[IMPACT] Please describe your proposed solution.
This proposal is around value in the OIC system that we want to develop on the Cardano blockchain. The goal of this proposal is to mathematically model the value system both within OIC and the outside economy so that the variables are sound to keep value during the lifecycle of the project.
To explain this proposal I first need to explain three separate concepts.
- Have a clear definition and explanation of what value is in this context.
- Define OIC and what it is.
- Define how value then works within OIC and the greater economy.
Clear definition of value in this context.
Value is a subjective term. Value is a measure of a need, desire or want a person has for something or someone. Best described by some examples.
If I want water then it is valuable to me. If water is scarce and my need for it grows, the value of the water will also grow. If I am in the desert about to die of thirst then water will be most valuable. If I am surrounded by endless fresh water around me, water would be least valuable.
Definition of OIC.
OIC stands for Original Issue Currency and is an alternative economy. OIC is designed to bring the living world we depend on for survival into the consciousness of every transaction we do. Every transaction brings the environmental impact into full visibility by impacting the price of the goods.
How Value works.
In this system OIC has its own economy because the transaction works differently. This video explains the value proposition within the OIC economy.
To make this environment work with the bigger economy crypto is needed so that tokens can be exchanged for other forms of economic value. To get this value the OIC token needs to have a fixed supply so that it can maintain value.
Here is what this proposal is about:
To get a token with a fixed supply even when we create tokens for environmentally friendly transactions we need to build out a mathematical model in a way that also destroys or burns tokens when the environment is damaged. Over time the criteria will become stricter and be placed under more scrutiny.
The goal of this proposal is thus to create and model mathematical models to keep the tokens in the OIC system within a maximum supply. This is a technical process that will require a number of iterations to get right. Below is the fixed supply tokens that will be used in the two wallets of every user.
[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.
This project 100% aligns with Demonstrating and monetizing impact: Combining an economic system with the protection of the environment is exactly what this challenge is about.
[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
Not getting the mathematical equation correct could jeopardise the whole project.
To mitigate this I will work with mathematicians in the area to make sure I get a favourable outcome.
[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.
Step 1: Develop a framework where all variables in all kinds of transactions can be determined. Two weeks - Show all variables with how they can change.
Step 2: Develop a software model to run tests on over time. Six weeks. - Show front end with model output
Step 3: Work on the mathematical equations until a stable state can be determined where the transactions limit the amount of tokens that can be created. Four weeks - Show formulas
Step 4: Alter the parameters and the equations and return to step 3 until done. Four Weeks - Working model that is running correctly.
As a timeline this is a 4 month process. The mathematician is only available over the weekends.
[FEASIBILITY] Please provide a detailed budget breakdown.
Developing the variable framework 8 hours - $ 400
Working on the mathematical formulas 24 hours. Work with mathematician to help - $ 1,200
Developing the modeling software 58 hours - Doing this in javascript so it can be shared with the community. - $ 2,900
Running the models and tweaking the variables 22 hours. $ 1,100
This is a total of 112 hours @ $50 per hout working out to $ 5600 in total.
[FEASIBILITY] Please provide details of the people who will work on the project.
Henno Marais: https://www.linkedin.com/in/hennom/
[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.
This is just the start of the project on Cardano and lots of work still needs to be done.
Funded or not I am working on a plan to fund this on my own if I do not get further funding from Catalyst.
[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?
During: Share the mondeling software that will be developed with the community.
After: Show the model and the equations working to keep the token supply steady.
[AUDITABILITY] What does success for this project look like?
Having tokenomics in the OIC system that is proven to keep value in the real economy by ensuring scarcity.
[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.
This has not been funded before.
Sustainable Development Goals (SDG) Rating
This project covers all the non commercial sustainability goals.