# Introducing IBF Net Cryptos

Let us begin with the question we raised and left unanswered in the previous part. How do we design our own token – as a utility token or a security token? How do we ensure that our token conforms to all the required norms of Shariah and is free from all the prohibited elements? Well, there is nothing inherently wrong with either utility tokens or security tokens; or even when tokens are used as a currency, from the Shariah point of view. However, everything is wrong about the ways and means adopted by most of the current breed of promoters selling tokens to finance their projects.

### Consider this alternative scenario and judge for yourself. Is this token sound from Shariah and ethical point of view?

1. A fixed number of utility tokens are minted by an existing project XYZ as part of its development plan.
2. It is meant for use within a network as a medium of exchange for transactions among its members.
3. It can also be used to pay for certain benefits and services, such as access to e-library resources.
4. If a member uses this token as a means of payment for certain services, such as enrolment into a course or buy certain merchandise offered within the network,  s/he can avail deep discounts in prices.
5. The initial value of the XYZ token is pegged to USD, with a fixed rate for conversion from one to another. So, in effect, XYX replaces USD as a unit of account or measure of value.
6. A member is encouraged and allowed to create and top up its wallet with required and restricted number of XYZ tokens; in amounts that s/he requires for carrying out the transactions.
7. The clear benefits to a member if s/he uses this utility token instead of USD for doing transactions are meant to increase its adoption over time.
8. Meanwhile, the project is developed via funds from technology grants and donations.
9. There is no pre-public or public sale of XYZ tokens to raise funds for project development.
10. The project comes to fruition and the number of users crosses a threshold over a period of about M months from the date of initiation.
11. The project owner is now sure of the “utility” that a holder receives due to purchase of XYZ token and of its adoption by a large and increasing number of members of the network.
12. It decides to de-peg XYZ with USD and list it on a “respectable” Exchange.
13. XYZ is now an open digital currency exchangeable with other top global digital currencies.
14. Simultaneously XYZ is opened for public sale at a price that is independently determined, based on valuation by an external accounting firm.
15. XYZ is expected to trade around fair value as there is no price manipulation engineered by the project owners; the third-party valuation provides a rational benchmark price.
16. The holders of XYZ are assured of liquidity and fair return on investment as the price of XYZ is expected to appreciate with increase in its value. These are of course, exposed to normal market risk that they understand fully and are willing to bear.

You may find that the path chosen by this token is uniquely different. It is sold to the public as an “investment in a utility token”, only after the developed project is in place; only after its utility is there for everyone to see. The token is sold at a price that reflects all relevant information about its utility or value. There is no misinformation as such information is vetted by a third party before being released to the public. The token is another ethical alternative investment.

You guessed it right. The token XYZ under discussion is the **IBF Net token** that is designed to be the native and "in-verse" currency of IBF Net: the Islamic business and finance network.

### What are various types of tokens created by IBF Net?

IBF Net designed two digital tokens - IBFN (IBF Network) and IBFX (IBF Exchange) to be used among its members. IBF Net tokens vary with respect to the rights and obligations for the members of the Network and are expected to perform multiple roles. Both IBFN and IBFX tokens are meant to perform the roles of (i) medium of intra-network exchange, (ii) unit of account and (ii) store of value.

{% tabs %}
{% tab title="IBFN and IBFX" %}
These are fungible tokens; (i) are freely transferable among members and (ii) used for payments for transactions within the Network and inside IBF Net's metaverse. IBFN is the token available in the market for public use. **IBFN uses the highly popular Polygon protocol**. In contrast, **IBFX was created using Algorand protocol** for limited use to test the various platforms during the research and development phase. &#x20;
{% endtab %}

{% tab title="IBFN - IBFX Swap" %}
The quantum of supply of **IBFX** tokens during the research, development and testing phase of the platforms was fixed at 10 million for a total valuation of USD 1 million with a buy-back facility at a fixed peg of 1:10. The supply of tokens was considered adequate to meet the transaction or testing demands within the Network. However, with the launching of several platforms/ use cases and Netverse, the demand for the tokens serving as native and in-verse currency increased exponentially. Therefore, with the growing use of IBF cryptos for buying and selling digital assets under an alternative plan suggested by the launchpad partner of IBFN token, the supply of IBF Net cryptos had to be brought in line with market conventions. This was made possible by a simple substitution of IBFX by a new token IBFN **in a given ratio.** Every IBFX holder **will be eligible to swap** his/her IBFX tokens with IBFN tokens in the given ratio. The 10 million IBFX tokens are replaced with 1 billion IBFN tokens with a swapping ratio of 1:100.&#x20;
{% endtab %}
{% endtabs %}

### Please note:

* All tokens are in the nature of utility tokens as distinct from security tokens, that give holders a right to use the network and benefit from resources free or at below- market prices.
* All tokens are free from security regulations, since they are not in the nature of security tokens.
* The IBFN token is on the Polygon blockchain
* The IBFX token is on the Algorand blockchain
* All of our applications are hosted on [www.ibfnex.io](https://www.ibfnex.io)
* Any app we build on Algorand, we will build for Polygon, and in future, depending on the focus, additional networks as well
* We are already working on building a Polygon version of our existing apps on Algorand. The most important of these applications are already on Polygon and the IBFN token can be used for transactions on these applications.
* Applications on the Algorand blockchain will use IBFX.
* Applications on the Polygon blockchain will use IBFN.
* IBFN is a token that is offered to the market via an exchange. IBFX is currently restricted and not available to the public.
*   IBFX holders have the option to exchange their IBFX tokens for IBFN, but please note that this option is a right without obligation. This means that IBFX will not disappear for those who will continue to hold IBFX.



Our focus has always been on **interoperability** of platforms rather than replacing one network with another. **Algorand and Polygon will co-exist**, as we have no intention of substituting one network for another.

As a technology-focused company, our business strategy **may** evolve due to market dynamics or regulatory changes. Therefore, it is necessary to realize that our whitepaper plans **may also be** subject to modification.
