Introducing GEM Ecosystem

Mar 6, 2024

▫️ Expanding Point Market

According to the Statistical Office and the Korea Consumer Agency, the size of the Korean point market was estimated to be around 20 trillion won in 2019, with an annual growth rate of more than 10%. The point system is being distributed across various industries, online and offline, due to the advancement of digital technology.

▫️ Problems in the Point Market

As the size of the point market expands, the discrepancies between providers and consumers regarding the point system are increasing. Points are a benefit to customers but are treated as a liability by businesses. Consequently, point providers may suffer from accounting issues and maintenance costs, while consumers who wish to use points like cash face limited places to use them and complex usage rules, diminishing the points’ value.

▫️ Integrating Points with Blockchain Technology

To solve the limitations of the current point system, various technological introductions are being discussed, with ‘blockchain’ emerging as the most realistic solution.

The blockchain market, which has been gaining recent attention, is expected to grow at an average annual rate of 67.3% from 2018 to 2024, exceeding 30.691 trillion won. Among them, financial services integrated with blockchain are expected to grow the most, and the synergy with the point market cannot be ignored.

By providing a decentralized database that ensures safety and integrity, the point system’s security is enhanced, and by distributing and storing all transaction records, all transactions are transparently disclosed, allowing consumers to experience a safe and trustworthy point ecosystem. Furthermore, the absence of a central administrator prevents monopolistic management of points by affiliates or providers and ensures that points are issued and used according to fair rules, allowing for more flexible and diverse benefits through integration with various affiliates and services.

💎 WHY | The Emergence of the GEM Ecosystem

Even when points are guaranteed by large corporations, they struggle to move beyond the characteristics of bonds, distinct from legal tender, which is guaranteed by public authority. This characteristic is a vulnerability different from legal tender but also a marker that all regulations must be complied with in a market economy.The attempt to revitalize the declining point system by integrating blockchain is gaining attention, but it is still difficult to find properly constructed services.GEM has navigated through successes and failures in the blockchain-based point market, seeking ways to solve the point market’s problems and enable growth for both businesses and customers. This has led to the emergence of the GEM ecosystem, aiming for more people to experience the point market and lead the innovation of the point market integrated with technology.

💎 WHAT | What is GEM?

GEM is a G2E (GEM to Earn) flat coin project that provides point rewards based on users’ daily participation within the ecosystem. It aims to enable various small and medium-sized enterprises to produce goods or services independently, without intermediaries, through a multi-currency basket.

💎 HOW | GEM’s Solution

GEM utilizes an algorithmic approach to predict absolute currency price changes in response to supply/demand fluctuations for various essential resources or services in the market, employing a Friedman-style monetarist approach.

Essentially, as the value of currency increases, so does the value of GEM, and as the value of currency decreases, the value of GEM also decreases. Therefore, it is related to the inflation rate, allowing it to maintain its real value over time.