⛔ Please read the warnings at the end of the article.
The Jarvis Reward Token (JRT) allows to participate in the governance of protocols, to ensure the safety of their oracles and collecting the commissions they generate.
The JRT is distributed to those who facilitate and participate in the development and operation of the Jarvis Network to reward their contributions or the risk taken: the developers who builds on the top of the protocols, the influencers who raise its awareness, or the one financially supporting its development or its liquidity.
The main motivation of these contributors is financial and lies more in collecting commissions than participating in the governance of the protocols. Therefore, in this introductory article, we will explain how these commissions are shared among JRT holders.
This article inaugurates a series dedicated to our token and. Other articles will discuss the distribution of JRTs to other contributors, stacking JRT, function and role of the DAO, etc.
TLDR: As risk is rewarded, ICO participants receive an ERC721 token that gives a bonus to multiply the commissions they collect.
Token distribution
To date, there are 225,861,512.29 tokens, you can check the contract address here.
About the 70M JRT of the ICO:
- 23.5 million were sold in a private ICO;
- 6.5M at a public ICO;
- the remaining 40M is for ongoing ICO.
The ongoing ICO is always open and allows to receive continuous support to help development until the commissions collected by the team allow self-financing.
The 27M of JRT kept by the company will be used to pay bonuses to team members, to negotiate partnerships in exchange for JRT, or to pay certain invoices with a Fiat and JRT mix.
Distribution of commissions
- 75% of the commissions collected by the protocols are shared between token holders, some of whom benefit from multiplier bonuses based on their participation in one of the ICOs;
- 15% are shared between stacking pools whose members then share them (see the article on this subject);
- and 10% are split between an insurance and a charitable funds (detailed in a future article).
Where does the million come from?
On the table, we can see the number of commissions that would be allocated in the hypothetical case where 1M DAI of commissions were generated over a year. Is this a realistic figure?
Commissions are collected through the use of the various protocols presented in our introductory article which I invite you to read (again).
How protocols should perform to generate 1M DAI of commissions?
- The Margin Protocol allows you to trade any financial market with leverage against liquidty pools.
1M of DAI corresponds to trading 400 lots per day on EUR / USD, or 2,500 traders passing two trades of 0.08 lot per day. This also corresponds to trading 3,000 DAX contracts per day, or 1,000 traders passing 3 scalps per day to 1 contract. - The Synthetic Protocol makes it possible to issue and exchange any synthetic assets without counterpart.
1M DAI corresponds to exchanging 40M dollar of assets per day, or 20,000 users exchanging for 2,000 dollars of assets per day or a quarter of bitcoin per user.
These protocols are used in our proprietary Jarvis Exchange and Jarvis Money applications but can be used by everyone, and by other projects, to build great things (in the conclusion of our article on the Margin Protocol we discussed how it is useful to the decentralized finance ecosystem). We are therefore not limited to the number of users in our own applications.
- The Lego Protocol makes it possible to merge different protocols between them to create financial products such as savings accounts, or automated ETFs. However, to generate 1M DAI of commissions, it will require to have even more DAI deposited in the protocol than it currently exists, so let’s not count on it for now 😒…
Sharing commissions between JRT holders
By default, JRT token holders share 30% of the commissions collected by the protocols.
To give an order of magnitude, someone who has 10,000 JRT would own 0.0044% of all the tokens in circulation. If hypothetically, 1M DAI of commissions were collected over a year, the tokens would generate 13.28 DAI.
The remaining 45% is distributed among JRT holders who have participated or are still participating in the different phases of ICO, in the form of bonuses.
Bonus multiplier
These bonuses have been designed to reward risk-taking. Each contributor receives their own ERC721 token which proves their participation in one of the ICOs.
- 🥇 Gold Bonus for participants in the private ICO
Multiplier: 9.86
This ICO was held in the summer of 2017 and the summer of 2018. The participants contributed to the project when it was only an idea without documentation, development plan, and even when the technology was not allowing its realization. They are either crazy or visionaries. - 🥈 Silver Bonus for participants in the public ICO
Multiplier coefficient: 8.25
This ICO was held from the end of 2018 to March 2019: the participants contributed to the project carefully thought out, documented and with a development plan, but without any successful MVP and in a still immature technological environment. - 🥉 Bronze Bonus for participants in the ongoing ICO
Multiplier coefficient: 3.16
This ICO has been taking place since the end of 2019 and is still open. The participants contribute to a thoughtful and well-documented, mature project, with functional beta products, and in a technological environment that makes it possible to realize all of Jarvis’ vision. 38M of tokens are still available for sale, contact us if you are interested.
While a holder with 10,000 JRT could collect 13.28 DAI for 1M DAI of commissions generated over a year, one with 10,000 JRT who would have participated in the private ICO would have a multiplier bonus of 9,86, and would thus collect 130.95 DAI.
These figures are the result of a somewhat convoluted calculation that is explained at the end of the article so as not to break the intelligibility of the text, for those interested.
The last column of the table indicates the ROI: since for 1M DAI of hypothetical commissions, 10'000 tokens would allow collecting 130.95, and that the tokens were sold at around 5 cents during the private ICO of 2017, it would have cost $500 to buy them, resulting in a ROI of 26.2%. Let’s hope ten million DAI of commission![MOU2]
ERC721 bonus tokens
Having this token in the same wallet as the JRT multiplies the commissions collected. ERC721 tokens are non-divisible and unique; there is one token per contributor, with a nomenclature not very ecstatic: JRT001 and so on until 999. The first contributor receiving the token 001 and so on.
Spoiler: so there will be a 007 token.
Each token will contain data such as the amount of the amount of tokens received during the ICO and the multiplier bonus. The latter will only apply to the number of tokens received during the ICOs. If a contributor received 10,000 JRTs during the ICO and then acquire 10,000 more on an exchange, his multiplier bonus will only apply to 10,000 tokens. However, it will be possible to purchase ERC721 tokens from other contributors to overcome this. Thus having two ERC721 which each gives the right to a bonus on 10,000 tokens will multiply the commissions collected on 20,000 tokens.
A secondary market will be open for token collectors on market places like OpenSea, and will be accessible from the Jarvis wallet.
Stacking pools
Stacking pools are the subject of the next article, but to give you a glimpse of it, there will be three stacking pools:
- Liquidity pool: receives 5% of commissions and 10,000 JRT per day in addition to the commissions from Uniswap
The members of this pool are those who provide liquidity for the ETH-JRT pool on exchanges such as Uniswap, Kyber or Bancor. Commissions and rewards are shared in proportion to each stake. - Sponsorship pool: receives 5% of commissions and 10,000 JRT per day
The members of this pool are those who sponsor users transaction costs, in particular for the deployment of contracts or the fiat onramp. Commissions and rewards are shared in proportion to each stake. - Validator pool: receives 5% of commissions and a number of JRTs to be determined later.
The members of this pool are those who will verify the integrity of the price streams. The precise role of the validators will be explained when the time comes. Pending their establishment, these commissions will be transferred to the insurance fund.
Discover more information in the next article:
Bonus: mathematics 101…
There are in fact three pools, one per ICO, which collect a certain percentage of the commissions, and which share them between the respective participants of these ICOs.
- 5% of the commissions are shared only between participants in the private ICO, during which 23M of tokens were sold.
Thus 10'000 JRTs received during this ICO represent 0.0043% of the pool and allow to collect 21.44 DAI for a 1M DAI of commissions generated. - 20% of the commissions are shared only between the participants in the private and public ICO, during which 29M of tokens were sold (23 during the private ICO and 6 during the public ICO).
10,000 JRTs then represent 0.034% of the pool and allow to collect 67.51 DAI. - 20% of the commissions are shared only between the participants in all ICOs, private, public and ongoing. 40M of tokens are available for sale during this ICO, which gives a pool of 69M by adding the two previous ICOs.
10,000 JRTs then represent 0.014% of this pool and allow to collect 28.73 DAI.
In the table, the penultimate column shows the number of DAI collected for holding 10,000 JRT; a participant in the private ICO being a member of all ICO pools, and already collecting part of the 30% commission, will collect 21.44 + 67.51 + 28.74 + 13.28 = 130.95 DAI, mentioned in the last column of the table.
Similarly, a participant in the public ICO will collect 109.52 DAI, and a participant in the ongoing ICO will collect 42, hence the bonus figures: 130.95 / 13.28 = 9.86; for the same number of JRT tokens, a contributor to the private ICO will collect almost 10 times more commissions. Q.E.D.
Vsevolod.
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⛔ Risk Warning: Investing in digital financial assets involves a high degree of risk and volatility and is not suitable for all investors; do not risk more money than you can afford to lose. Please consult an independent professional financial or legal advisor to make sure the product is right for you.
⛔ Disclaimer: This article contains text, data, graphics, photographs, illustrations and information (“Information”) connected with Jarvis International and/or other entities part of the Jarvis group ( “Jarvis”). Jarvis attempts to ensure Information is accurate, however Information is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. The publication of this article does not represent solicitation by Jarvis of buying the token “Jarvis Reward Token” and is not to be considered as a recommendation by Jarvis as to the suitability of any investment, if any, herein described. No action should be taken or omitted to be taken in reliance upon Information in this document. Jarvis accepts no liability for the results of any action taken on the basis of the Information.
