Thread by @Crypt0casio, OMI is a deflationary utility token on the GoChain network. It has [...]

OMI is a deflationary utility token on the GoChain network. It has a circulating supply of 168,105,802,939 OMI and a marketcap of $1,348,899,342 (as of April 7th).

https://www.coingecko.com/en/coins/ecomi

The OMI token works in the augmented reality (AR) collectibles app called “VeVe”. You will be able to use OMI to purchase AR NFT collectibles or stake OMI for access to rare or exclusive NFT collectibles.

Google Play: https://play.google.com/store/apps/details?id=com.ecomi.veve
App Store: https://apps.apple.com/us/app/ve-ve/id1478403837

OMI is a GO20 standard token on the GoChain network and the VeVe app NFTs are GO721 tokens.

The OMI block explorer can be found here: https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=transactions

OMI should be stored in wallets that are compatible with GoChain. Some examples of comptaible wallets are:
- Secure Wallet cold storage
- Trust Wallet app
- GoChain web wallet
- Ledger cold storage
- MyEtherWallet
- MetaMask
https://medium.com/ecomi/where-can-i-store-my-omi-tokens-d5e3c2e13159

The OMI tokens are visible on the public blockchain but the ECOMI team has said they are keeping the GO721 ledger hidden for Beta. Currently NFTs cannot be moved out of the VeVe app, but it's been confirmed we'll be able to move them out eventually on compatible network protocols

The GoChain network and accompanying $GO token is a backwards-compatible protocol with the Ethereum network with low fees and decoupled from proof-of-work block validation.

Website: https://gochain.io/
GitHub: https://github.com/gochain
Block Explorer: https://explorer.gochain.io/home

GoChain debuted in 2017 as an interoperable alternative to Ethereum with higher transaction throughput and without relying on costly Proof of Work block validation. GoChain uses what they call “proof of reputation” which is essentially centrally-authorized validator nodes.

The GoChain team has list of socially-prominent organizations with good reputations whose roles as authorized block validators are trusted because if they were discovered to be approving false blocks then it would theoretically hurt their business or academic reputation.

ECOMI is a digital asset company based in Singapore. They provide a wallet and marketplace for digital collectibles in the VeVe app.

White Paper: https://drive.google.com/file/d/1UNE-EvjuMIaWJUfvF3qQiTe0OKLFAJXV/view

The #VeVe App allows collectors to display their collectibles in augmented reality or in virtual reality showrooms.

The #ECOMI Team is continually improving the #NFT products in the #VeVe app, allowing for interactivity to their collectibles.

Single-player and multiplayer games are being developed for users on the #VeVe app and utilizing everyone's own collectible #NFTs.

ECOMI has released info on a little over a dozen of their major licensing deals for their NFTs, but have said they have 100 major licenses and most are still not revealed. They've commented that they have enough NFT drops to have multiple weekly drops for the next five years.

There are two purchase categories: Primary Market (New NFTs from the Store) and the Secondary Market (Peer-to-Peer Marketplace NFTs).

https://medium.com/ecomi/ve-ve-tokenomics-in-app-funds-and-token-buybacks-7ea8ac1a19c9

In the Primary Market, VeVe users purchase new NFT drops from the VeVe Store. ECOMI sets a fixed price and number of NFTs available for users to purchase.

At a pre-established date / time, they allow everyone the opportunity to purchase them in the Store. They are discussing changes to that system, but no details as of yet.

In the Secondary Market, VeVe users can list collectibles they already own for sale at a fixed price or at auction, and others can purchase them using Gems.

Within the VeVe app, there is an additional currency called “Gems”, and within the market 1 Gem is equivalent to $1 USD. Gems can be purchased using fiat currency or OMI, and can eventually be converted back from Gems to fiat or OMI, as well.

https://medium.com/ecomi/how-to-swap-omi-for-gems-d0f2c0f2fcc

Currently there's a problem between non-US currencies and Gems. When someone buys Gems with GBP, for example, instead of giving them the conversion rate to Gems in USD, it treats the GBP as USD and the purchaser pays a premium. The ECOMI team is working on a solution.

ECOMI are currently waiting on their money transmitter license (MTL) for converting Gems back to fiat or OMI in the VeVe app, which will require KYC/AML protocols.

More info on KYC/AML here: https://twitter.com/Crypt0casio/status/1374242120723144706

https://medium.com/ecomi/q1-2021-token-updates-82c3bfa4f07a

https://twitter.com/Crypt0casio/status/1374242120723144706

Users are given two separate wallets in the VeVe app: one for OMI and one for Gems.

Gems can be traded or used to purchase NFTs but OMI facilitates the transaction on the blockchain underneath every Gems purchase.

When Gems are purchased in the VeVe app, an equivalent amount of OMI are taken from the ECOMI Reserve wallet and sent to the ECOMI Vault wallet where they sit until those Gems are spent. Once those Gems are spent, those specific OMI in the Vault are sent to the Burn wallet.

Briefly between being grabbed from the Reserve wallet and being sent to the Vault wallet, the OMI underlying these Gems pass through that user's wallet for recording the financial history of those OMI on the ledger.

These transitory OMI can show up in your wallet if it's stuck in a queue waiting to process.

(Timestamp @ 14:11)

As tokens are sent to the Burn wallet, they are removed from circulation entirely. This is a deflationary mechanism which is maximized when the money spent within the VeVe app is high and the price of OMI is low.

There are two ways tokens can be funneled into the Burn wallet:
- Sales on New NFTs
- Sales on the Secondary Market

In all new NFT sales, the process to burn tokens goes as follows:
- User buys Gems for X USD
- X USD worth of OMI (Z) are taken from the Reserve wallet and sent to the Vault wallet
- User spends Y% of their Gems
- Y% of Z OMI are burned

For example:
A user buys $100 USD worth of Gems and spends $90 of it on a new NFT in the Primary market. That means $90 worth of OMI (per price at the time of the Gems purchase) gets sent to the burn wallet.

If the Gems are left unspent, that revenue goes to the Buyback fund (more on that later).

Sales on the Secondary market are between app users, so the Gems in that case aren't being redeeemed with ECOMI, just being swapped between users. Nonetheless, the ECOMI team has dedicated to burning OMI in an equivalent amount of USD equal to 2.5% of every Secondary market sale.

Unlike the Buyback reserve, the ECOMI team did not explicitly say that this 2.5% was after in-app fees, so we should assume (until they plainly state otherwise) that the 2.5% burn is from the total Secondary market sale.

For example:
A user spends $100 USD worth of Gems in the Secondary market. That means $2.50 worth of OMI (per price at the time of the Secondary market purchase) gets sent to the burn wallet.

https://medium.com/ecomi/q1-2021-token-updates-82c3bfa4f07a

Lingering question: Why does the “burn” wallet have any GO tokens in it? Those OMI should never be accessible, so it's just a strange choice and is probably worth addressing at some point.

https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=holders

While the Primary market may look like it'll be largest source of token deflation at first glance, I fully expect the Secondary market to become the larger factor. The Primary market grows with new users but the Secondary market grows as each user gains interest in trading NFTs.

The Primary market grows linearly because it is a single-direction transaction, but the Secondary market grows exponentially as users gain and reinvest profits from selling their NFTs.

There are two traditional methods to analyze a system where many different elements interact with each other – Bottom-up Analysis and Top-Down Analysis

We can study each element within a system individually and then determine the behavior of the system by the sum of each individual property (bottom-up strategy)

Or, We can categorize elements into simplified groups and determine the behavior of the system by their group properties (top-down strategy)

A network approach reduces complex systems to a bare architecture of links and nodes. Nodes are points of interest and links are the relationships between them.

People are nodes and their interests are links. As more people join VeVe, more nodes are created. As more content reaches the app, the more links are temporarily created between nodes where one user wants to sell an NFT another user wants to buy.

This is where the velocity of money comes into importance. https://www.investopedia.com/terms/v/velocity.asp

Velocity of Money Definition

The velocity of money is a measurement of the rate at which consumers and businesses exchange money in an economy.

https://www.investopedia.com/terms/v/velocity.asp

The velocity of money is the measure of the amount money that moves between individuals within an economy. It's measured by the amount money an economy uses in exchanging goods/services divided by the total amount money available within that economy.

Generally, high velocity is a considered healthy for an economy.

As money flows in to the network and as more nodes become connected, it increases the potential velocity of money. This can have direct effects on price action.

https://www.elliottwave.com/Economy/Deflation-Basics-Series-The-Quantity-Theory-of-Money

The ECOMI devs have said they think it's reasonable to estimate the size of the Secondary market as twice the size of the Primary, but I think in the long run it will be much greater than that.

https://medium.com/ecomi/ve-ve-tokenomics-in-app-funds-and-token-buybacks-7ea8ac1a19c9

The most recent sales were:

- Ultraman ($1,080,507.12 prospectively generated / $756,354.984 after app fees)

- Mermicornos ($883,558.60 generated / $618,491.02 after app fees)

- Back to the Future ($4,491,126.20 generated / $3,143,788.34 after app fees)

The ECOMI team has stated that they would like to reach a point of having 3-4 NFT drop events per week. https://twitter.com/ecomi_/status/1380674040180842496

https://twitter.com/ecomi_/status/1380674040180842496

If we can assume that sales revenue will be sustained despite increased drop days, we could reasonably estimate the weekly earnings at around $7.5 million per week / $5.25 million after app fees.

The ECOMI team has put their Secondary Market size at a conservative estimate of twice that of their Primary, so we'll use those numbers (knowing they're likely underestimated).

If we have $15 million worth of Gems being spent on the Secondary market weekly, it would mean $375,000 worth of OMI burned weekly (37,500,000 OMI with it priced @ $0.01).

Combining that projected Secondary market burn with the projected Primary market burn, we can safely estimate (with OMI priced @ $0.01) a reasonable weekly burn of 562,500,000 OMI.

However, I do believe that the variable for the size of the Secondary market is greatly underestimated, but the number will decrease as OMI advances in price.

Overall, OMI has a total supply of 750 Billion tokens. Most of these tokens will never see market circulation because these tokens function within a closed loop of the OMI ecosystem. https://medium.com/ecomi/ve-ve-tokenomics-in-app-funds-and-token-buybacks-7ea8ac1a19c9

VE-VE Tokenomics: In-app Funds and Token Buybacks

VE-VE uses an innovative tokenomic system to ensure liquidity, and makes it easy to collect your favourite Fandom!

https://medium.com/ecomi/ve-ve-tokenomics-in-app-funds-and-token-buybacks-7ea8ac1a19c9

Here are how all 750 Billion tokens were originally distributed:
- 300 Billion (40%) → Reserve Wallet (out of circulation)
- 150 Billion (20%) → ECOMI Team, Board, Advisors
- 150 Billion (20%) → Market Circulation
- 150 Billion (20%) → Business Development

While moving some of their OMI founders rewards, the ECOMI team accidentally locked 97.96 billion OMI in a smart contract that doesn't release them for “many, many thousands of years”.

(Timestamp @ 19:39)

In total, 397.96 billion OMI will not circulate, meaning the hypothetical highest circulating supply is 352.04 billion tokens (an increase of 109.4% from current circulating supply).

So of the 352.04 billion tokens designated to hypothetically circulate:
- 150 Billion (20%) → ECOMI Team, Board, Advisors
* 97.96 billion has been burned, leaving 52.04 billion

- 150 Billion (20%) → Market Circulation
* 110 billion distributed during sale, 40 billion assumed to have been sent to the Vault wallet for liquidity

- 150 Billion (20%) → Business Development
* The Business Development fund could make up any percentage of the difference between the initial 110 billion OMI sold and the current circulating supply: 168,105,802,939 (as of April 7th), the difference being about 58.1 billion OMI.

If we find the estimated weekly burn we calculated earlier credible, and if we took the *worst case* scenario of having all possible OMI in circulation (352.04 billion), we would be burning roughly 0.0016% of the circulating supply every week (about 8.3% per year).

This is only token burns, mind you. On top of token burns, we also have mechanisms that increase buy pressure.

Every Gems purchase therefore drains the Reserve wallet, which the ECOMI team said would keep topped up from the circulating supply to ensure the Vault has tokens to draw to provide liquidity on the backend of the VeVe app system.

To increase the OMI in the Reserve wallet, a system of Buybacks are planned in perpetuity.

Buybacks are facilitated with exchanges which hold OMI. The ECOMI team will fund those purchases with some revenue from the VeVe app, minus the app store fees from Google or Apple (30%).

There are two sources of revenue for the buybacks:
- 10% of the revenue from new NFT sales
- 70% of revenue from unspent Gems

https://medium.com/ecomi/ve-ve-tokenomics-in-app-funds-and-token-buybacks-7ea8ac1a19c9

For example:

A user spends $1000 on Gems in the VeVe app uses half of them on new NFTs and holds on to the rest as Gems to spend in the Secondary market. Of the $500 spent on new NFTs, 30% of that revenue immediately goes to Google or Apple, giving us $350 left for ECOMI.

Of that remaining $350, all of it plus 10% ($385) goes to the Buyback fund for the next Buyback event.

A great part of the Buyback mechanism is if OMI entering the circulating supply begins to suppress the price, much of it should be offset, at least quarterly, by the Buybacks keeping the Reserve wallet topped from the circulating supply.

Buybacks are currently disabled but are set to resume in late Q2 this year.

(Timestamp @ 25:41)

In addition to buybacks, we can expect increased buy pressure as new users enter the app and when OMI becomes easier to acquire.

Gem → OMI conversion is coming back online, so users will be able to effectively purchase Gems with their credit/debit cards and then easily purchase OMI using those Gems, greatly increasing access to OMI to the general market.

(Timestamp @ 23:00)

Reducing friction for users to onramp into OMI is crucial for increasing buy pressure. This is currently a major bottleneck for new buyers.

Once VeVe app users can convert OMI to Gems, it would be reasonable to expect more people to speculate on the short-term price action of OMI itself. This will on-board more users and also generate more token burn.

Of the 52.04 billion OMI designated for the ECOMI team, board, and advisors, their wallets were/are locked until these dates:

- ECOMI Team/Board: May 12th, 2020 (100% stake)
- ECOMI Founders: May 12th, 2021 (25% stake), August 12th, 2021 (25% stake), November 12th, 2021 (25% stake), February 12th, 2022 (25% stake)

The IEO was held on May 12th, 2019 and accepted BTC for the purchase of 10 billion OMI. The ECOMI Team sold 100 billion separately from the Bitforex IEO.

(Timestamp @ 18:22)

They raised their cap of 1500 BTC ($10,650,000 USD total, BTC at about $7100 at the time) between the private sales and the IEO, with 1 satoshi equivalent to 1 OMI, giving OMI an IEO price of $0.000071 USD. https://icodrops.com/ecomi/

Ecomi (OMI) - All information about Ecomi ICO (Token Sale) - ICO Drops

ECOMI is a digital asset ecosystem disrupting the #collectibles industry, bringing HUGE licenses/brands into the digital world

https://icodrops.com/ecomi/

The IEO was not available to citizens of China, Cuba, Iran, North Korea, Singapore, Sudan, Syria, U.S., or Vietnam.

The minimum purchase was 0.02 BTC ($142 USD) for 2 million OMI and the maximum was 0.5 BTC ($3,550 USD) for 50 million OMI. The ICO purchases would be equivalent to $20,000 and $500,000 if OMI is at $0.01 (14,084.5% profit).

If you wonder why “whales” might be “suppressing the price”, it's because the profit they're in doesn't change significantly between OMI at $0.01 and $0.009. What they want is liquidity and if buyers give them that then it's advantageous for them to cash-in unrealized profits.

I looked through the largest OMI wallets and removed ones that seemed to be either known OMI ecosystem wallets (like the Reserve, Vault, and Burn wallets) and exchange wallets.

https://token.veve.me/

Distribution of OMI (at time of snapshot):

89409 wallets total

1 wallet: 11.6 billion
1 wallet: 9.78 billion
16 wallets: 7.5 billion each
1 wallet: 5 billion
59 wallets: 1 – 3.75 billion each https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=holders

GoChain Explorer

GoChain Explorer allows you to explore and search the GoChain blockchain for transactions, addresses, tokens, prices and other activities taking place on GoChain.

https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=holders

14 wallets: 500 – 990 million each
97 wallets: 100 – 500 million each
86 wallets: 50 – 100 million each
741 wallets: 10 – 50 million each
1840 wallets: 1 – 10 million each https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=holders

GoChain Explorer

GoChain Explorer allows you to explore and search the GoChain blockchain for transactions, addresses, tokens, prices and other activities taking place on GoChain.

https://explorer.gochain.io/addr/0x5347FDeA6AA4d7770B31734408Da6d34a8a07BdF?addr_tab=holders

Even if we exclude the top two wallets (assuming either are an exchange or other fund not simply trying to sell), we are looking at $1.2 Billion worth of OMI (with OMI @ $0.01) from the next 16 wallets alone, and another $1.07 Billion of OMI from the subsequent 60 wallets.

The next 197 wallets have a combined $395 Million of OMI, too, assuming OMI is currently valued at $0.01.

Then we have a zone of OMI holders that have between 2 – 50 million OMI, and that is where a lot of sell pressure may reside. That is the amount that IEO participants could potentially receive, so if they bought and are in profit from that region, they could happily sell anytime.

They have a combined value of $242.5 Million, and while many of them are new buyers, a large majority are likely IEO investors who aren't necessarily in the project for the longer term, meaning a possible shorter term sell outcome.

Whether or not you believe OMI will rise in price is directly linked to whether or not you think this sell pressure will overcome the buy pressure from on-boarding new users, ECOMI buybacks, and supply shrinkage from token burns.

Until those whale wallets are dumped, it's a legitimate question for supply vs demand. Even if most of them sell sooner rather than later, the longer a whale holds, the more leverage they have when they do decide to dump.

Lastly we have the Master Collector staking program.

OMI staking will not just be a traditional staking program to earn a share of % of OMI back, but integrated into the VeVe app's features and functionality.

The Master Collector program is a mechanism that rewards VeVe app users for their activity and for holding both VeVe NFTs as well as OMI, suppresing sell pressure for those invested in the long term.

It sounds like the higher your Master Collector level, the more access you'll get to rare or exclusive NFTs, as well as OMI drops.

If this program properly incentivizes app users, you may see a feedback loop where people re-invest their NFT profits back into OMI, leveling up to receive rarer NFTs which can be sold for additional OMI.

The projection of the Master Collector program's efficacy on price action should be based on how bullish you believe the VeVe app is within the digital collectibles ecosystem. If VeVe generates continued hype, this may be the strongest force in decreasing market supply of OMI.

That brings me to the conclusion of this analysis. I don't have a specific number to give you on where I think the price is headed;

rather, I hope that this thread has clarified any lingering details on OMI's tokenomics as well as give you the tools to better articulate your own predictions about OMI's future price action.

I would love to hear your questions or comments regarding this thread, so leave them below this post. If I end up with an addendum to this thread, I'll try to make it as easily accessible as I can.

Because twitter does not allow me to edit posts, I will be posting any errors found after the fact here as a response to this post for easy reference.

@threadreaderapp unroll

If you found this information useful, consider sending a small tip

OMI Donation Address: 0xb8e00473CdFEB36d03bc410Ea44FFF3d32f730A4

Correction: The 2nd pic on this part of the thread was *NOT* regarding OMI: https://twitter.com/Crypt0casio/status/1381390083039719425

It was passed along to me in mistake and I didn't properly vet it before posting. The ECOMI team have talked about features much like this but ignore this specific citation.

https://twitter.com/Crypt0casio/status/1381390083039719425

Should be "0.16%" per week here https://twitter.com/Crypt0casio/status/1381393284870762497

https://twitter.com/Crypt0casio/status/1381393284870762497

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