Proposal: Whitelist VIDT/BNT

OLD GOV (LEGACY)
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Personal Notes:

  • VIDT has no native staking function to the token, meaning holders of the VIDT token have no way to accrue more VIDT by holding the VIDT token, other than using things such as Bancor or other LP/Lending services.
  • Uniswap currently has $86,000 in liquidity for VIDT (~$176,000 total counting ETH). ~$27,000 volume per 24 hrs generating $83 in fees in the last 24 hours. This is a 17% yearly ROI, even with little liquidity. From my personal experience, VIDT holders in community channels are fearful of supplying liquidity on Uniswap due to impermanent loss.
  • There is currently no VIDT/BNT pool on Bancor, meaning if this proposal were the pass the VIDT/BNT pool would first have to be created, then achieve sufficient liquidity to become a protected V2.1 pool.

Token contract address

Contract address: 0xfeF4185594457050cC9c23980d301908FE057Bb1

Project Website: about.v-id. org/

Discussion

V-ID is a blockchain powered document certification service. The VIDT API enables organizations to certify and secure their digital data against fraud and manipulation.

With V-ID’s Datalink architecture, V-ID is compatible with virtually any existing system to ensure data integrity without impacting workflows

The combination of the VIDT API, VIDT Private Cloud and VIDT Smart Contract will seamlessly anchor data from any publisher platform and cloud service to multiple blockchains These blockchains currently include DigiByte, Ethereum, LTO Network, Bitcoin, FTM and IBM Hyperledger.

Organizations like Airbus, AmSpec and IBM use VIDT Datalink to certify and secure digital documents like certificates, invoices, diplomas and sensor-data. [1]

V-ID has long standing customers, with many having used their services for over a year, who have spent tens of thousands of dollars, or even hundreds of thousands to millions of dollars. Their largest customer has spent over 10,000,000 VIDT. All of this information is able to be confirmed using the Ethereum blockchain, and via a community made website. [2]

Tokenomics

VIDT Datalink (VIDT) is what makes validations possible. V-ID appoints wallets to issuing organizations containing a balance of VIDT.

Every time an organization validates a file a VIDT transaction is made which records all necessary details (filetype, validation location, timestamp, identity). The VIDT token used in the transaction will be deducted from the validating organization’s wallet. Validations are priced in a USD value which is converted to an amount of VIDT tokens, based on VIDT token price at a certain time.

The flow of VIDT tokens is as follows:

  1. A business using VIDT services purchases a load of VIDT from the “Main Wallet” (0x57E6B79FC6b5A02Cb7bA9f1Bb24e4379Bdb9CAc5 ) from VIDT with a fiat currency, for validations.

  2. The business uses VIDT to validate files, recorded on one of the blockchains VIDT supports. This VIDT is sent to the “Validation wallet” (0xe7C54558a04F2f673Ce271B6C908839e9342a50a).

  3. 20% of VIDT spent on validations is burned, being sent to the “Owner Wallet” (0x8636a1100a06cad72c16c663f5ff6a893ddd1584) and then to Ethereums burn address (0x0000000000000000000000000000000000000000).

  4. 80% of VIDT spent on validations is returned to the “Main Wallet” to be sold again to businesses purchasing VIDT for validations.

  5. V-ID buys back 10% of VIDT used for validation services by businesses from the open market. These “buy-back tokens” are burned, making up half of the 20% of burned VIDT tokens in step 3. These tokens are bought back, at random, from various exchanges such as Binance, KuCoin, IDEX, etc. This “Buy-back” address is not officially cited to my knowledge, but it appears to be 0x139f8878889DD20e7CcF9e0afC3DA449B8c445fB

[3]

Community and Communication

VIDT communication is primarily through Pim Voets (Founder and Lead Concept Design) official Medium, and they maintain an official Twitter, YouTube, Instagram and LinkedIn. There are community run Telegram channels (Trader & Main) with very active communities, as well as an official news telegram channel [4]. The development team and advisors are presented on the V-ID website under the careers page. Marnix van den Berg is the projects CEO, and one of the founders [5]. The V-ID website includes a headquarters address and a contact email address [6]. There are no phone numbers provided.

Available Audits

The VIDT token smart contracts complete source code is provided on Github [7]. The repository is not expected to be updated, as it simply contains the token smart contract. V-ID software source code is proprietary property and will not be made public [7].

Market and Trading Data

VIDT’s price at the time of writing is $0.37

All-time high: $1.22 (August 15th, 2020)

All-time low: $0.04 (March 16th, 2020)

Price 90 days ago: $0.71 (August 13th, 2020)

46,282,792 tokens in circulation

56,883,808 maximum supply

The current market capitalization is $17,100,181

The VIDT token is available on exchanges including Binance, KuCoin, Bilaxy, and Hotbit.

The 24-hour volume is $1,332,185, typically above $1m, hitting as high as $9m at VIDT peak in August.

References (Breaking some of these URLs due to Bancor governance 2 URLs for new users rule)

[1] about.v-id. org/amspec/ & about.v-id. org/ioe/ & others at about.v-id. org/

[2] vidt-stats. com/clients/

[3] pim-vee.medium. com/vidt-and-v-ids-tokenomics-9ae760f6c7df

[4] pim-vee.medium. com/ & twitter. com/vidt_datalink & youtube. com/channel/UCh6xfbjMUeYFUO-2O_wRSBA & instagram. com/vidtofficial/ & linkedin. com/company/v-id/ & t. me/vidtoken

[5] about.v-id. org/careers/

[6] about.v-id. org/contact/

[7] github. com/V-ID/V-ID-Token

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This is an excellent value proposition for the BNT community. Providing a passive earning mechanism for tokens that have a community of hoarders who want to stay long on their assets is precisely the purpose of Bancor V2.1.

This is not difficult to solve. The VIDT team may be able to help out with initiating the pool.

In my view, real-world utilization of the project is a satisfactory demonstration that the project is not deliberate vaporware. The BNT community is mindful of potential exploits; however, these examples help to alleviate some of that fear. The story about the blockchain authentication of Rembrandt artwork by one of the founders is an important innovation, and was featured in the news. I see no evidence here of a fraudulent project seeking to drain value from the protocol.

Thinking long-term, I like the idea that Bancor could become the defacto DEX for VIDT tokens. If the technology continues to be adopted, then its utilization in the real-world could drive VIDT customers to Bancor to obtain the tokens they need for validation work. Moreover, maintaining VIDT market availability means VIDT holders are incentivized to leave their tokens staked.

Question - was there an ICO? I’d like to know how the tokens were distributed, and if there is a release schedule.

Are tokens burned while performing a verification?

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Yes, there was an ICO in October 2018. There was a soft cap of $1,000,000 USD and a hard cap of $8,000,000 USD. Tokens were sold at a price of $0.20 USD per icomarks .com/ico/v-id . $3,400,000 was raised, and all tokens that were reserved for the token sale but were not sold have been burned.
The VIDT team has 1,800,000 tokens and 20% are unlocked annually. Advisors to the project have 1,200,000 tokens and 20% are unlocked annually. A great breakdown of the token distribution is available here: about.v-id. org/vidt-usage-dashboard/ with links to all relevant information.

20% of all tokens used for validations are burned on a monthly basis. These burns are sourced here: about.v-id .org/vidt-usage-dashboard/ with links to the etherscan transactions of said burns. The remaining 80% of tokens are sent back to the “Main Wallet” to be re-sold to customers using VIDT services. This process results in a deflationary token supply, which is proportionally deflationary relative to the amount of use VIDT software gets from customers.

I have broken some links in this post to be able to post per the 2 URL rules of Bancor governance forums.

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Nothing here that I would consider a red flag. You can count on my support if and when this proposal goes to governance.

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Adding information regarding minting limits for single sided VIDT staking.

[Insurance tiers]
As a small market cap coin, this proposal concedes certain modifications are necessary to circumvent possible exploits, inflation, and other unwanted behavior. We propose that the impermanent loss insurance schedule remain unmodified (i.e. 30% coverage after 30 days, and 100% after 100 days); however, the maximum co-investment from the protocol should not exceed 10,000 BNT (a 99% drop compared to large market cap assets and stablecoins). The small minting limit bottlenecks the single-sided liquidity opportunity for VIDT holders, thereby encouraging dedicated LPs to purchase and deposit their own BNT in the protocol to support the pool. Moreover, the high APR should also attract additional BNT from outside the VIDT community, from those BNT holders in pursuit of the highest possible yields. Therefore the 10,000 BNT minting cap presents a low inflation risk, without sacrificing too much opportunity.

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