Oxychain Ecosystem Token Economics

After 2 years of substantial research and hard-work, Oxychain is beginning to materialize its token economics model and token issuance protocol. As a way to express gratitude to our community and stakeholders — who have been of great help and support during our journey — , we are happy to share our token economics model and the distribution scheme for Oxychain Ecosystem token a.k.a. “OXE”.

Before going in-depth, we want to remark that Oxychain’s ecosystem consists of 4 tiers of tokens, with very different and marked functionalities:

• Oxy Ecosystem tokens (OXE)
• Oxygen tokens (OXY)
• Oxychain Impact tokens (OXM)
• Oxy Farms NFT (OXFs) = NFTrees

Figure 1: Oxychain Token tiers and interactions

The first tier is called Oxychain Ecosystem token (OXE), and will be used for governance and utility in the platform and ecosystem. Token holders can access features on governance i.e.: vote in proposals for changes in the platform or choosing OxyFarms, but also get exclusive benefits when accessing platform features i.e.: voiding fees on transactions. These tokens will be sold through the token sale, and will be further explained below.

The second tier, Oxygen tokens (OXY), are directly associated with sustainable projects, some of them represent carbon offsets, while others could represent any sustainable project that could be tokenized through our projects’ tokenization platform and launchpad: OxyFarms. OxyFarms start with carbon credit projects that seek the creation of natural reserves, reforestation or afforestation, however in the future, we would be willing to include new kinds of projects working towards sustainable practices, fighting climate change, fostering clean air, water, and abundance.

The third tier, Oxychain Impact token (OXM), represents a rewards token that will be airdropped to Oxy stakeholders who retire OXY tokens from circulation via our “compensation” functions. As soon as our platform gains enough traction and the different pieces start falling into place, OXMs will be used to define an open membership and benefits club for those who support the environment, with the help of our partners. This means, if we partner with a tourism agency, we would expect them to give certain perks and discounts to the members who are part of our OXM club.

And finally, the fourth tier, OxyFarms tokens (OXF). These are our NFTs and have been envisioned to crowdfund and contribute to sustainability projects. Whenever a new project is proposed and voted by the community, a drop will be done allowing the different stakeholders to contribute. OXF token holders will be participating in the governance of the project and will be eventually airdropped with a percentage of the proceedings coming from them.

Given that snapshot of our broad token economics, we will now get in depth on our Oxy Ecosystem token structure:

Oxy Ecosystem token distribution scheme

Oxy Ecosystem tokens will be distributed to the different stakeholders following a strict model that incentivizes and encourages our community members to enhance their interaction within. In the distribution scheme, there are 111,111,111,111 OXE tokens allocated for participants in the Oxychain Ecosystem. We are really interested and want to share the benefits of the project with those who have helped and joined the Oxychain’s operation such as founder teams, advisors, contributors… Oxychain also dedicates resources to development activities. projects such as marketing, research and development…. The overview of the token distribution ratio for different ecosystem participants is shown in the image below, and further explained by stakeholder type ahead in the document.

Figure 2: Oxychain Ecosystem token distribution scheme

Contributors with 10%

The process of transforming a project from a primitive idea to a product to a complete ecosystem requires often a large investment of time and effort. Our original founders, team and partners will need a high level of competence and expertise to develop the project, and also money. We will call the community to participate and finance on the initial and following operations, and in exchange we will give them participation in the Oxy Ecosystem token. We expect our investors to provide us in terms of resources and finance with an expectation of growth but also with an acceptance of the risk of failure.

The distribution of OxyFarms tokens to contributors is divided into 4 stages, being grateful and recognizing more to those who support the project since earlier:

Pre-seed with 1% via the first OxyFarms crowdsale

Pre-seed is a round which we are doing via the sale of NFTrees. Every tree token holder will receive 10,000 Oxy Ecosystem tokens (OXE). 1% of the total supply will be dedicated to this round. This round has the strong objective of creating our first OxyFarm, planting 11,111 trees in Oxy’s own lands in Uruguay.

Seed round with 3%

A seed round will give 3 tickets of 100,000 USD for private contributors and strategic partners with each ticket being in exchange 1% of the total supplied tokens.

Private sale with 3%

The private round will be carried out before the IDO with the target audience, particularly with friends and family who have early access and a better rate on the tokens.

IDO with 2%

The IDO (Initial DEX Offering) issues initial coin offerings in public sale of the tokens on the decentralized exchange for other contributors with a share of 3% of the total tokens. This stage will probably be carried out in the OCCAM.FI platform. The IDO event will end the initial investment round for Oxychain contributors, and at the same time, open up opportunities for members in the Oxychain community to become contributors of the project and support the project in its early stages.

OxyFarms fund with 30%

Our project is all about afforestation, reforestation, forest preservation and “green” spirit, and that’s why the largest stake of our token distribution is to the OxyFarms fund. This is a fund established by Oxychain to promote and fund new sustainability projects, focused mainly on planting trees/forests, but also to provide liquidity to the market. Environmental project participants encrypted in OxyFarms will hold tokens that are bound by smart contracts. When the stakeholders satisfy the terms of the agreement as in smart contracts, they will receive their share.

Research and Development with 10%

The Oxychain project is developed to provide a technology product with all necessary features and functions. This complete development cannot be without the support of research and development. We focus with much effort on tech development and the tech roadmap. 10% of the total OxyFarms tokens are allocated for research and development. The Oxychain developers team who provide and develop the technology to launch the Oxychain product and ecosystem are also receiving OxyFarms tokens.

Founding team and advisors with 10%

The founding team and the advisors contribute to the long-term development of the project. Tokens issued to this group of participants will go through a certain testing period in order to ensure ongoing commitment to create a solid project. The token distribution is also for project founders who come up with ideas and form teams, turning the original idea into a project with a clear goal and roadmap.

Marketing and incentives with 10%

Oxychain intends to spend a large amount of tokens (20%) on marketing activities and incentive activities with the aim to enhance people’s awareness of the project. We plan to create marketing programs to promote our products, and foster the creation of new OxyFarms and sustainability projects, with an effort to create a network effect on the project based on education and gamification. This would motivate people on the executive team to bring creative ideas to life in supporting the project.

Business development with 10%

Strategic partners play an important role and contribute significantly to the success of the project. Many individuals and organizations are interested in the Oxychain project and choose to become a companion, and have an understanding of what Oxychain is doing and going to do. Strategic partners can be leaders of blockchain businesses or organizations, creators and people with high technical expertise, etc. Additionally, distribution for business development will be also reserved for strategic acquisitions and key hiring for our team.

Community Managed fund with 10%

With the goal of bringing sustainable development with green projects, Oxychain also aims to support projects related to sustainable development and climate justice. 10% of the tokens are allocated to the community managed fund with the basic aim to incentivize any proposal related to climate justice that comes from the community or the different stakeholders. This fund will be managed by the community members and they will decide who will receive allocated Oxychain Ecosystem tokens. There will be a reserve to support those projects including social causes or sustainable causes related with climate change and sustainability.

Token release schedule

In this section we briefly describe our different stages of token release, as it is for now, and in order to give some background, we will introduce some concepts:

Initial release references the percentage being unlocked to every category at the time of IDO.

Vesting period is the time it’s going to take for the full amount to be released.

Cliff references the time it will take from the initial release to the next token unlock.

Linear vesting is the process in which the tokens will be linearly released throughout the Vesting period.

E.g.: 1,000,000 OXE tokens with 10% initial release, 3 month cliff and 10 month vesting period would be understood as: 100,000 OXEs being released soon after IDO, and 900,000 OXEs (around 100,000/10 months) being released monthly after an initial cool-off period of 3 months.

• Business development: release through 4-year linear vesting period with a 1 year cliff.
• Private sale contributors: release through 1-year linear vesting period.
• Marketing: release through 4-year linear vesting period starting in 2022.
• Research & Development: release through 4-year linear vesting period starting in 2022.
• Operations: release through 4-year linear vesting period starting in 2021.
• Public sale investors: release without vesting period.
• Found team, advisors and early supporters: release through 4-year linear vesting period starting in 2021.

The final Oxychain Ecosystem token release schedule will be released in Q1 2022.

Conclusion

Oxychain is working to create an economic model to ensure that values are maintained for all users in our ecosystem. We have continued to look for ways to update our products and improve the economic benefits. As more and more new participants are attracted to the Oxychain ecosystem, the value of Oxychain Ecosystem tokens will continue to increase and promise to bring many benefits to token holders.

About Oxychain: Oxychain is an on-chain solution to create interoperability between the carbon markets and the digital world with software infrastructure for on-chain compensation. Oxy Labs, the company behind it, aims to bring transformative solutions to the conventional Carbon Markets with a focus on capillarity, accessibility, and interoperability.

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