The OBD Utility Token

While the OBIT NFT Registry is a purpose built decentralized tool, the financial layer of OBADA uses a standard ERC-20 token called the OBD. OBD tokens are a legally compliant utility token per the State of Wyoming.
OBD is available for purchase through the OBADA Foundation or through DAO members. OBD will not be made available on any public exchange.

OBD as the Medium of Exchange

As the ecosystem medium of exchange., OBD is used to pay platform fees. But while OBD functions as a currency within the ecosystem, its main use is to provide utility.

As a utility, OBD is used to order and pay for platform-defined asset disposition key performance indicators (KPIs) such as proof of data destruction, functionality, reuse, and recycling.
The network medium of exchange, an ERC-20 utility token called OBD.
OBD can be staked to fund the system.
Platform fees and rewards in OBD are distributed to the OBD stakers.

Platform revenue collected from the outside world, distributed to the on-chain asset disposition ecosystem.
1 OBD “Platform/Oracle fee”: a one-time "per NFT" fee collected at the oracle gateway from L1-blockchains and outside supply-chain systems.
Decentralized “recycling fee” so the burden of the system cost is on the end-user.

A reward is mined for successfully recycling a device, or extending it’s life through reuse.
1 OBD is mined upon completion of a platform KPI (key performance indicators): Proof of Data Sanitization and Reuse, or Proof of Recycling.

Fees are distributed to OBD Stakers in proportion to their stake
Urban Recyling Rewards are distributed as follows
- 1/3 to actor chain leading to the proof
- 1/3 for staked OBD
- 1/3 to the OBADA treasury

As a decentralized finance mechanism, OBD can be staked in order to secure voting rights and a proportional share of platform revenue and rewards.
Staked OBD tokens are “locked up” and cannot be used, which shows a financial commitment to the system and is a deflationary force limiting available supply.
- There are two methods for staking OBD
  - Stake a Node - for DAO members
  - Stake OBITs - for anyone

As a governance mechanism, OBD is used by DAO members who must commit to host a node staked with a minimum of 5,000,000 OBD in order to receive one vote.

As a vertical-market decentralized finance application, OBD effectively makes stakers the “owners” of the platform who collectively share in the profits.
- The sum of the platform fees equals the platform revenue.
- Platform revenue is distributed proportionally on a nightly basis based on OBD stake.
- This nightly fee distribution to stakers is effectively a share of the system profits.

As an incentive mechanism, OBD can be “mined by recycling”.
When an asset disposition KPI is completed on a staked OBIT, the staked OBD is automatically returned to the original staker and a new OBD is created and distributed as follows:
- 1/4 to the OBIT staker
- 1/4 to the actor chain
- 1/4 to the recycler (or end processor)
- 1/4 to the DAO members and OBIT stakers
These platform rewards which are received by the stakers are effectively a dividend, returning an additional yield on the staked equity beyond the share of platform revenue.

An ERC-20 token known as the “OBD” is the network medium of exchange.

Pre-Launch: 50 million OBD will be distributed pre-launch as follows:

These tokens will be locked (staked) for a period of _3 years__ (per DAO vote)

Funds received from the sale of intial DAO memberships will be used to finance development of the system.

The plan is for 100 DAO Members to stake $5000 each in three phases:
- Phase 1: Initial 7 DAO members: $35,000 total for pilot development
- Phase 2: 13-18 “pre-launch”: $65K-$90K for minimum viable production development
- Phase 3: 75 “MV-launch”: $375,000 for improving and scaling the min-viable production system.
- Additional phases can be added per DAO proposal and vote.

The initial funds will be administered by the foundation, with the bulk going to the contract firm overseeing development.

At the min-viable production launch an additional 50 million tokens will be created

These will be sold via the DAO members from a community pool, centrally managed by the OBADA Foundation.
Once the 50 million are sold, no additional tokens will be created.
The funds received from OBD token sales will be distributed as follows:
- A 5% surcharge on sales (off the top) to pay credit card fees and to fund the OBADA Foundation
- A 10% commission to the seller (DAO member selling the tokens).
- 90% to a DAO treasury reserve for token buyback (liquidity reserve) and other purposes.

At this time there are no plans to offer OBD to the general public or on any public token exchange.
At this time, OBADA is a permissioned industry-led project targeted at the asset disposition sector.
At this time, only accredited or corporate investors may purchase OBD or DAO stakes.

NEXT: Who runs the OBIT Registry? Read about the OBADA DAO