Overview

Web3Shield Foundation will be building an interoperable token system with the help of the Unified $SHLD Tokens. So, whenever these tokens are used for any reason, the Web3Shield Foundation will be receiving a transaction fee. On top of that, as the demand for the tokens rise due to its ecosystem operations in insurance, the value of the token will rise, incentivizing the $SHLD hodlers.

$SHLD token will bring the much needed innovation in the Insurance industry and extending trusted insurance protocols and processes to web3 and crypto space. The $SHLD Token working as a unified token can work in different insurance protocols that are associated with the Web3Shield Ecosystem, currently being used in the genesis protocols :

Token Function

The $SHLD token is used for insurance premium settlement, staking and loyalty token for the Web3Shield ecosystem and all its associated insurance protocols to come in future. The token facilitates additional functions as both deterrent to bad actors (via its staking function) and as a payment option, offering additional discounts to its users. List of token functions:

List of token functions:

  • Insurance Premium settlement

  • Claims Payouts

  • Staking upon registration (B2B)

  • Reward claiming (Re-Insurance Pool Rewards)

  • Governance

  • Get users Attention and Financing of Risk/Reinsurance Pool.

Similarities and benchmarks:

Conceptually the $SHLD token is very similar to the Binance coin (BNB), in the sense that it is used for the settling of fees and offers additional discounts to people opting to use it as a payment method. We will use this similarity when estimating token characteristics (such as velocity) further down in this document. Important differences from the benchmark. While we will use BNB as a benchmark, it is important to also point out the differences between the two coins. In the B2B2 case, instead of burning, $SHLD will have a staking function, required upon customer registration. The $SHLD token may act as a payment token along with staking and loyalty on the Web3Shield platform.

Lost tokens:

Inevitably some small % of tokens is going to be lost each year (lost private keys). We have done a conservative estimation of 0.5% of all tokens being lost per year. This is a conservative estimate, as studies have found that approximately 4 mn Bitcoins have been lost (approximately 25% of the available bitcoin supply as of 2017), over the course of 10 years. Other estimates show this to be closer to 11% for provably lost coins.

Speculative action:

In our assumptions, we have included a conservative 20% of all tokens held by speculators, taking them out of circulation. Web3Shield Foundation would initially fund the re-insurance risk pool with a specific amount of $SHLD and Stable Coins. Post this, X% of all transactional fees generated from revenue models listed in the Token function section referred earlier in the document would be diverted to the $SHLD re-insurance pool ensuring enough liquidity. The Foundation intends to gradually decrease the amount of tokens you get being a user(with early adopters getting the maximum rewards) but as $SHLD is a perpetually deflationary token, the rewards(in USD terms) would still keep on maintaining a peg above the USD threshold value over time. We also feel that the old and new members of the community should be rewarded more for investing in the project at an early stage and hence early contributers are provided with more reward tokens/ discounted tokens during the private sale of $SHLD Tokens.




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