Value Tokens

You can explore the value extraction and accounting system of Owy here.

Think of the OWY ecosystem as an account with three main components:

1. OWY token

2. Owy Time Weight token (OTW)

3. Owy Tax Accumulation token (OTA)

The diagram below illustrates the structure of an OWY account, applicable to all holders.

Owy Accounting with Value Tokens

The OWY account manages both the quantity of OWY tokens and their associated values. Time accumulation is stored within each OWY token, while productivity, or tax accumulation, is stored within the account itself. When an individual wishes to extract these values into separate tokens, they will be extracted from their respective locations.

Note:

1.Both value tokens are standard ERC-20 tokens with 18 decimals and can be used independently without incurring any tax.

2.Both values need to be tokenized in order to be transferred outside the Owy account.

3.To use these values in Owy transactions, they must be inserted back into the account.

Owy time weight token (OTW)

When extracted, the extracted value of time accumulation is deducted from the account and converted into OTW tokens. OTW tokens follow a deflationary model based on a time-volume-weighted calculation, meaning that as more OWY tokens are burned, the total supply of OTW decreases. The amount of OTW tokens an individual receives is calculated based on their minting capability, using the formula provided below.

$$OTW Balance_{individual} = Owy Balance_{individual} \times (Max BlockNumber - BlockIn_{individual})$$

MaxBlockNumber is the fixed Ethereum block that represents the system limit before calculations encounter overflow, which is the block number118,834,697,888,524,300.

This token follows a deflationary model driven by the rate of supply contraction, meaning that as more OWY tokens are burnt, the total supply of OTW decreases. The maximum supply of the token can be calculated as follows:

$$OTW_{total Supply} \thickapprox Owy_{totalSupply} \times (MaxBlockNumber - VWAB)$$

If participants decide to stop using the OTW and do not sell it, they can insert OTW back into their OWY token in the account. The same formula is used to convert the value token into BlockIn. After that, the time value within OTW will be redistributed across their OWY, and the OTW is burnt. When these tokens are inserted into an OWY account and used for transaction discounts, the utilized portions are completely removed from the system.

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Owy tax accumulation token (OTA)

Productivity represents an individual's accumulated spending contribution, or the total amount of tax they have paid. Similar to time accumulation, the tax accumulation value can be extracted from the OWY account and converted into an ERC-20 token. The conversion ratio is 1:1.

$$OTA Balance_{individual} = TaxAccumulation_{individual}$$

Unlike OTW, OTA is an inflationary token with an upper supply limit. The emission rate of OTA rapidly decreases as the OWY supply diminishes, making it scarcer as the economy matures. This happens because the base tax value is progressively reduced, as detailed in Deflation Schedule.

The total supply of OTA matches the total burnt supply of OWY tokens.

$$OTA_{totalSupply} = Owy_{maxSupply} - Owy_{totalSupply}$$

The maximum supply of OTA is 68,999,931 OWY

Since tax accumulation value is reusable, it can be integrated into lending activities by converting it into OTA tokens and interacting with smart contracts (ex. flashloan).

After the deflation ends, the value tokens and the systems for extraction and insertion will be permanently halted.