To comply with exchange listing — and legal requirements, V-ID has updated the tokenomics model to exclude the dividend mechanism. The burn amount has been doubled.

VIDT and V-ID’s tokenomics

VIDT

The V-ID token (VIDT) is the integral part of the validation process, and therefore of the business process of V-ID.

V-ID offers their customers to use one or more blockchains for additional security. These blockchains currently include DigiByte, Ethereum, Bitcoin and IBM Hyperledger. These are the main reasons for the use of VIDT:

1 Client wallets

After the KYC process, V-ID issues client wallets for every customer. Each transaction from that wallet stands for the validation of a file from that identified customer. The token transactions are key to the identification and confirmation of the identity of the publishing party.

2 Ease of use is key for adoption

In order for the V-ID platform, and blockchain technology as a whole, to be adopted broadly by businesses, the process must be as accessible as possible. For any way that companies use V-ID Validation, they just need VIDT. Our customers do not need to know how to handle multiple crypto wallets, with transaction rates that constantly change, gas prices and other typical crypto related technicalities. Low or no impact on existing workflows is key. So, to validate files, the V-ID platform offers an API, or, for lower volumes, a simple drag-and-drop interface.

3 Control

The V-ID token provides V-ID with an instrument to control the prices for validations in VIDT, which allows V-ID to compensate for the constant fluctuations of exchange rates and transaction fees that come with the different blockchains that are used.

4 Transparency

Because V-ID uses a token, all transactions are public and traceable, providing transparency.

V-ID’s tokenomics: the Utility Loop and Quarterly Actions

The Utility Loop consists of 3 actions:

Action 1: Customers buy V-ID token bundles from V-ID. V-ID initially reserves 25 million V-ID tokens in the Main Wallet for these transactions.

Action 2: A transaction with V-ID tokens takes place for each validation. The tokens spent for validation are transferred to V-ID’s Validation Wallet.

Action 3: 80% of tokens spent, will be returned from the Validation Wallet to the Main Wallet.

Quarterly Actions

Each quarter, 3 things happen:

1: As mentioned, 80% of the tokens will flow from the Validation Wallet back into the Main Wallet.

2: 20% of the tokens will be burned.

3: V-ID will buy an amount of tokens equal to 10% of VIDT spent on validations. V-ID will buy this amount of tokens in unequal parts at random moments, preferably at several exchanges, to prevent sudden movements in the exchange rate, and to eliminate any predictability in exchange rate developments.

On March 19th, the Main Wallet and Validation Wallet moved to separate addresses.
3% of total VIDT supply is reserved for V-ID’s team
2% of total VIDT supply is reserved for V-ID’s advisors
Validation wallet
0xe7C54558a04F2f673Ce271B6C908839e9342a50a
Main Wallet
0x57E6B79FC6b5A02Cb7bA9f1Bb24e4379Bdb9CAc5
Owner Wallet
0x8636a1100a06cad72c16c663f5ff6a893ddd1584

Additional actions connected to the Token Sale

Founders and advisors lockup

The lockup means that V-ID mandates a 5 year lockup on V-ID Tokens for its founders and advisors, with 20% released per year.

Burning surplus tokens

All tokens that were reserved for the Token Sale, but were not sold, have been burned.