Taking into account feedback from the Triall community as well as our new line of software products, we’ve decided to revise the core token economics of our platform-native utility token TRL. In this article, we’ll explain how we aim to improve the TRL token economics and which key advantages a revised token economic model offers to the Triall community and TRL token holders.
Introduction
The Triall eClinical platform
As a result of Triall’s recent partnership with Crucial Data Solution (CDS), we are now able to offer a truly end-to-end software platform to our clients. This platform has been sold by CDS to 7500+ clinical studies worldwide and includes a diverse set of integrated clinical trial software (‘eClinical’) products for all core clinical trial activities, including: CTMS, EDC, ePRO, eConsent, RTSM, eSource, eTMF, Wearable Integration, EHR to EDC, Payments Manager, as well as automated medical coding software (see our product spotlight articles on Medium for more info).
Triall has embedded its blockchain-integrated Verifiable Proof APIs into the platform to increase the quality, reliability, and trustworthiness of clinical research data, and will build additional blockchain-based APIs and (micro)services on top of the platform.
👉 All software products sold to clients within the Triall ecosystem will involve the TRL token, using our revised token economic model. Our core focus is now to attract new clients, onboard new clinical trials, and grow the global TRL token economy.
We will now explain the core principles, platform fees, and two-token mechanisms that underpin our revised token economics.
Please note we use the words ‘clinical trial’ and ‘study’ interchangeable.
The TRL Token Economics V2
1. The Token Economics Principles
Originally, the TRL token economics were built around the periodic pre-payment of software subscription fees in TRL. These tokens were then gradually released to the service provider (Triall or any other vendor offering services within the Triall ecosystem) and must be renewed for each new subsequent period of use. Key principles of this system were to create a stable market by locking TRL for each active study and burning TRL as part of the two-token system.
While we remain committed to these core principles, we also observe that the current system does not contribute directly to liquidity of the TRL markets (an area of improvement highlighted by our community) and presents challenges in visualising the flow of tokens and effects on supply and demand. Listening to the input from our community, we have therefore revised our token economic model to improve on its core principles.
Our new principles are as follows:
(1) Lock TRL to access the Triall Platform;
(2) Burn TRL to access the two-token system;
(3) Use TRL to increase liquidity of the TRL token market; and
(4) Provide the community with improved insights into active clinical trials and associated token economics.
We will describe this new model and its benefits over the sections below.
2. The TRL Platform Fee
Moving forward, Triall will charge each client that makes use of the Triall eClinical Platform a standardised fee for each active clinical trial as part of its pricing model. This fee is referred to as the ‘TRL Platform Fee’*. The height of this fee will depend on the type of client [1], the novelty of the client [2], the size and duration of the study [3], the number of eClinical solutions purchased [4], the profit margin for the service provider [5], as well as the societal impact of the study [6].
We currently distinguish 6 tiers for the TRL Platform Fee, per study:
- Ruby: $5,000.00
- Sapphire: $10,000.00
- Emerald: $15,000.00
- Diamond: $20,000.00
- Double diamond: $25,000.00
- Enterprise: custom (estimated $25,000.00 — $50,000.00)
[1] For example, Industry vs. Academia may warrant different pricing strategies.
[2] Triall may actively invest to onboard new clients, by lowering the fee for their first study.
[3] Longer studies with a higher number of sites will result in higher fees.
[4] Purchase of more eClinical solutions will result in higher associated fees.
[5] As the company grows and upscales, it will charge higher fees than during start-up / investment stages.
[6] For example, if an Orphan Disease study is being conducted, that may warrant lower fees to support associated patient communities.
The TRL Platform Fee is applicable to each new clinical trial and is intended to strengthen the TRL token economy. Of the TRL Platform Fee, 65% will be locked for the entire duration of the study, 17.5% will be burned permanently, and 17.5% (matched by Triall by an additional 17.5% from our own treasury) of the fee will be used to increase liquidity depth of the TRL token market, as clarified below in Figure 1. Upon completion of the study, the Lock and Liquidity tokens are available for retrieval by the service provider, but burned tokens remain burned.
🔒 Lock: 65% of the TRL Platform Fee will be used to buy-back TRL tokens, which are subsequently locked for the entire duration of the study (estimated average of 21 months) in accordance with the two-token system (see chapter 3). By locking TRL tokens for each study, we create a more stable token market by lowering the circulating supply (Principle 1).
🔥 Burn: 17.5% of the TRL Platform Fee is used to buy-back TRL and is subsequently burned permanently. This burn is a fee to access the two-token system. By burning TRL tokens for each study, we create a more stable market by lowering the total supply (Principle 2).
🌊 Liquidity: 17.5% of the TRL Platform Fee is used to purchase the counter pair token of one of the TRL trading pairs. Triall will furthermore commit the same (USD) amount in TRL tokens from its own treasury, essentially doubling the effects on liquidity (+17.5%). Both tokens are subsequently used to increase the depth of the TRL token market, and are locked for the entire duration of the study. By increasing the liquidity depth, we create a less volatile TRL token market (Principle 3).
🔍 Improved transparency: Our community also indicated they would like to have more insights into how software sales impact the TRL token economics. Therefore, in addition to our regular social media and website updates on newly onboarded clinical trials, Triall will make available to the public the wallets used for study, purchase, burn and retention of TRL tokens, offering improved transparency and insight (Principle 4).
*There is one exception to the product offering and TRL platform fee, which is the (new) eTMF. This application is also available as stand-alone product and offered under both a ‘per client model’ and a ‘per study model’. The TRL platform fee will in this case be assessed on a case by case basis, but will be in line with the other TRL platform fees.
3. The two-token system
To kick-start the two-token system, Triall will set up a ‘Clinical Trial Treasury’ of 5,000,000 TRL tokens [7], from its own reserve. The tokens in this treasury function as a buffer to offset any initial volatility in the two-token system. All tokens in this treasury, including those purchased from the market, are no longer part of the circulating supply. Below is a clarification on the mechanisms of the two-token system.
- Each time a new study is onboarded, 65% of the TRL platform fee will be used to buy-back TRL as part of the two-token system mechanics (in addition to the 17.5% burn). This TRL is retained within the Clinical Trial Treasury.
- In exchange, the study wallet will receive T-CRED equal to 65% of the TRL Platform Fee from the Clinical Trial Treasury. This T-CRED will be locked for the entire duration of the study.
- T-CRED has a stable price of 1 USD (but will not be listed on any exchanges). It holds its value as it is redeemable for TRL via the Clinical Trial Treasury. Upon completion of the study, the T-CRED can be redeemed for TRL at the then current market price.
[7] Amounts subject to change.
4. Implications for supply and demand
When T-CRED is converted back to TRL (upon completion/at the end of the study), the market value of TRL (as measured in USD) may have either increased or decreased compared to the moment the initial conversion took place, whereas the price of T-CRED (in USD) remains stable. The TRL price movement will affect the number of TRL tokens that are received when redeeming T-CRED for TRL.
📈 If the TRL value has increased in the meantime, the study wallet will receive less TRL tokens than initially were purchased. This increases the overall balance of the Clinical Trial Treasury.
📉 If the TRL value has decreased in the meantime, the study wallet will receive more TRL tokens than initially were purchased. This decreases the overall balance of the Clinical Trial Treasury.
In practice, this means that the TRL supply in the Clinical Trial Treasury will circulate around an equilibrium point. If the amount of TRL exceeds the amount needed to reasonably pay for study T-CRED redemptions [8], the TRL within the Clinical Trial Treasury will be burned until the amount expected to be required is reached. This would lower the total supply of TRL. Visa versa, if the balance of the Clinical Trial Treasury is insufficient to pay for the T-CRED redemptions, new TRL tokens will be created to supplement the balance, which would increase the total supply.
👉 Triall, however, designed and utilises the two-token system in a manner that favour the chances for deflation rather than inflation, as we aim to never exceed the initial supply. Such mechanisms include: (1) starting the Clinical Trial Treasury with a surplus of 5,000,000 TRL (from our own reserve), (2) having a 17.5% burn in place for accessing the two-token system for each new study, and (3) ensuring a steady and growing influx of new clinical trials, in line with growth projections, to off-set expiring studies. Triall also has the option to (4) defer the conversion of T-CRED to TRL beyond the unlock period, or (5) re-supplement the Clinical Trial Treasury with its own reserves.
[8] The exact amount at which this burn would take place cannot currently be predicted but will be evaluated on an ongoing bases and determined at the time.
Future token utility
The token economics described in this article are geared towards the sale of eClinical software as part of the Triall Ecosystem. While this is a key driving force behind the utility and value of the TRL token, Triall is looking to add additional utility to the TRL token through the development of new products and features over time. Hence, the token economics and utility are subject to change and improvements and are (re-)evaluated in a continuous manner.
About Triall
Triall brings Web3 to medical research by creating a digital ecosystem of blockchain-integrated software solutions that secure and streamline clinical trials. Triall’s solutions make clinical trials tamper-resistant and enable secure and efficient integrations between the many isolated systems and parties involved in clinical trial processes. Triall’s software is co-created with clinical trial professionals to ensure optimal user experience, solving actual industry pain points.
Visit the website: https://www.triall.io
Twitter: https://twitter.com/triallofficial
Telegram: https://t.me/triallcommunity
