An Entrepreneur s Journey in The Tokenized World

Transcription

1 An Entrepreneur s Journey in The Tokenized World White Paper V1.0 July 19 th, 2018 Abstract Simulations are one of the most economic, most accurate and fastest techniques to solve problems both in the business and academic worlds. It will be highly beneficial to observe how future technology will affect modern human life. By taking into account how DAO 1 and DAPP 2 will change, and accelerate the decentralization of everything that belongs to the internet and blockchain technology, there must be a study that includes and examines the terms autonomy and transparency. There is a blockchain based tokenized world economy simulation designed that involves a fully working entrepreneur platform that allows users to participate. Users can perform the same exact activities they perform in the real world. Every aspect and value within the system is connected to each other and therefore changes within each user s activities. Corporates and individuals learn through experience using our platform that simulates the future world in terms of economy. Every concept that belongs to blockchain technology takes place on this platform. For instance, coin mining can be considered as a meta production within the platform. All activities gets registered on the blockchain and cannot be changed or manipulated. Actions and trades that are carried out through smart contracts get executed in a decentralized manner and without a middleman. The understanding of the concept of mining is directly related to the practical equivalent created within the system. Earning a token in the blockchain technology through a value added activity can be considered as a real use case. Our system design is based on this philosophy. 1 Decentralized Autonomous Organization 2 Decentralized Application

2 Table of Content Abstract Introduction Platform DAO Platform Economic Ecosystem & Functions Gamification Platform Structure & Architecture Platfrom Governance & Future Token-based Management system Votes Future Possibilities Parties Tokens LMND Token L-Cash Token Other Tokens Commodity Tokens Production Tokens Skill & Point Tokens Token Mining... 18

3 1. Introduction We are living in an era in which technological revolution accelerates rapidly. There is not a huge time difference between the day we met the internet and the day that it became an essential part of modern life. Along with this, other growing technologies are influencing each other and carry on evolving using mutual elements. Blockchain technology is one these revolutions. Development speed and getting investment rates as a financial tool are way faster than any other recent technological innovations. Same goes for these concepts too: internet of things, virtual / augmented reality, artificial intelligence, robotics and decentralization/democratization of everything, big data, gamification of business and social life. We would like to emphasize the importance of foreseeing how these concepts change modern human life in terms of technology, and therefore social change. We are going to undertake an experimental study in our area of interest, and gather data to see whether the business and trade worlds can keep up with these changes. The data will then be shared with the academic world. Within the system that is built, we are simulating the near future. In this system blockchain technology becomes widespread and replaces all the longstanding dynamics. Every element is tokenized. In a medium like this, we will observe how investors will be able to change their traditional business dynamics within the substructure of the internet of things and blockchain technology. To make this possible, we placed the game dynamics onto a multi-user platform. This virtual world is called Lemonadeland. We created a concept that will crop a section from the business world and create a natural economic cycle on its own and simulate the free market conditions as accurately as possible. The system will allow users to compete with each other, and will analyze their reactions and how the system gets affected when the threats/opportunities of the free market dynamics are present. The substructure of the system will eventually lead to complex system behavior. Rules will be simple at the beginning and forming into more complex behavior is a very good way of showing how unpredictable this current economic reality concept is. The Lemonde Token is the main factor in this simulation as a smart contract. Other tokens are either directly or indirectly connected to it. The purpose of the users can diverge in the simulation. Basically, user behavior will change parity values for all tokens all the time. Users will also have the chance to set or orient the rules and the political system behind it by using a direct vote. We launched and opened up to the market with a new economy concept that can be considered as a Utopic game or a simulation.

4 2. Platform Within the framework of the accepted economic rules users of economic value creating activities on the platform representing tokenized World that can be performed as decentralized DAO Platform A decentralized autonomous organization (DAO) is a network that runs itself. It s able to operate autonomously due to the clever use of mechanisms that align economic incentives (distributes risks/rewards) using software. Basically, the network is structured and incentivized to operate without the use of trust, third-parties, or centralized powers. Lemonaderpeneur.com is a kind of web based DAO simulation. Rules in this utopic world are equally fair and valid for all users. Real world assets like money, production tools, companies, agricultural products, nourishment, skills, and all physical products are represented as tokens. All tokens have a demand and supply relationship with each other. Any commercial or production activities get decentralized, and then registered within the blockchain system based on the rules that apply for that moment. An action cannot be undone or reversed. In the decentralized system any intervention that comes from the base to maximize a user's benefits will not work. Every member is treated like a citizen in this virtual world. They have rights to free speech 3 and can vote. They can suggest a change in the code or the rules and members can vote for a change. Every party that complies with the regulations can take their place in the election. Every member gets one vote. When the number reaches a certain point other parties might show up inside the system(s). The system is designed to stay online all the time. Users can undertake their activities, regardless of time or location. Since every user might not have the same exact strategy, we can foresee that progression might not be linear. Since the values will be dynamic users may embark on different and variable activities. This will lead to a complex and unpredictable state for the system in a short period of time. When you consider that real world data doesn't always conclude with the same results, we believe that studying the non-linear outputs of complex system behavior 4 will provide more benefits by giving more realistic outcomes and help understand this concept. 3 Users can post their ideas onn the platform transparently. 4 A complex system is a system composed of many components which may interact with each other. Complex systems are systems whose behavior is intrinsically difficult to model due to the dependencies, relationships, or other types of interactions between their parts or between a given system and its environment.

5 2.2. Economic Ecosystem & Functions Primarily, an entrepreneur aims to survive within the system and tries to make a profit. Users on this platform try to perform some effective economic activities with their assets. These activities are manufacturing, selling, buying, marketing, promotion, and farming, etc. Every user is regarded as an agent who has their own mindset and goals. Different goals make agents adopt various different behavior models. The main goal in this game/simulation is to collect asset tokens. They will construct a series of behaviors to collect assets that provide the highest revenue in the future within the minimum time and cost and considering the competition environment. Considering this prediction, it is possible to observe the game theory by having different agents who have similar goals on their agendas. There is a discussion which has been going on since blockchain technology started being used, and that is analyzing the advantages and disadvantages of the conventional monetary system when compared to the new technology. Comparative simulations should be able to provide some answers to these discussions. The most important attributes of this new technology-based economic system are autonomy, being first-hand, transparency, and limited cash supply. Limited cash supply foresees that the value of a meta will increase or, at least, not lose value when there is no decrease in demand for that meta. As an example for this assumption the US dollar is being used. It is believed that the US dollar is losing value through inflation because the supply of US dollars is always increasing. With the tokenized free market economy we will be able to test these theories and conclude where the bottlenecks occur. Figure 1: Equilibrium Price in Free Market

6 All the assets and monetary tokens in the system are regulated as fixed supply. Within the normal market conditions, when supply increases, demand also increases to balance the price rate. But that doesn t work within fixed supply conditions. Compensation of the supply from outside of the zone will allow the trade to function at any time but there will be short-term volatility of the price since it will be adjusted within the demand supplies of the region. Everything is connected each other in the game/simulation. For example, when one lemon is being used to make one lemonade the lemon price will slightly increase in the short term since the supply of lemons will decrease by one for a short time. Within the principal of the lemon supply being renewed after making one lemonade, this one lemon will be added to the total lemon supply. Assets that are stocked increase in value for that zone. When a value for the asset increases, the asset gets imported. Price volatility between the trade time and the import time creates an opportunity for the users to undertake commercial activities involving the asset. When the stocks are at maximum (minimum at the market), prices will go up to the maximum in that zone as well. When the users keep their lemons in their wallets, prices for lemons that are still on the market will rise. When lemons are being transferred from the wallet and used in economic activities, lemon prices will start settling down. Then currently created Lemonade will meet some of the demands for that zone. Prices do not decrease unless a sale happens. Since this is a fixed supply system, a lemon or lemonade token gets transferred to whoever produces or sells. Demand and supply inverse ratio is not only valid for L-cash. With L-cash being used in the system as a stabilized currency, L-cash stock increasing or decreasing doesn't cause values of other tokens to change. Within this economic ecosystem, everything is stabilized with algorithms. Formulas that represent every activity act like a smart contract. Economic headlines in the game/simulations are: Trade: Trade means converting one meta to another. Buying a meta costs more than 20% of the price when selling the same meta. Assets can be traded within the system, except energy and some of the skill tokens. Production: Production activities are performed within in the factories, lemon trees, and commercial institutions. Transform: Transform is a form of trade when a user converts a non-commercial asset into an asset that has a commercial value. For example, producing stand or production platform from energy is considered as a transform. The opposite is also true; producing energy from lemonade.

7 Productivity & Marketing: Skills like selling, productivity, and preparation can be purchased from a training company. In addition, with every sale or production of lemonade, skills are given as a bonus. Within promotion and branding tokens collected from the advertising company sale activities are concluded with more profit and with more volume. Investing: Some assets go higher in numbers over time. For example, lemon trees grow higher over time, and therefore more lemons are produced. Stocking: An accumulation of tokens in personal wallets that a user thinks may gain value over time. Profit: Every meta has a cost in the system. Cost values can vary with time. The opposed cost is paid through L-Cash. When the supply in the market decreases, a user will collect more L-Cash through a sale, and that is called profit.

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9 Figure 2: Every token by default starts with a fixed supply and an initial L-Cash value.

10 2.3. Gamification By applying typical elements of game playing to all areas of activity users are encouraged to keep on playing. Elements include point scoring, competition with others, and rules of play. This is a typical online marketing technique to encourage engagement with the platform. ( * COPY WRITING NEEDED) The principles of turning a system into a game are motivational tools that lure people or users into participating or using a product or a service. Goals: There is no definite goal for this simulation. Since it is a simulation it can be considered a sandbox of the real world economy. Users set their own goals within the system. Token collectors can compete with other token collectors in terms of how broad their collections are or how big and valuable a collection they have. A user s goal is to get higher rankings in the leadership tables. Some users may start small and try to build an entrepreneur empire in this system. Value: Attempting to become one of the most successful entrepreneurs in this tokenized world creates a unique and valuable experience to the users. Intuitive: Users are able to use all the functions within the system as fast as possible without needing an extensive tutorial or guide. The stages in the system are very straightforward. Rewards: The prizes given to the users motivates them to reach their ultimate goals. Features like instant notifications, instant leadership table changes, and more also provide convenience and motivation for the users. Competition: Agents in decentralized organizations are competing with each other under the same rules. The dynamic structure allows different goals to be created for different layer sets (long term versus short term). Since every earned token will have a measurable function, achievers will be able to see measurable progress. Explorers like to explore and gather the unknown. When the number of tokens they have in the simulation reach a certain point, they will be able to undertake activities that were locked before. Socializers are the gamers on multiple user platforms. They join the system by groups, interact with each other and try to change their statuses by creating an effect in the system. Killers are user/player groups who like competition. They exist in the system to excel above others. The substructure of the system is based on competing. Everyone tries to be the most successful player/user based on their criteria.

11 2.4. Platform Structure & Architecture The Lemonadepreneur platform is designed as a webapp. Algorithms are designed based on blockchain technology and functionality. Figure 3: Basic System structure After the user logs in to the system, they can purchase their L-cash token using ETH through the Metamask application. Users can purchase different kind of assets with the purchased L-cash token inside the simulation. By converting between assets, users can earn more LMND. Users can either accumulate his/her tokens and use them in the commercial activities or withdraw them from the wallet account. Deposit and withdrawal demands for LMND tokens are carried out manually. The withdrawal action goes under KYC 5 and AML 6 processes. All other actions in the system are carried out automatically. A customized WordPress substructure and mycred plugin were used for the web application. The system is always online and the algorithms execute the token distribution processes once an 5 Know Your Client 6 Anti-Money Laundering

12 hour. All actions are processed in the system instantaneously and affects every asset value in accordance with the algorithm rules Platfrom Governance & Future Token-Based Management System All codes within the system are open sourced. Anyone can contribute to these codes as a contributor. Currently, the system is fully operational, but there is always room for enrichment improvements to allow the system to run more smoothly. It is not yet clear how the management parameters will change or be enhanced by using blockchain technology as DAO enter our lives in the future. We will try to find an answer to this case by trial and error in our simulation. The management system will start at its default, and then will change according to how the system responds to new management systems. Every parameter of the system is open for voting. Votes Inside the simulation, every user has s democratic right to vote. The voting process uses a vote token. Periodically every user gets their voting ballots. With the same exact purpose, users can also suggest a change publicly inside the simulation (City Hall inside the simulation). The vote token ensures that every vote is equalized. Suggestions that obtain the highest number of votes go to another vote that includes yes and no options. For example, a suggestion might be to suggest converting every token into an EC20 smart contact, and making them withdrawable. Users can suggest that a token should have an extra feature. For example, users could suggest making selling skill tokens to create more profit in every sell rather than only selling lemonade. Future Possibilities It is planned that structure of the entire system is designed as a DAO, if the system continues to work successfully and the users in the system increases over time. Enhancing content of the entrepreneur simulation can also be suggested. Taxing commercial activity can also be integrated to the tokenized world system. The budget that City Hall will hold will not only be under the initiative of the ruling party. Users can also suggest where and how to spend the budget with public votes. Sub functions like mutual projects, a token stock exchange platform, wages, electric costs and production, and land ownership can be inserted into the system.

13 There can also be a human life management-based system that includes user's personal lives, houses, tools, fatigue, and motivations etc. added to the main system. Every asset in the modern world economy has the potential to be inserted as a token into the simulation. 7 That leads to a token having a function and a value which will ensure that the token survives inside the ecosystem. Parties There are currently six parties inside the simulation. Every party manages for an entire month. New voting happens at the end of each month. Users can view these parties and observe the open votes inside the City Hall page. Every party has a different ideology and management techniques. Users can also ask for a vote for their own parties with different ideas to the others. 7 Intellectual Properties, Energy, Real Estate, Agriculture, Physical Commodities, Collectables ( art, coins), Renewables, Physical Inventory, Machinery

14 Symbol Party Name Effect Farmers Party Tree's growth rate and lemons gathered from a lemon tree increases. Traders Party Buying fees decrease. Producers Party It is the party of factory owners. It increases the productivity in the fertilizer factory and the main factory. Traditional Party It maintains the current orders of the system. Business Party It increases the productivity of the advertising and training company. Green Party Increases the daily energy production by creating a healthier environment.

15 3. Tokens Every trade inside the system is represented and carried out as tokens inside the simulation. There are 38 tokens in total and every token has 8 decimals. While some of the tokens are fixed supply, some of them are distributed as user action based and some of them are distributed by day or hour. Most of these are tradeable tokens. Some cannot be traded. Within this system, based on selling and purchasing lemonade, all tokens have diverse functions LMND Token The only token in the system that can be deposited or withdrawn is EC20 standard token. The entire ecosystem is created around the potential economic activities of this token. Token Name: Lemonade Contract Address: 0x9713b3bf42b0f39c c53db425d864a8a Symbol: LMND Decimals:18 The reason why LMND was set as a smart contract is that all the activities can registered into the system and therefore cannot be manipulated. It also ensures that there is a constant unit set for the entire system. All other operations are based on this constant unit L-Cash Token This is the currency unit inside the system. L-cash token acts like a bitcoin of the tokenized world. Other tokens are traded with L-cash tokens. It has a supply of 1 billion. The value of L-cash increasing or decreasing doesn t affect the prices of other tokens. (Can be purchased against ETH in Metamask.) 3.3. Other Tokens Other tokens are being used in the system and categorized through their functions. Commodity Tokens Consumables Lemon: Lemon is the main ingredient for lemonade production. It can be obtained from trees. Fertilizer: By using fertilizer players can get more lemons per tree. Energy: Each member here is within a fair scope in terms of energy. Everyone gains 24 units of energy per day.

16 Vote: Every member has a right to vote. After the vote process ends new vote tokens are generated and distributed equally among the members. Drink Limit: Every member has a chance to get energy consuming lemonade daily. Equipment Squeezer: Squeezing lemons with a squeezer decreases lemon waste. 15% less waste. Better Squeezer: A more effective squeezer makes much less waste. 25% less waste. Ice-Matic: Make your consumer s happier by providing fast and high-quality ice. Sale prices are increased by 10% and waste is reduced by 20%. Customer satisfaction increases. Ice Dispenser: Consumer satisfaction is increased when ice enters the glass without melting. A 10% increment in sales price and improvements in service time is achieved. Lemonade Dispenser: Lemonade is ready; it is much easier to satisfy the needs of the customers quickly. A 10% increment in sales price and improvements in service time is achieved. Consumer satisfaction increases. Cash Register: Enables fast and error-free payment. Waiting time is reduced. A 15% increment in sales price and improvements in service time is achieved. Consumer satisfaction increases. Mixer: Using a mixer instead of spoons increases the quality and reduces time taken. A 10% increment in sales price is achieved and waste is reduced by 20%. Consumer satisfaction increases. Shademaker: Nobody wants to spend time under the scorching heat. So, this prevents the ice melting and ensures a nice environment for your consumer. A 15% increment in sales price and improvements in service time is achieved. Consumer satisfaction and visibility increases. Refrigerator: The taste of your lemonade will be improved if you store them in a refrigerator. It prevents your products spoiling. A 15% increment in sales price is achieved and waste is reduced by 20%. Consumer satisfaction and taste increases. Music: Your consumer will feel happier if you provide good music for them. You will attract more attention and will earn more. A 15% increment in sales price and improvements in service time is achieved. Consumer satisfaction and visibility increases. Stands Wooden Stand: Classical wooden stand is a good start for your first lemonade adventure. Increases sale price by 15%.

17 Travelling Stand: You can increase your sales by moving your stands around the neighborhood. Increases sales price by 25%. Minibus Stand: You can increase your sales by going to other towns. Increases sale price by 50%. Special Stand: People would know what you are selling from miles away. A more pleasant experience is guaranteed. Increases sale price by 75%. Store: Owing a store of your own means you are already an important player. People would rather choose to go to a store. Increases sales price by 125%. Production Tokens Lemon Tree: The only way of growing your own lemons without the need to buy them. A lemon tree will provide you with fresh lemons every day. All you need to do is get up and collect them. Fertilizer Factory: You may produce and sell fertilizers in this factory on a daily basis. Advertising Company: Working together with an advertising company while selling lemonade will earn you time and money. By improving branding and promotion skills these tokens may be sold in a more effective way. Training Company: More productivity can be achieved in selling and producing lemonade by following the courses offered by this company. Selling and productivity skills are developed and sold if desired. Main Factory: Every single component needed for lemonade production such as stands, equipment and many more are produced in this factory. Lemon Production Tokens Machine Level One: The most basic lemonade production machine. You can make your lemonade much faster by using a machine rather than your bare hands. Requires 15% less lemons. Machine Level Two: Lemons are used much more effectively by employing this machinery. Requires 25% less lemons. Machine Level Tree: The most advanced of the manual machines. An economic option. Requires 50% less lemons.

18 Automatic Machine: You may benefit from the advantages of technology by making investments in automated machines. Requires 75% less lemons. Lemonade Factory: The most cost-effective method is to produce lemonade in a factory. Requires 125% less lemons. Skill & Point Tokens Preparation Skill: Your hands-on experience in lemonade preparation affects its taste and therefore its price. Each time you practice preparing it, your skills will improve. It is not tradable. Branding: With this token course, you may perform a 10-day-long branding effort for your lemonade, and as a result increase the prices. Promotion: By using this token, you may sell more lemonade with less effort. Productivity Skill: With this token, more lemonade can be produced by using fewer lemons. Selling Skill: High earnings can be obtained by using this skill. Production Points: They provide production point tokens to the main factory owners each day; desired goods can be produced in exchange for production token Token Mining Most of the tokens within the system can be mined with various activities and can be kept in online wallets. But only LMND can be withdrawn or deposited. Therefore the general purpose of the system can be considered as maximizing the LMND token. The system will ensure that every user can mine on equal terms. Users who can use business dynamics effectively, and give better responses to changing circumstances, may get better mining returns.