Road Map & New Token Economics
It’s been three weeks since we announced the new management team for WavesGo . Communication has been increased significantly, we announced the coming Gateway Framework created by Marc and we started our introductory series “Waves 101”. Nonetheless, we haven’t yet introduced significant changes nor have we shared our road map — now the time has come.
Our Road Map
As announced about two weeks ago, Marc and a student of his have silently but diligently been working on a gateway framework. This framework allows us, after having been tested rigorously, to easily set up new gateways particularly for digital currencies built on the Bitcoin codebase, for example Litecoin or Bitcoin Cash. Conceptually, this technology also allows cryptocurrencies based on other codebases to be integrated. The gateway framework not only allows new currencies to be traded and stored in a decentralized way on the Waves Platform, but, more importantly, has the potential to bring a tremendous number of new users to Waves. The monetization plan for the gateways has yet to be defined.
The gateway framework is currently being tested internally at quite an advanced stage. Up next is a test release meaning we connect the framework with both the Waves and the LiteCoin TestNet. This is when we will need you to step up! We are going to invite everyone to participate in bug hunting and testing the gateway — we might even give away a couple of WGO for your efforts! After having the framework successfully tested and all bugs weeded out, we are going to release the first MainNet gateway.
Dario is currently working on a TestNet version of WavesGo to give testers, bug hunters and developers an additional resource to work with. Another crucial reason for realizing the TestNet version is pretty briefly explained — the community asked for it, we are making it a reality.
We are in the process of lining up an ICO technology aimed at projects building on top of Waves. From experience, we know that there is a tremendous market which is not yet being fully satisfied — we want to change that. Our product will be a simple and standardized ICO technology without offering any additional services such as community building or marketing. As a result, we expect our technology to price very competitively in this niche market, creating a new, potentially quite big, revenue stream for WavesGo. We would like to emphasize that our ICO technology barely introduces any variable costs and only lifts our fixed costs by a small margin — draw your own conclusions.
Before releasing the product into the wild, we are going to organize a Test ICO. This means, same as with the gateway framework, that we connect the code with the respective test networks and have it tested by the community. We don’t only want to get your expert feedback to improve the product (which already is invaluable); we want to show you our product and prove that it works reliably and securely. After completion of our Test ICO, we are going to use the community feedback to get the product ready for release. The roll-out is planned for Q1 2018.
WGO — New Token Economics
Before we tap into the details, we’d like to reassure that the new team is committed to keep making the WGO token a success — we do not hold any plans to kill it at all. We’ve been investigating the legal aspects of WGO and came to the conclusion that it does not currently qualify as a security given we change the profit distribution mechanism. Effective October 1, 2017, we are going to switch from the current dividend model to a buy back & burn profit distribution as seen in Darcrus. More about the buy back program a little later.
Currently, WavesGo distributes a majority of its net profits to WGO holders through a simple dividend payment over the Waves blockchain. Furthermore, the distribution of WGO is still on-going through a weekly distribution of 100k WGO to our lessors.
Starting from October 2017, 50% of all net profits generated by WavesGo are being used to buy back & burn WGO tokens. This means that literally 50 cent of every single dollar of profit earned by all our current and future revenue streams flows back into the WGO market. Moreover, we are going to use the 50% retained MRT from mining operations for the buy back program too.
The Buy Back Program
The buy back program involves two steps: Acquiring WGO tokens from the open market followed by burning them — essentially eliminating them from the blockchain and consequently reducing the token’s supply. As we speak, WGO is only being traded on Waves’ decentralized exchange (Dex) and Tidex. We took the decision to settle the buybacks exclusively on the Dex; firstly, we want to advocate the use of the Dex as one of Waves’ most popular service provider, secondly, we feel it to be the logical choice as our Dex markets are more mature and accountable for the majority of the trading volume. We are neither going to announce the timing nor the chosen market(s) of any buyback — the details of each tranche is only ever announced after the purchases are completed. These details include proof on the blockchain that the acquired tokens were actually burned.
At the moment of writing, we are holding 2.264m WGO that are still to be distributed. To prolong the lifetime of our token distribution, we are going to reduce the weekly distribution to lessors to 10k WGO, also effective October 1, 2017.
Our lessors are barely affected by the coming changes. Reward distribution is still at 100% and 50%, WAVES and MRT respectively. Only the WGO distribution to lessors is going to be reduced to 10k per week.
You made it! Thanks for reading until here. We are very open to community feedback and suggestions — feel free to drop us a line in our Waves Slack channel #wavesgo or send us an e-mail to firstname.lastname@example.org.
The WavesGo Team
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