BLXR and White Paper — Update

By: Eyal Markovich, COO

Recently bloXroute made changes to our BLXR Token model based on feedback from the community and investors. We’ve updated our White Paper to reflect these changes.

The TL;DR:

  1. Changed from a reserve model to a direct dividend model
  2. Doubled the amount of revenue flowing to BLXR holders
  3. In line with investor desires, these changes now allow investors to manage their own crypto exposure

The BLXR is a capped-supply Security Token created to support the development of the bloXroute Blockchain Distribution Network (BDN). Blockchains using the BDN always get the first 100 TPS for free and after 100 TPS, users can choose to pay a small fee to lower their overall fee. Revenues associated with the cryptocurrencies using bloXroute’s BDN are distributed to BLXR holders.

Below we outline the new model and review the original model.

New: Dividend Model

Dividend Model: Ownership of the BLXR represents a pro-rata share of 100% of the fees associated with the cryptocurrencies using bloXroute’s BDN and become immediately available for withdrawal by BLXR token holders.

Functionally, fees will automatically be directed to a newly created pooled account, with one wallet per supported currency. Each BLXR holder will have an Owner Balance that reflects their pro-rata share of all fees collected while they are owners of the token less any withdrawals.

For example, if bloXroute collectes 10 BTC in revenues and User A owns 10% of the BLXR supply, then User A will receive a 1 BTC dividend.

Withdrawal: At any time, BLXR holders may withdrawal their pro-rata share (Owner Balances) to a wallet they control.

BLXR Holders may also sell their tokens, reducing their right to receive future dividends in proportion with the amount of BLXR Tokens sold. Owner Balances are unaffected and may only be reduced as described above. For example, if User A has a balance of 1 BTC in Time 1, even if her BLXRs are sold in Time 2, her Owner Balance remains until she withdraws the funds.

Original: Reserve Model

Reserve Model: In the original model, ownership of the BLXR represented a pro-rata share of a crypto reserve. The reserve collected 50% of all the revenues associated with the cryptocurrencies using bloXroute’s BDN, denominated in those cryptocurrencies. The remaining 50% of revenues went to fund bloXroute’s operations.

Withdrawal Mechanism: To withdraw funds, BLXR holders could either 1) sell their BLXRs or 2) burn the BLXR to receive one’s pro-rata share of the reserve at that moment in time.

Conclusion

The changes made to the BLXR Token were made after thoughtful consideration and input from various stakeholders. We believe this dividend model will further support bloXroute’s goals of promoting the success of all cryptocurrencies.

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