‘Drive to Mine’ Campaign: Chinese State-Backed Car Sharing Platform Issues Its Token
Despite China’s harsh treatment of the crypto sphere, a state-owned enterprise wants to tap into the cryptocurrency world by launching a “Drive to Mine” campaign.
GoFun,a car-sharing platform operated by the state-owned Shouqi group, is venturing into blockchain technology with plans to launch a rewards system where users will generate tokens called “Energy Cube” for driving the startup’s electric cars.
GoFun said during a press conference on October 15 that the goal of the blockchain trial is to tackle many tricky problems facing the car-sharing sector like car users’ identity verification, data sharing, privacy protection, data security and traceability, as well as a fair reward mechanism.
In fact, the Beijing-based startup wants to leverage the power of blockchain and tokens to become the first profitable company of its kind. “I believe that GoFun will be the first company in the shared car sector to achieve a fully profitable business model, and it’s not that far away” Securities Times quoted the company’s CFO Sima Ruobai as saying.
As one of an increasing number of car-sharing providers across the globe, GoFun allows users to climb aboard vehicles at designated car parks and rent them by the minute before also parking in a permitted location.So far, the company owns about 30,000 cars in 65 Chinese cities, and has eight million registered users, which around a third actively using the service, according to Yicai.
However, as Chinese authorities imposed a blanket ban on ICO and cryptocurrency tradings last month, why a government-owned conglomerate dares to launch its native token?
GoFun announced its blockchain project in May, but without offering a white paper. Besides, both its official site and senior officials who delivered speeches at the press conference did not introduce the underlying technology platform nor the consensus mechanism it adopts.
But, its blockhcain partner Ochain helps resolve some confusion. GoFun’s blockchain solution is built upon Ochain, an Ethereum-based public blockchain.It is using Proof of Authority (PoA) consensus. The Energy Cube token will be generated depending on several variables such as mileage, insurance and traffic violations. The first phase of GoFun’s blockchain trial includes 7 nodes, including Volkswagen, Geely, the insurance company, regional transportation authority and the Intelligent Multifunctional Identity (IMI) platform which is launched by Chan Cheng District, within Foshan City in Guangdong province.
Xia Zhuhai, founder of Ochain, told 8btc that GoFun will eventually issue 4 billion tokens, but the token distribution plan will be detailed in its white paper which may get ready at the end of this month along with its digital assets wallet.
Further, the Shouqi group plans to integrate the token in the wider ecosystem such as its hotel and catering business. But so far the company intentionally plays down blockchain and cryptocurrency-related issues thanks to a perceived threat of regulatory enforcement.