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 . 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
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
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
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. 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.
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:
: Number of tokens released on day i from Reward Pool
: Number of Biobits burned on the day i
: Number of successful transactions on day i
: Bank balance at the beginning of day i
: Number of tokens rewarded for each successful transaction on day i
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
if (44 ≤ zarelaDayCounter) then
BankBalance = BankBalance − (RemainedDailyTokensOfToday − 44) ;
BurnRemainedDailyTokensOfToday − 44 ;
DayOfTokenBurning ++ ;
In Zarela ecosystem and according to the figure 3, there is a concept called Remained Daily Tokens of Today and it is being used by token burning mechanism explained by algorithm 2 and pseudo code provided for clarification. It is required to be mention that, burning mechanism of the Zarela’s day is preceded to the any contribution at the beginning of next day. Burning mechanism will be kicked off at the end of 44th day of Zarela and as the result bank’s balance will be updated. This concept is being used by Zarela’s Smart Contract in case the number of rewarded tokens is less than daily rewardable token (caused by shortage of daily contribution). Literally, It is the total number of rewardable tokens remained in the reward pool for any specific Zarela’s day. Record of all Remained Daily Tokens of Today will be kept in Zarela’s Smart Contract. In simple word, They could have been distributed from the reward pool but they did not. The burning mechanism of Remained Daily Tokens of Today is explained by an example below and demonstrated by the following figure.
For instance, on the 46th day of Zarela, the remaining number of 14,400 tokens released on the first day of Zarela are burnt. Similarly On the 47th day, Remained Daily Tokens of Today of second-day will be burnt and so on. This mechanism works on a daily basis, and the number of tokens burned per day is announced on Zarela’s dashboard.
Figure 11: Burning mechanism snapshot