Ethos Introduces Cashback Rewards for Token Holders Trading with Voyager

Ethos Introduces Cashback Rewards for Token Holders Trading with Voyager

Ethos is pleased to announce a new era of Ethos token utility, in our latest and most significant strategic partnership to date, with Voyager. In this article, we explain the details on how cashback rewards will work, but first here is some context.

In early 2019, Voyager will be launching their commission-free cryptocurrency investing app. Voyager will give users the power to use their smart order router technology, which connects to multiple exchanges, to get the best execution on their crypto purchases and sales.

Whether you are selling or buying in fiat or trading between cryptocurrencies, Voyager makes it simple, safe and offers you the best execution on every trade.

Ethos Universal Wallet will be integrating Voyager’s trading technology, enabling seamless commission-free trading, with best-execution speed, liquidity and price across multiple exchanges directly from your wallet.

Using the Wallet, users will always maintain control over private keys and custody of coins. Wallet holders will soon be able to directly transfer the tokens they manage to Voyager for instant trading, and back to the Ethos Universal Wallet for easy storing, tracking and transacting.

ETHOS Token Powered Cashback Rewards: How It Works

We will determine the level of cashback rewards you are eligible for by cross-referencing your Ethos Status, which is determined by the number of Ethos tokens you hold in your Universal Wallet, with your monthly trade volume through Voyager.

So, in order to be eligible for cashback rewards, you must…

1 – Gain Ethos Status by Holding Ethos Tokens in your Universal Wallet

Your Ethos Status will increase to higher-levels when you hold more Ethos Tokens in your wallet, it’s that simple. For example, 100 Tokens is Silver and 10,000 Tokens is Diamond.

For more information on Ethos Status, read: Ethos Status Powered by Ethos Token Ethos Status is built on Ethos Bedrock. Through our xAlert API, your Ethos Status is updated in real-time based on the amount of tokens you are holding in your wallet, unlocking features such as coin reviews ratings and more. Of course, the higher your status, the more cashback you will receive.

2. Actively Trade Using Voyager

The more trades, buys and sells that you perform using Voyager, alongside your Ethos Status, will unlock higher-levels of cashback rewards. Keep in mind, it’s not just the amount of trades, it’s the volume, so the larger your trades, the greater your cashback.

Making trades through Voyager is completely commission-free, so you also get the benefit of not having to deal with hidden fees and mark-up on your trades. Cashback rewards will be available for both the Voyager fiat gateway and cryptocurrency trading platform.

The Ethos Cashback Token Utility Equation & Cashback Levels

The more tokens you hold, the more you trade, the more you earn! Here is the Full Cashback Level Chart:

Disclaimer:  Cashback Rewards will not be eligible through the Simplex & ShapeShift Services coming soon to the Universal Wallet. Cashback will only be available utilizing Voyager for trades, on the Voyager Platform and through the trader router in Ethos Universal Wallet. Cashback rates and levels are subject to change.

Ethos Token Utility - The Future is Bright

Today marks another major milestone for Ethos Token Utility. But truly, we are still just getting started. As we continue to expand our ecosystem and partnerships, we will continue to announce more token utility features and rewards for our community.

Voyager is an incredible partner for Ethos, and we look forward to more strategic partners who will work with us to make crypto more easy, fun and accessible to the mainstream, while always adding value to the network and empowering our token and users.

Stay tuned for more announcements and features to come in 2019, as we rapidly progress on the road to mass adoption! The future is for everyone.



Ethos Status – Powered by the Ethos Token

Ethos Status – Powered by the Ethos Token

Now that we've released our flagship app – Ethos Universal Wallet – and have successfully performed over 1-million transactions to date, we're ready to integrate one of our initial layers of token utility into Ethos Universal Wallet, called Ethos Status.

What is Ethos Status?

Essentially, Universal Wallet users will be assigned a status and badge based on the amount of Ethos tokens that they currently hold inside the Universal Wallet. Your badge and status will be interactive and responsive to the number of tokens you hold in your SmartWallet, and will change as you add or subtract Ethos tokens.

The level of your Ethos status will correlate to enhanced features in the wallet, which we explain below. And in the future, Ethos Status will expand to include discounted rates on exchange and fiat gateway functionalities, etc.

We built Ethos Status through an enhancement to Bedrock xAlert, in which we are now able to associate the amount of ETHOS a user is holding with their account and in-turn implement a tiered system of benefits.

Today, we announce our first round of benefits, although they will expand as Ethos and the Universal Wallet functionalities grow.

Ethos Status Tiers

In this first implementation of token utility, we encourage users to stake their ETHOS in the Universal Wallet. The amount of ETHOS you have staked in the wallet, will determine your status from Shrimp to Humpback Whale! With each level you get a badge that’s displayed on your profile.

Disclaimer: Ethos Status Levels and Badges may change in the future – as we learn more about how to enhance and refine this feature for our community.

While the Ethos Badge will be a default feature, we understand some users may want the benefits that come with their Ethos Status tier, but not want others in the community to have insights into their holdings, so we’ve made displaying your status a feature that is optional and can be simply turned off in your user profile settings.

Ethos Status Perks

We have built a new feature for all users, the ability to leave and rank a written review. At each ascending level of Ethos Status, we increase the the power of your coin ratings, so that your vote matters and your voice stands out in the community.

Increased Voting Power

Your Ethos Status impacts the weight of your Thumbs Up or Thumbs Down on reviews written by fellow crypto enthusiasts. Each review can be up or down voted by community members in the Ethos ecosystem, and reviews can be sorted by helpfulness.

Below is the chart which outlines the levels of thumbs up power we have for our various Ethos Status levels.

Showcased Comments

The higher your Ethos Status, the greater the likelihood that your comment on a Token will be featured in the showcase, and put towards the top to inform others on your insights on a given coin.

These showcased comments will then have the opportunity to be voted on by the community with a thumbs up or thumbs down, based on how helpful your comment is. Of course these votes will be powered by their Ethos Status, as outlined above.

By having a greater influence on the platform through being a Ethos Token Holder, you have the opportunity to support guiding the community with your crypto insights and opinions, which are then self-regulated by other members in the community with their own voting power.

Build Influence on the Ethos Platform

As you leave helpful reviews on various coin profiles, you have the opportunity to get upvoted, which can lead to our Ethos users clicking on your coin profiles, and following you on social.

Status Tip: Before Ethos Status launches, make sure you update your user profile with your social media info!

See a review you like? Check out the users profile and follow them on other platforms. Learn from the community, join the discussion, and grow your crypto network!

Important: All users have the opportunity to not disclose their social information and can remain anonymous at all times.

The ETHOS Token Utility Future is Bright

This is just the beginning of ETHOS token utility. We will be testing these features and enhancing them as we continue to grow, to explore enriching the users experience of the Universal Wallet.

We are so excited to share what’s in store. Stay tuned, get engaged and wear your Ethos Status with pride!


Tokenomics: A Case Study With The Ethos Token

Tokenomics: A Case Study With The Ethos Token

Demand and supply are the opposite extremes of the beam, whence depends the scale of dearness and cheapness; the price is the point of equilibrium, where the momentum of the one ceases, and that of the other begins.
– Jean-Baptiste Say

Demand and supply — the foundational pillars of economics — play a dominant role in the economics of utility tokens (tokenomics) and affect the present and future price of the token. This case study with the Ethos token provides a framework for projecting future demand and price for utility tokens. We introduce the Ethos Tokenomics Calculator that will empower the community to use their own projections to estimate future value of the Ethos token.

Utility Tokens — A Capital Structure Break-through

Traditionally, debt and equity (bonds and stocks) are the two main avenues entrepreneurs use to raise capital for their enterprise. Cash flows (interest payments) are largely predetermined in debt investing. Equities, on the other hand, give the investor exposure to cash flows (via dividends) and future demand for the products or services offered by the enterprise (as rising earnings lead to price appreciation). Although there have been several variants like convertible bonds, preferred equity, etc., over the years, the debt and equity based capital structure has existed for a long time. For context, stocks have been trading for over 400 years. The first recorded IPO (initial public offering, not to be confused with ICO, initial coin offering) occurred in 1602 when the Dutch East India Company offered its shares to the public.

Bitcoin, and several other crypto projects that have followed, expand the capital structure by removing cash flows from the equation, thus providing pure exposure to the growth of the project. The projects are funded with the expectation that the demand for the services provided by the project will rise in the future, and that will lead to a rise in the price of the native token. For those wanting a deeper dive, our previous article provides a useful metaphor for how a token economy built on utility tokens operates and thrives.

 

 

Present Value Of The Ethos Project

Market cap measures the present economic value of a project that investors collectively agree upon; it’s the product of the number of tokens in circulation, and the price of each token.

(Ethos) Market Cap = Circulating Supply * (Ethos) Token Price

It is important to separate the concepts of total supply from circulating supplyat this point. Ethos has a fixed total supply of ~222 million tokens, of which ~78 million are in circulation. It’s the number of tokens in circulating supply that affect the market cap of a project. The total supply of Ethos tokens is fixed and will not change. The circulating supply, on the other hand, will be determined by the economic forces we describe in the next section.

Holding the present value (current market cap) of the Ethos project constant, we can imply that token price and circulating supply are inversely related. In other words, an increase in supply will result in a drop in token price, and a reduction in supply will boost the price.

Token Price = (1 / Circulating Supply) * Market Cap

Future Value Of The Ethos Project

The future value of the Ethos project can be determined by projecting any changes in the circulating supply and the price of the token.

Future Price: Holding supply constant, the price of the token is driven by the value the Ethos project adds through its products and services, and the overall crypto market performance — as the crypto asset class grows, the beta of the asset class will affect prices of all tokens including the Ethos token.

Change in Token Price ~Ethos Value Added + Crypto Beta


Future Supply: 
The future supply of the Ethos token is affected by the number of new tokens released for covering costs, and the number of tokens staked or consumed thereby removing them from circulating supply.

Future Supply = Current Supply + Tokens Released — Tokens Staked or Consumed


Tokens Released: 
Tokens are released into the circulating supply to cover the cost of building the Ethos platform — compensation, technology services, legal fees are some of the key components. Many of these costs are denominated in fiat currency, so the higher the price of the Ethos token, the fewer the tokens that need to be issued to cover costs.

Tokens Staked or Consumed: Ethos is building products and services that will create opportunities for staking and spending Ethos tokens thereby reducing the circulating supply of tokens. When users of the Ethos platform staketokens, the tokens continue to be owned by them but not longer circulate in the open market. On the other hand, when users spend tokens on a service, the tokens are returned to Ethos and can potentially be taken out of circulating supply. Staking or spending does not result in burning of any tokens, and the total supply remains fixed.

The Ethos Rate Card details various products and services we have on the roadmap that require staking or spending tokens. A few key opportunities are highlighted below:

  • Bedrock API Access: The Ethos Bedrock API enables developers and businesses to build secure Blockchain applications on top of safe and secure standards and protocols such as Ethereum. It is designed to be an architecture to both create a financial ecosystem for cryptocurrency, as well as bridge the traditional and blockchain ecosystems. Ethos hosts full blockchain nodes, and enables developers to create wallets, query balances, verify sources of funds and identities, enable payments, and other useful transactions.
  • Verified Wallet Domains: A verified wallet address enables a registry to a public Blockchain Name Service (BNS) that creates and broadcasts a branded name and verified wallet. This is useful for companies that want to reserve their brand on the blockchain, or users who want to use their names for simple payments. Benefits include not having to use long-form crypto addresses, verified identity written into all Blockchain transactions, and reduced error and fraud rates.
  • Robo Wallet & Automated Trading: As Shingo Lavine highlighted in his recent post describing the Ethos roadmap, we will leverage the Ethos platform and the research that has been conducted by the portfolio management team to build diversified crypto baskets — or “one-click diversification”.

Users will be required to stake or spend Ethos tokens to access these services which will effectively reduce the supply of Ethos token, resulting in an appreciation in the price of the tokens that remain in circulating supply.

What does this mean for investors?

The price is the point of equilibrium, as the French economist Jean-Baptiste Say correctly observed. The direction and momentum of the price is determined by the value added by Ethos products and services, any changes to circulating supply of the token, and the overall crypto market performance (crypto beta). We are building products and services that will increase user adoption, and drive demand for the Ethos token. We are also confident that demand for the broader crypto asset class, and commitment demonstrated by several projects like ours will positively influence crypto beta in the long run.

Tokenomics is a nascent and rapidly evolving concept. We encourage investors to make well-considered and well-informed decisions — to use tools like the Ethos Tokenomics Calculator to model their projections and estimate future prices.


Balancing Decentralization

Balancing “Decentralization” —  Purpose & Utility of ETHOS Tokens within an Inclusive Financial Ecosystem

A very common question that many crypto firms today face is “Why do you need a token?” It is a fair question and something that we try to tackle head on. I’ve said time and time again that blockchain is a tool. Blockchain is not a “Sledgehammer.” As Abraham Maslow once said, “if all you have is a hammer, everything looks like a nail.” Right now the world has been given “The Blockchain” and everyone is trying to figure out what “nails” to hammer the blockchain with.

In reality, “The Blockchain” — whatever people mean by that — is much more of a “scalpel”. Blockchain technology should be seen as a precision tool which when used correctly, can prove to be quite powerful in solving difficult problems. This is a theme that we will expand upon at Ethos and will become increasingly apparent as the blockchain industry matures.

In general there are 5 main reasons we have a token which are laid on in our FAQ on ethos.io/faq which are:

  1. Reduce costs for consumers for crypto-related transactions.
  2. Enable low-cost blockchain applications for developers.
  3. Create a scalable micropayment transfer mechanism for all platform services.
  4. Support an open financial ecosystem that bridges traditional and crypto assets.
  5. Enable verified source of funds and identity for transactions through the Ethos ecosystem.

For the sake of transparency and education I will lay out what each of those means here and people can reference back to this answer. Without further ado, let’s jump right in…

Reduce Costs for Consumers

Using USD for transactions generally has many intermediary fees associated with it. Withdrawing money from a bank account, using a credit card or wiring funds all require fees that add up to a significant percentage of the transaction. The transformative power of the blockchain means that for the first time there is a completely open financial ecosystem that has no prerequisites for participation. There are no intermediaries which removes a lot of barriers and costs. To illustrate this, imagine you wanted to buy a diversified basket of assets. You may have to ask an investment advisor to provide suggestions, decide to purchase shares of a mutual fund, have a broker-dealer purchase on your behalf through the investment advisor, have a mutual fund manager manage the money while the shares are held in custody by a custodial bank — not to mention the money being held and transacted through a bank. At each intermediary, there are costs that ultimately are shouldered by the user.

A tokenized system can provide consumers the “market price” of a product or service without the markup that happens through inefficient mechanisms or profit motive. Markets are the most efficient way to allocate scarce resources in a way that is fair to everyone. Uber uses markets to pair riders and drivers and Google uses markets to match advertisers with ad spots to maximize consumer and producer surplus. The Ethos token is designed to match consumers to transactions for the lowest possible cost.

Enable Low-Cost Applications for Developers

In a similar vein to “Reduce Costs for Consumers”, the Ethos token provides prorated access to the Bedrock API. By enabling pro-rated access to an API, there are no over or under charges to developers, and participants in the Ethos Ecosystem can get exactly what they are entitled to. This is similar to an Amazon Web Services model, but even more thinly sliced to the API level, similar to how Ethereum uses Ether gas to power Smart Contracts with the added benefit of eliminating payment risk from the business and the consumer. This allows the ecosystem to operate much more efficiently — basically at the lowest possible cost the ecosystem will allow — and is beneficial to both businesses and consumers. Ethereum’s gas market has shown the power and potential of a computer system that can be “rented out” on a microscopic scale. We took many of the best ideas from Ethereum and expanded upon them for Ethos Bedrock.

Create a Scalable Micropayment Transfer System for all Platform Services

Ethereum, along with the many layer 2 scaling proposals for ERC20, enable highly scalable systems that can build the foundations for payments infrastructure and consumer application rails which are simply not possible in a USD world. ERC20 enables us to fully utilize the security and scalability of a tried and tested blockchain while at the same time providing a unique digital commodity to power an ecosystem. These applications span underserved unbanked populations to high throughput payment and settlement systems. Again, these sorts of applications are simply not possible without a unique digital asset. There is no way for an unbanked consumer to transfer a dollar without incurring significant fees. By using an near infinitely subdividable digital asset along with a micropayment transfer mechanism, any person in the world can be able to send micropayments securely and safely.

Support an Open Financial Ecosystem that Bridges Traditional and Crypto Assets

A huge part of our mission is making the financial ecosystem accessible and connected for consumers and institutions. Bridging the gap between traditional and crypto is an important part of this mission for Ethos. A digital asset simply makes a lot of sense when you want to begin establishing marketplaces that form an ecosystem linking both worlds. As more and more firms join the Ethos Ecosystem and begin operating within it — it becomes increasingly important to establish connections between the different marketplaces to support an all-inclusive capital market that can better serve individuals and institutions alike.

Enable Verified Source of Funds in the Blockchain

A major source of headaches for regulators is the perception that cryptocurrency can be used for money laundering, terrorist financing, drug transactions and the like. Even though there exists this perception, many studies have shown that illicit actors still prefer to use fiat over cryptocurrency due to the linkability and transparency of the blockchain. The blockchain is often more transparent than the existing fiat financial ecosystem, and can be used to create a safe and clean digital financial ecosystem.

Ethos is building standards that will help people stay on the “light side” with crypto and power all the transformative possibilities that crypto promises while at the same time maintaining the integrity of a clean financial system. This includes identity for all Ethos participants. Instead of sending funds to an anonymous address, Ethos users can link identity to funds. We see this starting with a “DNS-like” Wallet domain marketplace powered by the ETHOS token that enables verified users the ability to leverage the plethora of capabilities that are available in the crypto world. Users can register a unique wallet handle, much like a web domain, that will make it easy to receive funds of any kind through the Ethos Ecosystem.

Additionally, ETHOS-VSF is a standard that proposes a way to encode verified source of funds into blockchain transactions powered by the Ethos ecosystem. A digital asset that powers a new, decentralized, inclusive and compliant future is something that should appeal to both users and regulators alike.

This post was inspired by a telegram comment that I responded to! Visit our telegram at t.me/ethos_io and ask the Ethos team more questions to receive information straight from the source. Ethos strives to be transparent and forthcoming with all activity and it is a big part of our mission to drive clarity and education in the industry.