Utility tokens have value, but they cannot be considered money as straightforward as a coin. They can provide value to investors in different ways. They give users access to a future product or service, as in the case of LORC. Investors can buy these tokens and use them as a means of payment and staking on the platform developed by the issuing company.
LORCs are utility tokens based on the ERC20 standard and provide the sole means for staking on property development projects on the LandOrc platform. The ERC20 standard has been used to create new tokens in the cryptocurrency space for some time. This technical standard dictates several rules and actions that an Ethereum token or smart contract must follow and steps to implement them. It is perhaps easiest to think of ERC20 as a set of basic guidelines and functions that any new token created in the Ethereum network must follow.
LandOrc’s Smart contracts using ERC20 allows for Digital Asset owners and crypto-investors alike to be assured of a defined annual percentage rate based on the period of staking. Staked LORC is then transferred into the platform wallet and distributed to a local special purpose vehicle or SPV for conversion into fiat currencies and then distributed to real estate owners and property developers under the terms of LorcFinancing. LORC can also be swapped or bought from exchanges, and its value will vary depending on the market dynamics of the crypto ecosystem.
Creating a token is easy, but it takes professional intelligence to keep it valuable in the long run. LandOrc is aware of this. LORC is the only means for people to stake or lend in the LandOrc platform. They have limited pre-minted tokens, which is only 21 million. Only 60% is made available for sale; hence the supply is limited. The total tokens are minted based on the NFTs coming into the platform. That confirms the supply is in sync with the demand on the platform.
The LORC tokens are bought and sold during the conversion of LORC into fiat and vice versa. So, there is going to be a lot of activities with LORC on the exchanges. The staking on the platform is expected to deliver returns of between 15% — 20% per annum based on the APR. By using the Dividend Discount Model, LORC tokens should increase 3X. That is even before any speculative price increase. LandOrc has completed its private sale recently with a discount of 20% and will be listed on exchanges soon at USD 1 per token.
Sources:
https://ethereum.org/en/developers/docs/standards/tokens/erc-20/
https://www.investopedia.com/tech/why-crypto-users-need-know-about-erc20-token-standard/
