The Ink Token (XNK) exists as a cryptocurrency on the Ethereum blockchain. It's designed to be used both inside and outside of Listia, and so its price is not in Listia's control. The goal for Ink is to become a widely used method of payment for goods and services, with Listia being just one of many marketplaces that support it.
During the Ink Token's initial sale that concluded in January 2018, Ink was sold to participants at a rate of 1 XNK = $0.14. Since the token has been released to the public and has launched on Listia we now use market-based pricing for XNK (see below).
Converting Credits to Ink
During the transition from credits to Ink, Listia will allow members to apply their remaining credit balances toward listings (including listings priced in Ink) and optionally directly convert their non-purchased credits into their Ink balance. In both of these cases, Listia will value credits as follows:
- Listia will fix the value of credits at 27,500 credits = $1
- Listia will use the initial token sale price of Ink and fix its value at 1 XNK = $0.14
- Therefore, Listia will allow members to:
- Apply credits toward Ink listings at a rate of 3,850 credits = 1 XNK
- Convert non-purchased credits for Ink at a rate of 3,850 credits = 1 XNK
Note that the locking of 1 XNK as $0.14 happens only when converting/applying credits toward Ink. By contrast, for other features such as reloading your Store Credit balance or paying for a listing priced in Ink with a credit/debit card, we will use the market price for Ink.
Similar to other cryptocurrencies like Bitcoin or Ether, the value of Ink will eventually be market-based. Many cryptocurrencies are traded on exchanges, and can be bought and sold using USD or even other cryptocurrencies.
This means that at any point in time, the price of 1 XNK is based on what the current going price is on any exchanges that trade it.