At Eligma, we have never believed in cryptocurrencies as a means of speculation. The true value of any cryptocurrency should be based on its utility. Our vision from the very beginning of developing our own token was to make it an integral part of our platforms and services. Here is how we have done it so far and what exciting THREE MORE WAYS are to follow!
The GoC token first started on the Ethereum network as the ELI token, but once the focus of Eligma turned towards payments, it soon became evident that the network fees were high for small transactions. Consequently, the ELI token was migrated to the GoC SLP token on the Bitcoin Cash blockchain. This enabled further utility and adoption of the GoC token in the GoCrypto Payment Network, where GoC is also utilised for crypto-back rewards for purchases made with the Elly Wallet.
Effective payments industry can never be about ‘crypto us vs. non-crypto them’. It can only be about enabling the consumers to choose any payment method they prefer. This is why we are working on offering all kinds of payments – crypto, cards and digital – in one solution, making payments at points of sale easy for the merchant and the customer, and furthering crypto adoption at the same time.
Here are the next steps and ideas for the GoC tokenomics, which can add three new kinds of utility to the GoC token and add value for the merchants and users.
- Multichain token: more blockchains, more partnerships, more wallets
The SLP chain boasts low transaction costs and the FIFO (first in first out) transaction system, which is excellent for payments with GoC tokens. However, the SLP protocol is not being adopted worldwide as fast as we would like it to. We therefore decided to expediate the interoperability of GoC – by building a multichain bridge.
The first step in Tokenomics 2.0 is to release the GoC token on multiple blockchains. The token migration will initially be possible to the BSC (Binance Smart Chain) and Solana blockchains, while keeping the SLP token active as our main token. If there is high demand from the community for the GoC token to also be available on another chain, the proposed blockchain can potentially be added to the bridge.
The multichain GoC token will enable the listing of the GoC token on several new exchanges that support the aforementioned blockchains. It will also be easier to form new partnerships with wallets and integrate them into the GoCrypto Payment Network. As instant transactions are essential at a point of sale, only custodial wallets will be integrated. The Bitcoin.com Wallet will remain the only non-custodial wallet for payments in the GoCrypto Payment Network.
- Elly Vault and DeFi: a source of yield for merchants
Not only are cryptocurrencies a highly practical way of paying and instantly sending funds worldwide; the underlying blockchain technology represents a brand new era in finance as we know it. Decentralised finance (DeFi) is a blockchain-based form of finance that does not rely on intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilises smart contracts on blockchains.
Yields on deposits have practically dropped to zero in the legacy markets; in some cases, it is even necessary to pay negative interest on larger deposits. For this reason, we decided to bring the benefits of DeFi to our merchant clients through their dashboard. Merchants keeping crypto on their dashboard will be able to put a chosen amount of it into the Elly Vault to receive an APY (annual percentage yield) in GoC in the range of 5-10%. We feel that this would be a welcome alternative to the established deposit options offered by the traditional centralised finance market actors. Here is how it would work.
- The merchant has crypto funds deposited on the dashboard or converts fiat funds into crypto to be able to dedicate those funds into the Elly Vault.
- They would then select the amount they wish to put into the Elly Vault. This triggers the smart contract that transfers those funds into the vault and starts generating yield.
- The yield is generated through different strategies that are developed and employed by the Elly Vault on various DeFi protocols.
- The yield would be in the range of 5-10% and paid out to the merchant in the GoC token onto their dashboard on a weekly/bi-weekly/monthly basis.
- The merchant can remove the funds by revoking the smart contract. There is no more yield on the funds, which are again available on the dashboard.
As DeFi is a new technology, the potential for code bug exploits, economic attacks (flash loans) and similar is relatively high. The funds in the Elly Vault would be insured through a decentralised insurance protocol to attempt to minimise the counterparty risk. However, the risk of investing in such products is fully borne by the merchant.
The Elly Vault would initially be available in Slovenia, with the legal options gradually explored for other countries.
- POS NFTs for participation in GoC airdrops
We will shortly launch our POS solution in Romania. Elly POS enables merchants to accept a wide range of payment options, ranging from cards to crypto and other digital payments, both international and local. As we expand our POS payment ecosystem, we want to make GoC an integral part of it.
The general idea is that the first 10,000 POS clients acquired by Eligma would be commemorated with the release of NFT collectibles that would represent these first 10,000 clients. The NFT collectibles would have various degrees of ‘rarity’ and have different strength characteristics that would be determined algorithmically. The NFTs would be unique, but ranked into different tiers.
POS NFTs would be obtained through the process called farming:
- Uniswap-like pools would be created for GoC/BCH, GoC/BNB and GoC/SOL pairs.
- The participants wishing to farm the NFTs need to stake their GoC-LP tokens on our platform. GoC-LP tokens are liquidity-providing tokens that are received once a participant provides liquidity to one of the pools. To obtain GoC-LP tokens, you need to provide the liquidity of both pool assets in the same fiat amount (e.g. 100€ worth of GoC and BCH, which together is 200€ of liquidity in the pool).
- The liquidity can be added and removed anytime the user wants to if the user’s LP tokens are not locked in the NFT farming process. If the LP tokens are locked, the user needs to wait 14 days for the unbonding period to expire and then receive their funds together with the acquired fees back to their wallet.
- Once you stake your GoC-LP tokens, you receive a share of the daily amount of the hashes/transactions that will be distributed relative to your share of the pool. For example, there will be 1,000 hashes/transactions per day and if there are 10 GoC-LP tokens staked, every holder will receive 100 hashes/transactions per their GoC-LP.
- After you accumulate a certain amount of hashes/transactions, you can then exchange them for NFTs. The more ‘strength’ an NFT has, the more hashes/transactions you need to have to obtain the NFT.
You can then stake your NFT and claim your share of the GoC airdrop rewards pool designated for distribution among our NFT holders. The size of the rewards pool and the amounts for distribution will be determined and communicated before the launch.
In subsequent versions, it could also be possible to introduce a secondary market to trade the NFTs and enable the participants to make additional gains on the popularity and rarity of the NFT token they own. The creation of a service where one could tokenise the NFT to gain liquidity is also a possibility. This would enable other users that don’t hold an NFT to participate in the staking rewards of the tokenised NFT.
Tokenomics is forever a work in progress. We would once again like to thank the entire crypto community for supporting our efforts, and especially our early believers who have been with us from the very beginning. We are working extremely hard on creating a payment ecosystem where all payment methods, crypto and traditional, are equal partners in bringing about effective daily commerce for the merchant and the consumer alike. We wish the value of our products and our GoC token to firmly rest on these foundations. Thank you for being part of this journey!