Today, we want to introduce the WPR token to our readers. This is the WePower token. The reason it caught our attention is because it has something very unique – the value of the WPR token is literally backed by green energy. By holding the WPR token, you can access energy. Hold enough tokens (and live where the projects backed by WePower are located) and simply by virtue of holding them, you can get free power. That’s a very unique value proposition than many of the other crypto projects in the marketplace today.
So what’s the story behind WPR? Glad you asked. Let’s dig into this token a little bit.
Energy Backed Crypto Token
WePower is a green energy trading platform, which lets investors back green energy projects. The projects in turn repay the investors not in dollar terms, but in energy terms. The WPR tokens in turn accrue a percentage of the transactions, specifically 0.9% of the power returned to investors is sent cumulatively to the WPR token holders.
Since the payments are happening in energy, the WPR holders get a small amount of energy. This is different from dividends! The WPR token holders can use the energy if they are near a WePower power source. If not, they are free to sell their energy tokens in the free marketplace for others to purchase.
Although WPR isn’t the first energy based crypto token, the value proposition is fairly unique as far as we have seen. The WPR token should retain value beyond mere speculation, because the token holders can use the tokens to pay for electricity. The WPR tokens should be valuable for that reason beyond just trading and speculation that are currently rampant in the crypto markets.
Role in Real Economy
Let’s be real – the world needs more energy over the coming years and decades, as billions rise out of poverty into ‘first world’ levels of living. The energy sources we have today aren’t sustainable. We need more green energy sources and projects to come online.
The way to do this so far as been through political action, but as countries like the United States have shown, this is far from easy and one powerful country can derail all the plans. What’s the alternative then?
Well, simple – let the market economy fund the generation of the next decades of green energy projects. The marketplace and investors can take the risk for onboarding these new projects. Governments can help via subsidies whenever they can, but if not, the free market is capable of driving the price down.
This makes WPR token immediately attractive to a wide array of real world energy uses. The WePower network will fund new green energy projects in a marketplace, let investors put down the money, and then get repaid from the successful execution of the project. The interesting thing is that the repayment happens not in local currencies or even cryptocurrencies but in terms of energy. Therefore, the investors in the projects get returns in terms of energy. The whole ecosystem, therefore, that WePower is building, revolves around payment and repayment in terms of energy.
The WPR token accrues energy in the transaction fees of 0.9% paid to the WPR token holders. Therefore, for every 100 MW of energy being added by the WePower network, 0.9 MW of that energy is distributed to the WPR token holders. You can directly use this energy if there’s a power source in the WePower network near where you live. If not, you can just sell in the marketplace at a market rate.
WePower therefore finds a way to combine crypto-tokens with the future of green energy. That should appeal to a wide array of investors in and outside the blockchain space.
If you’re curious for more, check out WePower.
Photo Credit: Kimco Reality