Unibright answers: The Unibright Token Model (Update)
In 2018, we started an “Answers to your questions” blog series, elaborating on the most interesting or frequently asked questions from our community. Today we address a new detailed explanation of our Token Model, in addition to the one we released in June 2018.
Basically, our token is a voucher to use the framework. Without the voucher you can not use it. Who wants to use the framework has to buy vouchers from those who own it. Those who own it can use it for using the framework itself or sell it to those who want to use it. That’s it. No rocket science.
To make everything easier and help all roles (Token holders, clients and Unibright) to fulfill their respective needs, we put some more thoughts into explaining it.
As for an overview, we prepared a visual to describe our token model.
In the upper part, you see the life-cycle of a Unibright Token. In the lower part you see how tokens are distributed between the market (violet), the customers using our framework (orange) and Unibright (blue).
1 and 2: The customers can calculate how many UBT they need for one month. The amount of UBT varies, depending on which template they use and how the instances look like. For example, the needed amount for instance based on the MPA template can be already calculated on our website.
3: The customers HAVE TO buy tokens on the market given the current price. They need the tokens to use our framework, it is not possible to use it without UBT. If they are not able to purchase UBT, because they do not know how to use IDEX or Liquid, we can explain to them how this works. We will NOT sell customers tokens from any “secret” storage we own. We also do not offer a specific price, we are not an exchange! We just explain the customers how to buy tokens from the open market, at the current market price.
(Think of Unibright as a car seller who just built the greatest custom cars for their clients. What we do here, is just offering to initially show how to fill it up at the gas station, because the customer does not know how to use a fuel dispenser. We are NOT running our own gas station).
4: The customers locks the amount of tokens they need for one month inside the platform. All token amounts that are currently locked can be found on our website.
5: While using the framework, more and more tokens are transferred from the customers lock (the customer’s account inside Unibright, which belongs to him but access is locked) to Unibright.
6: At this point, all the customer’s tokens have been used inside the framework (see the orange bar is empty, the blue one is full). Now all tokens belong to Unibright. Initially, part of our model was to sell the tokens on the market again, but we are reconsidering this. Currently, we want to rather use them for non profit projects (like Universities, charitable organisations and so on) to help them use the blockchain and to widen the potential audience for Unibright. This way, UBT will be NOT given back to the market. Our favorite option, of course, is to sell the tokens back to the client who just used them up — see point 7.
7: If we sell the tokens back to the customer this will be at “our” price, so the 0,14 USD per Token we valued our Utility prior to the ICO. Any client can (but does not have to) sign a contract that ensures him the option to buy back his tokens for 0,14 USD per Token for the run time of the contract. HE HAS AT LEAST TO WAIT FOR 30 DAYS UNTIL HE IS ALLOWED TO BUY BACK USED TOKENS. This ensures, the customer initially buys at least enough tokens for one month! This strategy helps the customers so that they do not have to care about a changing market price.
Remember: Integration processes are long term processes, and most enterprise clients would rather go for a fixed price, than checking every month how the market price developed.
By the way: The “refill”-contract can be an “old-school” written agreement. We prefer it being a smart contract holding an amount of a stable coin which is monthly sent to Unibright — automatically refilling UBT by the use of blockchain technology. That’s why we love to use a token instead of fiat!
Now see a graphic about different price scenarios.
In the first row you see the theoretic scenario, that the market price is just the ICO price and our own price of 0,14 USD, using the platform is “stable” on 0,14 USD in this case.
2nd and 3rd row: If market price is down, the customer can decide to not sign a contract and just buy new tokens every month (Row 3). So, the customer will make a very cheap average price, but with no safety on future price.
4th and 5th row: If the market price goes up (in this example a 10x compared to the ICO), the customers can still lower their average price by signing a long time contract (e.g. 36 months) which will lead to a small discount by us and ensuring the customer a valuable average price (in this example 0,15 USD, so just 1 cent above ICO price).
By our token model, we ensure to have a low entry hurdle (for smaller, fast clients, who want to make use of the cheap entry at the given low rate of blockchain adoption) and still offer a calculable model for bigger clients (who usually adapt later to new technologies, but then go for longer contracts).
Unibright offers a unified framework, bringing blockchain technology and smart contracts to mainstream usage. With its “no-coding-needed” approach, smart contracts get generated, deployed and updated automatically into different blockchains. Unibright works with visual, usecase-related templates and also automatically integrates existing IT systems into the blockchain.
Unibright Solutions, a dedicated consulting branch to support blockchain use in business processes, was additionally launched in December 2018.