Triall is building the world’s first digital ecosystem for clinical trials. Underpinning this ecosystem is a two-token system consisting of our main utility token TRL and its internal counterpart T-CRED. Our token system is designed to facilitate fair and equitable sharing of benefits and access among all stakeholders in the ecosystem by enabling P2P compensation, governance, and community engagement. Put differently, it lays the groundwork for a self-sustaining ecosystem in which a multi-stakeholder community is incentivized to add and capture value. In this article, we will explain the main technicalities and value drivers of TRL, our two-token system, and its underlying token economics.
What is a token?
A token is a digital unit of value that exists as a registry entry on a blockchain ledger. Tokens come in many different forms and can be classified according to various characteristics. The two most prominent token categories are utility tokens and security tokens. Utility tokens generally represent access to a service or can function as a medium of exchange within an ecosystem. Security tokens, on the other hand, represent financial assets, such as tokenized company shares.
Triall’s two-token system
As part of growing our blockchain-enabled digital ecosystem for clinical trials, Triall will introduce a two-token system consisting of our main utility token TRL and its internal counterpart the Triall Application Credit (T-CRED). T-CRED gives the right to enter and use the services in the Triall ecosystem. It is the only token that can be used to pay for Triall solutions, can only be created by converting TRL, and is intended for use and adoption within the clinical research sector.
Triall’s two-token system is developed on Ethereum using the ERC-20 standard. Ethereum has the most widely distributed infrastructure for generating tokens, as demonstrated by the thousands of ERC-20 tokens issued, used, and traded to date. Leveraging Ethereum allows us to distribute access to a wide audience while using an infrastructure that has been proven to be scalable and secure.
What is the utility of this two-token system?
Let’s explore the utility of TRL and T-CRED within the ecosystem:
- Access to ecosystem utilities: TRL offers access to the applications and APIs offered within the Triall ecosystem, facilitated through the conversion of TRL to T-CRED.
- Direct Peer-to-Peer (P2P) payment of stakeholders and clinical trial participants: Both TRL and T-CRED will function as a common currency in the ecosystem. They enable fast and secure payment of stakeholders who contribute to the ecosystem and enable automated milestone-based payments to the parties involved in a clinical trial consortium, such as clinical research sites or research subjects.
- Community Engagement & Platform Maintenance: TRL is used to compensate and incentivize the community for contributions to the ecosystems. Some practical examples include:
- Clinical research quality management experts sharing best practices within our public knowledge base environment (Trialwiki);
- Academic Institutions and research centers sharing ‘big data’ for improved analytics and risk-based monitoring.
- Developers contributing to the infrastructure, such as bug bounty hunting or user experience testing;
- Community members building wallets, APIs, or promotional websites.
- Governance of the Ecosystem: TRL functions to engage stakeholders in setting the course for the ecosystem (e.g. which apps to build, what community initiatives to support). Voting rights are based on individual TRL (or T-CRED) holdings and are increased through membership tiers.
- Memberships & community rewards: Members who lock-up their tokens will receive unique benefits, such as premium features and additional voting rights. This mechanism approach will stimulate community growth and network effects. We have a unique system that differentiates between memberships for clinical research professionals and community rewards for token holders.
We will now dive a bit deeper into the core utility of our token system: providing access to the ecosystem.
Registration for our token sale will open soon. Want to be part of a #blockchainforgood initiative? We welcome both retail and institutional investors to register their interest by signing up through our website (triall.io).
Access to ecosystem utilities
A tokenized SaaS-model
Triall solutions are offered under a Software-as-a-Service (SaaS) subscription model, where T-CRED is used to pay subscription fees. Clients wishing to use any of the Triall solutions need to ‘charge’ their account with sufficient T-CRED, which are then periodically released to the corresponding SaaS provider (e.g. Triall or a connected third-party solution provider). A proportion of TRL tokens is therefore effectively removed from the circulating supply for all active subscriptions. Initially, a pre-payment period of 6 months is maintained, but Triall may choose to alter the pre-payment period as agreed upon contractually with clients.
A fixed conversion rate
T-CRED is created by converting TRL at a fixed price of $100,- through a smart contract and oracle. The token is transferable, not burned by use, and can be converted back to TRL. This two-token system is designed to not expose end users to the volatility of TRL. It makes the costs of using Triall solutions predictable, and thereby limits continuity risks and promotes adoption.
Token burn policy
T-CRED can only be converted back to TRL at a reduced rate, where a percentage of tokens is permanently burned (see figure below). Initially, Triall will implement a 2,5% token burn policy for converting TRL back to T-CRED, but this percentage may be altered at any time depending on market supply and demand. This token burn policy serves to mitigate conversion of T-CRED to TRL by individuals for potential ‘trading’ purposes (i.e., due to the token burn, such individuals are more likely to use public or decentralized exchanges and (pegged) fiat currencies).
Implications for total supply: stimulating a deflationary trend
The total supply of TRL is not fixed, but rather fluctuates around an equilibrium point with an estimated downtrend over time. Initially, a total of 175 million TRL will be created at our token generation event. When TRL tokens are converted to T- CRED, the total supply of TRL is temporarily reduced. As soon as T-CRED is converted back to TRL, the supply of TRL tokens is restored again. In the time between conversions, the dollar value of TRL may (1) increase, (2) remain the same, or (3) decrease. The new TRL price will determine how many TRL tokens are issued when T-CRED is converted back to TRL, and will thus affect the total TRL supply, as illustrated by the scenarios below.
- Scenario 1 – TRL value has increased: T-CRED is converted at a lower TRL conversion rate. In this case, 1 T-CRED is now worth less in TRL than the amount at which it was created. An additional 2,5% of this amount is burned through the burning mechanism. The total TRL token supply is reduced.
- Scenario 2 – TRL value has remained the same: T-CRED is converted at the same TRL conversion rate. In this case, 1 T-CRED is still worth the same in TRL as the amount at which it was created. However, an additional 2,5% of this amount is burned through the burning mechanism. The total TRL token supply is reduced.
- Scenario 3 – TRL value has decreased: T-CRED is converted at a higher TRL conversion rate. In this case, 1 T-CRED is now worth more in TRL than the amount at which it was created. Nevertheless, 2,5% of this amount is still burned through the burning mechanism. The total TRL token supply is increased (if the decrease in TRL value outweighs the 2,5% token burn)
Lowering the (crypto) barrier to entry for end-users
To ease adoption for the end-user, Triall offers the option to pay in fiat currencies for the use of Triall solutions. In this scenario, TRL tokens are (always) purchased on behalf of the client. This will effectively remove a major barrier to entry for certain users who do not want to deal with fiat-to-crypto conversion or adopt crypto storage solutions in their business conduct. Triall (or a service provider) will in this case purchase TRL on behalf of the client (e.g. from the public market) and convert them to T-CRED, to further ensure sustainable demand for TRL. Nevertheless, paying directly in T-CRED is encouraged as product pricing is discounted for those that do so.
TRL value drivers
Triall will pursue the listing of TRL on a growing number of crypto exchanges to promote the liquidity of our main utility token. As a publicly tradeable token, the value of TRL will be determined by market supply and demand. Therefore, the token economics of TRL are designed to limit supply and drive demand. The figure below gives an overview of the main value drivers of TRL.
The supply of TRL is limited by reducing the total circulating supply through various token lock-up mechanics. In addition, our tokenized SaaS subscription model provides additional stability as TRL tokens are removed from circulation each time a new client is onboarded. Moreover, our conversion mechanism and token burn policy stimulate a deflationary trend where the total TRL token supply is expected to decrease over time, creating additional upward pressure on the demand.
The demand for TRL is driven by increasing the utility and boosting the adoption of the ecosystem. Over the course of developing the Triall ecosystem, we expect to see a strong increase in TRL token utility and market demand driven by the growth of the ecosystem (and associated network effects). To this end, our team’s core focus is the successful release and commercialization of a growing number of Triall solutions.
TRL lays the groundwork for a self-sustaining ecosystem in which a multi-stakeholder community is incentivized to capture and add value to the ecosystem. Its underlying token economics are designed to foster a healthy and sustainable micro-economy, which is vital for stimulating ecosystem growth, network effects, and long-term sustainability.