We believe tokenized software licencing will be a widely used method in the future. It makes the usage and bundling easy, and the ownership flexible.
TFD is a tokenized software licence. Customers which use the TE-FOOD ecosystem have to be covered by the appropriate number of TFD tokens to perform their activities in TE-FOOD’s ecosystem.
Tokenized licencing also enables the easy implementation of licence rental structures. If a company does not own the necessary number of tokens, they can rent them on a seamless way. This feature lead us to Iridium nodes.
Token holders can register to start an Iridium node, which is a repository of TFD licences, each of them available for rent.
They need to hold at least 20 000 TFD tokens in a unique (non-masternode), publicly available, ERC20 compatible, non-exchange wallet, and register their Iridium node on the Masternode Portal.
Important notice
A decentralized software licencing structure is not something where we could follow industry best practices. This is a new, innovative territory which we have to explore. And exploration requires time for monitoring and iterations.
We will monitor closely the below conditions, fees and distribution method during the next months, and iterate them if necessary, to provide a fair and compelling structure.
Use of licence tokens
At the same time Iridium nodes are launched, TE-FOOD’s licencing rules will change.
Customers will need to hold or rent 20 TFD tokens per each operation they send to the FoodChain. So token utilization will be independent from the technical (blockchain transactions) execution, it will be done by business metrics (business transactions/operations). However there can be countries or use cases which will differ from this, the 20 TFDs per operation will be a usual rule.
This means one Iridium node with 20 000 TFDs can cover 1000 customer operations each day. Certainly, if the Iridium node has more than 20 000 TFDs, it can cover more customer operations.
As the number of transactions grow in the future with adoption, so grows the number of necessary tokens to rent.
Conditions and fees
To motivate token holders to maintain loyal service with their Iridium nodes and secure the licences for the food companies, the following motivation scheme will be implemented:
A daily scoring routine will check the number of TFD tokens for each Iridium node, and orders the Iridium nodes to a descending order.
- The top 30% of active Iridium nodes (with the highest TFD number) will be incentivized by 0,000055 USD rental fee per operations per day.
- The medium 40% of active Iridium nodes will be incentivized by 0,00005 USD rental fee per operations per day.
- The lowest 30% of active Iridium nodes will be incentivized by 0,0000425 USD rental fee per operations per day.
Just like in the case of TE-FOOD masternodes, the reward of Iridium nodes will be
- calculated in USD,
- settled in CAL (TE-FOOD’s internal stable token),
- paid in ETH.
Iridium node rewards will be paid quarterly to all active Iridium nodes to the same Ether wallet address where the TFD tokens are held.
Distribution of operations
Distribution of operations amongst the Iridium nodes will be done according to the round-robin scheduling mechanism within the same day.
How to sign up for an Iridium node
The application will start in October.
- Sign up on the Masternode Portal.
- After your KYC process is done (takes several days), you can registrate as much Iridium nodes as you want, by providing the wallet address. Each Iridium node needs a separate ERC20 wallet with at least 20 000 TFDs in it. Your tokens must be in the wallet as long as your node is operational, and you will receive the rental fees to this same wallet.
Please note that the Iridium node registration is expected to start in October, 2019! - Start your node!
First round of Iridium nodes
In the first round, we plan to onboard 300 Iridium nodes.
In case there will be more than 300 applicants, the method of selection of the first batch will be similar to how the daily scoring routine works. At the launch, it checks the number of TFD tokens in the applicants’ wallets, orders them in descending order by the number of TFDs, and activates the first 300 Iridium nodes.
UPDATE: 100 new Iridium nodes will be onboarded in November, with the same conditions as the original batch.
