Talent can choose to retain a percentage of all Talent Tokens sold in order to keep speculators away. We call this percentage the Talent Reward. The more dynamic their economy, the more Talent Tokens the talent will be able to accumulate over time. This rewards talent with real money, disincentivizes market manipulation, and helps build long-term commitment from sponsors.
How does it work?
When someone buys Talent Tokens, a small extra share of coins is created and sent directly to the talent.
Example: Alice purchases 1,000 Talent Tokens of Bob for $1,000, which has a 1% Talent Reward. The smart contract sends 1,000 coins to Alice and 10 coins to Bob. Alice’s sell out value is now $990, and Bob gained $10 worth of his own Talent Tokens.
Sponsors that purchase Talent Tokens at (1) may wait for more people to buy in until the price reaches (2). At this point, they will be able to sell some coins back to the market at the appreciated value. This rewards the sponsor for being early believers and for being patient.
But, when sponsors sell Talent Tokens they don't actually get the full value back. They leave behind a small % called Talent Reward which was sent directly to the talent when they bought the coins.