ZeFi on BSV - How do ZAT Tokens Pay 10% Per Year?

Article
OutputIntern

5 months ago by OutputIntern

On 21st June 2021, Zatoshi launched his ZAT Tokens on RelayX. This article will highlight some of the key points and statistics related to ZAT, with the video going more into analysis and commentary.

Some questions I try to answer:

  • Where does the 10% interest come from? How does he pay if BSV goes to $1k, $10k or higher?
  • Who is Zatoshi and how do I know he won’t rug pull?
  • What benefit does minting ZAT Tokens bring Zatoshi?

The Basics of ZAT Tokens

  • 10% interest paid out to ZAT holders on 9th January every year, for 5 years. Interest payments are in BSV.
  • 10% discount on all products at http://zatoshi.xyz shop when you pay with ZAT
  • 1 ZAT is being sold for 0.01 BSV each

The 10% discount I think is quite self-explanatory. When you shop at www.zatoshi.xyz/shop, you can checkout and opt to pay using ZAT, which will give you a 10% discount on what you buy.

What people are probably most interested in is the 10% interest here paid out in BSV to ZAT holders. The basic gist is this 10% interest is coming out of Zatoshi’s own pocket. In a tweet he made in February this year, he said that he had given away close to 600 BSV through his twitter account. He has been running daily give aways ranging from daily penny pings to your Handcash wallet or larger give aways to random people entered in a Pickaw seed draw. These give aways range from $33 to $100 in BSV, and there’s been also a 1BSVClub give away where he gives 1 BSV to someone random.

If we look at ZAT Tokens as an extension of his giveaways, the total amount Zatoshi will end up giving away each year is the 10% interest payable, which if all ZAT Tokens sell out would be 333 BSV in interest payments. He has already given away nearly double that amount, so this 10% interest payment does not appear to be a lot for him.

As noted in the Don’t Buy Tokens Podcast, it does not make financial sense for Zatoshi to use the BSV raised in the ZAT sale to invest or cover the expenses of an existing business as it would have been much better to do this on a stablecoin instead of BSV. The price volatility of BSV potentially jumping to $1,000 or higher in the future would make interest payments very expensive. This is why i believe Zatoshi is using ZATs to optimise his existing giveaways, which I detail more in the video.

Risks

Ultimately ZAT Tokens are based entirely on having trust in Zatoshi. There’s nothing else that secures the BSV you send to him in exchange for ZAT. Given his identity is pseudonymous there might also be difficulties in pursuing legal action in the future if ZAT tokens were a form of rugpull or ponzi scheme.

What purchasers of ZAT Tokens are banking on would be the reputation of Zatoshi. He is very well-known in the space - having singlehandedly brought several thousand new users to the BSV space via his giveaways and promotion of BSV apps like Handcash and Twetch. He has also sponsored the Coingeek Weekly Livestream show with Kurt Wuckert Jr, was co-creator of the Nakamoto Watch which was featured at Coingeek Zurich recently and has developed an app called Mitto.cash, which lets users send BSV to people’s emails.

Factsheet:

  • 333,333 supply
  • 0.01 BSV per 1 ZAT.
  • Zatoshi guarantees to buyback on 10th January 2022 +10%.
  • 10% discount on all items at zatoshi.xyz if spent using ZAT.
  • Second highest grossing volume day of the REX. Highest volume day was with SHUA launch that went over $100,000 in volume. ZAT Tokens did $74,000+ of 24hr volume.
  • As of 25/06/21, 900+ BSV worth of ZAT Tokens have sold.

Resource Links

If you would like your token analysed, you can buy TXLC to redeem for a report