Announcing The ShuttleOne Token
3 Things You Need To Know About SZO
Throughout the past 2 years in building, we pride ourselves with updating the community through product execution and revenue related milestones.
It is time, to explain myself to you the community and reader, why and how are we launching SZO.
#1 Distribution: SZO is Fair Launch
If you’d read about ShuttleOne and our developments over the course of the past 2 years, you’d realise that ShuttleOne has operated in the blockchain space for a while. First off, there is NO TOKEN SALE. We are not raising money for operations by selling a token. We are designing an economy for real impact in business and incentivising our community. Please read on if you are interested.
As a founder, I have to balance token distribution with the following categories in mind:
- Community (past beta testers, liquidity suppliers, future holders)
- ShuttleOne’s Business (facilitating lending and value transfers)
- Equity Backers
- The Team
While there are not many (good) models to follow, of late I took a leaf from Fair Launch Capital’s guide to what is a fair launch.
I’ve designed the distribution of tokens to follow the first 2 principles. However, to balance The Team and Equity Backers, I’ve decided to allocate some tokens to the 2 segments. Here’s how the distribution looks like:
Equal Participation in Tokens
Team & Equity Investors 13.59% SZO
One thing is for certain, there is no early access nor favourable pricing that would ensue the Team and Equity Backers whose value is locked for a minimum of 2 years and total emissions will be quartely thereafter effectively aligning interests in this group for 4 years from the day of listing.
Who Are the VCs?
The VCs that supported ShuttleOne in 2019’s seed round are Rakasasa (a south east asian investment holding group), Andromeda Capital, Sirius Venture Capital, Coinshares, Maker Ecosystem Growth Holdings, Inc and 1 other Angel Investor as of writing.
As you can see (later on in this post), the % of tokens allocated to the team and investors are almost equal with timelocked alignment.
Earning The Network
Community: Early Beta Testers 13.58% SZO
For past beta testers (these are a group of people who has supported the early revisions of the product), we’ve placed an allocation of 13.58% SZO tokens locked for 9 months. They would also need to earn the tokens by supplying liquidity into the ShuttleOne.Network to unlock these pool of tokens. If the early beta testers do not claim their tokens by providing liquidty into the pools, the tokens after 9 months will be shifted to the Liquidity Supplier Incentives Category.
Community: Liquidity & Future Holders 14.91% SZO
In our modelling of scenarios, to the business and how potentially our business may evolve, liquidity supplying into the ShuttleOne.Network is crucial for not only us (as a company) but also for token holders.
At this point, the above 3 segments of supply and distribution of the token looks pretty fair ain’t it?
Which leads us to #2.
#2 Utility: SZO is a Design of Economies
DeFi has innovated a crazy pain point of legacy fintechs, banks and the lending business. For these incumbents, liquidity is always a huge issue. P2P lenders, lending companies and even banks’ first and foremost issue is always — where do we find liquidity?
For companies in the DeFi space, it is not so much where can we find liquidity but how fast can the liquidity be utilized? Secondly, how high a quality of that utilization (i.e how credible is the borrower, what are the assets pledged etc).
In the SZO economy, every transaction initiated by the user in our products mints and burns SZO. Think about it as crypto is innovating the API-call revenue model for softwares.
Demand Side Economics
As a holder of SZO, as long as our business is running the interactions to our smart contracts that powers the products (from remittance, risk scoring, applying for a loan) mints SZO to incentivise holders by burning a portion and rewarding liquidity providers with the excess SZO. Should there be no excess SZO, one can be sure it goes out of circulation (trust the code!).
Which leads us into the next utility of the token.
An Incentive for Liquidity Supply
Therefore, to obtain SZO, a user needs to supply liquidity into our liquidity pools to maintain, and support the business in real world assets.
The token price appreciates (or depreciates) as more liquidity is supplied, more business is done and more tokens are mint, burnt and rewarded to suppliers.
I’d like to supplement this with a flywheel of how token and business aligns in interest.
In this pictorial presentation, on a high level, the interests of liquidity suppliers, token holders and the business will be properly aligned.
Then Why the Heck are there 57.91% of Unminted Tokens. WTF is that?
Precisely as I first pointed in the first segments of this post, 57.91% of tokens are unminted as it only comes into circulation when the business moves. Users of our products in demand-side markets calls the smart contracts (and pays for services) in SZO for these services rendered by ShuttleOne.
This means, IF the business and our products does not move, a huge portion of tokens DO NOT GET CIRCULATED. This is crucial as we answer the premined portion from the ghosts of 2017-ICO led frenzy. Lots of projects shifts, transfers and even dumps tokens onto the community because their products are not in place or simply, just simply — it is hard to build a product.
ShuttleOne aligns interest of our community, equity investors, business, liquidity suppliers and token holders beautifully in one carefully designed token model.
#3 ShuttleOne: DeFi for the Real World
I’ve been full time for about 4 years in this industry, I’ve heard and seen so many broken promises and also experienced the highs of where the industry brings.
If we were to be taken seriously, and to attract more capital for innovation in the blockchain space and (do I dare say) compete with the incumbent financial institutions the value that we create on this so-called blockchain ledger. The products, business and tokens needs to impact people, businesses and the bottomlines of the real world. It is time, we moved on from the foodcoins and back to why is there even a crypto industry in the first place.
These are also the reasons why, we are not doing an ICO, we are not raising monies by selling a token. I focus on the business, the design of economy and making sure this shuttle impacts the real world.
These are what drives me when I design SZO, build ShuttleOne and hopefully, you the reader would join us on the Shuttle to impact where it is needed the most — supplying liquidity and earning SZO.
More details of the launch will be announced in the coming days.
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