Transactions within the VeVe digital collectibles platform are underpinned by the OMI token, which is complemented by an innovative burn and buy-back system based on the sale of NFTs. With future staking opportunities and a range of additional incentives designed to maximise both the utility and scarcity of the token, the OMI token offers a range of utilities within the ecosystem that will continue to be integral to the app’s operation, whilst maximising value for token holders.
This article is an amalgamation of the current tokenomic design of VeVe and token metrics, and is designed to introduce users to the token mechanics which underpin transactions on VeVe, the current and future utilities of the OMI token, and lays out a development roadmap for the integration of these features.
VeVe is the leading mobile-first digital collectibles platform, with over 300,000 users and more than 500,000 digital collectibles sold since the app went live at the beginning of 2021, the app is consistently ranked in the top entertainment apps in the world.
VeVe offers the world a new way to participate and interact with their favourite fandoms, with officially licensed, premium 2D and 3D digital models and artworks from some of the worlds biggest brands, including DC, Cartoon Network, General Motors, Givenchy, Warner Brothers, Universal Studios and more.
The app is available to download now on both iOS and Android, and will soon be available as a web platform. VeVe not only brings the world of collecting into the palm of your hand but also allows you to interact with these collectibles in augmented reality, share and display your collections in virtual Showrooms and across socials, and interact with other users in the social Feed.
From day one, VeVe has been built to accommodate mainstream (non-crypto) audiences, and this ease of onboarding and low barrier to entry has contributed heavily to the platforms early success.
Now, as adoption and understanding of tokens and digital economies permeate into wider society, we can implement new features to improve and increase the OMI tokens utility, as well as incentivise its use in the purchase and sale of digital collectibles within the platform.
OMI is a utility token that can be used to buy/sell digital collectible NFTs on VeVe. It also underpins all financial transactions within the app, however, most of these have been hidden from the user for ease of onboarding and use.
The token generation event took place in May 2019, with a total supply cap of 750 bn tokens. Thanks to the tokenomic design of Veve, almost 450 bn of these tokens will never enter circulation, which we’ll explain in more detail below.
Note: At the time of writing, it is a GO20 token (GoChain). However, VeVe is currently migrating to Ethereum via Immutable X, at which point OMI will also migrate to ERC20.
Token Distribution and Supply
To accommodate the range of transactions that take place on VeVe, OMI tokens were initially distributed in the following manner:
- VeVe Reserve Wallet:~ 300 bn tokens. These tokens never enter circulation.
- VeVe Vault Wallet: ~40 bn OMI added for initial liquidity. This wallet acts as a staging wallet between the in-app reserve and the Burn wallet. These tokens never enter circulation.
- Business Development (long term initiatives): 20% or 150 billion OMI
- Team, Advisors, Board Members: 20% or 150 billion OMI
- Private sale and public IEO:~ 110 billion OMI
Note: the tokens held in the Reserve and Vault wallets are imperative for the functioning of the app, and as such those tokens never enter circulation.
Since the launch of the platform, 103 billion OMI tokens have been permanently removed from the total token supply 🔥
~97 billion were removed from the business development fund and founders allotment and locked indefinitely in smart contracts by the team, and an additional ~6 billion OMI have now been burnt from the purchase/sale of NFTs on the platform.
That means that of the 750 bn tokens originally minted, there are now less than 647 bn in the total supply, and less than half of that supply can ever enter active circulation.
Ongoing token burns and buybacks will also continue to reduce the number of OMI tokens in circulation, and as these features are based on the sale of NFTs, will continue to deflate the circulating token supply regardless of market conditions (more on this below). You can track the OMI token burns from the sale of NFTs using this awesome community site, or our own token tracker here.
By Q1 2022 all available OMI tokens will be in circulation after voluntary vesting by the co-founders and advisors, at which time the circulating supply will peak, before permanently deflating over time.
To understand the role of OMI within VeVe, you first need to be aware of the types of transactions that take place, and how they impact the OMI token supply before we dive into the future token utility.
First and foremost, there are two places that a user can purchase their collectibles in the app:
- The Store: this is where you purchase NFTs first-hand from VeVe.
- The Market: this is where you buy/sell NFTs with other users.
Second, VeVe uses an in-app currency- Gems- as an easy and familiar way to onboard mass-market (non-crypto) users to the app.
1 Gem is always equal to $1 (USD), and they can be purchased in the same way you would make any in-app purchase- using the credit/debit card you have linked to your Google Play or Apple App Store account 💎
In the background, when a user purchases Gems using fiat/dollars, that transaction is actually facilitating the purchase and movement of OMI tokens.
When those Gems are spent in the VeVe Store, the corresponding OMI tokens are exchanged for the NFT and are then permanently removed from the token supply (burnt).
As mentioned, when a user purchases Gems using fiat/dollars, that transaction is actually facilitating the purchase and movement of OMI tokens, which are pulled from the in-app Reserve Wallet.
Whilst the user will see Gems credited to their account, in the background the OMI tokens are actually sent to the OMI Vault wallet.
If the Gems are used to purchase a digital collectible from another user in the Market, those Gems transfer to the seller’s account and the OMI tokens remain in the Vault wallet.
When those Gems are used to purchase a new NFT from the VeVe store, the OMI tokens are pulled from the Vault wallet and permanently removed from the token supply (burnt) whilst the digital collectible simultaneously appears in the user’s account.
Therefore, with every sale of a digital collectible in the VeVe Store, the total supply of OMI is permanently reduced.
The system was designed in this manner to remove the barriers to entry typically faced by mainstream audiences (tokens, exchanges, wallets, keys etc…) which, until the launch of VeVe, have prevented the adoption of these technologies on a greater scale.
Thus far, almost 6 billion OMI tokens have been burnt thanks to the sale of NFTs, which can be seen in the Out of Circulation Wallet. This is further demonstrated below.
The VeVe Market is where you can interact and trade with other users to complete your sets and obtain your favourite collectibles 💪 With tens of thousands of listings, the Market already sees a larger transactional volume than the Store, and this will continue to expand as the VeVe userbase does.
When a transaction occurs between users in the Market, the seller pays a 2.5% fee. When Market transactions take place using Gems, the equivalent amount of OMI tokens are again pulled from the Reserve and sent to the burn wallet, permanently reducing the total supply of tokens.
In Q3 development will begin to allow users to transact in the Market directly with OMI tokens. This will also incur a 2.5% fee paid by the seller, however, those transactions will see the 2.5% burnt directly from the circulating supply.
As OMI tokens are moved from the Reserve Wallet> Vault Wallet > to the Out of Circulation wallet, it results in fewer tokens available in the Reserve.
However, as part of the tokenomic design, 10% of the revenue generated from the sale of NFTs in the VeVe Store is used to buy back the OMI token from exchanges, in order to keep the in-app Reserve topped up.
This buyback mechanism is designed to create consistent and positive buy pressure for the OMI token and permanently reduce the circulating supply of the token.
By using a combination of Gems and OMI tokens, the purchasing mechanics and tokenomic design of VeVe provide a way for mainstream audiences to interact with digital assets (without the steep learning curve that is typically required of crypto), whilst simultaneously advantaging OMI holders, who benefit from increasing and ongoing scarcity of the token.
Buybacks commenced in June 2021 and will continue monthly from there on in.
The OMI token is a utility token in and of itself, and that core utility is the ability to purchase digital collectible NFTs on VeVe. This utility will roll out in two phases, which will be introduced following the migration of VeVe to our new technology partner- Immutable X.
Phase 1- Market Transactions
Phase 1 of the utility rollout allows users to transact directly with OMI in the VeVe Market (peer-to-peer). Depending on the type of user, when listing items for sale in the market, the seller can choose to list their NFTs for sale in either Gems or OMI tokens, and therefore accept payment in the currency of their choosing.
Aside from the obvious utility of transacting, enabling peer-to-peer OMI transactions provides users with another way to extract value from the app. As you have full control over your tokens and in-app OMI wallet, you can then choose to store your tokens in personal wallets or use them as you wish.
Creating this utility around the token also presents an opportunity for our mainstream users to learn about OMI. Over time we will release an educational series to hand-hold these users through their first crypto experiences, as well as introduce them to the ongoing benefits and incentives of using the OMI token.
Development of phase 1 of the token utility will begin in Q3.
Phase 2- Store Purchases
Phase 2 will also allow users to purchase a percentage of collectibles in the VeVe Store with their OMI tokens. This will also include incentive mechanisms for using the OMI token, which will be discussed in more detail closer to its implementation.
Development of phase 2 will begin in Q4.
Why Can’t I Buy Everything in the Store With OMI?
VeVe operates in the real world and as such has a wide range of operational expenses, from staff, systems, and marketing to licensing fees, acquisitions and royalties. If the only method of payment was the OMI token, we would have to constantly sell down the tokens to pay these expenses, which would create downwards pressure on the token- something we are avidly trying to avoid.
By having two concurrent systems, we are not only able to accommodate the mainstream and crypto audiences, but we are also able to reduce the token supply over time while introducing new people to OMI along the way. Remember- when a user is purchasing a collectible in the Store using Gems, they are actually utilising the OMI token without knowing it!
Of course, if using the OMI token to buy/sell NFTs on VeVe was the only utility, things would get a little boring. In Q3 we will also begin the development of the Master Collector program. This is a layer of light gamification for the app which also includes unique rewards for staking your OMI tokens, incentives for using the token to make purchases, and of course, OMI will also be integral for transactions in the VeVeVerse!
The OMI token is currently available on 3 exchanges:
Warning: Please be aware that these are the only places you can currently acquire OMI tokens. OMI is NOT listed on Pancake swap.
New exchanges will be introduced throughout 2021 and beyond, and we look forward to sharing them with you as the year progresses.
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Source: https://medium.com/ecomi/veve-token-system-and-omi-utility-80a915b514eb?source=rss——-8—————–cryptocurrency
