NFTs will represent physical vehicles and will be used to store a lot of information relative to them. Such NFTs will then be sold along the physical vehicle and will allow the seller to guarantee that the information is correct, thus giving value to the NFT: In business, trust is valued.
A very trendy subject indeed, but how to take into account ecology while developing a token for mobility? Easy: by offering CodeNekt users and CDK skaters the possibility to alleviate their carbon footprint by investing in green projects like Carbon Connect or Tree Cycle through the CodeNekt application or directly through the blockchain.
Decentralized Governance is not only a keyword, it’s a philosophy. So, let’s think. For a governance system to bring its best results, it must satisfy several criteria:
- People must adhere to the decisions made, which imply a strong feeling of legitimacy
- The system must be viewed as fair by all those impacted by the decisions
- It must also be stable over time
- The more the governed community is interested in the decision process, the more efficient and accepted it will be
- People need to feel involved, responsible of the outcomes
- Decisions made must appear as good to the community
- All of the above should create trust into the governance system
Could being charitable be profitable? That’s a question we asked ourselves and we did find a way: we’ll organize the constitution of a charity fund, fed from monetary flows coming into the CDK ecosystem, and that will serve to offer a financial help to future new drivers to pay for the driving lessons and license. Other actors will in time participate in this charity hub: driving schools could offer a percentage off their service fee, car manufacturers a rebate on car purchased through their dealers, insurances another rebate to CodeNekt users, gas stations a few cents per gallon for some time, etc. This can work because all actors have an interest in having new customers, and CodeNekt can make that happen.
This will greatly increase the network effect: CodeNekt users will preferably choose companies that participate in this scheme, and companies will flock to partner with CodeNekt to have access to a high number of potential new customers.
And in the end, CDK stakers will pocket some rewards that should outweigh the charity costs.
- Token owners expect some return on their investment
- Stakers need to feel free to sell
- The project need token owners to keep them
- The ecosystem needs to limit volatility
- Token owners stake their tokens to earn interest
- Stakers can unstake at any time, with no locking period or limitation
- The amount of interests earned by stakers increases over time, enticing to stake for long periods
- Stakers that receive high interest rates don’t want to unstake and lose their advantage.
INTERESTS & INFLATION
Interests paid to stakers come from CodeNekt’s commercial activity. NFT royalties, payments through the CodeNekt app, data sales, and funds management are a few of the ways to create the value distributed to stakers.
Inflation of the monetary mass is bad on the long run. Nonetheless, it may have some positive effects on the short term, and this is why many projects have resorted to make use of it, often combining this effect with some deflationary mechanisms.
Instead, we will attempt to follow Nobel prize Milton Friedman’s monetarist policy and his k-percent rule, adapted to the crypto world and will ensure the inflation is kept at a pace comparable with the ecosystem’s growth.
Inflation will partly be used to reward stake holders through a lottery. Once a month, a part of the newly created tokens will enter a jackpot account and stakers’ accounts will be randomly chosen.
If inflation increases faster that the ecosystem’s profits, tokens burning will be organized
Legitimacy through decentralization
For a governance system to work, it needs to be perceived as legitimate. But how to acquire legitimacy on a decentralized system? After much thought, here’s what we need:
- A clear set of rules for everyone to understand how governance works and how to participate,
- A sense of fairness and equity,
- The process must address all the foreseeable risks and traps,
- Participation through fair voting financial choices, ideas sharing, bounties, etc.
- Responsibility through token locking to increase voting power,
- Trust, that grows through the means described above.
It’s a means for voters to evaluate the marginal gain they get with each additional influence “point” they want, knowing that the cost is growing each time.
Quality voting is important to the stability of the ecosystem. The last thing it needs is bad or erratic voting from people not concerned enough by the subjects being voted upon. To incite people to either take time to understand all the implications of their choices or to delegate their voting power to more motivated people, each participant can stake his own CDK to increase his voting power. This process allows concerned people to increase their voting power at the cost of stopping themselves from selling the election-staked CDK for some time.
Quadratic finance, is a tool for giving more power to the decentralized little man than to the few very wealthy, by nature centralized. The goal is mainly to allow the financing of what could be presented as public goods, while avoiding the tragedy of the commons:
- Sponsors set up a grant to fund a specific project.
- A quadratic funding session is organized, during which private investors invest some money to fund the project.
- The grant set up by the sponsors is then used to increase the project funding proportionally to both the total amount of money bound by private investors and the number of them. The more of them there are, that is, the more decentralized the private funding is, the more the grant will participate in the funding of the project.
Ideas racing is a way to emulate creativity and increase motivation through participation. On a regular basis, we will organize races extending over varying periods of time, during which individuals or organizations will be able to expose their ideas of development and try to get funding for them. When organizing such races, an independent process will permit the allocation of sums of money to be used as grants.
A vehicle can only be represented by a single NFT because it guaranties the uniqueness of the pertaining information. But, in some rare cases, the legitimate owner of a vehicle can be in a situation where the corresponding NFT is owned by someone else. This is why we need a decentralized NFT conflicts resolution system, including a conflict resolution jury, and experts panel, a jurors’ selection mechanism, a system for ensuring quality judgments (based on the game theory), and even an appeal procedure.
Tokens initial distribution
The bad scenario: CodeNekt and/or the CDK project fail
Very little rewards have been sent to the CDK stake holders, but ICO participants who held their tokens are reimbursed of their initial investment.
The average scenario: a lot of regional markets proved very hard to penetrate, our projections are 50% overvalued
The planned earnings obviously do not follow the announced progression. We will assume for this scenario that half of our progression disappears. This means that each staked CDK token should get its buyer interests equivalent to the purchase cost within 6 years, notwithstanding the progressive increase of its market price (an investor interested in the token on that sixth year would look at the 5 following years’ earnings and would see about $26 billion of interests paid over that period to stake holders).
The good scenario: our projections are mostly correct.
This means that each staked CDK token should get its buyer interests equivalent to the purchase cost within 5 years, notwithstanding the progressive increase of its market price (an investor interested in the token on that fifth year would look at the 5 following years’ earnings and would see about $41 billion of interests paid over that period to stake holders).
2,400,000,000 tokens will be distributed through the ICO, and the ICO’s duration is initially set to 6 weeks, so 400,000,000 tokens can be bought each week, half at a fixed price, but with a limited quantity per investor, the other half with no limit, but auctioned.
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