What is the SwissBorg token (CHSB)?
17 August 2021
The SwissBorg token (CHSB) is a cryptocurrency that powers the SwissBorg ecosystem.
It is a multi-utility token, meaning its holders get exclusive benefits in the SwissBorg ecosystem, and at the time of writing there are nearly 100,000 investors who hold this token. Many of these investors date back to the SwissBorg ICO in 2017.
What is CHSB?
As mentioned above, the SwissBorg token is a cryptocurrency, just like Bitcoin and Ethereum are cryptocurrencies. The full name of the token is SwissBorg, while the abbreviation is CHSB (like how Bitcoin has the abbreviation BTC, and Ethereum has the abbreviation ETH).
Two key concepts to understand about CHSB are that it is an ERC-20 token, and that it is a multi-utility token.
CHSB: The ERC-20 token
Being an ERC-20 token means that CHSB was built on top of the Ethereum blockchain, using the ERC-20 token standard, rather than SwissBorg creating its own blockchain and smart contracts to make blockchain products.
The advantages of building on an existing blockchain are that projects can develop tokens much more easily, and that as more applications adopt existing standards, more applications will continue to adopt them, leading to interoperability between more tokens and protocols. Tokens built on existing blockchains also benefit from the chain’s existing scalability and security, which is a big plus for CHSB.
Unsurprisingly, many of today’s most popular cryptocurrencies are ERC-20 tokens.
CHSB: The multi-utility token
The SwissBorg token is also a utility token. This is a term that was first introduced in 2016, and refers to cryptocurrencies that are issued to fund the development of the cryptocurrency, along with allowing holders to interact with a company’s services.
This is different to a security token, which gives holders voting rights (similar to how shareholders are able to vote on the direction a company takes). Instead, utility token holders are given benefits in exchange for holding tokens.
What are the CHSB token’s utilities?
The most important question to ask yourself before buying a cryptocurrency is: what is the purpose of the cryptocurrency I’m buying?
Bitcoin miners are incentivised to mitigate the double-spend problem. Ethereum miners are incentivised to operate a distributed application development platform. These incentive mechanisms and operational governance are called token economics.
Unlike protocol layer tokens such as Bitcoin or Ethereum, ERC-20 utility tokens provide a layer to build consumer platforms. For instance, one of the most successful case studies is the BNB token, a utility token that works just like discount coupons when trading on the Binance exchange. This utility token also includes voting and has incorporated a buy back and burn mechanism.
In CHSB’s case, CHSB holders are incentivised with a range of utilities, including the CHSB Yield Program, the Community Index, Protect & Burn, Premium benefits and governance rights.
The CHSB Yield Program
Investors who hold CHSB in the SwissBorg app have the opportunity to earn a yield on their tokens. This means they put their tokens into a yield wallet, and those tokens will earn a passive yield for every day they are in the wallet.
The Community Index
The Community Index is a score used to measure the health of the SwissBorg ecosystem, and this score is used to calculate the yield on CHSB.
The different areas the index considers are the volume of assets held in the SwissBorg app, the price of the CHSB token, the level of activity in the SwissBorg app, the level of activity in the Crypto Challenge app, the engagement in the SwissBorg DAO, and the engagement among SwissBorg’s social media audience. The higher the score is in each of these areas, the higher the Community Index will be. This then leads to a higher yield on CHSB, making it a great incentive for CHSB holders to continue engaging with the ecosystem.
Protect & Burn mechanism
The CHSB Protect & Burn mechanism is a core part of maintaining a successful token economy. In macroeconomics, the law of supply and demand is one of the fundamental drivers of value, where:
(-) Less supply and (+) more demand = rise in value.
Simply, SwissBorg reserves 20% of the revenue earned from fees in our app and sets them aside for the Protect & Burn program. If CHSB’s price moves into a bearish zone, those funds are used to buy back tokens from the market and destroy them, permanently removing them from circulating supply.
This creates a virtuous cycle as, at the same time as we reduce supply through burns, demand for CHSB continues to increase over time, due to the growth in the SwissBorg community and more utilities being added to the token.
SwissBorg Premium benefits
CHSB holders can also lock their tokens for 12 months to receive Premium account benefits. At the time of writing, there are two Premium tiers available - Community Premium and Genesis Premium.
All Premium users benefit from a yield multiplier (meaning, they will earn a higher yield than standard users for all tokens they have in yield wallets) as well as reduced fees on exchanges (as low as 0%!)
- Community Premium benefits: Lock 2,000 CHSB to earn a 50% higher yield and 25% less in fees.
- Genesis Premium benefits: Lock 50,000 CHSB to earn 100% more yield and between 75%-100% less in fees.
While the SwissBorg token is not a security token, it does offer some opportunities to help shape the future of SwissBorg. In 2018, we ran two referendums for our token holders, which were the first referendums held on the blockchain.
And in 2021, we launched the SwissBorg National Council, which is a council of 200 members of the SwissBorg community who can propose initiatives for SwissBorg to add to the development roadmap.
The future of CHSB
CHSB was minted in an ICO in 2017, with a total maximum supply of 1,000,000,000 CHSB. (No more CHSB will be ever created on the Ethereum Blockchain.) There were nearly 24,000 participants from 149 countries, and the price of CHSB was set at $0.10.
At the time of writing, CHSB has nearly 100,000 holders, just in the SwissBorg app. Over 170 million tokens are locked by over 18,000 users for Premium benefits, and over 330 million are held in the CHSB yield program. Nearly 7 million tokens have been burnt, bringing the remaining circulating supply to less than 200 million.
Our CHSB has already come so far, from an all-time low of $0.004 to a recent high of $1.65, and we are confident that the future is bright.