BBS. It is absolutely inherent everything that goes on here.

One could say that $BBS is to the BBS Network what the US Dollar is to the US Economy. It’s not just a token associated with the system’s economic performance, but inherently and necessarily part of its functionality.

Why create a new token in the first place?

You might be thinking — and you would be making a wise observation — why do you need a special BBS token for economic activity on the network? Why not use Bitcoin, EOS, or just the USD?

Here are a few reasons.

1. You need a currency that is native to the public database of posts

All BBS data is recorded on the EOS blockchain. If you used bitcoin or the USD to purchase BBS posts, then any transaction that would occur outside the ecosystem could not be recorded on the EOS chain, as EOS nodes wouldn’t be aware of it. Imagine I was rewarded Bitcoin for this post, and then bought a coffee with it. On the EOS chain, it would still seem that I have the money. So you need something native to EOS, or least something that communicates with the EOS blockchain. Bitcoin or the USD does not.

2. Game Theory

Technically, therefore, you could use $EOS or $ETH. But it’s important to have a token unique to the BBS Network. First, having a unique token provides a strong game theory incentive structure. Simply put: BBS users generally want the BBS network to do well, because by virtue of their holding of BBS tokens, they are stakeholders. If the USD was used, there is little at stake for users, monetarily.

3. Governance

Additionally, a unique token is necessary for the DAO. Those who stake the token participate in governance.

4. Funding

The deWeb company need an asset to sell in order to raise funds to develop the project.

Security asset, or a decentralised token?

There’s a lot of talk around whether crypto-tokens other than Bitcoin are actually unregistered security assets. The last point I mentioned — funding — may make you think that BBS is more like a security asset. My personal opinion is that it is, and there’s nothing wrong with that. Ultimately, investors and founding members were rewarded with BBS tokens, like shares in a company. But $BBS is not quite a share.

BBS as a currency

What makes $BBS more than just an asset you “hodl” forever is that it must be used in order to participate in economic activity on the BBS Network. In other words, it is a medium of exchange — money. $BBS is the currency of the BBS Network.

This doesn’t mean it’s not a security asset. We just don’t have a good legal term for it yet. 

Price Action

The above makes clear that the market value of $BBS is positively correlated with the growth of the BBS network because $BBS is an innate part of the Network.

As the BBS Network grows, the token’s market value will increase. By how much? Who knows.

Let me know what you think,

Yoav