The Boson Protocol utilises the token to create a decentralised and self-sovereign ecosystem that allows users to tokenise and exchange assets in a safe and secure environment.
Albeit it seems that the $BOSON token has no real utility, given it’s used as a medium of exchange and for governance, in actuality it has a fundamental purpose in the economy: incentive alignment. In the case of Boson, a peer-to-peer marketplace, that is incredibly important given that the token acts as collateral in case of a required penalty for bad behaviour, as well as an incentive mechanism for useful behaviour (governing the DAO).
The necessity for the $BOSON token is crucial to its decentralisation, given that trusting another currency to be used as collateral, be that currency the 2057th token on CoinMarketCap or Bitcoin, brings with it additional problems, primarily the risk of that token/coin rugging, going to $0, being illiquid, or anything else.
By having its own token, which isn’t particularly designed to accrue nor retain value but merely transfer and store it (for the short term), Boson successfully decentralises itself and remains self-sovereign, alienating itself from all counterparty risk.
Moreover, it gives users and invested token holders full ownership of the ecosystem, which is something that cannot happen when you use an external currency which is used by other people elsewhere.
All of that being said, as mentioned above, $BOSON isn’t designed to accrue or retain value, hence, its price performance has been relatively poor recently. Moreover, the bigger concern is that the price is greatly affected by the speculative market, meaning that it can rise and collapse very quickly, causing problems for buyers and sellers who have their money locked up in escrow. This simply cannot be overlooked, as this fluctuation in price is directly linked to the product, thereby making the product problematic to use.
Boson Protocol is a decentralised protocol which enables the trust-minimised, automated execution of off-chain actions; which in turn can be seen as a general-purpose solution to the physical asset oracle problem.
The $BOSON token serves three primary purposes:
The Boson Protocol Economy consists of two different elements. The trading element and the governance element. The trading element consists of different phases. The Offer Creation Phase, The Commit Phase, The Redemption Phase and the Fulfilment Phase; in rare instances, a Dispute Resolution Phase is also present.
The Redemption Phase is the phase in which the holder of the rNFT may choose to redeem the Offer as defined in Offer Phase.
After Redeem is called, the protocol progresses to the Fulfilment Phase. This is the phase where the Seller needs to fulfil the promises made out in the Offer.
The Dispute Resolution Phase comprises of two sub-phases, the Mutual Resolution phase and the Escalated Dispute Resolution phase.
The Finalisation Phase encompasses the set of states that signal that a given exchange has come to an end. There are a number of different finalisation states. Each one of the end states has its own label and comes with its own set of rules governing the payout of the funds committed to the protocol.
G. Governing Fee Redistribution
Protocol fee revenue will be collected by the DAO treasury, where, ultimately, $BOSON holders will vote on how funds are allocated. This is essential to sustain and grow Boson Protocol itself, and the ecosystem of applications and tooling leveraging Boson.
H. On top of this, the Boson Protocol DAO will distribute $BOSON tokens to early users to incentivise early adoption of the protocol. This incentivisation will continue until Boson Protocol has achieved strong network effects.
The main source of revenue for the Boson Protocol is the protocol fee.
The Protocol fee (𝑃𝐹) is levied on the item Price (𝑝) and is charged for successful exchanges only. 𝑃𝐹 is between [0,100] and represents the percentage number of the Item Price that is taken as protocol fee. The fee charged is calculated as 𝑃𝐹 = 𝐼𝑡𝑒𝑚 𝑃𝑟𝑖𝑐𝑒 * 𝑃𝐹 / 100 The Protocol fee is set to 0 if Offers are priced in $BOSON. Protocol fee revenue will be collected by the DAO treasury, where, ultimately, $BOSON holders will vote on how funds are allocated.
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