Supply & Demand
Last updated
Last updated
🌱 Supply Creation: Value Based Distribution
In the myBID ecosystem, new tokens are issued in response to its growth, which is fueled by increasing user engagement and the rising value of personal data to businesses. The expanding user base necessitates a larger supply of tokens to enable smooth operation of services on the platform. This approach is akin to how a real-world economy functions, where the supply of money is proportional to economic activities. The tokenomics structure is carefully designed to offer substantial incentives to early adopters, acknowledging the greater risks they face in the initial stages, thereby encouraging their vital support for the ecosystem's early development.
🔄 $MBID Supply
To balance these two needs from a token supply perspective the myBID system will have a managed total circulating supply (TCS) and a fixed maximum supply (MaxS).
myBID Token Supply
Maximum Supply (MaxSupply)
8,000,000,000 tokens
Total Circulating Supply (TCS)
All issued tokens including those in wallets, exchanges, smart contracts, and staking contracts. Includes lost tokens.
The distribution of the first tokens into the Circulating Supply during the initial token generation event are further described later in the chapter.
✖️ User Reward Multiplier
To ensure that MaxSupply can never be breached and rewards for early adopters are always higher than for late joiners all rewards given out by the myBID system are multiplied by the User Reward Multiplier (URM).
New tokens are minted upon a new user signing up for myBID and having received their first credential, which typically will be the credential issued for having completed the myBID registration processes.
The new mint is distributed as below:
New Mint Distribution
New User
5 × URM
Referral Reward
1 × URM
Ecosystem Fund
3.7 × URM
Foundation
0.3 × URM
Therefore, if we assume a TCS of 1 billion tokens a new user joining would receive 5 × (8,000,000,000 - 1,000,000,000) / 8,000,000,000 = 10 new tokens. Those new tokens will be immediately considered part of the TCS hence the next user coming in will already receive a slightly lower reward.
A potential indicator of the value of a new user on the platform are the customer acquisition and customer validation (KYC) costs incurred by businesses that use 3rd party verification services. From our in-house market research we know the latter is between 1.6 USD and 8 USD, and customer acquisition cost can range from 21 USD to 533 USD depending on the industry and market in question. Given myBID substitutes for verification as a service provider and lowers customer acquisition cost substantially, it seems reasonable to believe that the actual value per user added is a combination of those two factors.
Another benefit of not allocating the lion’s share of team incentives and rewards via the initial token generation event is that there is a constant incentive for the team and partners to drive end user adoption. Furthermore, the possibility of a high supply of tokens entering the market in a short period of time or a dump by insiders is much less likely.
Several factors might motivate individuals and institutions to purchase myBID tokens. This includes belief in the value of the ecosystem, the desire to benefit from its services or speculation. The below model is based on the utility created by the myBID system and the value it will add to various businesses that need to comply with e-KYC requirements or want to verify an individual's identity and/or credentials.
These businesses are Verifiers and would pay a verification fee in myBID tokens which will be distributed as below:
User Reward
Transaction Fee × 0.10
Ecosystem Fund
Transaction Fee × 0.67
Partners
Transaction Fee × 0.20
Foundation
Transaction Fee × 0.03
Depending on the use case the transaction fee will be set to a fixed value by the system or can be dynamically adjusted by the Verifier to provide an appropriate incentive to share the information held within a credential.
The Treasuries fee share makes sure that there is always sufficient liquidity available for the protocol to cover gas fees and provide an incentive for the myBID team to drive not only user adoption but also verifier acquisition.
The digital identity application will allow for settlement of transactions in $MBID, stable coins, or fiat (via payment gateway). If stable coins or fiat are used, the system will acquire myBID tokens at market rate and charge a convenience fee of 3 % over market rate to the Verifier. Therefore, Verifiers are incentivised to purchase myBID tokens and hold them in their wallets to enjoy less process friction and lower cost per verification.
