▶ Internal News
● 10 Questions & Answers, Bluepaper & Token Model
This week’s staff interview has been replaced with AMA regarding ‘Bluepaper’ and token model.
We tried to answer all questions submitted through the survey form and raised within our community, except for the ones not relevant to the token model. Additional questions frequently asked within our community will be addressed in later issues of COSMO This & That, etc.
Q1. Great job with the Bluepaper. But, I think it’s similar to the whitepapers of most coins which are ambitious, yet unpractical. And if it can be modified any time, can token model really be realized?
We think that the whitepaper may seem grandiose because it reflects the long-term vision and direction of the project. Bluepaper, in particular, may seem even more unfamiliar as it discusses a lot of structural information.
However, there are reasons for modifying or restructuring existing whitepapers. Projects which planned with long-term perspectives may lose competitiveness and become meaningless in the fast-changing crypto market. Indeed, many projects regularly revise and develop their business roadmap, which can be seen as a strategy to quickly respond to the uncertainty within the crypto market.
Cosmochain also felt the need to update its existing whitepaper in order to remain competitive. Publication of the Bluepaper was the first step towards the expansion of the FitsMe service and token model for the effective operation of the ecosystem.
Arbitrarily changing the business direction could be a problem, but ‘Introduction’ and ‘Design direction’ sections of the Bluepaper which contain the foundational concepts of the project will not be modified. Instead, specific details that are necessary for achieving these foundational concepts may be modified.
Q2. Will the token economy be complete by the end of October, upon gradual development? I would like to know the exact order of the weekly gradual development in token model.
Full completion of the token model is a long-term objective. In October, basic infrastructure which is essential for achieving this objective, as well as token model corresponding to type ‘A. Marketing Project’ among the three transaction types will be completed. Token flow corresponding to types B and C will be later incorporated based on business outcomes and partners’ circumstances.
More specifically, gradual development schedule is as follows.
- Week 1 (10/01~10/07) — Initiate CP on Mainnet, Initiate Mint for Chain operator
- Week 2 (10/08~10/14) — Initiate Mint for DApp operator
- Week 3 (10/15~10/21) — Initiate Marketing Project on Mainnet
- Week 4 (10/22~10/28) — Initiate Mint for Consumer
Regarding the schedule above, Medium content will be uploaded every Tuesday (starting 10/8) to provide the results of the development and additional explanation. The implementation schedule may be slightly delayed depending on the development situation and technical variables.
Q3. I want to know the usages for COSM. Will consumers be able to buy products with COSM from now on?
In order to use COSM within the ecosystem, it first needs to be conveted to CP. The converted CP can be used by consumers to purchase cosmetics and participate in events, and by brands to run marketing projects (e.g. targeted advertising, trial programs), and purchase consumer data.
However, data purchase and cosmetics purchase, which correspond to the transaction types ‘B. Insight Marketplace’ and ‘C. Cosmetics Marketplace’, require additional development as described in Q2.
Q4. How are FitsMe users rewarded?
FitsMe users are rewarded for providing data within the DApp. Based on activities such as entering skin information, preference information, cosmetics purchase history and reviews, etc., data contribution levels of individual users are determined, and CP is provided to the users’ accounts according to this contribution.
Even if users engage in similar activities repeatedly, there is a maximum limit on how much a user can get on a daily basis. Declining rates are applied on rewards when similar activities are repeated. The exact reward algorithm will not be disclosed at this moment in order to prevent abusing.
Q5. Can entities other than Cosmochain operate the platform and take the role as a Chain operator?
Currently, Cosmochain is the only CO (Chain operator), but Cosmochain’s partners can also take on the role of CO. Together with Cosmochain, CO plays a role in designing items and structures necessary to build a consumer-centric database, and various entities such as brands, distributors, and marketing channels can participate as CO.
Q6. Isn’t there a pre-determined ratio for Consumer, DO, and CO?
For minted tokens, issuance and distribution are based on contribution rather than proportional. The amount to be minted is determined within the daily cap based on the players’ level of contribution. Assuming that all players contributed fully, 0.0266% of the total supply will be minted and minted tokens will be allocated to Consumers, DO, and CO at a ratio of 45:45:10.
On the other hand, for distribution of revenue that occurred from Brands, such as Marketing Project, etc., the ratio is set and varies for each type of project.
Q7. Is the conversion between CP and COSM spontaneous, or is there a waiting time?
The conversion between COSM and CP happens in real time. CEC, the intermediary bank between the two tokens, utilizes smart-contract, so the transition happens right away.
However, when converting CP to COSM, restrictions such as lock-up may be applied depending on the CP acquisition method and timing for the different players.
Q8. Are mint and burn of MINT and BURN accounts automatic according to fixed algorithm? Or is it based on team’s intended schedule?
All Mint happens automatically through smart-contract based on pre-determined algorithm.
In the case of Burn, tokens will be automatically accumulated in the BURN account according to the pre-determined algorithm. However, the actual burning of the tokens will be carried out regularly and manually by the team for the time being. In the long term, we plan to automate the Burn process as well.
Q9. Is the ‘Project expense’, or the money used for buying COSM from the Market, all or part of what beauty brands pay to Cosmochain?
All of the money received from beauty brands are used to buy COSM, and then these COSM are converted to CP to be allocated to the stakeholders. The reason for taking this rather complex structure is that currently, there are practical difficulties for brands to purchase COSM and pay Cosmochain directly with COSM. Therefore, Cosmochain temporarily acts to convert the KRW to COSM, and to CP on behalf of the brands.
How much COSM has been bought and converted to CP, and then allocated will be recorded on Blockchain for each conducted project. In the long-term we will come up with a method for transparently disclosing project payment execution for brands and overall scale of the token flow to holders.
Q10. Does the team have to earn certain percentage of the marketing and data sales revenue through participation as DO or CO, or does the project get part of the revenue according to the contract?
As explained in Q9, all project expense will be allocated to Consumer, DO, CO, and Burn accounts. Thus, for Cosmochain to earn part of the revenue as profit, it needs to earn CP by participating as DO or CO.
Currently, Cosmochain receives part of the project expense as the only CO and DO. However, if more DApp operators (DO) are added in the future, Cosmochain as a DO will only receive CP for revenues incurred within its own DApp.
▶ External News
1. Bluepaper Preview Meeting
On September 27th, Cosmochain held ‘Bluepaper Preview Meeting’ for holders.
During this meeting, Cosmochain gave a slight preview of the Bluepaper based on information which were already public and collected various business-related feedback from the holders.
2. Bluepaper Release
On October 1st, Cosmochain uploaded ‘Bluepaper’ which discusses the overall token model of Cosmochain ecosystem.
Read full document here: https://cosmochain.page.link/bpaperv1en
Through the realizatoin of its token economy, Cosmochain aims to achieve its objective of creating new values within the beauty industry.
Furthermore, Cosmochain will publish a series on “Token Economy Booting” every Tuesday in order to help holders understand the token model better and transparently provide information during the month of October. The first contents will be uploaded on October 8th.
3. Buyback Completion
Buyback of 500 M KRW for Q3 of 2019 has been complete as of September 30th.
KCT COSM bought back has been swapped and deposited in the ERC wallet which was previously shared in the public disclosure. The buyback tokens can be seen in the link below.
These tokens will be locked-up for 6 months, and then used towards appreciation of COSM value such as ecosystem activation and business expansion.
4. Partial Burn of the Total Supply
Based on the conclusion that Cosmochain achieved its major milestone upon the initiation of its token model integration, Ulysses Capital and Cosmochain mutually agreed to proceed with the following terms. Ulysses Capital will maintain the amount of funds invested, which corresponds to their initial investment of 100 M COSM, which took place in July, 2019. But, upon their confidence in Cosmochain’s long-term vision, they have supported Cosmochain by burning 25 M COSM, and supplying it towards mint for Cosmochain’s token model in Q4.
The remaining 75,000,000 COSM is currently held in the following wallet address, and can be viewed on Etherscan.
To summarize, after burning of 25 M COSM, Cosmochain’s total supply decreased from 1,123 M to 1,098 M COSM. The base for Cosmochain’s initiation of token model prior to mint has been set at 1,098 M COSM.
▶ Ask Me Anything
(Answers to the most frequently asked questions within our community)
1. Will there be an additional buyback?
If we decide to execute additional buyback, upon consideration of various circumstances, we will officially share the timeline once confirmed.
2. When and where will be the October Meeting with Holders be?
It is planned for mid to late October, and we will hold it in a region which is accessible for many holders.
Please refer to further announcements for detailed schedule.
3. Can I just keep my ERC-20 tokens?
As of now, ERC-20 COSM can be safely stored or deposited to Korean exchanges GDAC and Coinzest, foreign exchange CoinAll, and other ERC-based wallets. (ERC-20 COSM cannot be sent to KCT-based exchanges including UPbit, Coinone, and Bittrex.)
Regarding additinal swaps, we have completed discussions and technical integration for token swaps with an exchange for foreign holders, but the swap schedule is being delayed due to complexities between our agencies. As soon as the schedule is fixed, we’ll guide you to help you swap as much of your remaining volume supplies. We are also considering a way to support a direct swap from the team.
Cosmochain is a blockchain project based on beauty data, founded in March of 2018. We aim to contribute to the development of beauty ecosystem by systematically managing data incurred within beauty industry, and data to those in demand through our platform,
On June 2019, Cosmochain launched its main service “FitsMe” based on the 1.5 million data points incurred through its pilot service. So far, FitsMe is performing well, ranking 6th within Beauty Category of Google Play Store, with an MAU of 20,000 people.
Cosmochain Official Channels
● Cosmochain Web: https://cosmochain.io/
● Telegram(Announce): https://t.me/cosmochainannouncement
● Telegram (KOR): https://t.me/cosmochain_english
● Telegram (ENG) : https://t.me/cosmochain_global
● KakaoTalk(KR): https://open.kakao.com/o/gAMfQpU
● Medium : https://medium.com/Cosmochain
● Twitter: https://twitter.com/cosmochain