An overview of VAIOT’s network incentives and token utility.
VAIOT is a protocol for reliable and legally compliant digital contracting and AI-supported service distribution channels. Its use-cases vary from the creation or purchase of digital insurance contracts to traditional paper-like contracts with smart contract equivalents. Legal compliance is ensured for specific jurisdictions. By combining AI & Blockchain, VAIOT creates IVAs (Intelligent Virtual Assistants) for both consumers and businesses, acting as an interface for products.
We see Blockchain as indispensable for our solutions and their ecosystem. It allows us, among others, to use VAI Token to incentivize potential customers to apply our products.
VAI Token as the first Virtual Financial Asset from Blockchain Island
VAI tokens hold the regulatory status of Virtual Financial Assets (VFAs). It makes VAI Token the first-ever, regulated digital asset in Malta. The so-called Blockchain Island was the first country to implement a comprehensive regulatory framework for ICOs.
Issuers of VFAs, such as VAIOT, are regulated by the Virtual Financial Assets Act (“VFAA”) and must, therefore, adhere to the provisions of Malta’s regulatory framework. On top of that, the VAI Token code was carefully audited by an authorized company (Fact Group).
VAIOT Network
VAIOT starts with the VAI Token based on Ethereum and will eventually be migrated to a proprietary blockchain, based on COSMOS-SDK.
The final Blockchain solution VAIBC, where AI and Blockchain are inseparably linked, involves the concept of AI Agents settled on-chain. It is an instance of a machine learning algorithm fused with blockchain.
VAI Tokens are used for the settlement between these AI Agents & Blockchain and carry data in internal communication. It is a crucial part of the distributed economy.
AI Agents can increase token stakes in the network if performed well, e.g., provide value to the ecosystem/clients or products. They also directly influence the tokens as they take part in the network consensus.
For more on VAIBC technology and its dependencies, see the white paper and the Medium article coming soon.
VAI Token Flow and Utility
The VAI Token is ubiquitous in VAIOT solutions. Acting as a settlement method and incentive for users, it helps to secure network operations as well as acquire services at lower prices. Users can also get rewarded for providing specific data to the platform. Significant token utility will be an essential factor for the strong ecosystem around VAIOT. In the future, its utility will always play an important role in decision making.
Payback Bonus
It’s a loyalty perk in the form of Tokens, granted as a payback bonus after a product or a service is bought by the user via the VAIOT Platform. The bonus is expressed as a fixed-rate (percentage of the value of a given sale). The payback is done by VAIOT, which is buying back a certain number of VAI Tokens from the secondary market. These tokens can be used for further purchases, thus reducing the prices of products and services offered on the VAIOT Platform.
It is a non-inflationary reward system as the value comes from the services being acquired by the users, thus generating additional demand for VAI Tokens on the free market.
Payment for the usage of AI Legal Oracle
A fee is charged for accessing the AI Legal Oracle with requests for legal and contract data (smart contract and traditional contract provisions). Instances of AI algorithms are queried, and after the payment in VAI Tokens is received, it provides the required data. The fees for using the oracle are distributed to both the VAIOT network and the VAIOT company.
Payment method (settlement and transaction fees)
We can distinguish two general methods of proceeding payments in VAIOT: subscriptions and direct payment.
-Direct payment:
- FIAT Payment
There will be adapters allowing payments in supported FIAT currencies. A small part of the payment will be converted into VAI Tokens (bought on the free market) and distributed as an additional reward for the network nodes. This approach allows a fair incentive system for POS consensus participants, rewarding them even if the payment is not finalized with VAI Tokens. It makes it possible to correlate the business performance of the VAIOT Platform with the VAI Token economy.
- VAI TOKEN Payment
Direct VAI Token settlement is supported, and no conversion is required; thus, only a transaction fee is paid. If payment is made in VAI Tokens instead of a FIAT currency, the fee will be reduced to encourage users to buy, keep, and use VAI Tokens as the means of settlement.
- VAIOT Value Assurance System (VVAS)
Since the token value may not be as stable as in the case of FIAT currencies, it can be challenging to determine its purchasing power. VVAS proposes a secure conversion rate based on factors such as the current price of the VAI Token, market situation/sentiment, or the contract settlement duration. VAIOT algorithms calculate the price proposition with the support of AI. When the exchange rate is calculated correctly, the transaction proceeds as agreed, and nodes benefit from the brokerage.
-Subscription:
Bonding System
When tokens are deposited to the Bonding System (locked up), one can access specified Platform functionalities without additional payments (subscription model). As long as the tokens are locked, one can use services without additional fees.
Once the user decides not to use the Bonding System anymore and wishes to release his VAI Tokens, a specific percentage (based on the officially announced deduction table) of the VAI Tokens, which are locked up, will be deducted and moved to the Growth Pool.
This is designed to prevent situations where the user withdraws and deposits the VAI Tokens freely, utilizing VAIOT’s Platform services at no additional fees, without locking VAI Tokens for a reasonable period.
Growth Pool
The growth pool is a wallet address where all the network earnings exceeding the standard transaction fees are stored. It collects additional fees generated by the platform’s services and products and includes:
- Fees generated for processing the payments paid in FIAT instead of VAI Tokens.
- Earnings generated for providing brokerage activities in the VVAS.
- Fees charged while exchanging the tokens granted as a Payback to other currency.
Tokens allocated to the growth pool can be used, for example, as collateral in the value assurance system to secure the agreed exchange rate.
The growth pool wallet itself is also used to secure deposits in the Bonding System.
VAI Tokens from the growth pool may also be additionally distributed in the PoS, after validators approve such decision.
Staking Rewards
By depositing funds, one can set up a network node and get rewarded with VAI Tokens in return. Token staking is required to claim rewards.
The nodes’ rewards are distributed from the given token allocation (25% of the total token supply). Part of the transaction fees and contract deployment fees are a default part of the validator rewards on top of before mentioned allocation.
As the number of tokens designated for staking is finite, nodes can decide to be additionally rewarded with tokens from the Growth Pool.
The bonus granted for providing data
The user can get a bonus in VAI Tokens to support AI algorithms development, such as providing additional data for the AI learning process. Such rewards go to the user’s Payback Bonus Wallet.
Governance
The Governance model allows supporting community proposals if required. Both blockchain node instances controlled by their owners as well as autonomous AI aided node operators can participate in the network governance.
“The combination of all these components is designed to lead to a synergistic result and to create an efficient AI ecosystem based on decentralized structure.” ~Michal Szachno - Lead Blockchain Expert at VAIOT
ERC-777 Token standard
ERC-777 is one of many proposals made by the community in the EIP repository. It represents an evolved token standard, which improved on the flaws of past standards like ERC-20, which is still used by the majority of Ethereum-based projects. It’s fully compatible with the Ethereum network, so it can be sent to any Ethereum address and received if the user owns both the public and private keys (excluding exchanges that might not support the given token or refuse to unlock funds).
The chosen standard puts the VAI Token ahead of the competition, most of which uses the ERC-20 standard.
Advantages of the chosen solution are the following:
- It will prevent the user from sending funds to a non-existing wallet or contract address. They are not lost but can be automatically returned by the Smart Contract.
- Token contracts can be improved afterward by giving the token system additional properties later (e.g., recovery services)
Token summary
- Token Ticker: VAI
- Token Type: ERC777
- Max Token Supply: 400,000,000 VAI
Get involved with VAIOT!
You can get involved in our ecosystem by:
- Participation in the upcoming Public Sale on 8.02.2021
- Participation in the Beta testing of VAIOT Assistant application,
- Providing data on traditional paper-like contracts and get rewarded with VAI Tokens.
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More blog updates are coming soon.
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