The VAIOT $VAI Token Economics
The blockchain market is expanding rapidly, which emphasizes the need for VAIOT to not just create a digital asset, but also offer an attractive token economy. Thus, in this article, we set out to illustrate the most important aspects of VAIOT’s token economics.
VAIOT’s native token $VAI is the very first federally regulated digital financial asset by the Government of Malta. Throughout the development process, we’ve partnered with Grant Thornton to ensure all regulatory guidelines are followed. That way, VAIOT can 100% guarantee quality and regulatory legitimacy that no other company can offer. In this era of rug pulls, scams, and hacks, VAIOT offers a token that is fully audited and regulated alongside having a team that is bound by law to ensure that it is delivering a safe, secure environment for token holders.
Furthermore, VAIOT’s token economy, which is supported by our intelligent systems and software, offers a diverse set of token value solutions. The VAI Token is set to incentivize users to utilize VAIOT’s solutions. These solutions promote the consistent flow of $VAI through the ecosystem, both increasing demand and rewarding users who utilize the VAIOT platform.
The different solutions are:
- VAIOT Payback Program
- VAIOT Bonding System
- VAIOT’s Purchasing Asset Solutions
- Validator Rewards
- VAIOT Value Assurance System (VVAS)
- Unit of Account
First, VAIOT’s Payback Program, which is designed to keep the $VAI asset consistently flowing through the ecosystem. Users who perform transactions on the VAIOT platform are rewarded with a bonus of $VAI tokens as a loyalty perk. The bonus is calculated as a fixed rate and is a percentage of the value of a given sale. Rewarded $VAI assets 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 service being acquired by its users, therefore generating additional demand for $VAI on the free market.
VAIOT’s software and platform are accessible to businesses through the Bonding System, in which $VAI assets are deposited to access certain functionalities or use them on preferential terms. VAIOT’s bonding system increases demand and rewards users that deposit $VAI.
Moreover, when assets are deposited to the Bonding System, they’re effectively locked. During the time that the assets are locked, users can access specified platform functionalities without additional fees; this, in effect is a subscription model. Depending on the duration of the subscription period, a percentage of the locked assets will be deducted and then added to the Growth Pool to prevent misuse and encourage utilizing the bonding systems for a reasonable period.
Additionally, VAIOT has set up purchasing asset solutions. The VAIOT Platform supports direct $VAI settlements, which means the asset can be used as a payment method for goods and services offered through VAIOT Solutions and select retail outlets that support VAIOT integration on their web stores and marketplaces.
For FIAT currency purchases a small portion of the transaction will be converted into VAI assets which are bought on the free market. Tokens are distributed as an additional reward for network nodes. This approach allows a fair incentive system for Proof-of-Stake consensus participants, rewarding them even if the payment is not finalized with $VAI tokens; this makes it possible to correlate the business performance of the VAIOT Platform with the $VAI Token economy.
VAIOT also offers discounts on select products and services when purchasing with $VAI Tokens and the Payback System means every purchase is rewarded with a payback bonus of $VAIs.
The official $VAI token address:
Validator Rewards and VVAS
VAIOT’s blockchain is supported by a network of validators. Nodes are rewarded with $VAI assets for securing the network. 25% of the total token supply is distributed as node or validator rewards. Part of the transaction fees and contract deployment fees are also distributed as validator rewards on top of the 25% allocation. As the number of tokens designated for staking is finite, nodes can decide to be additionally rewarded with tokens from the Growth Pool.
Furthermore, a portion of FIAT transactions is converted into $VAI Tokens and distributed as an additional reward for network nodes. That 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.
Since the token value may not be as stable as is the case of FIAT currencies, it can be challenging to determine its purchasing power. VAIOT’s Value Assurance System offers a secure conversion rate based on factors such as the current price of the VAI Token, market sentiment, and 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. VAI assets are used as a unit of account for transaction fees and Intelligent Contracts execution. Since all transactions made with VAI tokens are made on-chain, all transactions made with VAI Tokens will be saved on-chain and act as a digital receipt.
VAIOT’s 10-year comprehensive token release schedule is designed to allow the circulating supply to scale with the development of the project. VAIOT’s goal is to allow for a regimented, healthy token release that helps protect investors and token holders from large dumps that may negatively impact holdings. To further protect investors, the token distribution plan is not only highly regimented, but is paired with Token Value Solutions that keep the VAI token in demand and rewarding holders who supply liquidity, stake their tokens, or participate in social mining.