So what gives a token value? Just to name a few: It’s its uniqueness, continuous progression of the platform, potential, the team behind it, the data the network has to process, the scarcity/inflation, its purpose or use-case, the user base buying/selling it, the network size = security of the network and if it succeeded in having a first mover advantage in different niches. All of this plays somehow a role.
We at Lisk don’t believe in LSK being a currency, it’s a utility token to empower the platforms users by utilising its features. That means, yes as you said it’s a method to pay for the network fees which occur for different types of transactions.
Transactions at the current point are:
- Sending the token around
- Registering a delegate
- Setup of a multi-sig account
- Registering a second passphrase
Transactions in the future might be:
- Registering an app
- Updating an app
- Sending the token into or out of a sidechain
- (And some secret stuff we have not made public yet)
However, transactions on the mainchain are not the only use-cases for LSK. A sidechain is able to process LSK as well if the developer wants it. We at Lisk will definitely develop multiple Core Blockchain Apps like decentralised identity/storage/computation. They will very likely all run on LSK. Giving a custom token value and constant volume is hard, therefore I foresee some Blockchain Applications on Lisk will also simply use LSK, provided they don’t need to conduct an ICO. If they need an ICO, then here we have another factor for demand. People will invest LSK into several ICOs being conducted on the Lisk platform.
Out of the many points from above which give a token value, I have just discussed “purpose or use-case”. There are also multiple other things we have not published yet, which will drive demand for LSK. There is more to come!