At CyberMiles, our mission is to build a decentralized ecosystem for e-commerce. Much of this work is to design and implement an economic system. The network must be able to attract a diverse group of participants to share resources in order to truly achieve network effect. Core to the CyberMiles design is economic incentives provided by the CyberMiles Token (CMT).
The CyberMiles Token (CMT)
Like Bitcoin (BTC) and Ether (ETH), the primary purpose of the CMT is to incentivize people to work together to maintain the CyberMiles network. It is a utility token that pays for participants’ services to the network, like BTC and ETH. In order to earn CMTs, network participants (known as validators) will need to:
- Maintain an immutable and agreed upon record of every transaction on the network. In the context of e-commerce, this includes all purchases, loans, payments, credit history etc. Of course, all information is anonymous, secure, and encrypted on the blockchain. This allows all e-commerce companies on the CyberMiles network to share access to buyers and sellers, and create a large network effect; and
- Execute Smart Business Contracts on the network. Those contracts are software applications that automatically determines who should pay who at what time. Examples include escrow accounts, loan repayment plans and insurance plans etc.
The CMT is directly comparable to the ETH as the primary functions of the ETH are the same as the above. However, compared with the Ethereum blockchain, the CyberMiles blockchain is optimized specifically for e-commerce applications. Check out a comparison chart between CMT and ETH.
Being optimized for e-commerce, the CMT has a secondary function to settle commerce transactions like the XRP on Ripple network does.
CMT as a base token
All CMT holders can participate in network governance and maintenance by delegating his or her tokens to “validators” on the network. The validators are professional network operators who compete for the privilege of validating transactions on the CyberMiles network (and hence maintaining its integrity). In return, the validators receive newly “minted” CMTs via our 8% annual inflation and also receive transaction fees for Smart Business Contracts they execute. The validators typically split earnings with his or her delegators. The algorithm to select validators is public and built into the blockchain protocol, and cannot be tempered with by human operators — it ensures the diversity of validators and prevents centralization of power.
Through the above mechanism, the CMT holders are incentivized to delegate and stake the tokens to earn more CMTs from validator operations. This consensus mechanism, known as Delegated Proof of Stake (DPoS) aligns the interests of all participants to ensure the integrity of the network.
While the CMT is a fundamental utility token to the CyberMiles network, the blockchain’s ability to execute Smart Business Contracts allows e-commerce businesses on the CyberMiles network to issue new tokens on the basis of CMT — similar to ERC20 tokens can be issued by Ethereum smart contracts on ETH. Those new CMT-based tokens no longer need to shoulder the responsibility of network integrity. They can be tailored to address e-commerce application needs. Examples include loyalty points programs, in-app tokens for purchasing services, supply chain settlement tokens or product tracking tokens etc.