#11 Business Model
How does the interaction between different participants take place?
ASSEMBLE protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and retailers.
In the previous post, we learned about ASSEMBLE’s Token Economy, which is an ecosystem of the ASSEMBLE Protocol. In fact, there are two core components of ASSEMBLE’s Token Economy, which are the the Market Place and Data Infrastructure. In today’s post we will take a look at the business model of the ASSEMBLE Protocol, and see in what way and order the interactions between the participants of the platform occur.
Business Model
ASM Token, which is the primary digital asset of the ASSEMBLE Platform, will be utilized for trading purposes and as exchange units for various goods and services. ASM will also be provided in the form of reward token for the customers who actively participate on the ASSEMBLE Platform. Some of the profits will be bought back to reinvigorate the ASSEMBLE ecosystem.
The expansion of point providers’ and retailers’ bases will increase product variations in the MP. At the same time, consumers who want to purchase goods at a low price can buy ASM with their reward points. ASSEMBLE can also get profits from the commission. The breakdown of the commission rate is shown below.
Commission Fee
Commission rates are subject to change depending on how widely ASSEMBLE is used and how a settlement contract with point providers is stated.
Commission rates will also be applied to consumers who use the ASSEMBLE Platform depending on their usage frequency and accumulated amount of exchanges. The difference between the amount that ASSEMBLE receives from a point provider for point retirement and the amount of ASM provided to a customer becomes profit for the ASSEMBLE Platform.
MP Sales Commission Fee
Once a retailer records the sale of goods at the MP, the sales commission is determined for every product that the retailer sells. When a purchase is made, the MP sales commission is deducted from the total and the remaining money is transferred to the retailer. The sales commission is determined by a contract between the retailer and ASSEMBLE which states the product type, cost, SG&A, etc.
Advertisement Commission Profit
As mentioned above, advertisers can run various advertisements using data accumulated in DI. Advertisers pay a commission fee to the ASSEMBLE Platform to run an advertisement. ASSEMBLE’s profit is the amount left over after the reward points sent to the customer have been deducted.
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