The PMA/FIAT Rate: Where Does It Come From?
As we work on bringing the PumaPay solution to merchants worldwide, one of the most popular questions we get is how the price of PMA will be pegged to fiat currencies? Who will be defining the exchange rate and the final PMA amount we’ll see on merchant websites? Will there be any room for speculation? And, given our yesterday’s release, how do we approach this matter with the Alpha Version of the SDK?
For the future, one approach we are considering is following the best industry partices, such as the CoinMarketCap methodology. This means calculating the weighted average of prices reported at each market. This will be the conversion rate to define the price on the merchant sites.
As the token is not listed on official exchanges yet, we have been using a static estimate in the Alpha Version of the SDK, based on the ICO rate of 50,000PMA = 1 ETH. Based on that rate, we assumed that 1PMA token = 1 cent. So when a photo from the example ‘costs’ 1000 PMA, its approximate estimate is $10.
Please note that in this case, the PMA/fiat rate does not play a crucial role, as our major goal is to show the flow of how a PumaPay payment is made.
Similarly, for ImLive, our Launch Partner who already accepts payments in PumaPay, the price was set to a static value.
50,000PMA = 1 ETH is also the rate used in the PumaPay Cryptocurrency wallet mobile app.
Got questions? Feel free to ask them on Telegram, and let us know what you think about the Alpha Version of the SDK. As a CTO of PumaPay, myself, as well as the entire development team, will be happy to hear your thoughts!