Token Economics
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OverviewPayPro is going to issue two type of tokens; PYP and zPYP. On the one hand, PYP is the only currency accepted within the marketplace. On the other hand, zPYP is used as a rating system within the marketplace.
Distribution of tokens
PYP will be first distributed on an Initial Coin Offering (ICO). Once the market has acquired enough tokens, these tokens will be trading on Exchange Platforms so any individual can have access to them and thus buy services on the marketplace. zPYP will be allocated to users and dApps from our Pool. The pool will initially hold a number of zPYP that will allocate as a reward for rating to users and as a reward for getting high ratings to dApps. Both users and dApps can exchange zPYP for PYP, but PYP can not exchanged for zPYP. Otherwise the system would be corrupted.
WorkflowWorkflow: User
1. User exchanges any crypto-currency, such as Ether or Bitcoin, for PYP on an exchange.
2. User seeks for suppliers of the service that he is looking for. dApps with best ratings will be positioned better and thus.
3. User chooses a dApp.
4. User buys the service that he was looking for and pay a transaction fee in PYP to the marketplace.
5. User receives the service.
6. User is asked by PayPro to rate the service provided by the dApp.
7. User rates the dApp.
8. PayPro’s Pool rewards the user with PYP for his contribution.
9. User become loyal as more zPYP is accumulated.
10. User exchanges zPYP for PYP.
11. If the user stops transacting, zPYP will be progressively taken back to the pool
Workflow: dApp1. dApp post a service on the marketplace.
2. A user decides to buy a service from the dApp.
3. dApp receives PYP and pays a transaction fee in PYP to the marketplace.
4. User rates the dApp.
5. The Pool allocates a number of zPYP to the dApp according to the rating.
6. The more zPYP the dApp received, the better positioning.
7. Whenever the dApp decides, it can exchange zPYP for PYP.
8. dApp decides to improve the service out of the feedback received.
9. If the dApp stops transacting, zPYP will be progressively taken back to the pool.
10. Workflow: PayPro Pool
11. Pool holds zPYP and PYP.
12. Pool receives PYP from a user buying a service from a dApp.
13. Pool receives PYP from a dApp selling a service to a user.
14. Pool receives a rating order from the user.
15. Pool allocates a number of zPYP to the dApp in accordance with the rating.
16. dApp receives zPYP.
17. Either the dApp or the user decides to exchange zPYP for PYP and sends a sell order to the Pool.
18. Pool accepted the order at fixed price of 1 zPYP = 1 USD.
19. Pool sends PYP in exchange of zPYP.
Token AllocationWhereas rewards to users are always fixed and hence there is no room for further consideration, the calculation of zPYP rewarded to dApps plays a critical role in order to build a well structured ranking of suppliers. In order to do so, we will use a the law of Zipf.
Zipf’s so-called law, formulated in the 1940s by George Kingsley Zipf, a linguist at Harvard University, is an empirical law according to which in a certain language the frequency of occurrence of different words follows a distribution that can be approximated by P n ∼ 1 / n a where Pn represents the frequency of the nth most frequent word and the exponent a is a positive real number, in general slightly higher than 1.1 This means that the second element will repeat approximately at a frequency of 1/2 of that of the first , the third element with a frequency of 1/3 and so on. A non-empirical, but more precise, law derived from the works of Claude Shannon was discovered by Benoît Mandelbrot.
The law of Zipf is fulfilled for most languages, including for non-natural languages such as Esperanto.
We have chosen this model for the following reasons;
- It delivers a fair rating to dApps who have contributed to the marketplace by offering a transparent and value-added service that has already been proved in real life.
- It rewards with large amounts of zPYP to those dApps who have contributed mostly with great services.
- It also rewards dApps with low ratings so they still feel encouraged to improve and keep working on the marketplace.
Loyalty Program
Users will be encouraged to rate dApps by rewarding them with zPYP. As zPYP can be exchanged for PYP, users can monetize their work. Therefore, the accumulation of zPYP as a way of generating income to the user, will be used as a loyalty mechanism.
