The Open Rights Exchange (ORE) blockchain has a much more specific focus than most blockchain projects. ORE is focused on decentralized identities, assets, and rights – and does not host decentralized applications like Dapps, DAOs or DACs. It was designed in this way to make ORE an appealing partner for Layer 1 blockchains like Ethereum, Algorand and EOS, and also to provide a single master identity for people that are using applications across multiple different chains. By connecting common web 2.0 identities to wallets across chains, mass market consumers can log in with the same Facebook account, Google ID or email address to hold assets or use dapps on different chains seamlessly.
Because ORE’s goal is to spread mass adoption of blockchain, it was critical to develop a token model that was business friendly and easy to understand. The ORE Token makes costs highly predictable, thanks to ORE’s linear resource model and Delegated Proof of Stake blockchain.
The staking mechanism is surprisingly simple and incredibly powerful. Each ORE token represents a proportional right to use the network’s resources that supports the creation of each account and NFT on the ORE blockchain. The linear resource model means that a company (or individual) that has 1% of the ORE tokens, has the perpetual right to use 1% of the resources on the blockchain, even as the chain resources grow over time. This means that ORE Tokens have increasing utility over time, giving ORE users the ability to deploy more accounts and more assets over time.
The linear model between RAM storage on the chain and token staking implies that for every account created on the ORE blockchain, around 4k of RAM is used and 10 ORE tokens are staked today, but in the future it will only take 8 tokens for 4k of RAM, then 7 tokens, etc. (For more details on the model check out the ORE Whitepaper on ore.network)
The ORE blockchain rewards block producers and account creators with ORE tokens according to predetermined on-chain reward rates in the whitepaper. Providing rewards for the people that are bringing value to the network and increasing demand over time.
This increase in demand for accounts is directly linked to expanding network resources. ORE block producers are required to add more RAM, when the network becomes 50% full, allowing the network to scale infinitely in order to satisfy the demand.
Increased demand also benefits token holders by expanding RAM and giving token holders the ability to use more resources on the ORE blockchain. The new token rewards are also meant to support greater community interest for the ORE chain.
Demand increase on ORE blockchain is expected to come mostly from account creation. Historically this is largely from companies using ORE ID and the ORE Protocol for securing their customers’ identities. AIKON is a launch partner for ORE and can offer fiat invoicing for business clients through the use of the ORE ID service. This creates demand for ORE tokens from companies that want to use the network without buying tokens on an exchange.
Additionally, since the blockchain is public, anyone who wants to create accounts, assets or other products can buy ORE tokens to interact directly with the chain once the token is publicly listed – which is planned for early 2021.
Furthermore, the ORE blockchain design requires that once a token is staked for account creation, it cannot be unstaked unless the network’s RAM is expanded. So, a large portion of tokens are locked up at any given time.
The more the network grows, and new participants join, the more the token utility value will increase.
For companies buying accounts on the ORE network for their users, the lower token price per account allows them to cost-effectively add new users to the blockchain. Finally, since early account creators get to unstake tokens over time as RAM expands, it’s most advantageous for companies to adopt early when the cost is low and have the opportunity to gain utility over time.
The new ORE token represents a new kind of economics for companies of the future, and AIKON has spent years developing this technology. We believe it’s our best chance for blockchain to gain mass adoption. Do you?