Tag Archive for: transactions

VTB Protocol Assertions

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1. Equitability

This system was designed to benefit all its users (VTBC purchasers) equitably. It would be senseless to build a community otherwise, whereby solely the first members and/or owners would receive benefits. According to its mission, no matter what holding position one VTB member holds in the community, they receive the same benefits, as long as VTBCs are in their possession.

2. Redistribution

The sale of the asset reserve is redistributed to all asset holders, as per VTB’s distribution mechanism. The initially minted VTBC are sold to all community members, who then received the proceeds of future reserve sales on a reoccurring basis (thirty days). This distribution mechanism is done by sending Ethereum, or any other integrated cryptocurrency, to all members based on the percentage of VTBC value held, by the member, at the end of each 30 days, which is certainly an Anti-ICO mentality.

3. Growth

The VTBC value will always increase using an algorithm to that effect. This algorithm can be improved upon based on informal assessments and their interpretations by professionals. To that effect, the VTB team has been working with a professional mathematician (Ph.D.) to help refine this algorithm. Even if the algorithm may be altered occasionally, it will do so under strict guidelines, ensuring that it benefits the community and meeting applicable governing laws.

4. Primary Asset (VTBC)

The primary VTBC asset is not peer-to-peer transferred. This is meant to protect the enforcement of the algorithm within the protocol. If there was a means to transfer VTBC directly, attempts to circumvent the pricing algorithm would certainly be made.

5. Secondary Asset (VTBT)

  • Must be fully backed by the primary asset.
  • Can be peer-to-peer transferred.
  • Does not participate in the value increase algorithm.

The secondary asset is entirely backed by the primary asset in the protocol coding. This standard is meant to ensure that users can convert back to VTBC at any time to take advantage of its hourly value increase.

Unlike the primary asset, the secondary VTBT can be transferred peer-to-peer. This is done using methods similar to ERC20 functions, such as “Transfer”.

It should be noted that VTBTs should be quickly converted back to VTBCs to take full advantage of its incremented value increase, not available to VTBTs.

6. Future Assertion

  • Governance token.
  • Governance incentives based on action.

Some others may be added only if they are in the community’s best interest. Out of those considered, two have been visited:

  • To fully decentralize the project with democratic governance using governance tokens or some other mechanism. This type of democracy enables users to vote on changes to the white paper and, naturally, the runtime (smart contract).
  • The incentivization of democracy.

These future assertions include creating a governance mechanism and related voting incentives. As it may, several projects have had to substantially change their overall protocol because they expected token holders to participate in the democracy; however, a meager turnout prevented changes from occurring initially. To remedy this potentiality, the VTB team will use incentivization along with the governance mechanism to encourage participation in the democracy from its onset. Careful consideration will be given to advancing the democratic and incentivization systems so that they may benefit the community.

Let it be known that the system operates under rules strictly followed by and binding to the VTB project. Any change to it must benefit the community.

VTB Mechanics

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This section covers the VTBC behind-the-scenes mechanism and the details of its functions concretely, not only conceptually. To begin with, there are two tokens: one increases with time and use, while the other is a tradable token similar to an ERC20. The remainder of this section provides more information on the VTBC and VTBT tokens:

VTBC

VTBC uses fundamental mathematics to increase its value according to usage and time. As previously mentioned, this increase offers stability and predictable growth that can be relied upon for wealth-generating financial projects, including savings, crypto advances, insurance, and utilities. The user accepts VTBC (through VTBT) as payment for goods or services and others. In other words, VTBC users and holders receive a continuous value increase while holding or using the asset. The transaction-based increase is calculated on the actual VTBC liquidity vs. injected value in the system. For example, the resulting price increase will be slight if the value of the VTBC sales (from the sell order book) is much higher than that of the current transaction purchase value. Conversely, the correlated increase will be more significant if the current purchase value exceeds the total sell order book. This offset serves to balance the injected liquidity in the system and the hourly value increase. This time-based increase has been set as a minimum to ensure that the asset’s value increases based on the curve described below. If the transaction-based increase value is equal to or greater than the scheduled time-based increase, the latter’s growth will not be triggered. The value increases calculation will be further explained in subsequent sections.

VTBT

VTBT is valued at par with the US dollar regarding VTBC. At this time, VTBT can only be converted into VTBC. Our team may add a full Ethereum-based ERC20; meanwhile, a substrate-based token with similar features to the ERC20 is used.

The distribution mechanism is unique in the industry. Most projects use the sale of the tokens in an ICO fashion. Even if funding projects is essential and ICOs typically provide funding for these projects, in some cases, they can be scams, whereby the project creators walk away with millions of dollars. Instead of asking for money upfront with an ICO, the Foundation has opted to operate by simply tying the project’s success to its community. Consequently, as money is injected into the system as ETH, the project can sell some of the pre-allocated VTBC to fund any ongoing development. At the same time, the initial VTBC buyers are rewarded through a continuous redistribution of ETHs and VTBCs. Eventually, ETH will stop being redistributed in this manner because the initial token reserve will be depleted, but while the supply lasts, VTBC holders will gain in multiple ways.

This value control algorithm provides users with a predictable price, thus improving their financial plans and, in the meantime, allowing the VTBC assets to perhaps the member’s economic standing.