MobiFi Token Economics
By: Team Mobifi
Tags: Mobility, Defi, Blockchain, Mobifi, Token Sale

Unlike some blockchain projects that set out with a fantastical vision that may take many years to realize, MobiFi is focused on changing the game in a way that delivers immediate value to users. MobiFi is not only paving a road to a sustainable tomorrow but providing ready-to-use mobility services today.

To this end, MobiFi is working to ensure that the product is functional in an enterprise environment out of the gate. At the same time, we’re working closely with different DeFi projects to offer users the option of choosing from a variety of yield opportunities. All of these efforts rely on and are made possible by our dual token strategy.

Dual token systems

Having a dual token strategy is not new. MakerDAO is perhaps the most famous example of this concept. Typically, a dual token model consists of one utility token and one security token. For MakerDAO, MKR is used as a governance token and price stability mechanism for the second token, the DAI stablecoin. Generally, the dual strategy is used by crypto startups so that the security token is for fundraising and the utility token for use on its network.

In the case of MobiFi, we will use the dual token model to ensure that the solution is compliant with large, regulated corporations, i.e.mobility service providers. We will create two utility tokens, one public and one private. The MoFi token is public and will live on Ethereum, and the SMile token is private and will live on the Corda enterprise network. And as the regulation of crypto tokens gets further clarified, the usage and structure can and will be iterated accordingly.

SMile tokens

Developed by R3, Corda is the most popular blockchain or DLT solution for business. Corda has one of the most active ecosystems with participation from banks, insurance companies, exchanges, and many other big corporates. Primary reasons for this include transparency, efficiency, and critically, controllable data exchange features.

These features enable businesses to transact directly and privately using smart contracts, reducing transaction and record-keeping costs and streamlining business operations. MobiFi decided to use Corda for similar reasons. We want to onboard businesses, i.e., mobility service providers, and using Corda provides instant cachet.

The MobiFi system mints Corda-connected SMile tokens with an internal reward model based on the scale of the mobility service market. It’s a dynamic token minting approach, similar to how an airline creates air miles. We algorithmically manage the supply based on the number of users, services, and providers. The greater the demand for mobility services, the more users, the more service providers, the more we increase SMiles in circulation.

Every SMiles token will be backed with real fiat currency, and the value of the SMiles token is designed to remain stable. For instance, one SMile could be equal to $.10. In different parts of the world, the cost of using a mobility service will vary. One hundred SMiles can be used to take a bus in Amsterdam, but it’s probably not enough for a similar service in Zurich. In terms of backing SMiles, if it’s rewards, it will reserve cash from service providers, and if it’s transportation credit, then it will be fiat from the user.

$Smile snapshot

The private Corda-based SMile token is used to power high-frequency transactions.

It will act as a stable payment medium to streamline mobility services and as a reward unit.

Its supply will be algorithmically managed based on users, services, and providers.

SMiles token will be backed with real fiat currency.

MoFi tokens

Besides the streamlining of mobility functionality, another problem MobiFi intends to solve is the unutilized cash in millions of transportation cards. Today, most transportation systems use pre-paid NFC cards as a payment method. For instance, the Oyster card in London, Ovchipkaart in the Netherlands, or the Octopus card in Hong Kong. For each of these systems, the card has to be topped up before it can be used. These cards represent the biggest pre-paid system in the world. Transportation companies leverage the system to access large amounts of capital and earn interest from it.

We believe that it’s the consumers that are entitled to any interest that their money earns. The MobiFi wallet then is the solution to turn this unused mobility credit into tokens and thus connect it with various DeFi services. Due to the crypto market’s flexibility, users can trade their mobility credit converted to MoFi tokens 24 hours a day, seven days a week, 365 days a year. And the interest yields are immediate.

$MoFi snapshot

MoFi tokens will be exchangeable for SMiles i.e., mobility services.

With every exchange, MoFi will be burned by the system.

MoFi will enable unused mobility credit to be used within various DeFi services.

MoFi Metrics

Below is a basic outline of MoFi token metrics, which illustrates initial market capitalization and the total supply of tokens. We’ve also included raise statistics to clarify how initial tokens will be allocated and released to make a distribution model to incentivize the rapid yet sustainable growth of the MobiFi community.

Total Supply : 150.000.000

: 150.000.000 Initial Circulating Supply following our public sale : 17.880.000

: 17.880.000 Ticker: $MOFI

Token Distribution:

Seed Round : 8%

: 8% Private Sale A : 10%

: 10% Private Sale B : 24%

: 24% Public : 3%

: 3% Reserves : 15%

: 15% Staking/Farming reward : 10%

: 10% Floating liquidity : 5%

: 5% Ecosystem : 10%

: 10% Advisors : 5%

: 5% Team: 10%

Upcoming:

Public Sale April 2th : 4.500.000 MOFI

: 4.500.000 MOFI Uniswap Listing date: April 6th, 2021

Sale Details*

Date: April 2nd 2021 — HERE

Start Price: USD $0.03 cents per token

End Price: USD $0.0565 cents per token

Sale Vesting:

Seed : 1 month cliff / 12 months vested

: 1 month cliff / 12 months vested Private Sale A : 10% TGE / 10% per month vested

: 10% TGE / 10% per month vested Private Sale 2 : 33% TGE / 33% per month vested

: 33% TGE / 33% per month vested Public Sale : Fully unlocked

: Fully unlocked Advisors : 6 months cliff / 12 months vested

: 6 months cliff / 12 months vested Team : 12 months cliff / 12 months vested

: 12 months cliff / 12 months vested Ecosystem : 3 months cliff / 18 months vested

: 3 months cliff / 18 months vested Reserves : 3 months cliff / 24 months vested

: 3 months cliff / 24 months vested Floating liquidity : NA

: NA Staking/Farming reward: NA

Token mechanics

The MoFi token uses Ethereum’s ERC20 standard, and it is the primary utility token to be used in exchange for SMiles, i.e., mobility services. When a user exchanges a MoFi token for SMiles, the MoFi will be burned. In this way, the MoFi token is deflationary, and over time, the total volume will be reduced. This mechanism of limited supply and ever reducing volume is intended to increase the value of the MoFi token. (See Figure 1 below)

Figure 1. The relation between MobiFi token price and its circulation volume based on the burning mechanism

The value of MoFi is, like any other digital asset, influenced by the demand and supply of the crypto market and the mobility ecosystem built on SMiles. The bigger the mobility ecosystem becomes, the higher the market value of MoFi token. This dynamic is expected to be especially noticeable in the first few years of MobiFi due to the primary relationship between MoFi and SMile tokens.

In addition, a user can only cash out SMile tokens via MoFi at an early stage (e.g., 1–5 years). If the SMiles mobility network is growing fast, there won’t be enough MobiFi tokens on the market to be exchanged.

See Figure (2).

Figure 2. MobiFi token price goes up as the mobility ecosystem grows

This design is intended to solve two problems:

1) Without a stable medium of exchange, the whole system would be unusable. The volatility of the crypto market will have minimal impact on the SMiles tokens that are used inside the MobiFi network. SMiles token plays a role as a stable coin, a mobility credit, and a reward point.

2) We ensure the circulation value of MoFi token is automatically adjustable to the demand and supply of the secondary market and directly influenced by our main business — acting as the financial orchestrator of mobility services.

Conclusion

MobiFi’s dual token system was designed with many contingencies in mind, and it ensures efficient token circulation to all stakeholders within the ecosystem. This extends beyond our platform to our transportation partners, liquidity providers, and everyday users.

Maintaining a stable value in SMiles and balancing supply and demand across the entire ecosystem were key design considerations throughout the whole process. As such, our model has a bias towards reducing token velocity and increasing value capture.

When (and if) the day comes that mass scale is achieved and our sustainable mobility vision is realized, the value of MoFi will have increased by orders of magnitude. Therefore, at a certain point, we also have plans for functionality that will allow SMile tokens to be cashed out in other cryptocurrencies directly or with CBDC, perhaps even fiat.

About MobiFi

MobiFi is a financial orchestrator for Mobility as a Service (MaaS). We’re building the transportation UX of the future — simplifying the mess of mobility services that many consumers face today while also allowing them to earn on their mobility credit. Once complete, our platform and tokenized payment system will boost mobility service provider efficiency and coax users into more sustainable transportation decisions.

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