You may already know that the 4th Pillar’s FOUR tokens aim to be the first 100 percent utility tokens which permanently serve users while, at the same time, remaining totally transparent on the blockchain. You may also already know that they provide access to professional identity verification-related services, serve as both the primary store of value and gas in a decentralized ecosystem, provide incentives and rewards, and are purchasable with euros. However, there’s a good chance you haven’t heard about the 4th Pillar Vault. If that’s the case, here’s everything you need to know about the essential component of the 4th Pillar ecosystem.
A Strategic Advantage
The 4th Pillar Vault is a valuable and essential component in the systematic operations of the 4th Pillar project and will receive 152 million FOUR tokens (38 percent of the total supply) during the project’s crowdsale.
In its essence, the vault affords non-cryptocurrency savvy companies and businesses the ability to convert FOUR tokens into fiat currencies by simplifying and enabling operational execution of the system. This allows for the direct sale of FOUR tokens at market price to companies and clients by way of an Ethereum (ETH) address containing FOUR tokens.
The strategic function of the Vault is crucial, as it gives the 4th Pillar a competitive advantage over other cryptocurrency-based companies by removing issues related to the purchase of tokens with fiat.
The Vault is already live and technically working in the platform’s working BETA.
How does the Vault Function?
As a vital part of the 4th Pillar’s treasury, the vault serves a variety of functions.
First and foremost, it enables B2B (business-to-business) FOUR token sales at market price and facilitates the process for clients which may not have any understanding of how cryptocurrency transactions actually take place or are unwilling to conduct such transactions themselves.
Secondly, the Vault finances loans for the organization if needed. Additionally, the vault serves as an accurate measure of when FOUR tokens must be bought back from the market — which will take place when the vault level decreases below 51 percent (76,000,000).
Finally, the Vault enables the management of both the FOUR token global B&C community loyalty stimulation program and new users program.
How is the Vault Governed?
The 4th Pillar Vault is a crucial component of the project’s ecosystem, and thus requires decentralized governance in the form of a Supervisory Board consisting of three members.
The President of the Supervisory Board is Sandi Nemet, who currently serves as the CEO of Alfa Bank in Luxembourg and has a Luxembourg banking and financial license. Meanwhile, 4th Pillar CFO Roman Dobrina — who holds a Slovenian Bank Association license for currency exchange operations — will sit on the Supervisory Board, alongside a yet-to-be-determined third candidate.
The aim of the Supervisory Board is to connect experiences from three different worlds — fiat banking, B2B operations, and the blockchain.
How are Vault Transactions Confirmed?
Each Vault transaction must go through a digital authentication process to be approved by two out of the three Supervisor Board members — which is similar to the “two pairs of eyes” principle from traditional companies’ business practices.
Each board member will have his or her own private key and the combination the combination of any two will confirm the transaction. For added security, one member of the employee community, ambassador pool and group of advisors will be selected each month to be present — effectively providing more control and advise during the decision-making process.
Furthermore, the Vault’s operations will be audited annually by The 4th Pillar’s auditing partner, BDO — to ensure the smooth, secure, and proper operations of the treasury.
To learn more about the 4th Pillar, the Vault, and the project’s industry-leading team, check out the official website here.
What do you think about the 4th Pillar Vault? Be sure to let us know in the comments below!
Images courtesy of 4th Pillar and Shutterstock.