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We have thrilling news today! We are announcing a 2-year lock on BetProtocol ($BEPRO) tokens that will be effective from today.
From now on, every token that we receive in gas is going be added to a token vault that is locked for a 2 year period. At the end of this period, we are going to decide if we want to extend the lock or simply use those tokens to incentivise operators for new platform creation, and donate a percentage to charity.
As you know, $BEPRO is used as GAS and staked by our operators to pay for volume fees. The more operators we have, the more $BEPRO tokens have to be bought from the secondary market. The more gaming volume across all operators, the more these operators spend the $BEPRO gas to us to pay for the use of BetProtocol’s network.
But eventually, we have to decide what to do with these tokens and a big token lock is the most attractive solution for the long-term.
Here’s a complete explanation
In today’s post we are answering a question that several astute readers and community members have asked us:
What are you gonna do with all that gas?
If you don’t know already, BetProtocol has a gas fee mechanism applied to protocol wide gaming volume denominated in $BEPRO. Those who aren’t already familiar with this mechanism should read this article first before proceeding. In summary, our gas model works like this:
Gas Fees in a Staking Model
BEPRO tokens are spent as gas for gaming volume generated by our operators. Operators must first “fill the tank” and stake BEPRO to start gaming activity. As their gaming volume increases, the BEPRO stake is spent proportionally to the value of the bets — this is our revenue. When operators’ BEPRO stakes run low, they must replenish by purchasing more from the secondary markets.
Naturally, the next question is the one we opened this article with. What are we going to do with all the BEPRO that we collect from gas fees?
Why we aren’t burning the gas
Firstly, because we are afraid of Greta’s wrath 😄
All kidding aside, a burn mechanism isn’t as good as you might think. Burning is actually an indirect dividend that helps all ecosystem token holders, regardless of the support or work any individual token holder gives to that ecosystem.
In other words, token burning has no way to identify and reward those who are continually helping an ecosystem, and no way to not reward those who are simply sitting on a stash and nothing more.
Our Token Vault is better because we can choose who we support with developer grants, charities, and other amazing projects!
Why we are donating to charity
It’s the right thing to do. Obviously! A portion of our BEPRO gas fees will go to charity, and the beneficiary charities will be decided by the BEPRO Community. More news on this in 2020!
Why we are earmarking a portion for developer grants
Our Scholarship program is already live.
Promising teams that want to launch a gaming dapp on BetProtocol should get in touch with us, and pitch their ideas. One of our missions is to bring more transparency and fairness to the online gaming industry, and one of the ways to do that is to get fresh operators in business that believe in this vision.
Why we are super excited for 2020
BetProtocol’s first operators will be live in early 2020.
We will also add Esports and be doing R&D into Sportsbook
You’ll be able to see our product in action and the gas mechanism churning away. Those BEPRO that are earned through gas will be safely held in our Token Vault.
BetProtocol enables entrepreneurs and developers to create gaming platforms in minutes. No coding required. Thanks to BetProtocol’s blockchain technology, these platforms are secure, scalable and regulatory compliant. Its vision is to enable anyone in the world to dream of being a gaming platform owner one morning, and actually be one that same day.
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