Uses of the MyBit Token (MYB)
The MyBit Token (MYB) is the native token of the MyBit ecosystem. It provides utility to users of the MyBit Network through galvanizing incentive structures, granting voting rights, and serving as the substrate that powers the network. As the MyBit Network grows, and more dApps are developed on it, MYB will provide even more utility to users, but for now, here are the current uses of MYB.
MYB on MyBit Go
MyBit Go is the Internet of things (IoT) investment platform developed by MyBit to bring the machine economy to the everyday person. As machines begin to overtake humans as the primary generators of revenue in the economy, MyBit Go allows for the ownership and revenue of productive machines to be distributed on the blockchain in an intuitive online marketplace.
Burning MYB as a fee
When assets are funded on MyBit Go, a 3% fee is taken from the asset funding pool. 1% goes to the MyBit DAO to sustain operations of the MyBit ecosystem, 1% goes to the MyBit Foundation Treasury, and the other 1% is used to burn MYB. This is done by buying back MYB from exchanges and burning it, which takes it out of the max supply forever. This in theory increases the value of each remaining token because the utility value held within the burned tokens gets transferred to remainder, which now power a more valuable network (as described by Metcalf’s law). This means that as the network grows and more tokens get burned, the overall value of the network increases and remaining tokens should hold more value.
MyBit Go has three main roles: Investor, IoT partner, and Asset manager. The staking of collateral is done by asset managers who wish to manage assets (provided by pre-approved IoT partners) on behalf of investors. They set a percentage of the total asset value to lock as collateral to show investors that they are 1) committed to managing their asset and will not just leave, and 2) have a very strong incentive to maximise the assets revenue generating capacity. This colleterial payment is made with any token supported by Kyber, is switched into MYB, and is then held in a smart contract out of circulation. As the asset begins to generate revenue, the colleterial is retuned incrementally to the asset manager.
Voting on the DAO
The MyBit DAO was released on main-net recently, and is currently providing an open platform for users and community members to direct the MyBit Network. In order to receive voting power on the MyBit DAO, users are required to lock MYB on the network in the stratification described below:
1 MYB for 1 month = 1 vote
100k MYB for 3 months = 1.5 votes
100k MYB for 6 months = 2 votes
100k MYB for 12 months = 3 votes
100k MYB for 18 months = 5 votes
100k MYB for 24 months = 8 votes
100k MYB for 36 months = 13 votes
It only requires locking 1 MYB to be able to vote on the MyBit DAO, which is to ensure it remains truly decentralised. The 100k Multiplier option provides users with the ability to obtain more voting power though staking 100k MYB on the DAO for set periods of time. This locks the MYB in a smart contract away from circulation and is returned to the user at the end of the locking period.
The effect of combining both burning and locking/staking mechanisms into the MyBit ecosystem creates a deflationary token with greater capacity to hold more utility value over time. This is something that we at MyBit think is the way token economics should work and is why MYB and MyBit powered dApps are and will continue to be designed to create value to holders of MYB. If you are interested in learning more about the theory behind MYB, please visit https://learn.mybit.io/learn/mybit-token-myb-1.
Bonus! — MyBit Token Tracker
The MyBit token tracker is an application being built on the MyBit Network to give users the ability to track transactions and see how MYB is being used. This will include the ability to see how much MYB is being burned via the applications, how much is being staked for voting and used as collateral, and how ever else people are using MYB to create utility for their lives. The MyBit token tracker will be available at tracker.mybit.io soon, so stay tuned!
Until next time!
The MyBit Team