One year after the release of the BLOCKv beta-platform, we present our VEEconomic Model 1.0 (effective on April 1st 2019).
As our World evolves into an age of mixed, virtual and augmented reality, new kinds of human experience become possible and with them, incredible opportunities emerge. As these mixed reality layers become part of daily life, BLOCKv’s platform for the creation of Vatoms gives developers, publishers and brands superpowers to do new things:
Do you want to create a Pokemon-Go like experience for a conference? BLOCKv makes this easy: At NRF, one of the largest retail conferences in the World, via our NGAGE initiative in partnership with Intel, attendees collected digital butterflies that fluttered in AR, driving extraordinary engagement.
What about building a bridge between a game-universe and a retailer? BLOCKv’s platform simplifies bridging these “dimensions of experience” – so it will be possible to play a computer game online and win a coin, then redeem this virtual coin for a physical prize in a retail outlet.
How about a UI integrated into a smart-contract for a logistics firm? Our Vatoms provide an interface layer for blockchains and in turn, make smart contracts accessible for everyday applications.
These are just a few examples of how BLOCKv’s platform can help developers, publishers, and brands bring networked digital objects to their projects. In addition, a developer ecosystem is now emerging that promises to provide advanced features, security and analytics, technical support, training, and professional services to organizations around the world.
VEEconomics 1.0 – Overview
We have designed our VEEconomics model with a long-term view in mind:
Our presiding goal is to power experiential economies of the future through Vatoms – smart, interactive digital objects that can exist on or off blockchain. This will drive the shift from the Internet of Information, to the Internet of Value, which will bring a new economy by transforming commerce and the way value is exchanged.
To achieve this in the long-run, we recognise we must cater to the needs of diverse stakeholders. Cumulatively, our platform must achieve maximum utility at minimum prices.
The VEEconomics model will evolve over time, and this 1st Version paves our path toward this future:
Vatom, Cycling & Services pricing
All Vatoms, Cycling and Advanced Services will be priced in USD, settled in VEE. These fees will be deducted from a publishers’ account:
- Basic Vatoms will start at USD 0.02, comprising:
- USD 0.01 emission fee
- USD 0.01 per year minimum cycling fee – covering most Vatoms, subject to fair use
- Extended cycling and advanced functions will be charged extra per Vatom
- for example: cycling fees for brain powered Vatoms
- Advanced services, decoupled from Vatoms, (such as messaging or specific integrations) will be charged separately
- On-chain Vatom transaction fees will be charged separately – where VEE will be used to cover on-chain fees with a 10% premium over live market price at time of transaction.
Note: We are in the process of developing a Vatom price calculator for easy estimation. To compliment this model, and to limit risks of volatility, we will provide publishers the ability to deposit VEE or USD. In some territories, taxes may be charged on top of these fees.
Developer Accounts: VEE and USD Deposit Model
BLOCKv will provide developers with the option to deposit VEE and/or to deposit USD. While all services are priced in USD and settled in VEE, a USD deposit will be converted in near real-time to VEE – to pay for services. This is to enable brands and agencies to plan in USD if they wish.
- VEE Deposit account will be used as Vatoms are emitted and cycling / advanced services / on-chain transaction fees occur
- A USD deposit account, with a minimum deposit of $100, will purchase VEE in near real-time from exchanges on behalf of publishers for a 20% premium. VEE will then be utilised in an equivalent fashion to a VEE deposit account.
- Direct USD deposits will be supported in Q2/2019.
Note: BLOCKv will only sell earnt VEE through public exchanges and will not sell VEE directly to developers.
Cycling & Distributed Compute Model
Cyclers will operate on a “Stake to Work” model, sometimes referred to as a work-model, where a cycler must hold a stake of VEE in order to profit from the provision of compute services that power experiences. Cyclers will be paid for compute services as they are used – via a cycling fund from cycling fees.
- Initially, BLOCKv will provide most cycling services
- Going forward, the cycling-task-router will distribute tasks amongst cyclers balancing the priorities of best quality of service/speed/security, lowest cost, stake held and time in good standing.
- It is anticipated there will be public blended cycling compute clouds as well as private cycler compute clouds to cater to different requirements.
- For example, some cyclers might be geo-located within a certain region for compliance purposes.
- For example, a large retailer or games company may wish to operate their own private cycling cloud.
- For public and private cyclers, BLOCKv will charge cyclers a 15% fee from their earnings in exchange for software and support services.
Note: For security, the cycler framework operates on a distributed consensus model, whether Vatoms are on or off chain. The exact ratios of stake vs profitability for compute services vs demand for cycling compute services in system are still being determined.
BLOCKv Governance & Business Model
BLOCKv’s goal is to grow the VEEcosystem and in the long-term, optimise availability of tools / support and platform services that deliver the best experiences for the lowest cost.
In this regard, BLOCKv’s aim is that Vatoms become the standard for digital objects with a collaborative and inspiring community.
To limit conflicts of interest with, and to support our stakeholders, we have designed BLOCKv’s business model in alignment with the long-term growth of the VEEcosystem:
- BLOCKv AG will limit net profits drawings to 10% of revenue and apply the rest of the funds to develop the VEEcosystem and services. In this way, our success will propel the growth of the project.
- BLOCKv will derive revenue from the following sources:
- 50% of Vatom emission fees
- Direct cycling revenues
- Profits/margin from cycling fund
- 15% SaaS fees for supporting cyclers
- Margins on advanced services, on-chain transactions and USD:VEE conversion services
Note: BLOCKv costs may include but are not limited to compute infrastructure, staff, developing and documenting the platform, integrating with multiple APIs, refactoring underlying code base and building awareness.
- Services priced in USD, settled in VEE, allows publishers to plan in USD without exposure to volatility of VEE
- Should VEE depreciate, the amount of VEE required will increase
- Should VEE appreciate relative to USD, the amount of VEE required will decrease
- As the total number of Vatoms in circulation increases, and the sophistication of their services increases, the total value of the VEEcosystem is likely to increase demand for VEE.
- Emission Fees:
- 50% of Vatom emission fees will comprise income for BLOCKv
- 50% will be removed from circulating supply, to top up community fund and be re-introduced into circulating supply as VEEconomy grows.
- For simplicity, this is intended as after 5 years or after 1 year from the time the total number of active Vatoms on the platform exceeds 110% of when the Vatom was emitted.
- Cycler Fees & Compute Layer on a – “Work Model”:
- Cycler fees will build up a cycling fund which will be used to pay for compute services on a transaction basis. Initially, these will be settled with cyclers on a weekly basis but as VEEcosystem scales, in shorter time intervals. Cyclers will get paid in VEE.
- BLOCKv will not sell the earnt VEE directly to developers circumventing exchanges.
Note: As much as possible, we have attempted to make this model resilient to market cycles and to take into account potential market forces as well as platform users.
This model is subject to revision, updates, and optimization due to market conditions, community feedback, or changes in strategy.
If you have comments about our model, we are interested to hear from you.
Please email: email@example.com