During 2019 we’ll witness several blockchain-based companies launching promising projects which will aim to integrate technology for the benefit of all the people. It is the case for the project developed by the Social Good Foundation, which will provide a Cashback for users to purchase products from companies taking part in the ecosystem.
What is the Social Good Foundation?
The above-mentioned project is being developed by Social Good Foundation from Tokyo, Japan, in coordination with its wholly-owned subsidiary, Social Good Foundation Malta Ltd. The foundation plans to expand at the global scale with its first social contribution token ecosystem through the SocialGood cryptocurrency (SG token).
The ecosystem mechanism in a nutshell
A project developed using the blockchain technology combined with Artificial Intelligence, the SocialGood Cashback ecosystem relies on the SG token, an Ethereum ERC-20 compliant cryptocurrency.
According to the information provided by the company, a number of 17,727,258.918 tokens will be issued in the 2019 fiscal year and the maximum issuance limit had been set at 210,000,000 SG tokens.
The token ecosystem mechanism is based on the traditional demand-supply principle. With a limited number of tokens issued (meaning a limited supply) and no limit in terms of demand (a successful project can attract a lot of buyers).
This structure is not new at all and it is intended to preserve and support the SG token’s value and thus rewarding the investors who hold SG for longer periods of time. If more SocialGood Cashback users will purchase goods, there will be an increasing demand for SG tokens, which makes the SG price inclined to rise in value over time.
The same principle works for the currently-largest cryptocurrency in the world – Bitcoin. Launched more than 10 years ago, Bitcoin had been gradually increasing in value over time, and despite the selloff which took place during 2018, at the present time Bitcoin is valued at $4,000 per piece. Although the performance was bumpy, long-term Bitcoin investors had been the biggest beneficiaries.
The Social Good Ecosystem has the same purpose of preserving long-term value and reward people for buying products online. As the traditional capitalistic system is generally beneficial for high-net-worth individuals, the Social Good Project is targeting to reduce inequality and give back to the people cashback payments using the SG cryptocurrency.
During the span of 2019, the Social Good Foundation will conduct token sales to wise investors who are interested in the project. The company will then use the funds raised to invest in the business, conduct advertising and run buyback-type operations, which imply that the company will collect the SG tokens that are out in the market.