White Paper Update
Disclaimer: This whitepaper update is for informational purposes only and does not constitute financial advice or an offer to invest. Potential investors are encouraged to conduct their own research and seek professional advice before making any investment decisions
- Introduction:
This document serves to provide various updates to the Digitalbits version 2.3 whitepaper published on June 14, 2019 as well as to the latest whitepaper update dated on August 5, 2022. This paper formally presents an innovative enhancement to the token economy of the Digitalbits blockchain by officially introducing the Branded Coins Offering (BCO) with a unique buyback and burn mechanism (BBB). This fundamental enhancement aims to improve the real-world utility and the supply-demand value proposition of the XDB coin by leveraging the powerful Digitalbits blockchain platform. The introduction of Branded Coins Offering (BCO) will enable businesses and entities to create their own branded cryptocurrencies on the Digitalbits chain while supporting the overall ecosystem through a 2.5% allocation of each new Branded Cryptocurrency supply for regular buyback and burning of XDB coins. This mechanism will foster scarcity and provide incentives for all stakeholders such as market participants and token community by strengthening the economic viability and attractiveness of the Digitalbits network as the layer-of-choice.
This mechanism will be in force until the total supply will be reduced to up 10 billion XDB coins over time.
2. Branded Coins Offering (BCO)
The Digitalbits project is a decentralized blockchain platform that facilitates the secure and efficient transfer of assets, including cryptocurrencies and digital tokens. While the Digitalbits native coin, XDB, has already demonstrated its potential, there is an incredible demand for further enhancements to the token economy. To address this, every new branded cryptocurrencies on the Digitalbits chain which will involve Digitalbits Foundation to mint, distribute and raise awareness of these new coins, will introduce a novel token buyback and burn (BBB) mechanism. This will be integrated into the tokenomics of these new coins as part of any new Brand Coins Offering (BCO) and made transparent to the community of token holders.
The Branded Coins Offering (BCO) will empower businesses, organizations, and individuals to create their own custom-branded tokens on the Digitalbits network. This offering will provide them with the flexibility to design unique use cases, functionalities, and branding elements that align with their specific needs. Branded tokens will be created as digital representations of real-world assets, loyalty points, and other digital assets all leveraged by established products, use cases and a captive user base.
3. Buyback and Burn Mechanism (BBB):
To enhance the value proposition of the XDB coin and promote a deflationary mechanism, each new Branded Coins Offering (BCO) on the Digitalbits chain will include an allocation of 2.5% of its total supply for regular buyback and burning of XDB coins. This process will be carried out systematically by the Digitalbits protocol on a quarterly basis.
There will be a dedicated burn address for each BCO which can be fully audited. The purchased XDB coins with Branded Cryptocurrency liquidations will be permanently removed from circulation, reducing the overall XDB token supply of up to 10 billion XDB coins over time and introducing a deflationary system leveraged by adoption and utility of the Digitalbits protocol.
This will also ensure a broader participation of the whole Digitalbits project into any new Branded Coins Offering (BCO) and the following benefits:
Strengthened Ecosystem: The introduction of Branded Coins Offerings (BCO) will attract a diverse range of businesses and entities to the Digitalbits platform, fostering a vibrant and growing ecosystem. This increased adoption will drive network usage, transaction volumes, and overall liquidity, benefiting all participants.
Enhanced Token Scarcity: The token buyback and burn mechanism will create a continuous reduction in the circulating supply of XDB coins. As a result, the scarcity of XDB will increase, potentially leading to an increased demand over time. This deflationary aspect will incentivize long-term holding, encouraging holders confidence and commitment to support any new value-driven Branded Coins Offering (BCO).
Customization and Engagement: Branded cryptocurrency will enable entities to create customized loyalty programs, rewards, and incentives tailored to their customer base. This will lead to increased customer engagement, retention, and loyalty within the branded token’s ecosystem.
4. Technical Implementation
Technical Integration: The Digitalbits protocol will incorporate further functions to facilitate the creation and management of branded tokens. In the future, they will define the rules governing the issuance, transfer, and burning of branded tokens, ensuring transparency and security.
Token Buyback Mechanism: A dedicated address will be implemented to facilitate the buyback of XDB coins from the open market using funds generated from Branded Cryptocurrency Offering liquidation. These purchased XDB coins will be sent to a designated burn address, rendering them unusable and permanently removing them from circulation.
Conclusion: The introduction of Branded Coins Offering (BCO) and the token buyback and burn (BBB) mechanism on the Digitalbits platform presents an exciting opportunity to enhance the overall Digitalbits-layer token economy with the goal to reduce token supply of up to 10 billion XDB coins overtime by the demand introduced from real world products and brands. This proposal aims to provide confidence to a diverse range of businesses and entities to the ecosystem while reinforcing the utility, the adoption and scarcity of the XDB coin and any custom-assets leveraged by Branded Coins Offering (BCO) on Digitalbits.
Disclaimer: This whitepaper is for informational purposes only and does not constitute financial advice or an offer to invest. Potential investors are encouraged to conduct their own research and seek professional advice before making any investment decisions
