Zarela Whitepaper
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# Biobit token economy

The Biobit is a utility token based on the Ethereum Network(ERC-20 standard) designed and implemented for financial exchanges on the Zarela ecosystem (including Zarela’s platform, Zarela’s Bioverse and ZSC). The ERC-20 introduces a standard for Fungible Tokens, in other words, they have a property that makes each Token be exactly the same (in type and value) of another Token. For example, an ERC-20 Token acts just like the ETH, meaning that 1 token is and will always be equal to all the other tokens [29]. Multiple features of Biobit token presented by the following figure.
Figure 7: Biobit token features
Basically, The total number of issued Biobit tokens have been 20,000,000 Biobits. From the total issued tokens, 17,000,000 Biobit tokens which is 85% have been transferred to the reward pool. As explained earlier, distribution of the reward pool tokens would be through the Proof-of-Contribution (PoC) mechanism. 10% of total is reserved for the Zarela team and the remaining 5% dedicated for development purposes will be distributed through three phases that are explained separately below.
Figure 8: Biobit token distribution

### Token Distribution

It has been mentioned earlier, The total number of issued BioBits are 20 million tokens. It can be verified by navigating to the Etherscan address below. Additionally, the description of how 20 millions of BioBits have distributed is available in the following section. All the information about the issued tokens could be viewed using the link below:
Zarela's Total number of issued Biobits
Figure 9: Biobit token distribution with more details

#### Team

The total number of tokens dedicated for the advisory board members and the founders are 2,000,000 Biobits,equal to 10% of the total number of tokens. These tokens are the total remuneration of the founders and the advisory board members. In other words, the team members will not earn any other remuneration from the network. All of these tokens have deposited on the Unicrypt platform based on the opinion of the founders in the Vesting contract, and the contacts can be viewed at the following address: Zarela’s Vesting Contract.
Biobit Token Lock Up Schedule
Figure 10: Biobit token Vesting Schedule

#### Development

Nowadays, startup companies and especially Tech-startups apply entrepreneurial finance mechanism for raising capital (as an alternative to traditional VC fund raising) for early-stage ventures. Blockchain-based startups are not exempt from this process. A known method in blockchain world is Initial coin offerings (ICOs). In an ICO, a blockchain-based issuer sells cryptographically secured digital assets, usually called tokens[27]. We at Zarela, have not engaged in the process and procedures of ICO. Zarela had an initial private sale that is discussed below in details.
First phase : In the third quarter of 2021, 300,000 Biobits have been discharged. From that, 100,000 BioBits have been exchanged 1 USD per BioBits. Further, in a commerce with placing on UniSwap Decentralized Exchange platform 100,000 BioBits compensated. in this sale. The remaining 100,000 BioBits distributed among the developers, experts and coadjutors that had been cooperated with Zarela until September 2021.
Second Phase : In the fourth quarter of 2021, 300,000 Biobits have been discharged, and its price is resorting to development of the Zarela’s Bioverse, Zarela’s application and extension of the Zarela’s society.
Third phase : The remaining 400,000 Biobits is currently on the Zarela’s vesting contract on the UniCrypt Zarela’s Vesting Contract and will be released in the second quarter of 2022 and its value will be invested for further development.

#### Reward Distribution Plan

As it has been discussed earlier in the previous section, The reward tokens are calculated on the daily (Zarela’s day) basis. Furthermore, in this section we describe a situation in which the reward tokens that must be distributed among contributors is higher than maximum to-be-released daily tokens as well as there is sufficient balance of Biobit tokens available in the bank. In this scenario following steps will be accomplished:
• Zarela’s Smart Contract will invoke a function to identify the number of Biobits left over from day 0 to be used in the process of reward distribution of the current Zarela’s day.
• Zarela’s Smart Contract will examine the tokens had remained on the next day to compensate the shortage of the Biobit tokens required for the current day. And this process will be iterated until the current day token shortage is satisfied by the remained tokens of previous days.
• The index of the last day used by Zarela’s Smart Contract to recompense token shortage will be saved and will be used if this situation will be occurring.
Zarela’s Network rewards users who spend brain and physical energy to register their biosignals,with 85% of the network tokens (17,000,000 Biobits) as a Reward Pool on a daily basis. Assuming the followings:
$t_i$
: Number of tokens released on day i from Reward Pool
$u_i$
: Number of Biobits burned on the day i
$n_i$
: Number of successful transactions on day i
$b_i$
: Bank balance at the beginning of day i
$r_i$
: Number of tokens rewarded for each successful transaction on day i
$t_i = \dfrac{14400}{2^{\lfloor \dfrac{i} {590} \rfloor}}$
$b_i = \begin{cases} b_{i-1} + t_{i-1} - u_{i-1} - (n_{i-1} * r_{i-1} ) &\text{if } i > 0 \\ 0 &\text{if } i = 0 \end{cases}$
$\begin{cases} U_{i} = b_{i-45} + t_{i-45} - \displaystyle\sum_{j=i-45}^i (n_j * r_j -u_j) \\ u_i = \begin{cases} U_{i} &\text{if } U_{i} >0\\ 0 &\text{if } U_{i}\leq0 \end{cases} \end{cases}$
$r_{i} = min( \dfrac{50}{2^{\lfloor \dfrac{i} {590}\rfloor }},\dfrac{t_{i}+b_{i}-u_{i}}{n_{i}})$

### Burning mechanism

The lifespan of each token released from the Zarela reward pool is 45 days, and after that, any left-over tokens from day one which have not been yet distributed will be automatically burned and will be no longer accessible.
Algorithm 3: Token Burning Mechanism