Vision and Tokenomics
Last updated
Last updated
Callisto Enterprise aims to bridge the gap between enterprise and blockchain by offering Blockchain-as-a-Service (BaaS) solutions in a similar manner to Software-as-a-Service. At the time, Callisto is developing Platform as a Service (PaaS) solutions that leverage the experience of the team in the blockchain environments.
This will allow for greater agility, as well as quicker adoption of the Callisto blockchain, thereby driving the growth of the Callisto ecosystem.
In that context, Callisto Enterprise token (CLOE) will be the fuel that powers all projects that are developed and implemented by Callisto Enterprise. This offers advantages and rewards to token holders. For instance, they will earn part of the transaction fees generated by developed services, and discounts to use on new services developed by the Callisto Enterprise team.
As we’re seeing in real-time, blockchain applications are becoming more and more desirable. Yet, setting up these applications poses significant challenges for newcomers, especially smaller businesses and organizations with limited IT resources. This is where Callisto Enterprise steps in and offers blockchain services to a wide range of companies – from small and medium-sized enterprises to large companies, all of which are seeking assistance in launching applications with minimal hassle by outsourcing the entire blockchain technical process.
Hence, the main focus of Callisto Enterprise is to offer a set of creation and management services focused on building, deploying, and maintaining Ethereum-based decentralized applications (DApps).
These third-party services are a new development in the growing field of blockchain technology. Growth in demand for fast and secure online transactions, combined with the growing adoption of blockchain technology are driving the quickly expanding DApp market [1]. The global DApp market is forecasted to reach USD 368.25 Billion by 2027, according to a new report by Emergen Research. That growth is a function of exploding demand for online services, along with the need for peer-to-peer transactions that reduce the chances of online-payment breakdowns.
As such, blockchain-as-a-service providers will also provide professional assistance in addition to the aforementioned services. By leveraging Continuous Development (CD) processes in the Smart Contract (SC) development, Callisto Enterprise can continuously upgrade the quality of the services we offer, while also assuring users of high-end security and auditing.
Callisto Enterprise's team consists of experienced and committed experts who know how to build solutions based on customer needs, while at the same respecting the AML/KYC regulatory framework. These strengths contribute to establishing long-lasting relationships with clients. Moreover, these services are offered atop the Callisto Network, a network-connected through bridges to a continuously increasing number of blockchains. The result: Services offered across the entire blockchain ecosystem.
Callisto Enterprise will focus mainly on the following services (new services will be added in time):
Although “tokenization” is a recent term, it has become a topic of great interest for companies, regardless of size, that are looking to raise capital.
Fundraising in the cryptocurrency industry can be performed in two ways:
Initial Coin Offerings (ICOs). A company looking to raise money for an application, a service, or some other need, can launch an ICO that distributes it coins/tokens in a way similar to Initial Public Offering (IPO) on Wall Street. Interested investors can buy into the offering and receive the new cryptocurrency issued by the company.
Security Token Offerings (STOs) (ii). STOs share similarities with ICOs in that both act as means of raising funds. STOs, however, give a company the ability to raise funds for a specific project or a division instead. That, in turn, gives investors the opportunity to target their investment instead of investing in the entirety of a company and all of its other subsidiaries.
Callisto Enterprise has developed the Callisto Enterprise token, a part of which has been recently airdropped to Callisto coin stakers, and an STO token called CHOAM, which is a revenue token tied to computing power. These two tokens act as proof-of-case, and showcase Callisto Enterprise’s ability to offer top-notch services to users with minimum risk and based on extended deployment safeguards (audits, testnet, etc.).
As this market is still in its infancy, an increasing number of third-party ICOs and STOs is expected to be developed in the next few years. From these ICOs and STOs developed by the Callisto Enterprise, part of the performed transaction fees (0.1%) will be distributed to the token holders, who will receive rewards based on the product that has been developed. Note that this percentage may vary, depending on the agreement that Callisto Enterprise makes. However, this income is potentially quite significant, given the fact that the global ICO Services market will increase to USD 10 billion by 2027, from just USD 3 billion in 2019. [2] That assumes a moderate, compound annual growth rate of 15% during that period.
As the number of transactions significantly increases, CLOE tokens will benefit from the suite of Calisto Network services offered and would be expected to rise in value.
Through the developed mechanisms, Callisto Enterprise can offer ICO services that can be completed with either fixed swaps or in auctions in a process similar to fast book-building typically followed by companies listed on stock exchanges. By developing the appropriate Smart Contracts, and by adapting them to a user’s needs, Callisto Enterprise can also support the funding of projects, including through crowdfunding.
In this way, the unfair distribution of tokens is prohibited. Instead, the distribution is performed transparently and at minimal cost (considering the low fees of Callisto Network). The entire process is controlled by the Smart Contract, in which are deposited the tokens available for sale.
To adapt to a wide range of cases, and to address different countries’ regulatory regimes, features such as address whitelisting for participation have also been developed. Whitelisting is a security feature that enables only the participation of users who fulfill a pre-defined set of requirements such as KYC (Know Your Customer) compliance in co-operation with third-party, high-profile verification businesses.
Non-Fungible Tokens (NFTs), which are digital assets that represent objects including art, collectible items, and in-game purchases, have also attracted great interest.
Interest in NFTs has exploded lately. More than 4.7 million have traded hands more 6.1 million times through April 2021. In March 2021, the artist known as Beeple sold an NFT of his work for $69.3 million at an auction at Christie’s [4]. That purchase represented the third-highest auction price ever achieved for a living artist, bested only by Jeff Koons and David Hockney [5]. Several other record sales followed]: three Cryptopunks—part of a collection of 10,000 unique, automatically generated digital characters—each sold for prices between $7.6 million to $11.8 million. [6], [7]
Recently, Callisto introduced the new Callisto NFT Standard, offering significant advantages compared to the most common ERC721 standard used by the majority of NFTs. Those advantages include:
Built-in “trades” — No longer do NFT buyers and sellers need to rely on third-party marketplaces for NFTs. Now, buyers/sellers can express their willingness to buy/sell a specific NFT directly in the token contract.
Monetization for NFT creators – Instead of third-party marketplaces earning all the fees, NFT developers/creators can now earn the fee through the built-in trades.
Communication model for smart contracts — “Events” are very standard practice in programming and a key feature in program-to-program communication models. However, ERC721 tokens lacs this feature. The Callisto NFT Standard addresses this, opening up wider automatization opportunities.
Standardized properties — NFTs typically represent some unique objects, and they digitally store those properties (for example, the bitmap for a picture or website link). These unique properties are implementation-specific in ERC721. Callisto NFT Standard takes a step towards standardizing these features.
By leveraging the Callisto NFT Standard, Callisto Enterprise can offer unbeaten services in a demanding market, which can result in a notable market-share gain. As with ICO/STO services, CLOE holders will be rewarded from NFT support by receiving a fee of 0.1% of each transaction.
Leveraging the team’s blockchain experience, and its ability to develop innovative solutions, Callisto Enterprise is developing PaaS solutions for distributed processing and storage that will operate on top of the Callisto Network.
Distributed processing systems process data in multiple locations, and consolidate different types of resources, with the goal of maximizing efficiency and minimizing latency and cost. In contrast to single-point processing, distributed processing offers higher flexibility, fulfilling the strict requirements of a wide variety of bandwidth-intensive and latency-sensitive applications. That’s because the data are stored and processed at different and, likely, distant locations. With the advent of the Edge computing model, the processing and storage of data close to the generation point is enabled. When Edge resources are utilized, applications are served in an optimized manner because the data are stored and processed at the edge. If additional resources are required, only then is the data are moved to the cloud.
Through this concept, we envision a new market – one in which users make available their processing power (GPUs and CPUs) for applications based on Quality of Service (QoS) requirements. Those requirements, in turn, are served optimally by allocating the resources of the distributed infrastructure that fits best to their requirements.
To participate in the distributed network – think of it as “a world computer” – users are rewarded for providing their compute resources. Such services will drive the development of Web 3.0. As such, demand for such services is expected to increase significantly in coming years with the advent of 5G and Beyond networks, as well as the increase in the AI/ML and distributed applications market, which is expected to reach 360 billion by 2028 [8].
As part of that, distributed storage systems will play a central role. The increase in the number and density of edge resources is expected to change the way current storage services operate.
Finally, Callisto Enterprise will focus on researching solutions that increase scalability at different network levels, thereby offering solutions that solve critical problems the blockchain world now faces: network throughput translated into transactions per second, energy consumption, all while supporting services of deterministic latency.
By offering solutions that increase the scalability of layer 1, and by providing PaaS solutions, CLOE token holders will be rewarded by receiving a part of the fees – 0.1%.
The aforementioned services that will be developed by CLOE, as well as new services added on the future, can result in significantly high rewards for CLOE holders. Hence, it is important to create a transparent rewards-distribution system for users.
We offer a three-pronged approach:
First: The fees that correspond to a specific period will be accumulated, and 30% of the total rewards will be repurchased in CLOE.
Second: The repurchased tokens will be offered to CLOE farms on SOY as an addition to SOY rewards for providing liquidity. We will distribute 69% of the accumulated rewards to users who will stake a specified minimum amount of CLOE tokens in the CLOE staking contract that will be developed. Each user will be able to lock up funds for different periods. The longer the lock, the higher the rewards.
Specifically, users will be able to lock their tokens for the following periods: 1 month, 3 months, 6 months, and one year. Based on the staking period, each user will receive a number of staking tokens based on the number of staked CLOE tokens and the weight of the staking period.
The formula is as such:
Staking Tokens = CLOE Tokens Staked divided by total tokens staked in the pool, multiplied by the period weight.
The remaining 1% of the accumulated rewards will be used to buy back and burn CLOE tokens. This means that as long as the services developed by Callisto Enterprise are used, the number of CLOE tokens in circulation will decrease with time, resulting in a deflationary token that will further reward users for trusting Callisto Enterprise.
Third: CLOE will also be used as a utility token for the entire suite of Callisto Enterprise services. Hence, token holders will receive benefits across the entire portfolio of services, which are expected to be significantly more as the number of developed projects, products, and services increases.
Note: Future agreements and products are not presented in this paper. Also, note that the presented tokenomics may be subject to changes as new agreements and products are announced.
References
[2] Haffke, Lars and Fromberger, Mathias, ICO Market Report 2019/2020 – Performance Analysis of 2019's Initial Coin Offerings (December 30, 2020). Available at SSRN: https://ssrn.com/abstract=3770793
[3] https://www.nature.com/articles/s41598-021-00053-8.
[4] Riegelhaupt, R. Results: Beeple’s purely digital NFT-based work of Art achieves $69.3 million at Christie’s. (2021). https://www.christies.com/about-us/press-archive/details?PressReleaseID=9970&lid=1. (Christie’s Press Release).
[5] Reyburn, S. JPG file sells for $69 million, as “NFT mania” gathers pace. (2021). https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html. (The New York Times).
[6] Phillips, D. The 10 most expensive NFTs ever sold. (2021). https://decrypt.co/62898/the-10-most-expensive-nfts-ever-sold. (Decrypt).
[7] Howcroft, E. “Cryptopunk” NFT sells for $11.8 million at Sotheby’s. (2021). https://www.reuters.com/technology/cryptopunk-nft-sells-118-million-sothebys-2021-06-10/. (Reuters).
