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3. Token Economics

This section will discuss the inflationary and deflationary forces driving the price of the OBD-20 token.

Staking the DAO

* The first 50 million tokens will be locked for three years so do not factor until year three.

Initial Supply (years 1-3): 50 million

  • An initial sale of 50 million OBD will be made available at the launch.
  • These will be sold to the ITAD community by the DAO members using a shared (centralized) credit-card system supplied by the OBADA Foundation.
    • Per agreement these will be sold at $1 each. by all parties.
    • The buyer pays an additional credit card fee plus a 5% surcharge to fund the OBADA Foundation
    • The DAO seller will keep 10% commission
    • The balance ($0.90) will go to the OBADA Treasury

Deflationary force: Staking OBITS

  • If the mechanism of “staking OBITS” is successful then a significant portion of OBD could be locked up for a significant portion of the products EOL cycle. .. months r perhaps years.
  • This would mean a naturally slow monetary velocity as the currency does not frequently change hands.
  • Since the currency is less available, the price would rice.

Deflationary force: recycling loss

  • Although the blockchain platform is meant for tracking, in the wild many devices will likely just go “off-chain” over time, resulting in a loss of OBD.
  • Each year only 15% of the worlds electronics are known to be recycled, and a high percentage of these are “lost in the system”. So only a few percent “make it through”.
  • It’s unknown what the loss rate will be however it can be assumed to be non-zero.
  • Any loss in OBD would be a permanent decrease in supply, so OBD prices would rise.

Inflationary force: Mining OBD Rewards.

  • A 1 OBD “recycling rewards” is mined for every successful ecosystem KPI. So effectively, every time a device is recycled or has its life extended via re-use, then new OBD token is created.
  • If a high proportion of devices are recycled then a significant amount of OBD would be mined. If the amount mined is larger than the deflationary forces above. the currency would devalue.
  • DAO Governance needs to carefully set the mining reward rate based on a careful economic analysis.

Use of Treasury

  • Provided that the OBADA Foundation is funded “off the top” of OBD sales, the treasury can be completely allocated as per the DAO governance. Probably uses:
    • For OBD buyback (to create liquidity)
    • To fund development, initiatives, charitable causes, and grants.

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