Quant Network’s Overledger: Part Seven— The QNT Token

Ecosystem

Quant’s vision is to build an ecosystem around Overledger, allowing for developers and Enterprise to innovate, create value and build game-changing multi-chain applications for users and their customers. They plan to foster innovation by directly incentivising developers with an App Store model akin to Apple and Google stores but instead for Blockchain enabled Multi chain applications (MApps).

  • Freemium Model. In this model, users don’t pay to download or use the MApp. But they can pay to get access to additional sets of features.
  • Paid Model. In this model, users pay once to download the MApp and use all of its functionality. No additional charges will apply.
  • Subscription Model. In this model, users pay for a (daily/monthly/annual) subscription to use the MApp.
  • In-App Model. In this model, users are able to download the MApp for free (or at a cost) but are charged when they use in-app functionality. Developers independently decide how much to charge users for their apps.

Token Utility

The QNT token is regulated by FINMA as a utility token which are intended to provide digital access to an application or service. Access to the Overledger Operating System is only possible through the use of QUANT (QNT) tokens, i.e. QNT tokens must be provided to Quant Network in exchange for an annual licence or platform fee. The price of the access will be a fixed FIAT amount and the number of tokens needed will vary depending on the price of the token at the time of purchase.

Treasury

The launch of the Quant Treasury will automate and facilitate the licensing, consumption and usage of QNT for developers, enterprise and users. It will allow Enterprises / Developers and users to purchase licenses in FIAT currency which then gets converted to QNT tokens. This means Enterprises don’t have to deal with buying directly from Exchanges and can purchase them in a way that is compliant.

Enterprises:

License Fees

Enterprises will need to obtain an annual license to develop applications on Overledger. Enterprise license fees will be determined on the basis of:

  • Number of Users
  • Number of Employees
  • Types and number of applications (internal. external, native applications or web-based etc)
  • Volume of Overledger transactions

Platform fees

In addition to the license fee, a platform fee calculated as a percentage of the license fee in QNT will be payable

Consumption fees

Payments for read and write to Overledger will need to be made in QNT based on a FIAT value, for example if the read and write equate to $10/month, the equivalent will be paid to the Quant Treasury which will also handle the conversion of FIAT to QNT.

  • pay as you go
  • pay in arrears
  • pay in advance (pre-pay)
  • unlimited usage
  • number of users

Add-On Services

Quant Network will be releasing enterprise add on services which provide additional features which can also be consumed as middleware. These will be released with updates to Overledger for Enterprise to utilise.

Developer:

License Fees

Developers will need to obtain an annual license to develop applications on Overledger through the purchase of QNT tokens equivalent to a fixed FIAT amount. The developer wallet will in turn be authorised to access the platform for the length of the license period (i.e. annual) as well as develop, sign and publish applications. This is like how developers have to pay $99 to be able to developer for Apple IOS.

Consumption fees

Payments for read and write to Overledger will also need to be made in QNT based on a FIAT value, for example if the monthly read and write equate to $10 a month, the equivalent will be paid to the Quant treasury using QNT, however the price will be variable and adjusted to market supply and demand.

Add-On Services

Additional features and services can also be consumed as middleware. These features will be released with updates to Overledger as part of the roadmap.

Monetisation

Developers may choose to monetise their applications and will have the options to use the treasury as a payment processor to charge a subscription, a recurring price, a one off price or an in-app fee. This can be charged in FIAT or other digital currencies such as QNT.

Users

End Users will also need to hold QNT to be able to run mApps and access the Overledger ecosystem. The license key will expire annually and must be renewed using only QNT. This is a similar approach to the Apple App store. It’s a marketplace, where you pay Apple £1000 for an iphone which has the keys in the device to access the app store and run and use ios apps. Rather than purchase the phone the license is acquired to access the ecosystem. (Note please don’t take this as each user needs to spend £1000 a year to access the platform as that is not the case, it is just an example showing how Apple charge for access to the platform by selling the phone with the keys)

Overledger Gateways

In preparation to scale their technology they are expanding Overledger gateways to access multiple permissioned and permissionless blockchain networks. Overledger gateways are hosted as part of their multi-cloud strategy to optimise network latency providing enterprises, developers and users choice to use the closest gateway. Gateways are hosted by Quant Network and partners but also by Enterprises within their private/public cloud instances or corporate networks.

To help encourage the expansion of their gateway networks, they are looking to provide users the opportunity to host their own public Overledger gateways to drive volume and applications to multiple permissionless blockchains. To help facilitate, they are exploring the use of dual utility tokenomics in order to earn revenue for the amount of volume used in hosted gateways.

QNT Token

QNT is an ERC20 token on the Ethereum Blockchain. Whilst it is on the Ethereum blockchain, it is blockchain agnostic so can easily swap to any other blockchain. Ethereum was chosen due to it being the mostly used blockchain with well established integration for wallets and Exchanges.

  • 9,964,259 — Amount sold to the public during the ICO
  • 2,649,493 — Is for the company reserve and used for Research and Development, Facilities, Infrastructure, Legal / IP, Marketing, Exchanges
  • 1,347,988 — is for the company founders
  • 650,753 — is for the company advisors

Example of how QNT value may rise

To show how QNT may increase in value, let’s take a simplified example. Please note that the figures used here are just for an example and do not reflect what the actual license costs will be.

  • I will only be looking at part of value for QNT — specifically just the Enterprise license fees. For simplicity i am ignoring all the other uses for QNT — platform fees, Developer fees, user fees, Consumption, purchase of Mapps etc.
  • Enterprise licenses are only based on number of employees which each cost £100 a year per employee.
  • All Enterprises purchase at the same time for the year (normally Enterprises would join at different times throughout the year)
  • The number of employees licensed is for all the enterprises involved. So say 100 Enterprises join the 1st year each having 1000 employees to make it 100,000 total employees that would need to be licensed across all for the 1st year. Considering Quant have been in talks with numerous companies which alone have more than 100,000 employees but, in this example, I am just using 100,000 across all companies that join for the year.
  • The number of additional employees licensed increases by 50% each year as the platform grows
  • The price is determined by assuming that 5,000,000 tokens are taken out of circulation (This is a lot — Over half of the existing supply and over a third of the total supply)

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