Internal beta testing is underway, and with the ecosystem performing well we wanted to bring some new features to light, so you can understand exactly how payments and purchases will operate. This includes the use of your OMI tokens to purchase digital collectibles, the mechanisms employed to ensure liquidity, and how the overall supply of tokens is reduced as demand and users increase.
Premium, Licensed Digital Collectibles
ECOMI is building an incredibly versatile and modern digital collectibles platform (keep an eye out for the name release soon!). By acquiring licenses, we are not only bringing established brands and household names to the blockchain community, but we are also leveraging their fans and creating a new way for IP holders to distribute their content.
The platform is designed to reach the mass-market, with a potential userbase in the millions, and as such the ECOMI ecosystem has been designed based on these principles:
- To create a mass-market product that requires no understanding of crypto, wallets, or the underlying blockchain technology.
- To create a user-friendly, seamless experience.
- To utilize new technologies, such as augmented reality, to create an entirely new digital experience.
Building for the Mass Market
Unlike ordinary crypto transactions, the platform has been developed as a hybridized system, marrying the principles of DLT with the expectations of a global audience, such as:
- Easy ways to recover your account, in the event you lose your phone or password
- Simple to use (and familiar) payment gateways
- Easy onboarding with social media integration (e.g. login with Facebook)
- Safe storage of digital assets- again without needing to understand cryptography or wallets.
- The ability to identify and verify the origin, sale, and ownership of digital collectibles.
In order to achieve these goals, the platform has a number of clever integrations that are familiar to the user, and ensure a smooth transaction process, whilst still utilizing the safety, security, and transaction mechanisms enabled by distributed ledger technologies.
In order to do so, the ecosystem has introduced ‘Gems’ to purchase digital collectibles, which we’ll look at it more detail below.
Gems Are the Currency of the ECOMI Ecosystem
Before we get into mechanics of purchasing your digital collectibles it’s important to explain some capabilities of the app. So, each user will actually have two wallets within the platform:
- A wallet for OMI tokens
- A wallet for Gems
You will also have the ‘wallet’ where your digital collectibles are stored and accessed, however as the platform is built for the mass market, the security and management of these wallets will be handled by ECOMI.
The ‘Gem’ model has been introduced as in-app currency to prevent OMI fluctuations adversely affecting users. This is not only imperative in making the platform user-friendly and familiar to non-crypto users, but it also offers the characteristics of a stable coin.
That is, you can convert your OMI tokens to and from Gems at any time, however, their value does not fluctuate. One Gem will always equal $1 USD.
- Gems are used as the singular in-app currency
- Gems can be obtained via an in-app purchase (via Apple/Google pay), OR by converting OMI tokens sent to the in-app wallet.
- Gem value does not fluctuate over time- however, the purchasing power of OMI to Gems will fluctuate with market conditions.
- Gems last until they are used to purchase digital collectibles, or exchanged back into OMI, after which they are removed from the ecosystem.
- Gems facilitate transactions and listing prices in both the primary and secondary markets.
The primary reasoning behind the introduction of Gems is two-fold:
- Whilst the value of OMI tokens will fluctuate with market conditions, the value of the Gems will not.
When it comes to the mass market, Gems can be purchased using fiat (through Apple or Google Pay), which will then be credited to their account. For a non-crypto audience, transactions will appear to be the same as other in-app or in-game purchases, where fiat is converted into Gems, and Gems are used to purchase ECOMI digital collectibles and items.
In the background, however, the equivalent amount of OMI tokens are actually being pulled from the in-app reserve, in anticipation of the purchase of digital collectibles. Once the NFT purchase is made, the Gems/OMI tokens are permanently removed from the ecosystem.
- Gems offer a familiar, and easy to use, currency throughout the ecosystem.
For example, if 1 gem = $1, and a collectible is priced at 10 Gems, you know it is $10.
On the flip side, if the value of digital collectibles was priced in OMI, it could be 500,000 OMI one day, and 350,000 OMI the next. With little to no understanding of crypto or token ecosystems, this would very quickly become a barrier to adoption.
It is also important to note that although the value of Gems is pegged to the USD, you will be able to change the currency that is displayed when purchasing Gems, e.g. GBP, AUD, YEN, etc... Yet another important step in simplifying the user experience and creating a mass-market product.
What About My OMI Tokens?
When it comes to the OMI token itself- nothing has changed with the use or utility of the token. Moreover, each purchase of a digital collectible (or additional in-app item) will use the OMI token to facilitate the transaction, after which those tokens are permanently locked away.
If you already have OMI tokens, you can simply send them to your in-app wallet, convert them to Gems (at the current market rate), and use these to purchase your digital collectibles.
The value/conversion rate will be displayed before confirmation, and in the background, the process of exchanging Gems for the NFT remains the same- OMI tokens are used and then removed from the ecosystem.
The only difference in this system is forward-facing, in that you will now convert your OMI tokens to Gems before purchasing your digital collectibles- a very easy process within the app:
- Send OMI tokens to your in-app wallet
- Convert to Gems at the current market rate
- Use Gems to purchase in-app items
Similarly, you can convert your Gems back into OMI tokens, to then return to your Secure Wallet or exchanges.
Again, 1 gem will always equal $1, however, with the fluctuating value of OMI tokens, the Gem to OMI conversion will vary per transaction. The conversion rate is based on the current market rate, as pulled directly from exchanges.
The Mechanics: Purchasing Your Digital Collectibles
As you may be aware, 40% of the total allotment of tokens has been set aside as a liquidity pool/token reserve for the ecosystem. Each time Gems are purchased using FIAT, the equivalent amount of OMI tokens are pulled from this reserve.
Whilst the user will see Gems credited to their account, in the background the OMI tokens are actually sent through the user’s OMI wallet, generating a transaction ID before landing in a second wallet, the OMI Vault wallet.
When the Gems are eventually used to purchase ECOMI digital collectibles, those OMI tokens are then pulled from the Vault wallet and exchanged for the digital collectible, or non-fungible token. On the user’s end, however, the Gems used will simply be debited from their balance.
After this exchange, the OMI tokens are taken out of circulation and permanently locked away, whilst the digital collectible simultaneously appears in the user’s collectible wallet.
Therefore, as each in-app purchase is made, the overall supply of OMI is reduced.
The User Experience Is Much Less Complicated
When it comes to the user experience, it is a much simpler process:
- The user will make an in-app purchase of Gems using Apple/Google pay
- Then purchase the digital collectible (from the first or second-hand market) using Gems
- The digital collectible will appear in the user's wallet- now officially owned by the user- and can be put on display in Showrooms, shared on socials, and interacted with in Augmented Reality!
What If I Don't Have Enough Gems?
Within the collectibles platform, Gems can be purchased in one of two ways:
- Ahead of time, as Gems are available in value packs of $5, e.g. $5, $10, $50 worth, which will then sit in the users gem wallet for later use, OR
- if a user attempts to purchase digital collectibles with an insufficient balance, the number of Gems required can be purchased during the checkout process. The user will be prompted to complete the purchase with a ‘buy now’ feature, which will purchase the required gem value before being used immediately to purchase the digital collectible
Note: gems will still be purchased in multiples of $5 values. That is, if you need 4 Gems to complete a transaction, you will still purchase 5, with the remainder sent to your Gem wallet.
All transactions using and facilitating the OMI token, including its exchange for the NFT, will operate behind-the-scenes.
Won’t We Eventually Run out of Tokens?
If this were the only mechanism, the in-app reserve would eventually deplete, especially as more users joined the platform. However, each in-app purchase apportions an amount to the ‘buy-back’ fund, which automatically purchases OMI from exchanges at the current market rate. This not only ensures a continued supply of OMI tokens in the liquidity pool/in-app reserve, but it also creates constant buy pressure for the OMI token.
Additionally, this system allows the value of the OMI token to grow organically as we onboard more users and more purchases are made. It also greatly reduces any potential limitations from the app, limits the misunderstandings of new users, and creates a more seamless user experience.
- Gems are the currency of the ECOMI ecosystem
- They can be purchased using fiat, or obtained by converting OMI tokens
- Gems will then be used to purchase any/all items within the app, whilst in the background, OMI tokens facilitate the transaction
- Overall supply is reduced with each digital collectible purchased
- A buy-back plan ensures liquidity for the app and consistent buy-pressure for the token.
- Transactions take place in the background, ensuring a seamless and familiar user experience.
Are you ready for the launch of our digital collectibles platform?! Subscribe to our blog to stay up to date, or join our announcement channel on Telegram as we begin to roll out some amazing announcements over the next few months!
ECOMI is a technology company based in Singapore and is leading the way in the emerging digital collectibles space. ECOMI offers a one-stop-shop for digital collectibles through the ECOMI Collect app bringing pop culture and entertainment into the 21st century.
The Collect app allows users to experience true ownership of premium digital collectibles. Through the app marketplace, users can obtain common, rare, or one-of-a-kind digital collectibles, share these across the social network service, and exchange them with the Collect community, all from the palm of their hand.
ECOMI sees digital collectibles as a new asset class that offers intellectual property owners the opportunity for new revenue streams in the digital landscape. Digital streaming, gaming, and in-app purchasing have become a multibillion-dollar market and the next to join this digital trend is the pop culture and collectibles industry.