TKZ White Paper

Executive Summary

TKZ is the digital cash powering the tokenwear ecosystem. Every tokenwear garment includes a built‐in earning mechanism—Scan‐to‐Earn—which allows customers to earn TKZ daily through the tokenwear mobile app. TKZ has a capped emission per garment, diminishing returns over time, and real-world merchant utility. It is designed to be sustainable, deflationary, and deeply integrated into tokenwear's luxury fashion economy.

This whitepaper outlines: the supply model, earning model, utility economy, merchant integration, burn mechanics, and long-term sustainability framework of TKZ.

1. Introduction

tokenwear is a luxury digital fashion brand creating wearable digital economies. Each garment becomes a financial interface that generates TKZ, a form of digital cash tied to product ownership. TKZ is simple, accessible, and usable—designed for users who are not crypto-native.

The system is not speculative; it is value-backed by tokenwear product sales and sustained by merchant partnerships.

2. The Vision

tokenwear aims to create the world's first wearable economy, where garments generate value and unlock real-world purchasing power. TKZ bridges fashion, rewards, and digital cash into a single circular ecosystem.

Core goals:

• Increase the utility of clothing through digital value creation.
• Build a reward economy driven by real-world product ownership.
• Partner with merchants to allow TKZ spending on daily essentials.
• Ensure long-term sustainability through capped emissions and burn mechanisms.

3. Introducing TKZ

TKZ is the digital cash of tokenwear.

Key properties:

• 1 TKZ = $0.10 (initial internal peg)
• Mined through daily garment scans
• Capped lifetime supply per garment
• Spendable at approved merchants
• Redeemable for goods, vouchers, services, and experiences
• Burned upon merchant conversion to cash

TKZ is not a speculative crypto token. Its value originates from tokenwear sales and merchant demand.

4. Scan-to-Earn Earning Model

Each garment contains a unique QR code that unlocks TKZ earning when scanned through the tokenwear mobile app.

Earning Rules:

1. Users can scan once per day.
2. Earning continues until the garment's total TKZ cap is fully emitted.
3. Emissions follow a diminishing rewards schedule.
4. Scans require physical ownership of the garment.

Earning is accessible, simple, and encourages long-term brand engagement.

5. TKZ Supply Model (Capped Emission Per Garment)

To ensure sustainability, each garment has its own maximum TKZ supply. This prevents inflation and keeps the economy stable.

Example Supply Assignments:

• $50 hoodie → 150 TKZ max
• $200 jacket → 600 TKZ max
• $1,000 coat → 3,000 TKZ max
• $5,000 luxury piece → 14,000 TKZ max

This ensures tokenwear's financial liability is fixed and predictable.

6. Diminishing Returns Schedule

Earning follows a structured, diminishing release curve.

Example for 150 TKZ hoodie:

• Year 1: up to 60 TKZ
• Year 2: up to 50 TKZ
• Years 3–7: remaining 40 TKZ spread out

This creates:

• A strong first-year reward experience
• Long-term engagement
• A natural emission taper

Garments remain valuable long after purchase.

7. Utility of TKZ

TKZ is designed for spending, not speculation.

Users can spend TKZ on:

• Food
• Goods & services
• Digital vouchers
• Airtime & data
• Merchant products
• tokenwear experiences & events

Utility sinks ensure TKZ continuously exits circulation as it is used.

8. Merchant Network

Merchants are key participants in the TKZ economy.

Merchants can:

• Accept TKZ as payment
• Receive real cash settlements from tokenwear
• Drive more customers through TKZ offers

Merchant Advantage:

• Increased traffic
• New revenue stream
• Marketing boost through tokenwear community

Merchants act as liquidity endpoints—not users.

9. Burn Mechanics

When merchants convert TKZ into cash:

1. Merchant sends TKZ back to tokenwear.
2. tokenwear pays merchant in fiat.
3. All TKZ received is permanently burned.

This keeps TKZ:

• Scarce
• Deflationary
• Valuable over time

The more users spend TKZ, the more valuable the circulating supply becomes.

10. Resale Incentive & Garment Lifecycle

Because TKZ earning is based on remaining supply, not fixed years, garments gain resale value.

A buyer who purchases second-hand tokenwear still earns remaining TKZ.

This:

• Creates a resale market
• Adds collectible value
• Turns tokenwear into long-lasting digital assets
• Strengthens circular sustainability

11. Sustainability & Revenue Model

TKZ is sustainable because:

• It is backed by real tokenwear product sales.
• Only a percentage of the product price goes toward TKZ earning reserves.
• Merchants—not users—cash out into fiat.
• Burn mechanics prevent inflation.
• Capped supply eliminates unlimited emissions.

This ensures the ecosystem can scale globally.

12. tokenwear Xchange

tokenwear Xchange is a private MVP that enables:

• Merchant settlement
• Internal TKZ valuation
• TKZ burn processing

For users, cash-out is not enabled initially—this prevents liquidity drain and regulatory complexity.

13. Future Roadmap

14. Closing Statement

tokenwear introduces a new paradigm: wearable earning.

Through TKZ, garments become digital value generators, unlocking a sustainable economic loop where users earn, spend, and engage, while merchants and tokenwear benefit from increased activity.

TKZ is more than a token. It is the foundation of the world's first wearable economy.

Wear tokenwear. Scan. Earn. Spend. Thrive.