How to Earn and Burn BMJ Reward Tokens

On January 1, we dropped our new BMJ Reward Token, and we intend to kickstart the next wave of growth across the crypto industry. Read more here.

Premium members can receive BMJ tokens each month (airdropped to their crypto wallets), which they can spend on great crypto merchandise that’s not available anywhere else in the world. See rewards here.

Our mission is to welcome the next 100 million investors into crypto. Our BMJ reward token is not an investment, but an easy “on ramp” to welcome more people into crypto.

In today’s post, I’ll talk about the tokenomics we’ve designed into our BMJ reward token, which we hope will become a new industry standard for usability and transparency.

Two Words: Earn and Burn

In a nutshell, when your monthly Premium subscription renews, you earn tokens. When you redeem your tokens for rewards, you burn tokens.

This is a big step forward for the crypto industry. Instead of complex, confusing token schemes nobody understands, it’s so simple that it’s obvious.

• When money goes in, we create tokens.
• When money goes out (in the form of redeeming a reward), we destroy tokens.

We call this “earn and burn.”

You only earn tokens when your membership renews. This means there is real money behind our token in the form of real company revenue.

We burn tokens when you redeem them for rewards. This keeps the supply in check instead of constant and continual inflation, as most crypto projects are used to.

Earn and burn. Earn and burn. Earn and burn. Say it three times fast!

This focus on real revenue (earning) and real rewards (burning) means the BMJ token represents something radically new to crypto.

It measures a new metric we’re calling Real Revenue Earned.

Real Revenue Earned: A New Metric for Crypto

Few crypto projects make any money. Even fewer are profitable.

For those of us earning real dollars from real customers, wouldn’t it be awesome if you could see how much we’re earning?

This is the transparency the industry so desperately needs, especially now.

A customer signs up for our Premium membership, they enter a credit card, and we get a recurring monthly payment of $10. That’s real revenue from real customers.

Every month, when their subscription renews, we mint 10 BMJ tokens and send them directly to the person’s wallet.

That means by looking at our on-chain wallet, you can see how much we’re earning each month along with our total earnings to date.

This metric (Real Revenue Earned or RRE) is not possible for most blockchain projects because they’re not earning real money.

RRE is also not an option for most private companies because they don’t want you to know what’s going on. Even public companies would rather hide their individual product revenues or bury them in hard-to-read financial statements.

(Of course, our subscribers remain anonymous. Like all crypto transactions, all you can see are anonymous wallet addresses.)

RRE is radically transparent, and that is 100% in the spirit of crypto. We believe companies with the courage and foresight to record RRE on the blockchain will be rewarded with massive public interest.

Who wouldn’t be interested in companies where you can see revenues in real-time?

A Vision of Fair Tokenomics

Stablecoins have flourished, in part, because they’re simple to understand. You put $1 in, you get one stablecoin out. That’s fair.

Similarly, we’ve kept our reward program simple to understand.

We only mint when real money is received. We don’t artificially create tokens to reward other behaviors like reading articles or sharing a tweet. This is critical to maintaining the economic integrity of the system, and it’s simple for users to understand.

In other words, value in, value out.

This gives BMJ tokens real monetary value, setting them apart from security tokens, speculative tokens, and the like. This simple principle (value in, value out) isn’t just easy to understand; it’s fair.

This also means no premining. Tokens are only created when economic value is created… No junk.

We call this approach “Fair Tokenomics,” where every reward point reflects fresh capital. In fact, it creates fresh capital because for every $1 in revenue earned, $2 in value is created. We’ll talk more about this in a future column.

We anticipate the BMJ Reward Token, with its Fair Tokenomics and Real Revenue Earned, will kickstart two great movements:

1) Reward programs will begin moving to blockchain. Reward programs (from frequent flyer miles to Starbucks Rewards) are such obvious use cases for blockchain that we know they’ll flourish. We hope they’ll be designed with Fair Tokenomics and RRE in mind.

2) Companies will begin sharing Real Revenue Earned (using Fair Tokenomics), which will give crypto the transparency we need to rebuild confidence. By sharing RRE, crypto projects will be even more transparent than traditional companies… not by regulation, but by design.

In short, BMJ Reward Tokens are reward points set free on the blockchain.

It’s a grand experiment, and we hope you’ll join us.

More columns will come this week on our journey to bring this token to life. Tomorrow, we’ll talk about why we chose Ethereum (not another blockchain or Layer 2 solution) to launch our history-making token.

Stay tuned. It’s going to be rewarding.

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