Product futures, tokenized or non-tokenized, can offer a range of advantages to consumers. We have published a series of articles on the tokenized variant on Medium. Below is an exert on product futures in general from our White Paper.
Goods and services suffer from high rigidity in their “stereotypical roles”. Besides a few second-hand markets, buying and selling them are overlooked as possibilities. However, some of them could benefit from more flexible purchasing and consumption options, even though currently consumers and firms that source externally have to choose between taking delivery of the goods or services that they have ordered and cancelling the order—in many cases refunds are impossible or come at pennies to the dollar. As a result, rigidity costs us countless possibilities in more efficient consumption.
Product futures are goods and services to be delivered in the future. Some notable examples of presell-able products include fine wines, electronic components, vacation bookings, and software licenses, etc.
From the perspective of buyers, we offer a more flexible consumption model, in which they can purchase goods or services to be delivered in the future at discount but easily trade them to another buyer when they change their minds. If the buyer is also an investor, s/he can more readily integrate tokenized product futures into his/her value chain.
Consumers and investors enjoy more efficient investment and consumption options: Buying product futures is both an order to take delivery of the goods or services and a possibility to trade the order to another buyer, potentially for a profit. This is particularly advantageous when the consumer cannot take delivery immediately: when product futures are sold at discount (below MSRP) initially, consumers can “act first and decide later” without the usual costs of flexibility. At the same time, users may opt to purchase more than s/he intend to consume, perhaps as a gift to loved ones, or perhaps as an investment with the expectation that demand will exceed supply as the delivery begins. Indeed, the boundary between consumers and investors can at times become semantic, thanks to the newfound flexibility in tokenized goods.
To read more on our concept and how tokenization can benefit consumers more than existing alternatives, please read our White Paper.