GetSmart Token Functions and Logic

Users and Verification

• Participants: Users can participate as Earners or Sponsors without needing an ID. Email verification is necessary.
• Earners: Want to earn a badge and tokens offered by a sponsor (e.g., school, church, employer, parent) for some activity.
• Sponsors: Want to create an award, certification, badge, or scholarship that includes tokens for verification and reward to earners.
• Verified Sponsors: Users can opt to become a “Verified Sponsor” by paying a yearly fee, which includes a KYC/AML check. After one year of ethical use, Verified Sponsors can apply for Membership status, which includes voting rights, double staking, events, and token drops.
• Badge Creation: Sponsors can create unlimited badges using a single photo and badge info for a low fee (9 $GETS tokens).

Issuing Badges and Tokens

Four-Step Process:

1. Sponsor creates and publishes a badge (public or private). The badge includes tokens.
2. Earner applies for the badge.
3. Sponsor approves or rejects the application.
4. Earner claims the approved badge and tokens.

All steps are recorded on the blockchain in the background, ensuring smooth user interaction while providing an independent public record every step of the way.

Funders and Transparency

• Donation Tracking: Funders can verify how their donation was used by viewing badge details via a DID or QR code.
• Donor-Advised Funds: Donors advise the nonprofit on which badge project to fund.
• Tokenized Donations: Donations are tokenized into $GETS and sent to Sponsors, with part of the donation held as collateral by the nonprofit.
• Token Sharing: Donors, Sponsors, and Earners can gift tokens to others without any fees.
• Dashboard: Users can view both their earned badges and supported/issued badges.

Badge Public/Private Options

• Public Badges: Listed on the website for open application.
• Private Badges: Only accessible through a direct link shared by the Sponsor.

$GETS Token Economics

• Supply:
  • Max supply: 1 trillion tokens, after which it becomes deflationary.
  • Initial supply: 20 million tokens.
  • New tokens are minted (1000 per badge) when a badge is claimed.
  • 80% of minted tokens are available for the market, 20% are held by the nonprofit.
• Demand: Tokens fulfill financial, status, and convenience needs.
• Inflation and Deflation: Starts as an inflationary token but becomes deflationary after reaching max supply.

Token Velocity and Circulating Supply

• Escrow Mechanism: Tokens are held in escrow until badges are awarded. If not awarded before expiry, tokens are burned. If not claimed after 90 days, tokens are burned.
• Delayed Exchange: Creates a natural limit to the circulating supply since badges must be earned before tokens are available.
• Predictable Trade Volume: The system controls token velocity by linking token creation to badge claims.

Distribution

• Pareto Principle: 80% of tokens go to the open market, 20% to the nonprofit.
• Community Treasure: Up to 20% of nonprofit-controlled tokens may be used for a staking pool primarily to pay down student debt for token holders.
• Airdrop: 1 billion tokens are airdropped across verified Sponsors for every 100 billion tokens minted.

Incentives, Disincentives, and Controls

• Token Burn: Sponsors can cancel badges before expiry and recover 80% of their tokens, with 20% burned.
• Cooling Period: A 24-hour delay exists between steps 1 (Create) and 4 (Claim) to prevent double-spending.
• Account Separation: Sponsors and Earners must have different accounts to avoid self-dealing.
• Tax Responsibility: Users are responsible for their own taxes after converting tokens.
• Public Blockchain Transparency: All transaction data is publicly accessible on the blockchain.
• Content Violations: In cases of hate speech or false awards, the badge still exists but includes a public rejection notice and the metadata is blocked.