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This is the second part of a series of blog posts aimed at showcasing what DOVU is, how it benefits the mobility industry and how we are planning to make it succeed. Read part 1: .
This chapter focuses on the crypto side of DOVU, how our token is circulating and what we intend to do to make it accessible to more people.
The DOV token is designed to be fluid and to move seamlessly around our ecosystem, bringing together multiple streams of earning and spending possibilities whilst empowering the individual to control how and when they engage with our partners.
This is a main competitive advantage of our business model compared to traditional closed reward systems, made possible by blockchain technology.
A token could flow in a closed or open loop:
It starts with a Distribution Partner buying DOV. An OEM for example, will be able to buy DOVs from exchanges or from our User Growth fund (see below).The Partner stores DOV as a unit to reward customers, and sets up specific rules to distribute tokens when its customers complete value adding activities (reward for value).The reward can be earned by any type of stakeholder customer, depending where the Distribution Partner sees an opportunity to add value.As customers earn DOVs, they will be able to exchange them for goods or services with predefined value within the ecosystem.At that point, the Service Partner stores DOV as a unit to reward its customers, and the cycle renews.Use case examples:
An insurance provider might decide to reward a driver with DOV for driving carefully, using the vehicle telematics to define good driving behaviour.
The driver might then decide to spend those DOVs for parking in a secure garage. The service provider, to incentivize the user to come back, might commit to a future reward creating a loyalty scheme program and re-using its DOVs.
GDPR (General Data Protection Regulation) is the new set of rules the European Union has established to protect citizens and their data.
Individuals have now the power to retain or share their data at their discretion — with their decision being securely logged by the blockchain; to encourage data sharing, they will need an incentive: DOV.
The same DOVs can be used for a lease upgrade, an offer that was made possible thanks to a better knowledge of the leasing company thanks to the user’s data. Another scenario for improving customers’ loyalty.
A vibrant DOV: Token distribution and the Growth Fund
There is a fixed supply of 963,761,390 DOV. Of the initial 1,200,000,000 DOV, the 236,238,610 million unsold tokens were burned on 12 December 2017.
These tokens have been distributed after our ITO (initial token offering) to different parties:
To the first contributors during the ITO (63,761,390 DOV)To the team (180M DOV)To the user growth fund (420M DOV)To the reserve wallet (300M DOV). These are the only ones that are locked for 2 years.
Effectively, all tokens (except for the reserves) are already circulating as DOV’s are premined and have a finite supply; they are just distributed to different wallets.
The user growth fund is necessary to have a pool of tokens for testing and pilots purposes with our new Partners.
Once a specific use case is defined, tokens are allocated to that Partner. They can then distribute DOVs according to the rules set up in the smart contract.
During Pilots tokens are virtually locked in the environment: when they stop being used they go back to the User Growth fund; if a company decides to keep working with what we built, tokens can enter the ecosystem and are no different from any other token.
When Partners pass the pilot phase and start using DOV to reward their users, they will have two main options:
Accept DOV for their services, reinforcing the circular economy.Access more supply through exchanges or via DOVU, creating a liquidity need for the market.
The utility of your DOV token increases by the number of services that accept and reward with your token. We will proceed block by block with partnerships within the mobility industry, gradually connecting all the pieces of the puzzle.
A healthy environment is able to keep attracting value from outside, because it has value inside. More services, more utility, more value.A thriving DOV: how do we get there
When we allocate tokens to companies from our Growth Fund, we don’t ask them “how much will you pay us”, but “to how many different wallets will the tokens be distributed?”.
A Distribution Partner is fundamental for DOVU not only because it distributes tokens, but particularly because it distributes tokens to a huge pool of customers.
More people, more mobility, more value.
It is a very efficient strategy as we are able to reach thousands and millions of new people that discover, use and value a new network of mobility opportunities.
Our token value strategy is driven by the demand which is driven by our product strategy.
An engaged and active user base will finally allow the transaction from a product based industry to a mobility-as-a-service model: the interaction of various services dramatically increases the utility with each new transportation form.
If DOVU wants to disrupt the traditional closed reward systems, it has to leverage its main advantages: a unified ecosystem (as opposed to closed platforms), a novel and liquid reward (as opposed to static rewards with limited utility), and the acceleration factor of token economics to create a circular economy that works for all (stakeholders as opposed to shareholders).
A Liquid DOV
There are 2 types of liquidity we need to consider for DOV.
A) The liquidity WITHIN the ecosystem. When a healthy and expanding environment increases its utility, this attracts demand for using the token and the velocity within the ecosystem is increased.
Ultimately, this triggers a positive reinforcing cycle that further builds up the demand for DOV.
B) The liquidity OUTSIDE the ecosystem, to allow access to the DOVU network. This type of liquidity can be provided by another cryptocurrency or by fiat currency.
We are paying attention to make sure there is a healthy volume of transactions. Higher trading volume benefits DOVU for two reasons:
If you create an ecosystem that has intrinsic value, what follows is organic demand for your token because it benefits people (and companies’) lives. Then, exchanges become a natural step to channel this demand rather than a speculative tool.It makes the DOVU ecosystem more accessible to commercial partners and new entrants, with a pool of liquidity always available.DOVU is one of the most practical projects in the crypto sphere. As such, the success of the business from a token value perspective needs to be our ambition, not our obsession.
The business value of what we are building will drive the value on the cryptomarket — This is the only sustainable strategy that can lead to success.
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