EBN Rewards and Token Analogies
The Energy Blockchain Network (EBN) ecosystem will utilize the following system to facilitate our Lead Registry & Rewards Program minimum viable product (MVP):
- Pegged Currency (PC) Token (stablecoin or stable token)
- Smart Contract
The PC token is the token that gives the ecosystem stability since it’s pegged to a local fiat currency (e.g. USD) or to the value of the certain collateral. The PC token will be used as payment per smart contract terms.
A smart contract will be created for every lead record which will store select lead data and will be loaded with PC tokens upon creation to automatically distribute to participants who transition the lead through all of its states.
A Smart Contract is software code, based on IF-THEN statements, that can self-execute complex operations when one or more conditions are met. Allows credible execution and enforcement of contracts without third parties.
For more information regarding the lead origination process, distributed energy resource (DER) supply chain management, EBN ecosystem, etc., please see the EBN Publications archive (i.e. Blog № 3,4,5,7,8):
Blog #1 — The Third Industrial Revolution
Blog #2 — Disrupting the Largest Market in the World
Blog #3 — The Value of Lead Origination
Blog #4 — The (Energy) Promise Land, Follow Us…
Blog #5 — Energy Technology Convergence, Explained
Blog #6 — Centralized vs. Decentralized Energy: The Case for DERs
Blog #7 — Upstream vs. Downstream: DER Supply Chain, Explained
Blog #8 — EBN Ecosystem Architecture Overview
Token Analogies
Tokenized blockchain systems are similar to existing token business models today, but most consumers interact and use the tokens without thought or concern. Blockchain is digitizing this existing process and opening new markets and assets for tokenization. In what’s sometimes referred to as a ‘dual’ token model, one of the tokens can serve as a ‘platform access’ (PA) token. Keep this concept in mind when reviewing the following examples.
Note: Although the EBN platform is using a PC token + smart contract system, it is NOT considered a ‘dual’ token model in the context previously described since we’re not utilizing a PA token. PA tokens are generally the tokens that are sold/issued via an initial coin offering (ICO) or token generation event (TGE).
The Arcade Analogy
Take for example an arcade. The platform access (PA) token can be thought of as the monthly membership a player must pay to the arcade owner so they may gain “access” to the games inside. Once inside, local fiat currency (USD) can be exchanged for arcade tokens that must be deposited into the machines to play. In addition, the arcade owner can gift arcade tokens to players for being good patrons. The arcade tokens are similar to the pegged currency (PC) token (stablecoin or stable token) that players can redeem for local fiat currency (USD).
The Laundromat Analogy
Similar to the arcade analogy, consumers use fiat currency (USD) to acquire laundry tokens that must be deposited into the washer or dryer for operation. These laundry tokens are similar to the pegged currency (PC) tokens (stablecoins or stable tokens). A laundromat loyalty program may gift consumers say $2 for every $20 of laundry tokens they acquire to incentivize ecosystem (the laundromat) participation. Similar game theory opportunities apply to blockchain token economic models.
The Credit Card Analogy
Another example of a dual token system consumers commonly interact with is a credit card rewards program. The platform access (PA) token can be thought of as the annual credit card fee that a consumer must pay to gain “access” or the ability to use the credit card. Consumers that use the credit card are contributing to the ecosystem’s health, so the credit card company gives back a % of purchases in the form of “reward points.” These reward points are similar to the pegged currency (PC) tokens (stablecoins or stable tokens) that can be redeemed for local fiat currency (USD) — “get cash back.”
EBN Rewards Program Overview
Pegged currency (PC) tokens (stablecoins or stable tokens) are issued against escrowed funds and can be redeemed at any time for local fiat currency. Local fiat currency can be USD or any local market currency that the platform established with its participants.
Reward Plan 1 — Stablecoin (Stable Token) Plan:
Token rewards will be issued in stablecoins (or stable tokens) so participants can easily evaluate the local fiat currency cash value. Think of this like the credit cards reward points example above. Participants will always know how much their token rewards are worth in local fiat currency, so they will not be anxious to redeem or move in fear of the value dropping. It is a transparent and stable option that most people are used to.
EBN will utilize Sweetbridge’s stable token (or “stablecoin”) BridgecoinTM (BRC) for the EBN network PC tokens. Additional details will be provided in the future documentation.
“Bridgecoin™ (BRC) by Sweetbridge, is a flexible supply currency designed to remain fiat and commodity stable…uses a combination of monetary policy and market making to keep it very close to the value of the commodity or fiat it is denominated in, i.e. a dollar…This makes it ideal for trade and settlement purposes, especially in supply chains…” -Jason English, Sweetbridge
Reference Sweetbridge’s extensive documentation for details regarding Bridgecoin™. For an in-depth discussion on BRC, please see Sweetbridge’s explanation by Jason English.
User Interface (UI) and User Experience (UX)
EBN participants will NOT require prior blockchain experience or working knowledge to participate in the ecosystem. The intent is for participants to interact with the EBN platform such that they never see the blockchain code. Take for example a consumer that browses and shops on the internet. The consumer doesn’t see or need to know or interact with TCP or HTTP protocols to buy something online. Similarly, the UI/UX of the EBN will keep all the blockchain technology behind a UI that looks and feels like existing web browser applications today.
EBN is building an ecosystem that will lead the Energy Technology Convergence. The mission is to drive DER asset supply chain efficiencies and scale installations for a low-carbon future — today! In our next post, we’ll explore the EBN Ecosystem Value Proposition in detail. Thank you for following us on this journey as we illustrate how we’re working towards The (Energy) Promise Land.
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