Minimum tokenomics model
Input data for calculations
Since Veezy is at the intersection of three major markets - blockchain + meta-universe + IoT - we can actually predict the following three scenarios:
Negative: All three markets stagnate or fall (decrease in volume, capitalisation and other parameters) in the next ten years;
Neutral: at least one of the markets grows while the other two stagnate (minimum projected decline);
Positive: at least one market grows exponentially with conditional stagnation and/or with minimal development of the other two markets.
Each of these primitives can have a number of other scenarios in it, based on the fact that:
Each segment may fall;
It is possible for two to fall - simultaneously;
It is possible for three to fall - simultaneously;
Similarly for segment growth;
And plus - mixed scenarios.
However, meta-analysis of these markets shows the following:
Over the next 5-10 years, the blockchain technology market will grow: both in terms of investment attracted, capitalisation and other parameters;
During the same period, the Metaverse market should at least double annually;
Finally, the IoT market has been discussed above and also tends to grow at least extensively.
Thus, the optimal minimum (in medium-term planning) should be stagnation in two segments with extensive growth in one of the three markets.
Even in this case, with a conventional calculation model 1-10-100: 1% of the intersection of these markets in 10 years, with the implementation of 100 cases (10 cases per year) get a possible coverage of several billion dollars, provided that the advertising market and related markets will take at least 10% of the budget listed categories. While empirically this figure ranges from 5% to 25%, depending on the segment.
But it is important to consider that one factor in the possible development of Veezy in this environment is the tokenomics of the project. Let's talk about it in a little more detail.
Tokenomics
Let's note right away: making advertising payments in project tokens is not justified, as there are between 5,000 and 15,000 tokens and coins of various crypto-projects as of 2021. Therefore, the Veezy token (VZY) has the following utilitarian functions (list open):
Receiving a discount when working with the Platform;
Connection of advanced functionality for the analysis of the obtained big data;
Participation in DAO Veezy.
At the same time, DAO Veezy does not contain governance tokens, because their functionality seems to us somewhat far-fetched: if the user wants to actively participate in the life of the platform - he can do it through the attachment / pledge / other transactions with the token. Practice in recent years has proven that governance tokens are almost never used for their intended purpose.
The Veezy token calculation model is based on the following assumptions:
Projected number of actors - 100,000,000,000;
Minimum number of initial holders - 100;
Minimum planning period - 10 years.
This model is taken as a second-order primitive for the development of the 1-10-100 model and for ease of calculation. Accordingly, the primitive can be calculated as follows:
The non-basic Veezy token (nbVZY) has no constant value and is equated to some conditionally stable unit. In the IDO period, this unit is R, which is equal to the median value between certain notionally stable currencies, at the primary stage - their number is 10 ((DAI + cUSD + tUSD and others (see below)) ;
At the same time, module R should aim at 1, but if the deviation during the trading day is more than 3%, then additional stabelcoin can be added automatically (including - synthetic, that is obtained as a calculated index from the ratio of BTC, ETH and other TOP cryptocurrencies to USD), further iterations can be reduced by the formula: 7-5-3-1 per day respectively;
Minimum number of data received from oracles: 7 out of 10. The main oracles at the first stage will be: Chainlink, Coinmarketcap, Coingecko, followed by decentralised oracles from ENVELOP, Veezy and other projects. At the same time DAO Veezy may not vote more often than once every 3 months and at least once every 12 months: Increasing the number of stabelcoins to be entered into the formula, if the deviation was not more than 10% on the median during the period chosen for the vote;
Entering new oracles into the total price system.
The nbVZY index is needed for the following reasons:
The crypto market will evolve alternatives, as shown in the past 5-7 years: USDt, USDc, UST, DAI and others;
The segment of algorithmic stablcoins is small, but it also has development potential, because such coins have a strong link to the crypto market; It is also worth considering that different stackcoins run on different blockchain solutions, which also helps to average the market as a whole;
Finally, pegging to a single coin, without a median calculation, can be detrimental when there are large deviations in the market: thus the value of DAI was as high as $0.80 per dollar, which is 20%, and the value of USDt was as low as $0.90, which is 10%.
From this we get a simple formula: AVERAGE (nbVZY) => MEDIAN(nbVZY) => 1. In order to avoid possible losses in calculation of nbVZY index, you should check it at least once in 12 hours when closing a project. In this case, the min optimum is 10 stabelcoins of the initial stage, as follows USDt; USDc; USDp; UST; DAI; LUSD; bUSD; gUSD; cUSD; tUSD;
The following reasons are chosen from the mass of steiblocoins:
USDt & USDc & USDp due to capitalisation;
USDc, TUSD due to the regulatory aspect;
DAI & UST & LUSD as decentralised stebblecoins; GUSD as a stabelcoin, linked to the important NFTs market for Veezy.
The underlying Veezy token (VZY) has the following characteristics:
It is issued in 3 stages: Closed Sale; IDO; DAO round.
Total supply: 1,000,000,000. This figure reflects those empirical data that were voiced earlier: a) the indicated markets are quantified in billions of actors; b) the market capitalisation estimate - also does not fall below N billion dollars; c) finally, this figure is easily implemented in the primitive 1-10-100 model.
In this DAO round, a majority vote of the Token holders can be decided: On burning/freezing the tokens in the reserve fund (see below); On the timing of freezing the tokens in the reserve fund; About the release of these tokens into free (market circulation). The model of interaction between the two tokens is described below.
The basic correlation formula for nbVZY & VZY: ∑p =k*nbVZY.
To clarify: ∑p is the amount of payment to be made to the provider of a particular service on the Veezy platform;
k - the coefficient necessary for establishing equality between the sum of final payment and the value of nbVZY at the moment of transaction;
Based on the calculation of k - the calculation (if necessary) of VZY to be spent at the time of making the payment, taking into account the discount applied.
For example: Let ∑p=10, then k=10 (at the moment of IDO), and at VZY price 0.003 we get 3334 VZY tokens. With a discount of e.g. 5%, then we get: 3168 (always rounded upwards) VZY. Final formula: If (nvVZY > VZY), then (nbVZY/VZY)-d, where d is the set discount; If (nvVZY =< VZY), then (VZY/nbVZY)-d.
Why not use one token?
There are several answers - let's describe the three basic ones:
Despite the utility of VZY - limiting payment methods when ordering ads, placing them and in similar cases is more of a hindrance to the customer (the advertiser) than a positive for the tokenholder;
VZY turnover should correlate directly with the number of DAO Veezy participants and not only with speculation in the crypto-asset market;
Finally, nbVZY can be equated not only to a designated index, but to any chosen unit (assuming the original proportions are maintained): whether it is BTC or another crypto-asset.
Why not just use a unit instead of a non-basic token?
It's even simpler here: the calculation will be made exactly in stabelcoins and therefore the payment will still need to refer to the market price, which means extra iteration, which is unacceptable in the highly loaded and tech-savvy advertising market.
The resulting model meets the requirements of two different parties: Sellers (Advertisers) and buyers, as well as a third party, the tokenholder, who may not be a buyer and/or seller. The basic model is based on the following assumptions:
The consumer finds it easier to pay in stable units, but is willing to receive bonuses and other gifts when using the underlying Token;
The merchant finds it easier to accept payment in stable units, but is willing to receive a discount by using the base Token;
The Tokenholder cares about all the utilitarian functions of the Token, including - possible income (but not guaranteed) from the sale.
Separately, it is worth considering the allocation of the basic Token between the various cost items of the Veezy project, based on the basic UNIT-economy.
IDO
In this case, the following explanations need to be taken into account:
Initial Contributors - Contributors entering DAO at Friends & Family, Seed, Private, preIDO stages;
Development includes: maintaining 1 to 4 teams of frontend & backend developers, QA testers and other staff units;
Marketing is divided into: Core - advertising campaigns in search and other networks, SMM promotion and working with Influencers;
Crowd marketing - bounty and gift campaigns on social media. Team - includes funders, as well as the options put up for key participants;
Reserve - this is a dedicated reserve of Tokens that can be used to cover operational gaps, such as adding liquidity to pools, listing on CEXs, new marketing integrations and others. The reserve can be replenished by freezing and recycling tokens;
Pools are initial liquidity pools on DEX, which are used to expose the underlying Token to certain Stablecoins (one or more); IDOs are Tokens offered for initial public offering from the DAO.
With a maximum issue of 1,000,000,000 and an initial set market price of $0.003 for the token, we get = 3,000,000 nbVZY (about $3M). But the entry rounds of the counterparties are also graded - the minimum:
The table reflects this approach (No. 01) as follows:
Gen. | F&F | Seed | Private | preIDO |
---|---|---|---|---|
Per. of total circ. | 3,00% | 36,00% | 48,00% | 13,00% |
Tokens | 11 100 000 VZY | 133 200 000,00 | 177 600 000,00 | 48 100 000,00 |
Price | 0,0027 USD | 0,005 | 0,012 | 0,025 |
Amount | $29 970,00 | $666 000,00 | $2 131 200,00 | $1 202 500,00 |
The second approach (#02) is with split rounds:
Why can these positions be presented simultaneously?
Firstly, because although they are alternative - the role of each round remains the same; secondly, because the granularity (splitting) of the rounds into stages provides an opportunity for early counterparties to enter with different amounts. That is, for large holders, scheme #01 is beneficial, whereas for medium and small holders, scheme #02 is beneficial.
The difference between the approaches is simple and straightforward: In addition to the amount of money required for development, marketing, and other operational costs, speed of market entry and assistance from early adopters is also important, so entering projects with an already established ecosystem, partners, etc. and with a large investment gives Veezy the opportunity to grow faster; Currently, the Veezy platform is already growing and therefore it is a question of entering new markets such as GameFi, Metaverse, etc.
As for the IDO stage, if 1% of the Tokens are withdrawn, we get an additional $400,000. Total with scheme #01: $4,082,950.00 if all rounds are closed and the reserve fund remains at 7% of the initial issue. Under scheme #02: $4,997,250. Voting to burn/freeze the reserve fund can be done no more than once every 3 months and no less frequently than once every 12 months.
The maximum amount to be burned is 10% of the total Reserve Fund (1 time). That is, in this scenario, the Reserve Fund would already after 12 months be 45,927,000 VZY, or 4.59% of the total issue (45,927,000 / 1,000,000,000 = 4.59%). See table for details:
minus (burn/freez.) 10% | 7 000 000,00 | |
the rest of the stage 01 | 63 000 000,00 | 3 months |
minus (burn/freez.) 10% | 6 300 000,00 | |
the rest of the stage 02 | 56 700 000,00 | 6 months |
minus (burn/freez.) 10% | 5 670 000,00 | |
the rest of the stage 03 | 51 030 000,00 | 9 months |
minus (burn/freez.) 10% | 5 103 000,00 | |
the rest of the stage 04 | 45 927 000,00 | 12 months |
The combustion vote is taken by qualified majority using the formula: (maxS - RF-maxEx)*60%, where maxS is the maximum circulation of tokens before burning, RF is the reserve fund, maxEx is the maximum number of tokens per DEXs/CEXs:
The % change for the RF combustion vote can be done no more than once a year: with a minimum percentage of 51% and a maximum of 75%. But what are the functions of a token?
Token functions
VZY Token has three main functions: A means of preferential payment on the DEX platform; Collateral for Sellers and Buyers; DAO management unit.
Let's take a closer look at each one. First, the concessionary payment facility. Below is a summary table:
That is, payment by basic token (VZY) provides a discount of maximum 10% (unless otherwise stipulated by the conditions of the platform): until the number of users of Veezy Decentralised Advertising Exchange (DAEX) reaches 100,000, then this factor drops to 7% (at 1,000,000 users) and so on to 1% (over 50,000,000 users). This gradation is established for the reason that a high turnover of 1% has the same value as 10% for a low turnover. A simple example: If 100,000 users each spend $10, then we have a turnover of $1,000,000. Each of them can get a 10% discount of $10, which is 1%. This brings the total discount in the simplified model to $100,000. In this case, if 100,000,000 users spend the same $10, the turnover will be $1,000,000,000 and the total savings will be $10,000,000. To encourage tokenholder labour, an inverse proportion model is possible that takes into account parameters such as: 1) token freeze time; 2) number of tokens; 3) number of partners. See table:
m/T | 6 | 12 | 18 | 24 | 36 |
---|---|---|---|---|---|
0,00 | 1,00% | 2,00% | 4,00% | 7,00% | 10,00% |
100 000,00 | 2,00% | 5,00% | 7,00% | 10,00% | 15,00% |
1 000 000,00 | 3,00% | 7,00% | 10,00% | 15,00% | 20,00% |
10 000 000,00 | 5,00% | 10,00% | 15,00% | 20,00% | 25,00% |
100 000 000,00 | 7,00% | 13,00% | 17,00% | 25,00% | 30,00% |
Explanation:
The percentage indicated is the maximum possible accrual from the DAO income received at the expense of the Partner;
The minimum is calculated based on the overall economic situation by direct voting through depositing tokens in the Reserve from participants, but cannot be less than 50% of the stated amount as a percentage;
The participant receives a discount in case of a one-time redemption of tokens with sending them to the Reserve and specifying the appropriate freezing period;
The freezing period shall be set by the DAO twice a year: every 6th and 12th month of any calendar year.
Here is an example of combined usage of discount for Token purchase and cumulative discount for one-time redemption: let's say the Participant enters the circle of 5% discount for Token purchase, he made a payment for 1 000 000 Token with freezing for 18 months and his turnover was nbVZY 2 000 000, and income of DAO is 2%, or 40 000 nbVZY. Accordingly, his cumulative discount on, say, a purchase of 100,000 VZY, would be: 5% + (40,000 nbVZY * 10%), or: 100,000 - 5000 - 4000 = 91,000 VZY, or 9% of the purchase. The discount is put up for the period of freezing in the Reserve for redeemable (and non-refundable) tokens.
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