Metaverse Economical Model Structure
A. Overview of Economical Model
Every blockchain contains financial aspects. An excellent economic model is one of the most important aspects of a blockchain ecosystem and a determining factor in its success.
After the Metaverse team studied the economic models of most public blockchain networks, we found out the most prominent struggle of most blockchain applications. It’s the cost of using blockchain, which is linked directly to token valuation. While the value of a token often rises as blockchain usage increases, the cost of using blockchain varies depending on whether a party desires to execute payment or intelligent contract transactions.
This is not even considering investor and trader speculation as a factor in a blockchain's value. No business owner or organization would run applications or a firm on the blockchain or anyplace else for an unpredictably high price.
This section describes the Metaverse blockchain economic model.
B. Philosophy of Design
The Metaverse Blockchain model design principle shows that Metaverse is ideal for conducting organizational and financial activities for individuals, stakeholders, and community users because the transaction fees are not directly susceptible to the volatility of the META price.
In our model design, we have two levels of Metaverse blockchain usage. On the higher level, we have the Stakeholders (with voting authority), the developers, and the application owners who can conduct complex organizational and financial activities. While on the lower level, it concerns the blockchain level operations like transferring tokens and execution of innovative contract transactions.
In addition, in our model, we have Foundations that serve as the bridge of the Metaverse ecosystem around the globe.
As you can observe in our model, a two-token system, namely META and BITS, executing is designed to facilitate activities on the upper and lower levels. The META has the function to allow the ecosystem's value to circulate rapidly. However, the actual cost of using the Metaverse blockchain is represented by BITS, the Metaverse native token, which will be consumed (or, in other words, burned) when certain blockchain operations are completed.
The BITS supply will be based on its currency velocity. When the demand, supply, hold, and trading patterns are not set, the market participants such as stakeholder users, developers, and other META holders will experience turbulence and seek balance.
For some time, the BITS market may be premature before acquiring BITS from the open market, and using it to run applications becomes commonplace for most community users. Users should benchmark the value delivered to organizations and communities via applications operating on the Metaverse network with other blockchain platforms and the BITS price.
The Foundation team does not aim to take any action that will directly impact the market until all variables are closely monitored by the Foundation team and invited subject matter experts and a definitive judgment is reached.
C. Balancing Metabits Supply and Demand
Initially, Metaverse will anonymously invest in small businesses, partner with token startup development, and partner with small businesses to accumulate more Metaverse blockchain usage.
The two-token model is designed to maintain the stability and predictability of the transaction cost using the Metaverse Blockchain. This depends on the market participation of the BITS market and the demand and supply of BITS. The Foundation would adjust the minimum price of Bits per gas to achieve its goal.
And the Stakeholders can propose different organizational activities or projects to help raise the METABITS price or lower it, depending on their proposal goals.
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