Investigating the Business Model
An in-depth preview of generating revenue
Vuuple was created with the intention of expanding the decentralized web and providing an alternative to outdated data storage practices. Our main goals are not to earn a substantial revenue or profit, but rather deliver the most secure data storage platform that encourages collaboration among users. That being said, we acknowledge that revenue and profit must be earned for the platform to remain operational. In this article, we will break down the payment to lenders, the price and fees charged to renters, the predicted GB growth, the predicted revenue growth, and the predicted user growth.
Lenders’ Payment
When lenders host data from the Vuuple network on their servers, they will receive VUUPLE/GB/Month. Anyone can sign up to become a lender. There are no GB, bandwidth, or latency requirements. Lending data storage is a perfect opportunity to earn extra income. The lender has to perform no functions, but to leave their laptops, hard-drives, servers…etc. operating at all times. To be clear, not all users who choose to register as lenders will be granted data hosting privileges. The data allocation will be dependent on reputation points earned and the demand for data storage on the network.
Although we offer a premium to lenders that will certainly cut into our profit margins, it is an absolute necessity. The network does not operate efficiently or effectively without obtaining the best lenders in the marketplace. The premium offered will have immense long-term benefits, such as lender retainment and increased network security.
Renters’ Price and Contract Fees
Users that wish to use Vuuple as a means of uploading and storing data are split into two categories; individual renters and company renters.
Individual renters are only allocated 5 GB/Month (or less) and charged:
VUUPLE per GB/Month + .5 VUUPLE Contract Fee
Company renters are allocated a minimum of 10 GB/Month and are charged:
VUUPLE per GB/Month + 0.50 (VUUPLE Contract Fee + 0.25 VUUPLE per 50 GB
For example, a company renter chooses to rent 200 GB of data storage for one month. They will pay VUUPLE * 200GB/Month + 0.50 VUUPLE Contract Fee + 0.25 VUUPLE per 50 GB.
Predicted GB Growth
The amount of data storage available will increase exponentially over the next decade. Since the company will pay a premium to lenders, we assume that the amount data storage lent to Vuuple will increase exponentially as well over the same time period. Every blockchain-based company must overcome credibility challenges with the surrounding cryptocurrency community. Once recognized as credible, we are confident Vuuple will reach every individual with a hard-drive and adoption will become widespread. That being said, we do not expect the amount of data storage rented to increase exponentially as Vuuple will charge above the market price for data storage. We acknowledge this discrepancy and will work diligently to discover other revenue producing channels, possibly leading to the decrease in price charged to renters.
We predict the end of the first-year data storage lent to the platform will reach: 500,000 GB/Month
We predict the end of the first-year data storage rented from platform will reach: 100,000 GB/Month
During the second-year, we predict the amount of data storage lent to the platform to equal around 1,000,000 GB/Month and the amount of data storage rented to equal around 300,000 GB/Month.
Predicted User Growth
This is perhaps the most important metric discussed. As more individuals begin to use the Vuuple platform; the network grows and provides more data protection, Vuuple earns greater revenue and can continue to update the platform, and a community can foster. This is the positive recurring cycle that we plan to achieve, although not in the beginning. We do not predict widespread adoption within the first year. We do, however, predict the platform will obtain both users from competitors and users who are novice to the decentralized applications with the implementation of a simple interface. Our first-year goal is to secure 25,000 renters and 40,000 lenders. We will deploy numerous marketing tactics, such as advertising on social media, creating engaging subreddit and Facebook pages, establishing a Telegram chat, and producing several promotional videos. Once the initial network is built, we assume user growth to proceed slowly in the following years before growing exponentially in the next decade.
Revenue Growth
We assume revenue growth will be directly related to GB growth, proceeding relatively linearly after the platform launch. Our revenue will be earned from renter fees and storage charges. This metric is difficult to predict due to the categorical difference in price between company renters and individual renters, as well as the ambiguity associated with the projected GB rented/user. The projected revenue will be determinate on the VUUPLE purchasing process. When a renter purchases VUUPLE with fiat currency on the platform, the money will be transferred into an escrow account. Although this escrow account will be used to pay lenders and renters who choose to redeem their VUUPLE tokens for fiat currency, the gross total of fiat currency received in the escrow account throughout the entire year will be used to calculate the revenue. For the first year, we estimate $75,000 in revenue (with revenue substantially increasing toward the end of the year). The predicted first-year GB growth was used for this estimation. Company renters will most certainly be our revenue-producing clients.
