NOIA Token Model Community Questions Answered by CTO Jonas and CEO Dom [Transcript]

If you haven’t yet, you can read about “NOIA Token Model” here: https://medium.com/noia/noia-token-model-18cb426b9313 before proceeding to have a better understanding on the subject.

What happens to the tokens the company receives as payment? Will the company sell the tokens it receives as Subscription Fees? What’s the mechanism there? How does Subscription Fee compare to Data Transfer Fee in terms of sales volume? Which is more significant?

Domas Povilauskas: That’s a very good question, and the answer is Data Transfer fee is much more significant because it will be used to drive value to the economy and enable Programmable Internet.

So eventually, Programmable Internet will be opened-up to any other platform, corporate network or regular person to easily join and start using it. So data transfer fees will be the fuel to basically enable this economy. And the split Between data transfer fee and Subscription fee, eventually might reach to around 80/20% or if we look it in longer term is might even reach 90/10 percent or even more. Although in the very beginning of this project, when the programmable Internet it in its very early stage, our goal is to drive the users, to the initially users to the network, so the split between the subscription fee and data transfer fee might lean toward the subscription fee and might be bigger in the beginning. But That is totally healthy in order to generate usage and revenue and to bring to create this engine that I was describe previously.

So what happen to the token, the tokens we received from subscription payment will go to the company reserve. We do not intend to sell those tokens, because we are also very motivated to reduce the velocity and reduce the supply. So every purchase of new subscription via token, will be tokens being taken out of circulation being put to the reserve. We believe that this could be a great kicker to the economy, so we as a company, we will manage the reserve and maintain the right to manage the reserve to the best interest of all stake holders and the company.

Is there an idea how much discount paying with tokens can be obtained (20%. 50%. 80%?) and can clients pay solely in tokens or solely in USD or can they use a mixture as well?

Domas Povilauskas: We want to approach this subscription payment in tokens as similarly to that of cloud credit programs. If you look at AWS, Google or any other major Cloud provider, all of them had their credit programs, in order to boost the adoption of their cloud services by providing a discounted or even free cloud service. That was proven to be successful, and if you look at these cloud providers, all of them right now are grown into a incredibly large private economies.

So we want to use the same idea of providing discounts to boost the adoption and then we can basically, the token will mean initially will have the same value as the credit. It will be a true utility so people will be able to easily start using it. So the discount is a dynamic thing, is not a thing that will be constant, we as a company we want again manage this program to the best interest of all the stake holders, so discount might change depending on the market conditions in order to generate as much value as possible. So this is a mechanism again to boost this engine, not a constant thing of the network, the thing to boost, to kick off the economy.

And yes, will have the ability to pay either in tokens or USD. And As Jonas describe, this is a very important to create this seamless user experience which were most project fail.

What’s your stance on the token burn? Do you plan to burn any token received as Subscription Fees?

Domas Povilauskas: So I’ll start from the second part, we do not have any intention to burn the subscription fees. So again, This is about creating the engine, so the company needs to build up the reserve, so we can use these tokens to more credits or we can basically generate revenue. So we do not have any intention to burn it, although what concerns the data transfer fees and the transaction fees, that is an open discussion.

We’re evaluating and exploring all the possible token models exist right now in the market specially that ones that emerged from the DeFi, and there’s very interesting stuff going on. So we do not rush to announce something before we evaluate and chose the best model because again, the key is to generate the constant user flow, and then the second part is these details that concerns that.

How does the fiat to NOIA payment gateway work? Will the tokens be acquired from the market? Can you use other cryptocurrencies to pay?

Jonas Simanavicius: So as I mentioned from the beginning, without going to much details, it will be done on public markets plus a liquidity pool if there’s need and some decentralized liquidity and exchange operators.

So for example then, if a transaction was done in Fiat USD payment, and some parts of that needs to be converted into the token and passed on to the Programmable Internet to operate, it needs to be a seamless experience so that payment will be converted either using public markets and exchanges and it would be exchanges where at that moment operating in, plus we can use the help of platforms like Uniswap, Kyber and our own liquidity pool to help facilitate that transaction.

Likewise if someone wants to pay with different cryptocurreny, if those operators and if there are gateways which can help us to swap and have seamless experience to transact, there is relatively easy ways to do that. And once the payment gets into the company of the part which is required to be paid by tokens is automatically converted and passed without any hurdles

How do you plan to address slowing down token velocity? Will you have master nodes and/or staking?

Jonas Simanavicius: As Dom explained, our main priority is getting customers and first usage into the network right, so once the initial network demand is established there will be master node and staking-based consensus for both the routing mechanism and information stored on the ledger which will also perform you know, the payment web authentication into the system autonomously in a distributed way.

So the model to operate master nodes and staking mechanism will be set according to variable of the network usage and modeled to slowdown the velocity enough to sustain the economy and token-based incentives to keep the network growing, operational in a distributed way.

So as I mentioned, before you can read about the first version of our model in a whitepaper but the actual values are yet to be decided and there will be significant statistical modeling and calculations done before we set those variables and open the Network. And we want to have real network usage before that, so that this modeling is done accurately and guarantees that once we kick off bu constant use of the network, there will be enough incentive for both the master nodes, the token holders and the network runners to perform a service.

Can you talk more about how this token model will bring value to the NOIA token?

Domas Povilauskas: So let’s go to the announcement and repeat the cycle again. So the company by generating revenue, by doing marketing, doing sales, our purpose right now is to generate the user and then the users will generate a constant flow of value that will be going to the data transfer payments back to the programmable Internet economy. So that’s the engine we are talking about, and this is the key element in all formulas that you will find about the token economy models.

The transaction volume is the key and that’s why this mechanism that we presented, the business strategy that we have is a very tightly link to the value we’re creating to this overall token economy. So we believe that we chose the right path because we’ve seen a lot of projects focusing more first on this second part, on getting clear, all these details out, about how the actual value distribution will work but we’ve seen many projects with networks running but no usage at all, so we took a different path where we first wanted to create the engine of this usage and then the second part will definitely come together with a much stronger foundation.

Taken from video: https://www.youtube.com/watch?v=vd9SoD_7Zi0

Known cryptcurrencies and blockchain since 2015. Certified blockchain expert and a graphic designer.

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