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Futereum Utility Tokens are a first-of-a-kind marriage between financial engineering and Blockchain engineering, and are the most appropriate response to the recent introduction of these leveraged Blockchain-underlying derivatives contracts introduced to the securities markets for the first time in 2017.
Futereum Tokens are placed into [Block*Token] structures and purchased from a smart contract by Crypto investors. A smart contract issues new tokens on the Ethereum Blockchain and as ETH is submitted to the smart contract when it triggers the issuance of the new tokens. It is the same basic concept employed in Initial Coin Offerings (ICOs) except it is ongoing even after the ICO period and there is no fixed ICO.
In the case of an Futereum Token, Ethereum (ETH) triggers smart contract sending out the Futereum Tokens to the same address which the Ethereum came from, and the smart contract then captures and securely stores the Ethereum tokens for a specified duration. At a date in the future comprising 13-37 months. FUTR is then swapped back by the holder for a commensurate amount of Ethereum percentage-wise as that which the FUTR holder exchanges relative to the total supply of FUTR in circulation.
For example, if there are 6.73 million FUTR in circulation, and the holder exchanges 673,000 FUTR, then given a total of 197,908 ETH stored in the smart contract, the holder will receive back 19,791 ETH in exchange, irrespective of what price ETH was at the point FUTR was mined or what price was paid for the FUTR on exchange.