A New Stage of the Development of the Providing Economic Model

A New Stage of the Development of the Providing Economic Model

Dear Bitbon System Users,

The Bitbon System start-up is being actively developed, and at the current stage, its key components[i] and services[i] are being prepared and launched. The implementation of new services and expansion of functionalities of the Bitbon System infrastructure[i] also determine the need for a planned update of its economic model.

Providing[i] is the base service, which ensures decentralization and maintains the operation of the Bitbon System infrastructure. The economic model of this service, used at the current stage of its development, involves the development of favorable conditions for increasing the activity of the Bitbon System Participants[i] at the initial stages of the start-up as well as a high economic motivation for Providers[i] expressed in their subsidization from the providing fund[i] in the amount of 13,900 Bitbon units[i] for 1 providing period (72 hours), which is outlined in Article 7 of the Appendix to the Bitbon System Public Contract “Bitbon System Provider”. This model allows Bitbon System Providers to derive economic benefits from the quantitative remuneration component. The launch of new components and services in accordance with the start-up’s Roadmap will ensure an increase in natural interest and, as a result, in the activity of Bitbon System Participants, as well as an increase in the number of Users[i].

In addition, as part of the development of the Bitbon System[i] technological decentralization, update of its infrastructure, and the emergence of new personal tools for Users (meta-assets) for tokenization of socioeconomic relations, the providing service will also be dynamically developed to ensure consensus in the segments of the Bitbon System distributed ledger[i] network by Partitioners[i] and Registrators[i] (1st, 2nd and 3rd levels). This transformation of the providing service also involves planned development of its economic model towards full autonomy and a change in the principles of remuneration formation for Providers, which will allow them to derive economic benefits from the value component of remuneration.

Due to this, in March 2024, it is planned to update the principle of remuneration formation for Users acting as Registrators for ensuring decentralization of the Bitbon System. In accordance with this principle, the amount of remuneration distributed from the providing fund every 72 hours will be based on two components: fixed and variable. The First Bitbon System Operator[i] will set the fixed component provisionally amounting to 1,390 Bitbon units. The variable component will include 60% of all infrastructure fees[i] in the Bitbon System for 72 hours, which will be provisionally allocated to the providing fund of the Bitbon System in accordance with Provision 16 of the Bitbon System Public Contract.

Thus, at the moment, pools of Registrators with well-developed social ties receive remuneration, which in total for 1 year approximately amounts to about 20-30% of the number of Bitbon units they involve in providing. After the update, in March 2024, this ratio will drop to about 2.5-4%. At the same time, to maintain the economic effect in financial equivalent, the sale price of Bitbon units received as remuneration should be many times higher.

In addition, by this time it is planned to publish materials about the economic model of the Bitbon System, which will be implemented after the launch of the Aggregate User Reputation Assessment of personal accounts[i] and reputation indicators of Bitbon System corporate accounts[i] on the official information resource of Bitbon System[i]. This model will also include the concept of the formation of socioeconomic relations between Users and their interaction with the Bitbon System infrastructure and user services. These materials and numerical and analytical indicators will be interesting for the whole Bitbon System Community and very valuable for a business-oriented audience.

We recommend Users interested in economic benefits from the Bitbon System development to define the number of Bitbon units in their pools before active use of the services by businesses.

One Space is a base service of the Bitbon System that provides the infrastructure for ensuring interaction of Bitbon System Users. One Space is the development of SIMCORD LLC (EDRPOU 37657823).
Simcord LLC. Technologies. Ukraine. (Company ID code 37657823). Based on the Bitbon System Public Contract, Simcord acts as t he first Bitbon System Operator.