token paper paper.pdftokens to be able to access product or services (whether immediately or in...

TOKEN PAPERwww.velix.id

http://www.velix.id/


Table of

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WHITE PAPER : Velix.ID

PAGE 2

Introduction: Identity Token Model

Token Transactions

Business-to-Business (B2B)

Supply of the tokens

Demand for the tokens

Price of the tokens

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VXD: A Utility Token

Tokenomics

Business-to-Customer (B2C)

Demand-Supply Model

Token Distribution

Token Sale

Fund Allocation

Token Reward Programs

Introduction:

Identity

Token Model

PAGE 3WHITE PAPER : Velix.ID

VXD tokens are the native ecosystem tokens of Velix.ID, meant to facilitate the peer-to-

peer transactions of verified identities over the Velix.ID blockchain.

The current processes of identity verification and sharing are too inefficient in terms of

financial costs, time consumption, and privacy & security concerns involved. Utilization of

blockchain technology, and an identity token model allows these processes to disrupted

and reformed in a manner that is beneficial for both businesses and consumers.

The reasons to have native Ecosystem tokens, instead of utilizing existing tokens, are:

VXD: A Utility Token

VXD tokens are a type of utility tokens. Utility Tokens are tokens that allow the buyers of the tokens to be able to access product or services (whether immediately or in future). These tokens have an inherent value in themselves since they are backed by a business use-case. Startups that utilize blockchain technology sell a part of their total token supply initially in order to raise funds to be able to successfully develop their project, often with a discounted rate to incentivize increased participation.

Utility tokens are not meant to be investments, however, as tokens that can be later

utilized to avail the services of the platform once it has been developed at a later date. In

spite of this, given that utility tokens are more likely to grow in value once the demand for

their product increases, especially if their supply is fixed/restricted; a lot of investors do

see an opportunity in it for increased capital. Such tokens also do not give any holdings or

stake ownership in the startup for the investors, however these tokens are just ‘tickets’ to

buy the services provided by the blockchain startup.

As per CoinDesk, Utility will be the defining word for tokens in 2018.

Other additional advantages of having native ecosystem tokens are:

enable fast and automatic settlements within a smart contract

easy to move digital assets/information among the Users of the blockchain as no

exchanges will be involved in the process

can be used across all jurisdictions

are protected from the volatile nature of other tokens

can be converted to other cryptocurrencies via an exchange.

can be redeemed for goods/services on a marketplace designed especially for this

purpose.

Arbitrage costs: Velix.ID Ecosystem will have high frequency transactions which are

very low in value, for example, especially, at the PII Level 0, the cost of a transaction will

be negligible (2 cents at ICO price), therefore, the high costs that are incurred in

arbitrage fees in transactions of Bitcoins and Ethers will render the Ecosystem unviable.

Conversion cost: If fiat is considered to make the identity transactions, then global

currency conversion will leave the transactions unviable for the same reason as with

using any external cryptocurrency. Fiat transactions are not suitable for small high

frequency transactions. As stated in the above example, when an identity transaction

of 2 cents is made globally, the conversion & arbitrage costs will be too high for this

transaction to be viable.

There are three major guidelines that define if a token is, in fact, a utility token:

1. A Token that allows purchasing of a service(s): This is the threshold guideline for a

token to be called a utility token, i.e., that it can be used to purchase a service(s) on its

native platform.

Tokenomics


TOKEN TRANSACTIONS

The transaction of verified-identity takes place using Verification Stamps (VS) on the

Velix.ID ecosystem, with 1 VS = 0.1 VXD = 10,000 VELs. One Verification Stamp is the cost of

one identity verification transaction on the Velix.ID blockchain. The Verified-Identity

Seeker pays for receiving the verified-identity to the Verified-Identity Provider, and a

small amount of tokens from this transaction is paid to the Identity Holder as an incentive

to participate in this transaction and provide his/her consent for the transaction.

BUSINESS-TO-BUSINESS (B2B)

The primary utility of the VXD tokens is to verify or share verified identities in a secure and

efficient manner. On the Velix.ID ecosystem, if a business/organization has already

verified the identity of a User, other businesses do not have to repeat the process again, as

they can simply request the verified identity from the organization that has already

verified the identity. Such a transaction can be made on the Velix.ID Ecosystem using VXD

tokens as follows:

At the initial launch price of $1 for VXD token or 100000 VELs, for PII Levels 1 and 2, each

transaction is charged at 10,000 VELs; 4000 of these go to Velix.ID and to the PoET Pool,

2000 go to the Attestation Provider, 1500 go to the Identity Holder, and the remaining

2500 to the request processor node. As and when the price of VXD token changes, the

rewards will be proportionally aligned. See the table below, for example:

Flow of Info & VXDin an individual

transaction on PIILevel 1,2,3.

Flow of Info & VXDin an individual

transaction on PIILevel 1,2,3.VERIFIED IDENTITY

PROVIDERVERIFIED IDENTITY

SEEKER

USER

1

3

2

4

6

6

5

6

Request Infoabout User

Requestsauthorization

2

3

4

1

Authorizes therequest

Forwards therequest

Providers verifiedidentity of the User5

Pays VXD6

2. A Self-Sustaining Ecosystem: An ecosystem that connects the buyers and sellers for

that particular service, and allows wholesome transactions that utilize the native

Ecosystem tokens. Any utility token needs to be backed by such a self-sustaining

ecosystem.

3. Automated Payments with Smart Contract: One other vital feature of a platform with

utility tokens is the enabling of automated payments with Smart Contracts.

VXD tokens satisfy all of the above listed three conditions.

Tokenomics


For PII Level 3, the overall transaction cost increases by 1.5 (15000 VELs at launch price ),

and the rest of the costs increase in the same proportion as well.

VXD Price(USD)

TransactionCost (VELs)

Velix.ID+PoETPool (VELs)

AttestationProvider (VELs)

IdentityHolder (VELs)

Request Processor

Node (VELs)

$ 1 2500

1250

1500

750

2000

1000

4000

2000

10000

5000$ 2

937.5

625

562.5

375

750

500

1500

1000

3750

2500

$ 3

$ 4

VXD Price(USD)


Velix.ID+PoETPool (VELs)

AttestationProvider (VELs)

IdentityHolder (VELs)

Request Processor

Node (VELs)

$ 1 5625

2812.5

1406.25

937.5

3750

1125

843.75

562.5

3000

2250

1125

750

6000

4500

2250

1500

15000

11250

5625

3750

$ 2

$ 3

$ 4

BUSINESS-TO-CUSTOMER (B2C)

For basic PII information (Levels 0 in the Velix.ID Ecosystem), such as, name, phone

number, email address, residential address, etc., the User themselves can be the identity

provider, with verification being conducted by Velix.ID. In such cases of transaction of

identity, the flow of information & VXD tokens will be as follows:

These transactions are charged at 2000 VELs at the launch price out of which the User gets

50% and Velix.ID gets the rest 50% as operational cost. These will vary proportionally with

the change in price of VXD token as follows:

VERIFIED IDENTITYSEEKER

1

USER

31

4

5

5

Request Infoabout User

Requestsauthorization

2

3

1

Authorizes therequest

Providers verifiedidentity of the User4

Pays VXD5

2

Flow of Info & VXDin an individualtransaction on

PII Level 0

Distribution of Tokens in an individual transaction on PII Level III

Distribution of Tokens in an individual transaction on PII Level I, II

Tokenomics


User

1000

2000

2500

3000

Velix.ID

1000

2000

2500

3000


2000

4000

5000

6000

VXD Price(USD)

$ 1

$ 2

$ 3

$ 4

Demand-Supply

Model

SUPPLY OF THE TOKENS

1. The total supply of the VXD tokens is capped at 100 million tokens and the launch price

of VXD tokens is USD $1.

2. The partners at Velix.ID buy/are offered Verification Stamps, the equivalent value of

which in number of tokens is locked into the smart contract, and cannot be dumped by the

partner. These tokens are released only when the verification stamps are utilized to verify

identities on the Velix.ID ecosystem. For a model case, suppose a partner has been offered

1000 Verification Stamps (i.e. 100 VXD tokens), then the 100 VXD tokens are locked into

the smart contract, and when the partner utilizes 1 Verification Stamp, the equivalent

value of VXD tokens (i.e. 0.1 VXD or 10000 VELs) is released from the smart contracts. This

ensures that the supply of the tokens is restricted primarily to its utility.

A sample supply model for the VLX tokens can be drawn as follows:

P

Q

$1

Supply Curve

S

O 100 Million50 Million

In the above diagram, S is the Supply Curve for the tokens, Q is the Quantity Supplied, P

is the Price at which the quantity is supplied. The Supply increases starting the token

sale at a launch price of $1, until it exhausts at the total maximum permissible quantity

of 100 million tokens, after which, irrespective of the price, the total number of VXD in

circulation remains 100 million, hence the Supply Curve becomes a vertical line.

Distribution of Tokens in an individual transaction on PII Level 0


DEMAND FOR THE TOKENS

The demand for the VXD tokens is expected to rise for the following reasons:

1. VXD tokens are utility based. The utility of the token is to improve on the existing

methods of managing and verifying identities, and due to the shortcomings of the existing

methods, more businesses and organizations will sign up for Velix.ID to access an

increasing number of services in a more time & cost efficient manner.

2. It will always be more cost-efficient to verify identities through the Velix.ID ecosystem

than through fiat or other contemporary methods of identity verification. Velix.ID will be a

preferred substitute over the existing methods.

3. VXD tokens are always in circulation, with reward mechanisms for both Verified-

Identity Providers and the Verified-Identity holders. Apart from its primary utility, the VXD

tokens can also be exchanged for other cryptocurrency or other products or goods on a

marketplace especially designed for this purpose. This ensures active circulation and

demand for VXD tokens, even for the people who may not want to utilize the tokens for the

purpose of identity verification.

A sample demand model for the VLD tokens can be drawn as follows:

P

Q

$1

Demand Curve

Dt1

Dt2

Dt3

Dt4

Dt5

Dt6

Dt7

O 100 Million50 Million

In the above diagram, Dn is the Demand Curve at any given time tn, Q is the quantity

demanded, and P is the price at which the particular quantity is demanded. tn represents

the time stamp, with tn-1 time having occurred before tn. As defined above, the Demand

is expected to rise, with Dt(n)>Dt(n-1) holding true for all values of n.


PRICE OF THE TOKENS

If we put together the demand and supply curves in a supply-demand curve and study

their interaction to determine the equilibrium price at various time stamps, this is how it

will look like:

Supply - Demand Curve

P

$1 Dt1

S

Dt2

Dt3

Dt4

Dt5

Q

Et1

Et2

Et3

Et4

Et5

Et6

Et7

Dt6

Dt7

Pe1

Qe1 Qe1 Qe1 Qe1Qe1

Q = e6 Qe7

Pe2

Pe3

Pe4

Pe5

Pe6

Pe7

O100 Million50 Million

In the above diagram, S is the Supply Curve for the tokens, Dt(n) is the Demand Curve at time

stamp tn ,Et(n) is the equilibrium point at which both the quantity demanded and supplied

are equal for that particular time stamp tn, Qe(n) is the Quantity demanded/supplied at

equilibrium En, and Pe(n) is the price at which the particular quantity is demanded/supplied

for the equilibrium En. The equilibrium price can be seen to be increasing from Pe1 to Pe7

with time, as the equilibrium is shifting along the supply curve and across the demand

curves. Since, after hitting Q = 100 million, the Supply Curve remains a vertical straight line,

the equilibrium will keep on shifting up with a positive shift of the demand curve, leading

to an increased equilibrium price of the token.

Token

Distribution


The total supply of VXD tokens is 100 Million. Out of these 100 Million, 50 Million (or 50% of the total supply) will be sold during the token sale (any unsold token from the reserved amount will be burnt). From the rest of the 50 Million token, 16 Million (16% of the total supply) have been reserved for founders, team, and advisors, 4 Million (4% of the total token supply) are allocated for the bounty program and community incentivization. The rest of the 50 Million tokens have been reserved for future utilization (15 million reserved for a future crowdsale after 18 months, and the rest 15 million retained to bring onboard future business partners and incentivising Velix.ID Users)

Token Sale TABLE 1- TOKEN SALE INFORMATION DIGEST

VXD Token Type Utility Token VXD Token is meant to beused to verify and shareverified identities p2p. Itnot a security token andnot meant to be used as acurrency.

VXD Tokens Allocatedfor the Token Sale

35 Million 35% of the total tokensupply) are being offeredthrough the initial tokensale or the ICO.

Launch price of theVXD token

$1.00 USD However, during variousphases of the token sale,the VXD token is beingoffered at a discountedprice to encourage earlyparticipation.

35 % TOKEN SALE

30 % BUSINESS PARTNERS

4 % COMMUNITY& BOUNTY

15 % FUTURE CROWDSALE

16 % TEAM

30 %

TokenDistribution

4 %16 %

35 %

15 %

Token

Sale


soft cap for the token sale 2.5 Million USD If the target is not reached,all the investments raisedwill be returned to therespective buyers in whole.

Hard cap for the token sale 23.8 Million USD If the hard cap amount israise, that indicates thatthe product can bedeveloped in whole aspromised, i.e. businessdevelopment, technicaldevelopment, operations& marketing can beconducted without financialrestraints.

Token Sale Dates 17 April, 2018 —May 15, 2018

These include private,pre-sale, and crowdsale.See Table 2 for detailedinformation.

Unsold Tokens Burned Any tokens allocated to thetoken sale that remainunsold will be burnt inorder to keep the price ofthe VXD token up.

VXD Token Compatibility ERC-20 VXD is a ERC-20 compatibletoken on the Ethereumblockchain.

VXD Allocation Instant Tokens will be instantly sentto the investor’s ERC-20wallet through the smartcontract.

VXD Availability Locked till the end ofCrowdsale

The tokens allotted to theinvestors in their EthereumWallet will be locked in theSmart Contract till the endof the Crowdsale. As soonas the crowdsale ends, thetokens will be released fromthe Smart Contractimmediately.

Token

Sale


The bonus slabs for the Velix.ID token sale are as follows:

Bonus TokensAmount Invested

5 ETH – 10 ETH

1 ETH – 5 ETH

0.5 ETH – 1 ETH

0.1 ETH – 0.5 ETH

0.1 ETH 0%

10%

5%

20%

30%

Other than the standard bonuses offered on the investments, there’re also two special bonuses that will exist:

PowerUp: During the first 24 hours of the token sale, there will be an added bonus of 5% VXD tokens on all purchases made within this timeframe, for all Users on the Velix.ID platform. The PowerUp bonus will also be available for the first 24 hours of a new User signing up on the Velix.ID token sale platform.

PowerHour: Velix.ID will announce 2 power hours per week for the entire period of the token sale. There will be an added bonus of 5% VXD tokens for these periods that will each last 60 minutes. The exact time at which these power hours start will be decided by voting through the community members, and will be announced 24 hours in advance before the Power Hour starts.


Fund

Allocation

25 % PARTNERSHIP& MARKETING

5 % RESEARCH

20 % OPERATIONALCOST

45 % PRODUCTDEVELOPMENT

5 % LEGAL

The entire amount raised through the ICO will solely be dedicated to the development of the Velix.ID platform. The fund allocation, if the suggested minimum cap is reached, will be as follows:

45% of the raised funds will be dedicated towards the development of the product, mainly implementing and improving the technology behind the platform and other development in the Ecosystem as may be required. 25% of the raised funds will be dedicated to new business partners acquisition and the promotion of the platform. 20% will be allotted for the cost of operations & expansions, 5% to the research & development (R&D) process, and the remaining 5% will be spent on ensuring legal compliances with the regulatory authorities.

5 %

20 %

5 %

25 %

45 %

FundsAllocation

Token Reward

Programs


During the initial development stage of the project, there are multiple token reward programs to incentivize the community to contribute to the growth of the overall product. These reward programs are sub-categorized as follows:

Early Participation Reward Program (Nodes Hosting)

VXD tokens themselves cannot be mined, but there is a transaction-based reward program for nodes that successfully host the Velix.ID Blockchain nodes. This reward will be made on the basis of the proof of elapsed time (PoET) consensus protocol as developed by Intel. The Proof of elapsed time requires much less electricity consumption as compared to the proof of work and proof of stake consensus protocols, thus democratizing this process to allow even individual contributors to be able to successfully host the nodes. The uptime to host the node will be rewarded from the Velix.ID PoET pool; with each minute spent being reward with VXD (native Velix.ID tokens). There will be added incentives for the early participants in this program, as well, with each Request Processor node getting additional 0.01 VXD tokens from the available 15% pool of tokens held during the ICO; the reward for each minute of successful hosting will also be doubled for the early participants in the program. The early participation program will cease to end when a sufficient number of nodes have been hosted.

BOUNTY PROGRAM

750,000 VXD tokens or 0.75% of the entire token supply has been reserved for the Velix.ID bounty program to incentivize the Cryptocurrency enthusiasts to participation in the promotion of the Velix.ID ICO. These VXD tokens will be distributed among the bounty program participants using the ‘stakes’ system.

Bounty participants will be split into bounty pools based on their method of contribution, with each pool having its own distribution of Velix.ID tokens (VXD). Participants will get stakes during the campaign and at the end of the campaign, with each member's amount of bounty VXD tokens getting calculated and distributed on the basis on the work done by them.

In the bounty program, the tokens have been sub-allocated from the 0.75% pool as follows:

10 % Telegram

10 % Twitter

8 % Facebook

3 % VK

15 % Signature & Avatar Campaign

15 % Translation & Ann Thread Moderation

15 % Blog & Media

5 % Bugs & Glitches

8.5 % Publications

10.5 % Reddit

3 %

10 %

8.5 %

5 %

15 %

BountyDistribution

8 %

10 %

10.5 %15 %

15 %

Token Reward

Programs


Community Incentivization

3,250,000 VXD tokens (3.25% of the total token supply) have been reserved for the purpose

of incentivizing community members to participate in the development of the Velix.ID

project and the promotion of the ICO. These rewards include the people who help with

community moderation (online & offline), outreach program (representing Velix.ID at

conferences/meetups/workshops/etc.), online or offline marketing, social media marketing,

and any other community participation as may be deemed useful to the development of

Velix.ID project.

FOR MORE DETAILS, SEE:

Website:

White Paper:

Presentation:

Blog :

Press Kit :

Announcement Thread:

Bounty Thread:

Social Channels:

Facebook :

Twitter :

Telegram :

Or, Contact us at:

https://velix.id

https://www.velix.id/assets/Velix.ID%20White%20Paper.pdf

https://www.velix.id/assets/Velix.ID%20PPT.pdf

https://bitcointalk.org/index.php?topic=2721724.0

https://bitcointalk.org/index.php?topic=2799783

[email protected]

https://www.facebook.com/VXDID/

https://twitter.com/VelixId

https://t.me/velixID

https://blog.velix.id/

http://press.velix.id/


http://www.velix.id/assets/Velix.ID%20White%20Paper.pdf

http://www.velix.id/assets/Velix.ID%20PPT.pdf

http://bitcointalk.org/index.php?topic=2721724.0

http://bitcointalk.org/index.php?topic=2799783

mailto:[email protected]

http://www.facebook.com/VXDID/

http://twitter.com/VelixId

http://t.me/velixID

http://blog.velix.id/

http://press.velix.id/

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