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Tokenomics & Governance AMA With Bob Reid (Fri 3rd Dec 2021) Transcript

Bob:

Before we get started, let me begin with (a) I know not all questions will be answered today, and (b) we will have another AMA later in December to update on features, releases, voting, etc. Today, I want to focus on the recently announced Foundation, tokenomics and vote.


That said, re CARA, the Android app will be updated with much higher accuracy, and feedback (green, red ovals) to let users know if they are capturing images well enough next week; the web version is roughly a week behind, and iOS shortly thereafter. The ID token will be more accessible…...it will be available on Digifinex next week, and additionally available for purchase from Everest Network, Ltd., via debit cards in Q1, and possibly earlier via SEPA in Europe.




Reshail Raza:

Will Everest enable IBC to connect with Cosmos ecosystem in future?


Bob:

Great question, and personally I’m a fan of Cosmos. Our “Hub” strategy, which connects EverChain to multiple other L1s, enables the ID token, CRDT token, and identity data to seamlessly go between EverChain and other L1s, and among them (i.e. Poly to BSC) achieves a similar vision to IBC. In the short term, we will be executing on the above with the previously announced partnerships with Chainlink and Polygon. Longer term, there may be a way for IBC to connect to us.


In addition to the above, it’s worth mentioning our BSC bridge. The drama surrounding that was my fault…...I hired an outsourced team who had previously done four bridges to BSC, and when they delivered the contracts, it was complete crap. It worked well enough to push ID tokens across once, but could only do one transaction at a time; if any transaction timed-out, then the whole bridge would stop; if someone closed their browser mid-transfer, the bridge would be stuck for the whole world! So, we spent a few weeks trying to fix what was delivered, but you can’t fix stupid. And, even if fixed, the code was not synergistic with a “Hub” strategy. So, we made the call to start from scratch, and build something scalable and for the future.


That said, the new BSC bridge is working well (we partnered with one of the leaders in the bridge space this time), and we’re in the process of putting the frontend on it. And we'll be adding multiple bridges over time as mentioned above.




Joe:

Are there any thoughts or plans or an amount of $ID set aside for any potential sponsorships as part of the marketing strategy? Would be nice to see Everest and logo on other companies/ products and in people’s faces 👍 as an example, Floki is everywhere in London over here on the underground and side of buses (although I did see an article they may be breaking advertising regulations!) and crypto.com ads always appear in a few mobile games I play. “the first universal stablecoin, representing ANY fiat and backed 1:1. Everest $ID” would look good as a professional AD in the Financial Times I reckon ;) Thank you


Bob:

Definitely thoughts around it, but nothing planned as of yet. Please let us know suggestions - Manny Paquiao? Real Madrid?




Fort Cornholio:

Do we expect the Everest debit card to include perks like cashback %, airbnb rewards ala Crypto.com, Plutus etc.. Or is this not in line w Everest's vision?


Bob:

Yes, that’s part of the vision. Rewards in crypto and discounts on services are part of the initial plan; additional incentives will be layered in over time.




Fort Cornholio:

Since the release of "Proposal for a Regulation Of The European Parliament and of The Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937"


Are $ID and $CRDT both still all above board in regards to these new proposals?


re: https://www.reddit.com/r/CryptoCurrency/comments/r218s7/the_most_important_piece_of_regulation_on/


Bob:

Yes, both ID and CRDT appear to be in-line with the proposed MiCA regulations, which are the proposed pan-European crypto regulations. FYI there is about an 80% overlap between MiCA and Maltese VFA (remember that Malta is part of the EU), so there will be a harmonization between the regulations, which honestly makes our lives easier. I can’t say for certain that MiCA came from a VFA origin, but I can point out that the VFA regulations are the most exhaustive, professionally administered I’ve seen so far, and were published two years before MiCA.




Jaro:

Some holders have well over the 400k ID for a validator node with a few that have a VERY significant amount more; enough to cause problems in the network if not gauged. If there is a limited number of nodes allowed to be run at 100, will there be a limit to how much ID an individual can stake in their contribution to the Validator network?


Bob:

Yes, there are some governance rules in place (will be published next week) that prohibit any node from taking too much control (i.e. “No validator will be able to vote more than 10% of the network power, and validators are prohibited from colluding”). Individuals with less than 400k can delegate their tokens to one of the 100 validators, and receive their share of rewards and governance/vote.




pluto:

Where can I find technical documentation of faceID + pin and how that generated private key?


Bob:

The biometrics come together with the PIN, and programmatically generate the private key. It can be considered a multi-part compute (MPC) architecture, widely considered to be one of the most secure architectures. Making live biometrics be part of that multi-part makes it extra secure. Also, it makes the EverWallet effectively “cold storage”, and yet you can’t lose your keys.




Snarf King:

Is there info on vesting schedules etc since team and strategic partners make up 35% of total token supply


Bob:

If you noticed, the team, partners, advisors, etc. postponed distribution in August, and again in November. The vesting schedule is changing to remove quarterly disbursements, and allow for monthly distributions over the course of two years, starting in 2022. FYI not all of those pools (35%) have been allocated yet either.




The Benevolent Oligarchy:

What does ‘Purchaser Spends’ mean in the second sample model?


Is this synonymous with staking on the platform or relinquishing ownership of tokens?


Bob:

A user or organization spends ID tokens to perform certain tasks on the network. For example, if an organization wants to perform an eKYC/AML check on a user, they would pay the equivalent of $1.50 in ID tokens; if ID token is priced at $0.30, then 5 IDs are paid, and if priced at $0.75, then 2 IDs are paid.


In most blockchain networks, “spend” is often limited to sending a token across the network or performing a smart contract function (i.e. amm). The Everest ecosystem opens up these functions, as well as LOTS of other real transactions, and many at higher value.


This is not synonymous. Staking is the process of locking up ID tokens for a period of time to secure one of the 100 nodes.




The Benevolent Oligarchy:

Please expand upon the concept of ‘Additional TIME’ as well


Bob:

If, for example, a company of 5 wants an identity + wallet (i.e. LLC + bank account), and XX storage for records, they would pay USD $20 in ID tokens for a year. They can extend the time for identity + wallet, like in most real world scenarios, and similarly pay for storage over a period of time as well. A bit like getting an API license, some services are limited to a period of time.




The Benevolent Oligarchy:

Tokenomics: If $ID is akin to digital real estate, then why wouldn’t you build more elasticity into your plan? You have so many variables to work with.


You’ve built a digital system which will replicate the same challenges we have with housing supply and affordability in high-density markets.


Please consider adding Loi Lou to your advisory team. He is pragmatic, fair, and willing to make difficult, short-term trade offs for long-term sustainability.


Bob:

Hmmm, not sure exactly what you’re talking about. But let me try a few different angles.


First, in terms of access and pragmatism…...every human being is getting a real digital identity + account, and they get access to financial services at lower prices than almost anywhere else (i.e. remittances at the World Bank level of 3%). I’ve heard “bank the unbanked” over the years, but when you dig into it, you realize users need an identity, an account, get KYCed, cheap access to digitized money, fast transactions, reporting that staggers the mind, etc - and Everest delivers all of that at below market prices, regardless of the price of ID. Please note that pricing for services is based on USD, and payment is made in ID. So the “price” doesn’t go up and create the higher density you refer to; the amount of IDs paid may change, but the price to users remains competitive in the market. Also, I recommend you re-read how most industrialized countries test if something is a security/investment contract or a token to better understand why this design choice was implemented. Second, if you are referring to the supply limit of IDs, then note that the community (any ID holder) can vote to change pricing, validator rewards and burn percentage…...it’s very much a decentralized economy.


I don’t know Loi personally, but I’m a big fan of the Kyber team - simply great guys. As you noted, this is a token-based economy for a “real economy” that can scale to every human interaction in society…... a system that accommodates and incentivizes usage for multiple real-world use cases while still remaining decentralized enough for the community to direct its future.




Rémi:

Will Everest Network Ltd run a validator node at the beginning ? If yes, will it be forever ?


Bob:

Need to confer with legal.




Rémi:

Do you have a time and date for the community vote ?


Bob:

Yes, posting below, at the end.




Dave Da Frogg:

If regs come out saying transactions over $1,000 need to be fully reported, do crypto projects that use Everest’s identity features have to stake 250k tokens or can a Uniswap seamlessly embed themselves i into our platform for free?


Bob:

All integrations and transactions require some payment in ID tokens.




Dave Da Frogg:

Franklin Templeton announced in September 2019 that they are creating a tokenized asset platform account for each of their users on stellar blockchain, over 2 years later, they are still stuck on sec filing stage. Will the integration with Oracle be a similar process or will it go smoother/quicker since Everest complies with international cross border regulations?


Bob:

Those are different applications with different regulations. Oracle sells software to banks, and Everest will just be a component in the stack. Once implemented by a bank, it’s a quick feature approval by a banking regulator, similar to what we’re seeing with Kina Bank in Papua New Guinea.


Franklin is talking about tokenizing stock, mutual funds, and settling those over a DLT - that is a much higher barrier, as I don’t believe Franklin is a licensed crypto custodian, nor do they run a regulated chain. I wonder who could help them? Thinking along those lines, in order to deliver that service, one would need a regulated chain, be a licensed crypto custodian, have integrated reporting, and a partnership with a broker/dealer to hold the stock. Not too many companies in the world could do that - I can only think of one.




Dave Da Frogg:

On the chart for the new rewards, it says 32% annual next to the validators, is that the validators reward or the reward for those who choose to stake with the validators?


Bob:

It is the Validator’s reward. In other scenarios, I’ve seen some validators pass on 100% rewards, and other cases charge a small fee. It’s up to them, you, the community.




A Frank:

Hello Bob,


I was wondering, as we approach the end of Q4, if things from the end of Q3 update/previous updates are still on track for this quarter. Many of them were delayed from Q3 and slipped into Q4. As it stands, coming directly from yourself/other team members Q4 is set to be extremely busy. The community is expecting:


Ama with Liza

iOS release

BSC bridge

Oracle integration was said to be Q3/Q4


"50+ API endpoints with identity and flows is taking longer than expected — coming live in Q4.


Us fiat on rails with a few clicks


"Next up is to move the DeFi protocols onto EverChain for fast, cost effective transactions, per the above — expected in Q4."


"Send/receive crypto & fiat

globally. Attached to our local fiat integrations, so slipping to Q4"


"Opening up additional APIs will go well into Q4 and Q1."


"Ongoing integration for “interoperability” with Polygon, plus integration with ENS, Ocean and Chainlink is the technically deep, ongoing work that is expected to be completed later in Q4 "


"Expect to be able to purchase ID much more easily in Q4 as well."


Would love to know what from this list are coming still Q4/what, if any of it will be slipping to Q1


Thanks


Bob:

A lot of these are coming in December. As mentioned, BSC bridge actually passed QA and we’re doing the frontend, ID tokens are getting easier to purchase, iOS mentioned. The APIs are essentially done, but we’re finding most partners want us to do pull requests. Fiat-in/out via ACH feels on-track. I’ll update in more detail in the next AMA.




Jaro:

Hi Bob, thank you for your time and everything you're building!

How do you see Everest fitting into the Metaverse?


Bob:

Identity is the natural way for Everest to fit into the Metaverse. A few have noticed that we are slated to be a Metaverse’s identity DAO, and I hope we can finalize that. Ultimately, I expect to expose access to the Metaverse from inside EverWallet; we've had discussions about running dApps on our chain as well. I’ll update you on that as it progresses.




FAQ:

If I am currently staked, can I apply those IDs to validators?


Bob:

Not sure why one would want to earn less rewards, but no, you’ll need to wait until your stake finishes, and then stake as a validator or as a delegate.




FAQ:

Can I stake towards the testnet?


Bob:

Yes, you can stake towards the testnet.




FAQ:

When will the existing staking rewards program finalize?


Bob:

In the next few weeks. Anything staked afterwards will go towards the testnet.




FAQ:

The cost and fees required to Mint & Issue NFTs & ERC20s is $50,000-$250,000 which is higher than any average or home developer would be able to afford to mint nfts or make their own tokens on the network. Will there be a cheaper way for regular devs to make NFTs?


Bob:

We have had interesting discussions with large institutions and governments about issuing their own NFTs, and transacting over EverChain and RegChain, so that was the initial target. We hadn’t looked at the home developer market, but I imagine a cheaper version would be possible over time.




Bob:

A few things need to be announced:


There will be a vote by ID holders (those with 1K or more in an EverWallet), starting on Dec. 16th; exact timing will be announced. The vote will determine pricing of EverChain transactions and identity verification, validator rewards, and transaction burn percentage.


Options will be the following:

- $0.0001 per txn, $0.15 per identity verification, 10% validator reward, and 50% transaction burn

- OR $0.0002 per txn, $0.20 per identity verification, 5% validator reward, and 60% transaction burn


- One wallet = one vote. Nice that this rule is enforceable by the nature of an EverWallet, and can’t be controlled by whales.

- In Q1, validators, and by extension delegators, will vote quarterly.

- More details on the vote will be forthcoming early next week.




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