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.
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, LTO Network, Bitcoin, FTM 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.
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.
Because V-ID uses a token, all transactions are public and traceable, providing transparency.
V-ID’s tokenomics: the Utility Loop and Monthly 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.
Each month, 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
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.