Latest Zero carbon coin token rewards
This medium article is an extract of Section 11 of the latest Zero Carbon Project White Paper v5, published on 3rd December 2019.
“Community members can share in the upside of the Zero Carbon Project by earning Zero Carbon Coin tokens. This section provides the reward rules and examples.
Reward rules and Calculations
Community members can earn Zero Carbon Coin token rewards in the following circumstances:
1. Consumption Rewards are for consuming zero carbon energy purchased from the Market. This is based on 1 Zero Carbon Coin token earned for every 100kWh of energy provided under a zero carbon energy contract which was purchased through the Market in the first year of the Project (ie-2019) and with the requirement increasing by 20% for each subsequent year. These Consumption Rewards are based on a default Transaction Fee rate of USD0.01/kWh. If the achieved Transaction Fee Rate is lower or higher, then the Consumption Reward will be scaled in the ratio of the achieved fee rate relative to this default fee rate.
2. Consumption Rewards for Carbon Offsets: Consumption rewards of 10 Zero Carbon Coin tokens can be earned for each tonne of carbon offsets purchased across the Zero Carbon Offsets Market.
3. Registration Reward when first registering with the Project. 10 Zero Carbon Coin tokens bonus rewards are earned for registering as an energy consumer with the Market. A consumer may own one or more metered sites. Individuals can register for each metered site they own. Businesses can only register once for all of the metered sites they own. Energy bills and company registered addresses will be required as proof of ownership.
4. First Switch Reward upon first purchase of a zero carbon energy supply contract on the Market. 30 Zero Carbon Coin tokens bonus rewards are earned for purchasing the first zero carbon energy contract.
5. Referral Reward to Introducer: Introducers can earn Referral Rewards by referring new consumers who then join the Project. For introduced residential consumers, the referral reward will be equal to a Multiple (point 7 below) of the Consumption Rewards normally earned by the introduced consumer. For introduced business consumers or for carbon offset purchases, the referral reward will equal to the introduced consumer’s normal Consumption Reward, or equal to a Multiple for any Staked Rewards (see the point 8 below).
6. Referral Reward to Consumer. Consumers can earn bonus Referral Rewards for being introduced to join the Project and then registering with the Project. For residential consumers, the bonus reward will be equal to a Multiple (point 7 below) of their normal Consumption Rewards. For business consumers or for purchases of carbon offsets, the Referral Rewards will be equal to their normal Consumption Rewards.
7. Referral Bonus Reward Multiplier, used for points 5 and 6 above. This set at 6x for 2018 and 2019 and will reduce each subsequent year by 20%. This Referral Reward is shared between the Introducer and the Consumer. The formula for the multiplier is 3/(1.2)^(purchase year-2019).
8. Introducer Referral Staked Rewards for business transactions and Offset transactions: An introducer can choose to stake Referral Rewards for a period of two years in order to earn the Referral Bonus Reward Multiplier defined in point 7 above. Introducer’s can set this in their Consumer Portal screen. Staking is not required to earn Referral Bonuses for residential consumers.
9. Introducer Referral Reward Re-allocation for business transactions: Introducers can choose to re-allocate a business consumer’s share of Referral Rewards to themselves. Introducer’s can set this in their Consumer Portal screen.
10. Consumer Quality Bonus Reward: Consumers can earn quality bonus rewards for switching to higher quality zero carbon energy, but with no multiples or referrals rewards applied to the Quality Bonus Reward. Consumers will earn an additional Quality Reward Bonus of 1x Consumption Reward for high quality carbon offsets such as reforestation projects, UK REGOs or UK green gas certificates. Consumers will earn Quality Reward Bonus of 3x Consumption Reward for Zero Carbon Project’s ‘Green Moments’ electricity supply or for self-supply using Zero Carbon Project tender service for on-site installation of solar panels or batteries. These multiples apply for 2019 and will reduce by 20% per year thereafter to reflect reductions in technology costs and potential rises in ZCC price.
11. Custodians Rewards can be earned by Custodians for hosting a Zero Carbon Market based on the transactions conducted across their Market. The Custodian Rewards are calculated as 3x Consumption Rewards earned by consumers that registered through the Custodians Market.
12. Timing of Rewards: Rewards are earned on a quarterly basis, with the first quarter earned in advance and subsequent quarters earned in arrears. Earning the reward is subject to confirmation that the switch has taken place and the supply contract has started. For residential consumers, in the event that an energy supplier has not confirmed the start of the new supply contract, then the consumer can email a copy of the first bill to info@zerocarbonproject.com as evidence.
Residential Consumer Reward Example
The following table sets out the number of Zero Carbon Coin tokens an energy consumer may receive, living in a typical household spending about USD1,000 on consuming 5,000 kWh of electricity a year. This example assumes that the consumer switches to renewables; and she introduces four additional consumers in each of the first four years of the Project. In this example, the energy consumer could earn 5,975 Zero Carbon Coin tokens during the first 10 years.
Diagram 11.1: Zero Carbon Coin token rewards example
Rewards for Business consumers
Generally, businesses consume higher volumes of energy than households and pay a lower average price due to economies of scale. For example, the business in the online reverse auction image in Diagram 7.3 consumed 5,969,812 kWh/year and secured an average price of 10.843p/kWh compared to 5,000 kWh and about 19p/kWh for a typical household.
In order to attract and switch businesses to zero carbon energy, the Market charges a lower USD/kWh transaction fee rate than households. Using the same example above, this business may a pay a transaction fee of USD5,970 based on a rate of USD0.001/kWh, whereas a household may pay a transaction fee of USD55 based on a rate of USD0.01/kWh.
To maintain fairness for households, and for the Zero Carbon economy and reward pool to be sustainable, businesses receive a lower share of the Zero Carbon reward pool on a per kWh basis, in line with the relative transaction fee rate paid into the economy. So, in the example above, for each kWh consumed, the business will only receive 10% what the household receives, because their transaction fee rate of USD0.001/kWh is 10% of the rate charged for household consumption.
Introducers who refer business consumers to the Project may choose to earn the new consumer’s share of the Referral Bonus Rewards themselves. This reflects the way that the energy brokerage market currently works with commission arrangements earned from energy suppliers.
Rewards for consumers in Regulated energy market
Consumers from regulated markets are unable to participate in our competitive switching markets. However, these consumers can still participate by purchasing international carbon credits as described in the Regulated Market Service section 8.
For example, a household consuming 5,000 kWh / year could emit 3.0 tonnes of CO2 / year. They could purchase 3 international carbon credits or CERs across our Market. Our Market would source these by purchasing them across a futures exchange and surrendering them on our consumers behalf. This would cost the consumer USD45.00 to cover the cost of the international carbon credit and our transaction fees. The consumer could earn 60 Zero Carbon Coin token rewards. This is based on the consumer receiving 30 Zero Carbon Coin tokens from their carbon offset purchase, plus a Referral Reward of 30 tokens if they were referred from an Introducer. The Introducer would also receive this 30 token Referral Reward.
Calculating consumption Rewards — token economy system
The underlying Consumption Reward in any year is calculated by the following formula:
N = AQ_____
100 x 1.2x -1
Where
N = number of Zero Carbon Coin tokens issued as a reward
x = [year the contract is entered into] — 2018
AQ = number of kWh consumed under the contract with the
Zero Carbon energy provider per annum
For instance, in year 2 (2020), assuming that 5000kWh were
consumed this would be calculated as follows
N = 5000______
100 x 1.22020–2018 -1
N = 5000___
1.2 x 100
N= 41.67
Bonus rewards for Introductions, Custodians and quality zero carbon energy are calculated as multiples relative to this underlying Consumption Reward formula.
Reward availability rules
Earned Rewards will be available for Withdrawal subject to a sufficient amount of Zero Carbon Coin tokens being available in the Rewards Pool contracts. If the Reward Pool has run short, then Earned Rewards will accumulate in the users account, but will only be available for Withdrawal once the Reward Pool has been topped up with recycled transaction fees.
Each consumers’ Earned Rewards will become available for Withdrawal, alongside other consumers waiting for rewards, in the date order that they were earned.
The Earned Rewards are calculated using our centralised Economy Operation System. Consumers can monitor their Earned Zero Carbon Coin token rewards through their online Consumer Portal.”
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