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August 31, 2017

GMO Internet Launches Region Token
That Issues and Operates Regional Points,
The 3rd Phase of GMO Blockchain Open Source Software Project

  • GMO Internet, Inc.
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Tokyo, Japan – August 31, 2017 – GMO Internet ( ), as part of the GMO Blockchain Open Source Project (GMO Blockchain), is releasing programs using blockchains (* 1) as open source (freely available and modifiable). As the third phase, GMO Internet will today launch its new Region Token ( ).
This open source Region Token is a program whereby municipalities and companies can issue their own tokens (* 2) (points).

 By storing (defining) processing rules of tokens in a blockchain without needing to build a dedicated server for managing tokens and employing an administrator, it is possible to issue tokens and register shops as point service participants on the blockchain.
 By using this open source program, it becomes possible to utilize a token – for regional revitalization – as a “regional point” that can limit the scope of use to affiliated stores participating in local communities such as municipalities and shopping districts.
(Each GMO Blockchain OSS program is built using Cloud Blockchain.)

(* 1) Blockchain technology records and holds data distributed on multiple computers, and makes data fraud extremely unlikely.
(* 2) A token is a digital asset that can be issued independently. By providing actual associated value, tokens may assume roles such as purchase points or regional currencies.

▼“Regional point” concepts

■Usage concept of “Regional Points” issued with Region Token *3

Municipalities and shopping districts (point manager)
· Issuing regional points, which can be used in shopping districts.
· Register merchants that wish to participate in regional points as affiliated stores and give the merchant the authority to give and receive points for payment.
- Erase points debit of merchant (replenishment) by the amount of payment (payment) from the merchant.
[Example: if 1 point = 1 cent, and a 1,000-cent payment is received from the merchant, delete 1,000 points from the merchant's debit balance]
- Apply to the municipality etc. for membership registration.
- Points are awarded to user accounts according to actions such as visits, purchases, etc.
- When accepting a point payment, transfer (replenish) the points used from the point account of the user to that of the merchant.
- For the amount awarded as points, the merchant points debit is erased (replenished) by paying to the municipalities, etc.
[Example: if 1 point = 1 cent and 1,000 P are awarded to the user, pay 1,000 cents to the municipality]
· Automatically generate an account in the device by downloading a smartphone application etc.
· Receive / use points by holding a smartphone at a merchant's cashier.
· Confirm the points held in account with an application, specific site, etc.
(* 3) This is an example of operation when “Regional Points” are issued with Region Tokens. When actually utilized as a point system, an application for users and a mechanism to read devices at stores are required.

【How the Region Token works】

 Usually for enterprises to operate their own point service, it is necessary to build highly dedicated servers that can withstand complicated processing necessary for construction and operation of point systems, point distribution management, and maintenance. Also, contractor services are usually required. However, if commissioned to such contractor services, in addition to the costs of server and database, various operational costs are incurred, including labor costs, management costs, etc.

 The Region Token which is made open source at this time is a token program which runs on the Ethereum environment (* 4). By using this program, municipalities and enterprises can easily issue and operate tokens that act as points that can be used within merchant's affiliated stores. On the blockchain, since process is automated according to prescribed open logic, it is possible to construct an autonomous and permanent point system that incurs only the recording processing cost.

(*4) Ethereum is a blockchain platform. It features smart contracts (contracts) and allows fully distributed applications.

<Features of Region Token>

1) Compliant with token standard specification ERC 20
 This open source program conforms to the token standard specification ERC 20 advocated by Ethereum. Therefore, any token newly issued in this original token management system can be handled at an exchange constructed by the exchange construction system token trader (* 5).

2) It is unnecessary for the users to hold cryptocurrency (Ether)
 In the blockchain, payment of expenses by virtual currency (Ether) is required every time some processing (recording) is done on the blockchain. However, it is not yet common for users and merchants to own and manage virtual currencies.
 Since the service provider (such as municipality and shopping district in this case) can prepay the cost of recording in the blockchain collectively in Japanese yen, the user, the merchant and the municipality may freely use the point system without having to pay each time in virtual currency.

(*5) “GMO Internet Launches Exchange Builder System ‘Token Trader’, the 2nd Phase of GMO Blockchain Open Source Software Project” ( ) published on August 8, 2017.

[ About GMO Blockchain OSS ]

At GMO Internet, we are taking advantage of know-how garnered through working in Internet infrastructure services for more than 20 years. We are currently developing new blockchain based technologies. As part of this, in December 2016 we began offering beta versions of Cloud Blockchain and ConoHa blockchain services. These can be easily used to build distributed blockchain applications. Such as the Cloud Blockchain based Home Delivery Box, which has already been developed.
 Based on the knowledge gained through such work, in July 2017, GMO Internet launched GMO Blockchain OSS, an open-source project enabling real service deployments. Our aim is to foster and disseminate new services based on blockchain technology.
 Under GMO Blockchain OSS, we will be continually sharing open source programs that meet various needs in the future.

GMO Internet Group

 GMO Internet Group is an Internet services industry leader, developing and operating Japan’s most widely used domain, hosting & cloud, ecommerce, security, and payment solutions. The Group also includes the world’s largest online FX trading platform, as well as online advertising, Internet media, and mobile entertainment products. GMO Internet, Inc. (TSE: 9449) is headquartered in Tokyo, Japan. For more information, please visit

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