Overview — Pyxo Tokenomics
This article is part of a series that completes the proposal #0 made on the Cardashift DAO. You will discover an introduction to Pyxo’s tokenomics which will be further detailed in the coming weeks as we get closer to the fundraising.
- Issuance of NFTs to fund containers and Pyxo’s activity in new restaurants. Rights on governance and financial flows are attached
- Creation of a DAO and its treasury which is financed by the revenues generated by Pyxo’s activity
- Each NFT represents a % of the treasury and feeds an individual and a collective treasury. The collective treasury is split amongst the investors regardless of the number of NFT owned
- NFT holders have the opportunity to claim their rewards by burning their NFT. Otherwise, they can reinvest their revenues or sell their NFT on the secondary market with the rewards associated
- Pyxo’s DAO earns income from the NFT secondary market, the exit of funds (people leaving the DAO) and the issuance of NFTs, thereby creating an investment pool governed by NFT holders
- This model allows Pyxo to issue new collections of NFTs as funding requirements arise. Thus, providing new investment opportunities while maintaining a stable and viable model, even with a larger offering.
Pyxo’s philosophy and commitment are strong, its community should also be! Going from single use to reusable is not only a question of containers, it is above all a question of adopting right gestures and changing consumer habits. Therefore, succeeding in federating a collective of committed citizens is an incredible lever to change behavior by adopting solutions like Pyxo.
Moreover, deploying this new vision of the world requires significant investments and also the ability to deploy capital very quickly.
We will try to meet these needs through different mechanisms related to blockchain.
(1) The investor finances part of Pyxo’s business
As part of its activity, Pyxo wants to promote reuse by expanding its business. Pyxo will call upon you, individual investors, to help finance these new investments. They will issue NFT collections according to their financing needs. Several rights will be attached to this NFT:
- Governance rights within the DAO, proposals and votes can be made within the DAO
- Ownership rights to the treasury (consisting of collective rewards)
- Right to receive cash flow and ownership of individual rewards
To make the investment unique, we decided that each NFT represents a fleet of unique containers. This allows NFT holders to track their fleet in real time. Doing so allows each NFT to be uniquely valued in the secondary market, and allows the percentage of ownership within the treasury to change based on the performance of the underlying containers and their revenues.
Each NFT will represent a fleet of different sizes. (10, 25, 50 or 100 for example).
(2) Pyxo buys reusable containers which will be distributed to their clients
Through this funding, Pyxo will fund and distribute containers to pre-selected restaurants. The choice of location could be made by the DAO in the future.
(3–4) Customers pay the negotiated amount of $ per cycle per container to Pyxo
The restaurant is charged $x for a container per cycle: the arrangement is negotiated beforehand by Pyxo. Pyxo receives these payments and returns it to the DAO treasury. The NFT represents a percentage of the treasury, so holders are rewarded for their initial investment.
Containers generate similar revenues per cycle, however, the lifespan of these containers will differ. One container may break at the beginning of its life and not generate any more revenues, while another may last more than 300 cycles. We have chosen to mitigate the risk by representing several containers in a single NFT, allowing each investor to be exposed to several assets at the same time and to diversify his risk.
(5) The DAO
Once the treasury is established, DAO members can submit proposals and vote. Proposals range from reinvesting in containers, to distributing group awards, to liquidating a portion of the treasury …
Else than the proposals, NFT holders have 3 choices:
- Keep their share within the treasury
- Sell their NFT on the secondary market, the shared incentive attached logically acting as a floor price. The DAO recovers royalties from the sale on the secondary market
- Burn the NFT to receive the associated share (individual and collective), implying an exit fee of x% determined and taken by the DAO, which feeds the collective part, allowing new investments
Each NFT represents a fleet of unique containers of different sizes. By their nature, the risk associated with each NFT is different. The one representing 10 containers will be less diversified than the one representing 100 containers, and therefore more risky. To mitigate this risk, we decided to split the compensation into two parts.
- Individual rewards: x% (90% for example) of the revenues generated by the containers will be directly attributed to the different NFT holders. They can decide what they do with their individual shares.
- Collective rewards: y% (10% for example) of the income generated will be paid into a common pocket of the treasury. Each NFT, regardless of its size, will have 1 share in this pocket. The DAO, i.e. the NFT holders, will vote to decide the fate of the latter (claim, reinvest, loan…).
- NFT with remaining containers: contribute to and benefit from this common pocket of the treasury
- NFTs without remaining containers: benefit from this perpetual reward
This collective incentive improves the overall valuation of NFTs and therefore provides a more attractive floor price. In addition, allowing NFTs that no longer generate individual revenues but only collective revenues (NFTs without containers) to be valued is a lever for the secondary market.
These NFTs will continue to generate revenue as long as they are not claimed, and thus it also helps to maintain liquidity within the DAO’s treasury.
Governance is at the heart of this model, so it is necessary to have clear and fair governance conditions and rules. We designed a model that favors those who are positively active in the DAO. It allows for the majority of power to be given not to those who have invested the most, but to those who have participated the most in the DAO. A user’s weight in governance grows the more active they are, based on their initial NFT count.
It includes two types of tokens, a classic exchangeable token (the NFT) and one associated with this token that is not exchangeable (governance point, which we will call $POINT for the example). The number of $POINT in the wallet of a user represents his weight in the project’s governance.
To obtain $POINT, i.e. governance power, it is necessary to immobilize one or more NFTs. We introduce here the concept of unlimited staking, releasing a defined number of $POINT per period, as long as the NFTs are immobilized.
A predefined amount of $POINT per day is released for each NFT in staking. We also want to reward people for participating in the governance of the DAO (i.e. voting). For each completed vote, a defined number of $POINT is distributed to those who voted, depending on the complexity of the vote.
Unlike their underlying, we do not want $POINT to be tradable between users. However, it is necessary to hold $POINT to make a proposal or support a proposal within the DAO. To do this, we will allow DAO members to “spend” $POINT on certain actions. It will not be the DAO that will receive these tokens, but rather they will be “burned” and the total amount will decrease.
- Financing and tokenizing collecting points used in the restaurants
- Ranking system, leaderboards and rewards for users and restaurants
- Betting system based on these leaderboards
- Yield boost if conditions are met, such as owning specific NFTs
- Your ideas? Post them directly on Discord
What do you think of the proposed model?
Come and discuss it with us on Discord!