1. A tokenized points-system

First, we add a new token economics layer to the models we studied by introducing an ”airmiles”-type loyalty scheme for users.

Such scheme will reward users in OtoCo tokens based on how much they spend in the platform

Upon launch of OtoCo’s dAppstore, scheduled for the second half of 2023, new OTOCO will be minted at an initial ratio of 10% of the total spend in the platform.

For every purchase, this 10% will be equally divided between the user who made the purchase, the developer who sold the dApp, all token holders and the OtoCo Foundation.

At this initial ratio, this means user who spends US$ 100 equivalent in otoco.io will receive US$ 25 worth of OTOCO, as will the developer who sold the dApp, with the remaining newly minted OTOCO equally divided between all DAO token holders at that moment and the Foundation.

Users can then swap their OTOCO into any crypto, including ETH or MATIC to top up or pay for further purchases, without expecting them to purchase a native token to access our services, which are all priced in USD.

Such airmiles-type token layer may create very interesting price dynamics:

  1. First, by linking token rewards to how much users spend in otoco.io, a direct link exists between the value of the OTOCO token and the success of otoco.io as a business.

  2. Second, as with pure DeFi tokens, tokens holders can stake OTOCO tokens in liquidity pools on decentralized exchanges.

  3. This secondary market price would in turn feed back into the ratio at which OTOCO tokens can be used to spend on real, USD-priced goods and services in otoco.io.

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