Is the TNS Project a "Ponzi Scheme"?

Created: 22-06-2024

+ 45-


This bold question deserves discussion, as the multi-level reward distribution system built into the TNS project during both the crowdfunding phase and the name space creation phase bears a formal resemblance to a financial scheme in which early investors profit at the expense of later ones. This is no more true than saying that investors who invested in startup shares at the zero stage earned at the expense of those who bought shares much later on the stock market.

Comparing investments in the $TRUE token with investments in startup shares, the TNS project is safer than a stock company because the TNS project prohibits additional token issuance. The value of $TRUE will never be artificially diluted by some board of directors' decision. Moreover, the token burn algorithm when used to pay for TNS names, programmed into the $TRUE token, is analogous to corporate buyback. Where will you find a startup that guarantees it will never dilute investor capital and will continually buy back its shares? This is only possible in Web 3.0.

However, we believe that comparing the TNS project to classic venture investments is incorrect. If only because the $TRUE token is a utility token, not a security token. By purchasing the $TRUE token, you are not buying a digital security or investing in any business. TNS is not a business. TNS is a digital economic platform. You acquire digital settlement instruments of the TNS name space, which serve as the medium of exchange in this space. And the same rule applies to the $TRUE token as to the FOREX market: if an economy grows faster than others with a constant money supply, the currency of that economy appreciates relative to other currencies. And if the money supply is also continually decreasing, the currency appreciates faster and faster.

In the familiar reality of "national" fiat currencies and central banks, it is not beneficial for the state and bankers for the currency to appreciate. They seek to devalue the currency through inflation to stimulate credit growth and subordinate the economy and population to banks. Hence, central banks constantly "print" new settlement instruments. And new settlement instruments steal purchasing power from the settlement instruments already in circulation, giving the stolen purchasing power to banks and governments. This mechanism is a hidden tax, a tax on the settlement instruments themselves. In this peculiar "reverse Ponzi scheme," the longer you live, the more you lose. However, if we offer an antidote to this vicious system, a healthy digital alternative to the current banking world of financial corruption, and if our project operates on the principle that the longer you live, the richer you become, it does not mean we are offering a "Ponzi scheme." It means we are offering a new space for economic growth, where everyone who is active in it will earn, use it, expand it, and spread it. Simply put, those who start earlier will likely earn more, given equal efforts, than those who start later. And this is fair.

The TNS project implements open standards and software that provide a set of fundamental digital services: secure verification, named transactions, document and Web 2.0 resource personalization, and digital rights certification of their owners and signers. This is everything needed to create a full-fledged digital economy based on Web 3.0 technologies.

To enable the TNS digital economy to breathe, native digital settlement instruments — $TRUE tokens — are introduced into it. The better the digital economy breathes, the more names are acquired, transactions made, and services provided, the more tokens are in demand. $TRUE tokens are the means of payment and capitalization of TNS names. The more tokens are in demand, the greater their value relative to other means of exchange, goods, and services implemented in the digital economy. And this appreciation is a natural process.

No "Ponzi scheme" is needed to give you more in the future at the expense of those who come to the TNS project after you. The growth of the digital economy and the capitalization of the TNS name market will do all the work of increasing the value of your $TRUE tokens. And burning tokens in the process of their circulation will accelerate their appreciation.

In addition to the basic mechanics that provide the basic services of verification, personalization, linking network resources to TNS names, and digital signatures, TNS also includes a unique MLM mechanic for an infrastructure project of Web 3.0. The TNS project, among other things, is "MLM as a Service." This is the first and so far only such Web 3.0 project that allows digital MLM companies to be easily created based on its digital standards and mechanics.

It is only natural that to finance itself at the start of its development, the TNS project structured itself as a digital MLM company that pays rewards to its participants for attracting new participants. We believe this is much fairer and more correct than spending the first investors' settlement instruments on advertising and promoting our ideas and solutions among investment funds and investment banks to attract the next investors' settlement instruments, while paying generous fees to copywriters, media people, and financiers along the way. This is the path taken by classic venture industry startups.

We are taking a different, more democratic, economical, and user-friendly path.

We offer those who already believe in us — any of you — to become emissaries of our project and earn from it. Spread the word about us, our ideas, our network resources, our plans, and our work, about what has already been done and what remains to be done. Attract new participants. This will help all of us grow. Reach critical mass to birth the core of the future digital economy. Which will then grow itself, absorbing more and more participants. And all those who stood at the origins of this process will rightfully reap the benefits according to their contribution to the project.

Returning to the question posed in the title, the TNS project is not a Ponzi scheme, as it does not have any characteristics of a Ponzi scheme or a financial pyramid:

1. A Ponzi scheme requires endless growth. Once it stops growing, it collapses. The TNS project has a strict funding plan through the sale of $TRUE tokens and does not imply endless growth with no exit. The exit from the TNS project is the free circulation of $TRUE tokens in the TNS digital infrastructure, on which TNS names are created, sold, and capitalized. It is also planned to list $TRUE tokens on cryptocurrency exchanges.
2. A Ponzi scheme does not create any value. It merely redistributes settlement instruments. The TNS project has a work plan and activities for which the raised funds will be spent, and the expenses are predetermined. The digital standards and products created within the TNS project will effectively become the initial backing for $TRUE tokens.
3.A Ponzi scheme promises a return of investors' funds within a predetermined period and volume. The TNS project does not promise any return on investment to investors in any amount within any period. Among other things, this allows us to assert that the $TRUE token is a utility token, not a security token, which should be regulated by financial supervisory authorities in each jurisdiction.
4. A Ponzi scheme promises to make you fabulously rich. We honestly warn that we all may lose our settlement instruments and efforts. But we are confident that if this happens, it will only be because we were not energetic and convincing enough in conveying our revolutionary ideas and vision of the future prosperity of the Web 3.0 digital economy to as many people as possible.

Let's make sufficient efforts to ensure this does not happen, so that we all achieve the desired success together.


Other articles about the TNS project