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With governments legalizing marijuana faster than the financial industry’s ability to support cannabis related transactions, blockchain technology is playing a critical role in the development of the rapidly growing cannabis industry.
Canada, which has allowed medical marijuana for the past decade, will legalize recreational marijuana by the summer of 2018, according to Canadian Prime Minister, Justin Trudeau.
In the U.S., 29 states including the District of Columbia, Guam and Puerto Rico offer medical marijuana programs, with 19 more states allowing limited access to marijuana-related products.
While legal cannabis already represents a multi-billion-dollar industry, most cannabis enterprises cannot open bank accounts, engage POS systems and accept credit card payments. As a result, the nascent industry has been stymied by the need to use cash as the main transaction medium.
Blockchain Supports Cannabis
Blockchain technology offers an important tool to allow the cannabis industry to prosper.
Most cannabis businesses currently use cash to pay for rent, inventory, labor, taxes, and all cannabis related B2C and B2B transactions. Working with cash proves to be very inconvenient, as businesses are restricted from making large bank deposits to avoid being investigated on money laundering charges; they are also unable to make online payments, expand supplier networks, and provide financial transaction transparency and security.
CannaSOS has been operating since 2014 and is in the process of using blockchain technology to create a multi-level, non-cash transaction platform, the Ethereum-based, ERC20 PerksCoin Token Transaction Platform, PTP.
The PTP platform will accomplish the following:
a) Create and withdraw PCTs from circulation for token liquidity.
b) Ensure security, transparency, and safety of all PCT-based transactions.
c) Serve as a mediator between sellers and buyers.
d) Remove middleman and associated costs for selling tokens.
e) Offer a secure sale feature to protect buyers from unverified sellers.
CannaSOS will also design a global loyalty program for both online and offline retail and wholesale businesses. The system will integrate with any POS, using PCTs as incentives.
PerksCoin will be universal and will also have the ability to be used in any industry. The company is currently partnered with three POS companies and two payment processing companies.
Social And Advertising Functions
The CannaSOS platform includes social and advertising components that have served the global cannabis industry since 2014. The social platform has evolved into a free-to-use cannabis strain database, a business directory, an advice and news section, and more.
The advertising platform provides marketing and promotion tools similar to Google AdWords and Facebook, including options such as business membership, sponsored articles, and banner ads.
CannaSOS will also launch a marketing campaign to educate existing CannaSOS users and participants of online cannabis marketplace on benefits of using PCT token.
Secure Financial Services
A “secure sale” service will reduce fraud in the marketplace while stimulating sellers to build trustworthiness. The feature will include escrow, arbitration and appeal services.
The escrow service will ensure fulfillment of promises outlined by the seller. The funds payable by the buyer upon purchasing a product will be held in escrow until the product is delivered. The system will use tracking and client feedback mechanisms to confirm delivery of goods within a specified time frame. Once the buyer confirms delivery, the funds will be released to the seller.
The arbitration service will establish seller trustworthiness and govern product quality. Should a seller fail to deliver a product within an agreed time frame, or the delivered product fails to meet its description, the buyer can request a refund.
The arbitration mechanism will engage participants of the blockchain via voting. A party at fault will be subjected to a fine. Tokens seized as a fine will be withdrawn and destroyed.
Token Sale Begins
A total of 100 million PCT will be created with no further production of tokens. In time, token demand will increase.
From Nov. 25 to Dec. 11, a 40% discount on 10 million tokens are being offered at $0.48 per token.
From Dec. 11 to Jan. 2, a 30% discount on another 10 million tokens will be offered at $0.56.
From Jan. 2 to Jan. 18, a 25% discount will offer 10 million tokens at $0.6.
From Jan. 18 to Feb. 5, a 15% discount will offer 10 million tokens at $0.68.
From Feb. 5 to Feb. 19, a 10% discount will offer 10 million tokens at $0.72.
The nominal PCT price is $0.80 USD.
A total of 10 million tokens will be allocated to a controlled reserve to maintain price support for the tokens. These tokens can be bought or sold to keep the token circulation stable.
Half a million tokens will be allocated to CannaSOS for supporting transactions on the platform, while 14.3 million tokens will be allocated to CannaSOS for marketing.
Ten days into the public presale, the company has already sold 7 million tokens.