# 1. WICRYPT WHITEPAPER DISCLAIMER Please bear in mind that information contained in this document or any other publicly available content related to Wicrypt should not be treated as a warranty, public promise or commitment as of the product's final shape or functionality. It’s also not any form of financial, investment, wealth management or legal advice. Neither this document nor any publicly available information related to Wicrypt (referred to as ‘public documentation’) does not constitute any form of agreement or legal obligation between Wicrypt managing team (referred to as ‘Team’ or 'Wicrypt Team') and final recipients, readers or viewers of public documentation. Before purchasing any fungible or non-fungible tokens issued as part of Wicrypt ecosystem please make sure you’ve either done your own research or sought independent professional advice related to risk related with digital assets, decentralized finance and blockchain technology. Wicrypt Team waives any form of responsibility related to the result of purchasing digital assets connected with Wicrypt products and any risk associated with such purchases. Any form of forward looking statements, including descriptions, ideas, concepts, predictions, simulations and calculations related to Wicrypt contained herein or in any other publicly available document are not the final representation of the product and can be subjected to future revisions. Wicrypt team makes no warranty that the final product, its functionalities, features and overall utility will be set exactly as in these statements nor will it be obliged to ensure that all written, published documentation or content describing Wicrypt will be always aligned with the current state of the developed product. Please note any digital assets related to Wicrypt product and internal ecosystem are not (nor shall be treated as) a financial instrument, security or any other type of value-bearing asset. All Wicrypt-related fungible and non-fungible tokens are means of utility and optional governance, intended to be part of digital entertainment. Wicrypt team is not (and will never intend to be) a financial institution. Please note that our Team will continue to make every effort to maintain up-to-date information about the project through: \ Wicrypt website: [https://wicrypt.com/ ]()\ Twitter channel: \ Telegram community group: [https://t.me/wicrypt ]()\ Gitbook wiki page: Please make sure you’ve downloaded this document from the official source (Website or Gitbook page), before you continue reading it. We are not responsible for consequences related to distribution of any kind of misleading information through altered or otherwise modified versions of this document. In case of any doubts related to the authenticity of the document below, feel free to seek additional confirmation on our community channels on Telegram or Twitter. Lastly, please note that documents, contents or information published by [Wicrypt](https://wicrypt.com/) should never be viewed in a context of finality, as they can always be subjected to later revisions, partial or full modifications or deletion, if such is required due to continuous product development and improvements. # 2. INTRODUCTION TO WICRYPT Intro Back in 2016, the UN General Assembly passed a non-binding resolution condemning internet access disruption as a human rights violation. Unfortunately, that resolution did not address any governmental responsibility and focused more on preventing countries from blocking free internet access, rather than proactively increasing its coverage, accessibility and affordability. As a result, instead of being recognized as a fundamental human right (same as freedom of speech or free choice of employment) access to the global web is still used as an exploitable source of profit. Above issue is just the tip of the iceberg when it comes to the world wide web and global access to mobile data transmission. # 2.1 Issues with Current ISPs Some of the most burning issues are: * **Global inequality and the world of ‘two speeds’**\ Covid-19 pandemic and Russian invasion on Ukraine has exposed drastic inequalities between 2 groups of people: online, offline. Only the first one can fully expedite basic rights such as access to unbiased information, news and global digital knowledge. Nowadays, many people would find it difficult to imagine that they can’t ‘google something out’ (e.g. figure out how to change their car wheel). Yet it is estimated that approx 33% of the global population in less developed countries have never used the internet at all. * **Censorship and resulting alienation**\ There is no compromise when it comes to human rights, yet countries nowadays are more and more tempted to filter the content accessible by their citizens. For people living their lives in countries where the only news is fake news, it means living in a fake reality and alienation from the rest of the world. * **Oligopoly of ISP corporations**\ Even in countries with relatively free and unbiased access to the internet, that freedom is ruthlessly monetised by companies capable of meeting local ISP (eng. Internet Service Provider’) regulations and covering the cost of access point infrastructure.\ The global internet service access industry size is estimated to be approx $1.1 trillion dollars, yet most of that value concentrated under a few ISP giants like Comsat Corporation (approx. 278 billion USD in market cap or Verizon Communications (227.69 billion USD market cap), other companies with more than $100B in market cap are: AT\&T, T-Mobile, China Mobile, Charter Communication and Nippon Telegraph and Telephone.\ In total, all of the abovementioned corporations own more than 95% of the global ISP market. * **Abusive policy of internet providers**\ Have you ever got banned by your ISP because you’ve replaced their wireless router with your own or added a few new ones to extend the coverage in your house? Or maybe you tried but for some reason that option was disable and unlocking it would require hacking the in-built router software? The reason it’s so hard is because ISPs do everything they can to ensure you’re not reselling your bandwidth or sharing it with other people in exchange for cost participation.\ Adding to the above, ISPs often charge the same fixed fee for the offered connection, regardless of the actual uptime and quality of the data received, allowing for incidental discounts only in case of more serious internet access disruptions. * **Looking at internet coverage from profitability perspective**\ Imagine a rural region with low population density, little GDP and poor infrastructure making it hardly accessible. In many cases the cost of extending the nearest ISP infrastructure to that region would be way over expected profits.\ Simple manner of profitability is often a decisive factor when it comes to the future of thousands of people. If someone is born in a place where free access to news, information and knowledge is a fantasy, it’s hard to sustain the thesis that ‘everyone starts with equal chances’. * **Rapidly growing demand and inability to address that demand by traditional organizations**\ As the world advances in technology, the availability of the internet and staying connected with anyone and everything is crucial. There has been a massive rise in the Internet of Things (IoTs) that require infrastructure that can connect 10 times the devices we have connected to the internet today; some of which are going to be super privacy sensitive. Traditional organizations are less suitable to cater for these kinds of demands, as we're basically talking about homes, businesses and public places connecting all their smart devices/tags to a network; and having a fine level of control over that. # 2.2 Sketch of Current ISPs Issues Issues currently faced with accessing internet ![Internet access contemporary issues](/files/wSIppMHhH46RSXnhE9CN) # 2.3 Wicrypt Mission Wicrypt is a revolutionary approach towards global internet access. We’ve decided that instead of competing with (and essentially becoming) one of the aforementioned ISP giants, we will combine their existing infrastructure with decentralized, user-level infrastructure allowing anyone to become an ISP sub-retailer. \ As such Wicrypt is a bridge between the centralized 1.1 USD trillion dollars worth of ISP market and decentralized, tokenized world. Our mission is decentralization of internet service provision and consequently - reducing the cost of mobile internet access around the world. Wicrypt has already been able to prove the viability of that vision and bring down the cost of mobile internet in Africa by over 60% (as a part of the pilot phase). # 2.4 Long-Term Mission We deeply believe that the future of any business model and digital services is web3. Wicrypt’s team is not only perceiving decentralization as a new finance model, but also as a superior methodology and general approach towards technical and organizational infrastructure of current B2C oriented industries. Our vision and mission is building global internet access based on free user-to-user relations, in which everyone acts as a provider and a customer simultaneously. ![Wicrypt long-term missions](/files/1SWiIFgN8O1ejh9kiXZn) # 2.5 Product Summary From a product-wise perspective, Wicrypt can be referred to as a unique, decentralized internet sharing, storage and monetization network that gives users the power to control their own mobile data while remaining ISP and location agnostic. It enables end-to-end, secure encryption, bills the user based on the actual amount of consumed data, and credits the host. ![Wicrypt product summary](/files/PMdcJgAq8tPrD1xUomVK) # 2.6 Organizational Model ![Wicrypt organizational model - high level summary ](/files/VnqtzclqEFpwPaVIW4Wl) Technical layer of Wicrypt is quite simple, the network is built atop two layers: * Layer 1 - decentralized hotspot hubs (micro nodes), powered by the custom firmware * Layer 2 - connected clients (mobile phones, laptops, PCs, Smart TVs, Smart Watches and IoTs) The network is not controlled by any central authority. Anyone can become a host by acquiring a supported hotspot hub router (micro node), installing the Wicrypt firmware and creating a WiFi zone. Anyone within the created WiFi range and a proper device (e.g. laptop or phone) can gain access to the internet and become a Wicrypt user by connecting with the hub. In future, all Wicrypt nodes will be also connected with a decentralized storage network powered by Filecoin, allowing them to act as cloud storage devices as well. \ From a business perspective, Wicrypt network is powered by a native token called Wicrypt Network Token ($WNT). The tokens are used to incentivise hosts for creating and managing WiFi zones, (especially in hardly accessible regions) and as means of user-oriented bonuses such as cashbacks and airdrops. # 3. PRODUCT TECH STACK Introduction Purpose of this section is to provide an overview of ‘core’ products and features introduced by Wicrypt. For transparency purposes, this section does not include token-related features or solutions related strictly to token-based economy (covered separately in ‘Token economy’ and ‘Overview of other token based features’). Wicrypt network’s core and added value is built atop the following set of utilities, features and products: * Wicrypt hardware (hotspot hots ) * Wicrypt NFT outliers (digital representation of hotspot hubs on the blockchain) * Wicrypt firmware * Mobile application * Cloud servers (Distributed network) ![Wicrypt key products](/files/1MjeekNKADGTxqiVb359) # 3.1 Hardware (Hotspot Hub) Wicrypt hotspot hub is a proprietary hardware designed and built as an answer for traditional routers problems such as low storage capacity ,low computing resources or short range. Wicrypt hotspot hubs can withstand rough handling because the WiFi hosts are able to provide internet on the go. The Wicrypt hotspot hubs also have a low power and battery powered variation that is able to last for up to 10 hours on a single charge, and be recharged with Direct Current(DC). This enables easy WiFi hosting even in the most remote regions of the world. Wicrypt hotspot hubs can also be laced with solar accessories to enable the hubs to last all day by storing solar energy in the batteries during the day and using it overnight. Wicrypt router batch all data transactions coming through it every 20 seconds and creates a block of data transactions directly on the blockchain. ![High level overview of Wicrypt network model](/files/7Bb0vFTFD6RlhDoNKvBU) # 3.2 Outliers (NFT Hotspot Hub) The Outliers are a digital, NFT representation of the Wicrypt Devices on the blockchain. The Wicrypt devices create hotspots for peer-to-peer internet sharing and IoT connections. Each device’s real-time information and data volume transfer is represented on the Wicrypt blockchain explorer and world map. It creates an open data network of information and data transfer in different parts of the world on the blockchain. Wicrypt outliers are used for the following purposes: * **Joining Wicrypt as a digital host:** digital host is no longer required to buy and set up a node physically but instead cascades that action to Wicrypt Decentralised network. In exchange for acquiring NFT, the host becomes part of a larger network and participates in a global pool of digital host’s profits. Digital hosts have no influence on the bandwidth, uptime and region in which hotspot hubs are being set up. Their NFTs are more a ‘token of participation’ rather than an actual, manageable device. * **Storing hotspot hub metadata -** Upon hub purchase (both physical and digital), NFT with hub metadata is minted. That NFT contains multiple information about the hub, including owner’s wallet, date of purchase and essentially - device **type** and **grade**. * **Device type** tells whether the hub is in physical possession of the host or was it rather minted as a digital token. * **Grade** of the device is either ‘basic’ or ‘originals’. Premium device means bigger bonuses and rewards for the device owner, as well as more attractive conditions related to proof of stake requirements (please refer to the next chapter for more details on Proof of stake). Hosts can always decide to upgrade that parameters (i.e. from basic to premium), through burning the previous NFT assigned to the hub and replacing it with newly minted ‘premium’ one. ![Wicrypt device hub classification](/files/GcNtWaqrHdvnZuYJ2eDM) # 3.3 Firmware (Operating System) The Wicrypt firmware is a Linux Embedded Distribution Environment based software that powers the operations of the hotspot hub as a micro-node in the Wicrypt network. The firmware is a highly adaptable software built to run on billions of devices and maintain scalability. It enables traffic control, end-to-end encryption of user data, data usage, billing and security to prevent unauthorized access to the device. The firmware syncs all information with the Wicrypt network. Routers are usually limited by low **storage** capacity and **computing resources**, but thanks to our combined proprietary hardware and firmware design, we are able to improve these features and enable them to act as micro-nodes (or micro-servers) in the Wicrypt network. Each router measures data usage of connected users and transmits it to the cloud servers. # 3.4 Mobile App Wicrypt supports both Android and iOS operating systems. The mobile application introduces the following features: * **$WNT** **Management** - the mobile application has an inbuilt wallet that enables easy purchase of **$WNT** by using existing fiat or existing crypto currencies like BTC, ETH or BNB. * **Authentication and Authorization** - the mobile application uses a timed algorithm and a public key that generates interval-based codes ensuring secure access of the users to their Wicrypt account and network. * **Referral Management** - Referring account is incentivised by predefined % share in expenses or revenues made by referred accounts (depending on whether referred person acts as a user or a host) * **Data consumption management** - Allows to automatically top-up data balance at good rates. Users can add friends, family or customers to their account, allocate data to them, monitor consumption, and track individual usage over time. * **Profit redemption** - Helps to monitor received payments and cash out revenues on a crypto wallet or bank account. Wicrypt mobile application is the only way to gain rewards for referrals. Upon downloading the app and setting up an account, users receive their referral code that can be used by anyone else during account setup. Any referred account which spends at least **200 $WNT** on hosting services will get **100 $WN**T tokens as bonus. Moreover, each referring wallet will be entitled to participate in a referral airdrop campaign with a total rewards pool of **100,000 $WNT**. 100 $WNT referral bonuses will be paid out until the referral bonus pool is exhausted. Wicrypt managing team will publish details related to referral bonuses and airdrop campaign separately. Apart from referral bonuses, any referred account will be generating passive $WNT revenue through: * Commission fees on $WNT bought by referred accounts through the mobile app - part of the WNT purchase fee will be sent to the referring wallet. Mobile app purchase fee is equal to **0.3%**, depending on how many $WNT tokens the referring account is staking, the share in that provision will vary from 1/10 to 9/10. * Commission fees on every internet access purchase made by the referred account. Depending on staking score, such commission fee will vary from 0.25% up to 10%. Commission fees on these transactions are deducted from host fees. ![Wicrypt mobile app revenue streams and WNT utility](/files/DjDAfJw0wNt92h5ASAU7) # 3.5 Cloud Servers (Distributed Network) Wicrypt distributed network and cloud servers receive information from all integrated hotspot hubs in real time. The cloud servers perform the following actions: ![Wicrypt cloud server functionalities ](/files/SVr3Egwx1VZ1K0lVkUDg) # 3.6 Wicrypt Explorer Wicrypt explorer is a robust architecture coverage map with a dynamic and innovative purpose that allows Wicrypt users to see on the map Wicrypt hotspots near them so that they can connect and access the internet. ![Wicrypt Blockchain explorer (green sectors are a representation of Wicrypt’s hotspot hubs coverage)](/files/P1K4w5bLTMW1JJ9empAp) # 3.7 Wicrypt Quality Assurance Wicrypt is a complex, immense network requiring proper means of quality assurance aimed at ensuring that end customers are always equipped with the high quality bandwidth and uptime, without any unwanted limitations, site censorship or connection speed jammering. During the initial stage of network development, that responsibility will stay with Wicrypt DAO, regularly monitoring quality of data and adjusting host rewards depending on the results of such checks. Later on, our network will introduce 2 layers of decentralized quality assurance (abbrev. ‘DQA’): * **Bottom-up** - by allowing any user to rate (from 1 to 5, with 5 being the best) the quality of the services bought from an individual host. The rating of a single user will be weighted (i.e. multiplied) by the actual amount spent by that user on a ranked host’s internet access. * **Top-bottom** - by introducing the DQA rotation system in which every turn, random hotspot hubs are being selected to : * perform a quality check of connections offered by nearby other hotspot hubs (hubs chosen for this task are referred to as ‘**challengers**’, as they issue challenges to nearby hotspots). * monitor and report proof-of-coverage for other nearby WiFi hotspots (these hubs are referred to as ‘**watchdogs**’) Probability and frequency of being selected as watchdog and/or challenger depends on the number of nearby routers and possibility for one hotspot hub to reach the signal of another. Isolated, single hubs will be therefore excluded from the top-bottom DQA, as they can’t be objectively tested by external hosts. In other words, it’s always better to acquire more hubs and ensure they remain in each other’s reach so they can perform self-reliance checks on each other. Leaving ratings, and being selected as a watchdog or challenger is rewarded with additional $WNT rewards. ![Wicrypt quality assurance system ](/files/AzZCxKN6xXOquqJcn7UZ) **NFT Hotspot Hubs Ranks** As already mentioned in a previous section, everyone who is willing to become Wicrypt host will be able to join the network either as: * Physical host (hardware) * Digital host, with NFT hub ‘minted’ and stored on-chain as ownership proof. Both physical and NFT hubs can be acquired in one of the 2 versions: standard and premium(originals). Premium devices are slightly more expensive, but are also connected with a +50% bonus to all rewards participation programs. # 4. TOKENOMICS Introduction Wicrypt framework is a token-based ecosystem. The key idea behind introducing tokenisation was to make our product more efficient with $WNT token than without it. Core token-based features of Wicrypt are revolving around: * $WNT token * Proof-of-stake * Governance * Payments * Incentivisation of users # 4.1 Wicrypt Network Token ($WNT) $WNT token is an underlying foundation of Wicrypt ecosystem. $WNT is an EVM-compatible token launched on Polygon. Most of the interactions occurring within Wicrypt platform are tied directly or indirectly to $WNT, making it a means of utility and governance. The maximum supply of $WNT is set as 200,000,000, meaning that unless future DAO decides otherwise, there can never be more tokens in circulation. Wicrypt token is already listed and publicly tradable on Quickswap and MEXC. More details related to the economy of $WNT and its allocation and release details were included in the next chapter (‘Wicrypt token economy’), while an in-depth overview of detailed token utilities is included in section 5 (‘Overview of other token-based utilities’). # 4.2 Proof-of-Stake (PoS) There are 2 types of users in Wicrypt network - hosts (internet providers) and users (customers). In order to be part of the network, hosts are required to acquire and stake a predefined amount of $WNT tokens. This is intended at ensuring their commitment towards overall, high quality and security of Wicrypt as a product and eliminating any economical profit of acting against Wicrypt. Hosts’ proof-of-stake deposit is treated as a specific form of collateral - in case of detecting malicious behaviors or exploits from their end, their $WNT deposits are being freezed (i.e. locked away without possibility of withdrawal), for predefined amount of time (3 to 12 months depending on a severity of malicious behavior). Please refer to the table below to better understand how required proof-of-stake is being calculated: ![Wicrypt PoS requirement ](/files/DXZh9oy2a4k2Rg83YmhC) ![Wicrypt PoS unstake period (lockup) ](/files/2vpnMrd2nfvTNIjUIu7q) The more devices are bought by the future host, the lesser PoS deposit per device gets. Maximum discount related to the amount of devices bought/owned is 33%, and remains the same even if the host has more than 5 devices. Unlike the PoS deposit discount, unstake cooldown period is growing per every device. This approach is justified by the need to ensure network stability and extend the period in which Wicrypt DAO can prepare for a high number of hubs being switched-off. PoS requirement is applicable only for physical router owners. Digital hosts are exempted from the necessity of making PoS deposits. From an incentivisation perspective, tokens staked as a part of PoS requirement are classified same as staked $WNT tokens (please refer to ‘[Token Economy](broken://spaces/jSsLRzYB6xgZWRu7c94h)’ section for more details), i.e. they entitle hosts for participation in staking rewards distribution, staking score aggregation and progressive unlock of in-platform bonuses the longer they’re being staked. # 4.3 Governance $WNT token is a key medium of governance - anyone with active PoS or staked/locked $WNT tokens earns a so-called ‘staking score’ (please refer to ‘Token economy’ chapter for more details), which is used to calculate ‘voting power’ in community governance. Voting power allows anyone to participate in proposal submissions and voting for them, as a member of Wicrypt DAO. For more details related to Wicrypt DAO model and governance process, please refer to the last chapter of this paper. **Governance Model** Wicrypt network is subjected to so-called ‘hybrid-governance’ model in which every part of Wicrypt business model and organizational setup that can be reasonably decentralized is cascaded to **DAO**, while other elements, such as ongoing management over back-end of the product, maintenance and external communication is handled by a central, executive body called ‘**Managing** **Team**’. Each $WNT staker is automatically entitled to participate in Wicrypt governance. Voting power of each entitled user is calculated based on the following formula: *voting points = staking score.* The DAO proposal can be related to anything that concerns Wicrypt product development and organization setup. For example: * Min volume threshold entitling or hub uptime required to earn $WNT * Maximum billing rate host can set*.* Submission of proposals requires voting power equal to or higher than the bottom staking score threshold assigned to the 6th staking level.\ Amount of voting proposals per week that can be submitted starts with 1 and is increased per every staker’s level, until reaching max value of 4 per week for top stakers. Stakers without sufficient voting power to make a submission on their own can delegate their voting power (for the submission process only) to another wallet. This way multiple smaller stakers can still have their own voice and still make voting proposals. Delegation of voting power is effective only in relation to making a voting proposal, and can’t be done ‘partially’ - one wallet can delegate 100% voting power to only one other wallet at the same time. Operation can be reverted any time, but users need to wait at least 24 hours before delegating voting power to another wallet. There are 3 stages related to each governance proposal: * Proposal submission * Voting on listing proposal vs instant rejecting it - in 3 days from submission * General voting on proposal - in 7 days from submission Following majorities are applicable for the above: ![Voting Process](/files/y6FqJdgjeAu44REgAmvZ) Please note that the majority and quorum of DAO is calculated by voting power, not staker’s headcount. ![Wicrypt Governance process](/files/PTKOCaNFwJxbLviFt0Ka) # 4.4 Payments $WNT tokens is used as a default form of payments and interactions in Wicrypt network (although ecosystem participants can choose settling transaction in one of the applicable stablecoins as well). Choosing $WNT will always remain a more profitable means of payment due to lower provisions on host <-> customer transactions and discounts on hubs/NFTs prices. Please refer to the table below for more details: ![Stablecoin vs $WNT based settlement ](/files/Jrw7klapxTNYDMwMKrHW) Any host determining prices for their services and choosing $WNT as a settlement method will be protected by the potential negative impact of token volatility by the so-called ‘dynamic pricing system’ in which the service price is pegged to the stablecoin value but it’s still expressed in $WNT as a unit. Subsequently, the price of the service is being regularly updated through Wicrypt oracle using multiple source feeds to prevent any potential exploits. Additionally, price is being double checked upon purchase transaction execution. # 4.5 Incentivisation Layer & Stake-to Model All of the utilities, products and interactions that can be performed within Wicrypt network are tied to staking and incentivisation (either in form of rewards or as bonuses). We refer to the above as the ‘Stake-to’ model, details of which are comprehensively covered in a [next section (5)](broken://spaces/jSsLRzYB6xgZWRu7c94h) of this document. # 5. TOKEN ECONOMY Purpose of this section is to describe Wicrypt ecosystem participants and the way they interact with Wicrypt network, as well as providing full, in-depth overview of $WNT-based economy, including token circulation model, allocation, distribution (vesting) as well as Wicrypt incentivisation layer and revenue streams. **Ecosystem participants -** There are following types of ecosystem participants involved in Wicrypt network: * **Customers** - purchasing internet access from hosts. * **Digital hosts** - owning a hub NFT without the need of possessing and configuring a physical device. * **Physical hosts** - owning and possessing actual physical devices. * **Wicrypt DAO** - central managing body of Wicrypt network, responsible for setup and maintenance of the network and issuing devices/NFTs Please refer to the chart below for reference. ![Wicrypt ecosystem participants](/files/wrogpKyBuQxg2fGSAUq7) # 5.1 Token Circulation & Value Accrual Model Please refer to the chart below, summarizing Wicrypt token circulation and ecosystem participants interactions:

$WNT token circulation

**$WNT - Allocation and Distribution** The Maximum supply of $WNT token is set as 200,000,000, and will be gradually released to Wicrypt ecosystem participants, investors, community and reserves as per the table below:

$WNT token allocation and vesting

![$WNT allocation chart ](/files/WU1leEDJt4iRiIQ06Cpg) ![$WNT vesting schedule](/files/NF0h2jS0VdDOGBoTZKXY) # 5.2 Stake-to Model & Staking Score Wicrypt stake-to model means that staking $WNT tokens is not only tied with rewards but also amplifies users and hosts positive experience from being platform members. Staking $WNT tokens and maintaining PoS deposit results in an accruing S**taking Score**, equal to the average amount of tokens held across a 12 months time period. For example, if someone is staking 2400 $WNT tokens for 6 month, the resulting staking score will be 1200 (2400/12\*6). Please refer to the table below to better understand staking score accrual: ![Example of staking score accrual model with 1000 $WNT tokens staked for 6 months, additional 1000 tokens added to stake on 7th month and withdrawal performed at 12th month.](/files/qcnXBEW63PUxIID0lanx) While standard staking models only incentivize stakers based on the amount of staked tokens, Wicrypt incentivisation policy adds the element of time involvement as well. Such an approach significantly reduces profitability of staking high amounts of tokens over a short period of time and greatly improves positions of long term token holders. To better visualize the importance and fairness of such an approach, please refer to the example below: *Example: Janine has kept staking 1000 $WNT tokens during the last 12 months; her staking score is now equal to 1000 (1000x12/12). Andrew has decided to quickly stake 6000 $WNT tokens to participate in rewards distribution. His staking score after the 1st month is equal to 500. Despite stalking much less than Andrew, Janine is still twice as strong when it comes to rewards distribution, thanks to staking her tokens for a much longer time than Andrew.* Staking is available for any token holder. PoS deposits are treated equally as staked tokens when it comes to rewards calculation and distribution. Holders who already have staked some tokens or hosts with active PoS can always stake more, but ‘partial withdrawals’ are not possible. Withdrawing staked $WNT tokens or PoS deposits can only be done in respect to the entire staked or locked amount and activates a so-called **cooldown period**. For classic stakers (non-host) such a period is equal to **7 days**, after which they are asked to make a confirmation of their decision. Once that confirmation is made, all staked tokens are withdrawn.\ For more details on the **PoS unstake cooldown period** - please refer to the ‘Proof-of-stake (PoS)’ section of this document. # 5.2.1 Weighted Rewards Distribution Staking score is usually connected with a set of levels, unlocked once a specific staking score threshold is crossed. These levels are usually translated into predefined rewards multipliers. Multipliers should not be understood as an actual mathematical multiplication on rewards received, but rather as a staker’s “weight” in a rewards distribution process - please see chart below for better understanding: ![Weighted rewards distribution](/files/Eg5P38WVMxOsbRlYZVDB) # 5.2.2 Staking Rewards vs Volume Rewards There are two types of distributions streams sustained by Wicrypt: * Based on staking score (staking rewards) * Based on volume (host and user rewards) ![Wicrypt distribution streams ](/files/kbnZBTarWmeVSTKReJCP) While staking rewards are distributed to the users based on the staking score, volume rewards are distributed based on amount and size (capital-wise), of operations performed within Wicrypt platform. Following activities will be accounting for a total volume of the user used as key for volume rewards distribution: * Total amount of commission fees paid * Total amount spent on Wicrypt services * 10% of volume generated by all referred accounts * Total amount of $WNT tokens purchased through the mobile app Volume is always expressed in $WNT token, even if a specific transaction is settled with a stable coin (in such cases the transaction size will be recalculated to $WNT using the applicable conversion ratio as of the date of the transaction/operation/activity). As the staking score gets higher, so does the rewards multiplier, increasing the overall user share in both staking rewards and volume rewards. Wicrypt sustains two types of volume-based rewards streams - **host** **rewards** and **user** **rewards**. Details related to host rewards calculation are covered in the ‘Host revenues and rewards’ section of this document. Amount of received **user** **rewards** is referred to as ‘**cashback**’ bonus, and by default - it can’t be larger than the amount of cashback bonus limit assigned to the user account as per his staking level (please refer to the ‘Incentivisation’ section for more details). ![Wicrypt staking rewards and volume rewards](/files/bd9wEGYrNwvYsicB6GJh) # 5.2.3 User Cashback & Volume-Rewards Limiters Wicrypt users are entitled for a cash-back reward depending on how much WNT tokens they have spent on internet services in a specific time-period. Cashback % is also dependent on the user's staking score (please see ‘Incentivisation’ section for more details). Apart from above, in order to avoid wash trade and selling Wi-Fi access between host and user account owned or controlled by the same person, just for the sake of improving host position in respect to anticipated rewards distribution, any volume-driven rewards are mainly tied to the actual amount of commission fees paid to Wicrypt, instead of classic, transaction volume. # 5.2.4 WNT Lockups Locking tokens instead of staking it is a way for a token holder to express additional loyalty and confidence in Wicrypt network development, locking a token away has a positive impact on $WNT economy, and as such is classified as extra-incentivised behavior. Locking the token means that the user can’t initiate the unstake procedure until the lockup period is over. The only option to release locked funds is co-called ‘emergency unlock’ at the cost of 30% of the principal amount, gradually reduced, proportionally to the amount of lockup days left. Wicrypt will introduce 4 possible lockups: * 3 months * 6 months * 9 months * 12 months Locking the $WNT tokens instantly boosts the staking score to the level that would have been achieved if these tokens had been staked for a locked amount of time. *Example: John has been staking 1000 tokens for the last 12 months, his staking score is now equal to 1000. Alex is not as patient as John. He wanted to achieve the same staking score right now, so he decided to lock his 1000 $WNT tokens on a 12 month lockup. He immediately earns a 1000 staking score, very much the same as John.* Same as with unstaking, there is no possibility to perform ‘partial unlock’, but anyone can freely: Extend the current lockup to the higher level (e.g. from 3 months to 6 months, or from 6 months to 12 months) Increase the size of lockup Convert current staked amount into lockup*.* Extending or increasing the lockup means the total time of the lockup is subjected to reset (i.e. it starts again as if it was just created). *Example: John has locked 1000 $WNT tokens for 3 months. After 2 months, he decided to add $1000 WNT to that lockup. He now has one new 3-month lokcup for $2000 WNT.* # 5.3 Incentivisation Staking score is connected with account level, and as it gets higher it activates better incentives for the user - please refer to the table below: ![Staking levels and example bonuses ](/files/GCLMUe8FCSFSOt441Pay) # 5.3.1 Infinite Rewards Distribution Wicrypt allocates approximately 25% of total token supply for the incentivisation policy, organized as a 3 separate ‘**distribution streams**’ * Host rewards * Activity rewards (for all users) * Staking rewards Each stream is subjected to infinite release through a so-called ‘logarithmic distribution curve’ (please refer to the chart below). It means that each time rewards are released (e.g. daily or weekly), the total number of distributed rewards will be slightly less (e.g. 99.5% of a previous distribution). Thanks to such an approach, the rewards curve will never drop to 0 and will be sustained infinitely. Slight decrease in rewards amount is compensated by the anticipated long-term market cap increase of $WNT tokens. Wicrypt DAO can always make decisions to increase the current amount of distributed rewards in case the rewards curve gets too low. Please refer to the picture below, visualizing the idea of logarithmic, infinite release of rewards: ![Logarithmic rewards distribution](/files/dtszAFsnE8iu3lSKSB5c) # 5.3.2 Distribution Streams The table below contains a list of all Wicrypt ecosystem participants, together with their percentage share in rewards streams and methods used to calculate individual’s rewards. ![Incentivised groups of ecosystem participants ](/files/gCYm1qpMP1I93PhFAEST) As mentioned in a [previous section above](broken://pages/zuozcfpbRGEzh80lwXcv), incentivisation streams are infinite and will be sustained through a logarithmic WNT distribution curve. # 5.4 Host Revenues and Rewards Each host receives two types of incentives - for being member of Wicrypt community: * revenue * and rewards Revenue of physical hosts is tied directly to their individual performance - the more bandwidth they sell the better is their financial outcome. Situation of digital hosts looks different - since they don’t choose location of the device and do not have direct influence on size of the sales or quality of offered services, they simply participate in total revenue made by all digital hosts in the Wicrypt ecosystem, based on the amount of NFT digital hubs they own. *Example: Matthew owns 2 Wicrypt NFT hubs; total revenue made by all digital (NFT) Wicrypt hubs for this month was $100k. Since there are 540 Wicrypt NFT hubs in total, Matthew's revenue for this month is equal to approx. $370 USD. On the other hand, John has 4 Wicrypt hubs in different parts of his city. Only one was actively used to sell bandwidth this month.* *Amount of data sold by John is 1200GB, his pricing for 1GB of data is $0.20, which means he has earnt $240 USD.*Apart from revenues, hosts are also participating in a dedicated rewards distribution stream founded by Wicrypt treasury. The distribution of hosts' rewards is subjected to weighted distribution (please refer to the token economy chapter for more details). Rewards for all hosts are first divided into two sub-pools based on the total size of sales volume of each of the groups - one pool is divided between physical hosts and other between digital hosts. *Example: Total sales of physical hosts for the previous month was equal to $25 000, while digital hosts revenue was $18 000, total size of host rewards pool is 100 000 $WNT tokens.* *Physical hosts will participate in a split of 58 140 $WNT tokens (100k divided by 43, multiplied by 25), while digital hosts participate in a pool of 41 860 $WNT tokens (100/43\*18).***Physical hosts** rewards are splitted based on the individual sales of each host, for example, if reward pool for these host would be equal 1500 $WNT tokens and there would be only 2 hosts, one with a volume of $50 and other with $100, first one would get 500 $WNT tokens and the later 1000 $WNT tokens (1:2 split)*.* **Digital hosts** are splitting the pool based on the number of NFT devices owned by an individual.Host rewards are accumulated and claimable once per month. Exact size of claimable $WNT rewards can be affected by the following factors:
![Factors affecting claimable rewards ](/files/E0A2FKU5eOxsPZOMGNbE) Please refer to the ‘[Wicrypt Quality Assurance](broken://spaces/kdFGC4Uc7hhZ7OSdPhXy)’ and '[Location Based Bonus](broken://pages/NjehWG3SXGt1Rm1y0H3j)' section, for more details. # 5.4.1 Host Rewards - Rewards Formula Since host rewards are affected by multiple various factors, the formulas below can be used for clarification and simplification. Digital host rewards are calculated using the following equation: $$ Hdr = (Rd \* Dv/Dwp) \* Rwn $$ ​**Where:**\ **Hpr** = Physical host rewards\ **Rd** = rewards drop\ **Pv** = % Ratio of physical hosts volume in total sales volume of all Wicrypt hosts\ **Pwv** = Physical hosts weighted volume (each hub’s volume is multiplied by its rank weight, location bonuses, user ranking adjuster and quality check adjuster, and a result forms a cumulative weighted volume)\ **Hwv** = Total weighted volume generated by hubs held by an individual, physical host While physical host rewards are calculated as: $$ Hpr = (Rd \* Pv/Pwv) \* Hwv $$ ![Host revenues & rewards summary ](/files/dkzV1AbbPILDMhDi56qN) Lastly, each host has a PoS deposit which is subjected to the same rules as staked tokens, meaning that each **physical host** (digital hosts are exempted from PoS requirement) is also acting as a $WNT staker with PoS deposit classified as staked tokens entitling for a staking rewards drop. # 5.4.2 Penalisation of Hosts As mentioned in a previous section, quality monitoring and user review processes might result in decreasing the size of revenue and rewards that hosts would normally get, however hosts can be also penalized for other malicious behaviors or actions oriented at harming Wicrypt ecosystem. ![There are 4 types of penalties predicted for hosts in Wicrypt ecosystem](/files/tjHybXX0eaDzwDYZyeZW) Exact freezing and slashing severity penalties will depend on severity and damages caused by malicious behaviors. It’s worth mentioning that the above system is applicable only in case of physical hosts, as digital routers are managed directly by the Wicrypt network. # 5.4.3 Location Based Bonus As already mentioned in a ‘Host revenues and rewards’ section, the exact size of physical hosts’ rewards is determined by multiple factors, including so-called ‘location based bonuses’. Location based bonus is a set of three factors: * Congestion * Saturation * SEZ rating Please refer to the following table to better understand location based bonuses: ![Wicrypt location based bonuses ](/files/zjUnkRHPj20w9CdMrG2c) ![ Location based bonuses scoring system](/files/RH6MiB24xjb2lYILPas1) # 5.4.4 Reinvestment Bonus Wicrypt host are given unique option of so-called ‘profits reinvesting’. That feature allows them to stay exempted from any Wicrypt commission fees applied on revenue provided that it will be used for a purchase of a new Wicrypt hubor NFT. Reinvestment logic works in monthly intervals meaning that all funds accumulated in month \[n] need to be reinvested for the purchase of: * Hardware hub * Digital NFT hub or * NFT hub rank upgrade before the end of \[n+1] month to stay exempted from the Wicrypt commission fee. Any revenues that haven't been reinvested will be subjected to a commission fee at the beginning of \[n+2] month. *Example: John earned 1000 USDT as Wicrypt host in January. He hasn’t claimed a revenue yet. It is now mid February and John decided to buy another hub for 900 USDT, he used the reinvestment feature and covered the cost by 90% of his revenues from last month. Commission fee that will be effective in March will be applied only to the remaining 100 USDT of January profit.* Above mechanics is based on ‘deferred commission fee effectiveness’ meaning that by default, all revenues obtained within specific months are subjected to commission fee after the end of a next month. The only exception occurs when the host is claiming the revenue as a profit on his wallet. In that case, a commission fee is applied instantly, upon the claim. # 5.4.5 Tradability of Digital NFT Hubs Each digital NFT hub is tradable, which means it can be freely sent from one wallet to another. Since that NFT contains the ID of the router, any current holder can login to Wicrypt network and claim revenues and rewards that are assigned to that ID. Thanks to the above setup, digital NFTs can be also traded on any DEFI marketplaces such as Opensea. # 5.5 Wicrypt Revenue Streams & Value Accrual Wicrypt economy is based on multiple revenue streams and value accrual policy obtained either through redistribution of profits through token-based rewards (described previously) or by proactive approach to buybacks and burning or redistributing in a form of ad-hoc rewards (airdrops, promotional campaigns etc). Please refer to the chart below for better overview of Wicrypt revenue streams and fiscal strategy: ![Wicrypt revenues and value accrual ](/files/FDljYmPiYsX8po8LlwDV) As visible above, a major part of Wicrypt revenue stream is based on host revenue. The reason it’s not presented as a fee charged on a transaction between host and user is because Wicrypt business model is not scalable through the number of transactions per se, but rather the amount of data sold. As a result, it makes far more sense to apply commission fees on Host’s revenues rather than on the transacted tokens. Part of the revenues are transferred back to reserves from where they are proactively managed by Wicrpyt DAO and used for buybacks, redistribution or burn, depending on ongoing needs and current market situation. # 5.6 Referral Provision Bonus Any Wicrypt user can use a mobile application to invite other people to join the network and start using Wicrypt features. There are 2 benefits of making an invitation. First, 10% of volume (please refer to ‘staking rewards vs volume rewards’ chapter for more details) will be accounted for as the volume generated by referring uses, for the purpose of volume rewards calculation. On top of this, if the referred user becomes a host, the referring party receives a predefined % of that host revenue (exact % dependent on referring party stake level, please refer to the ‘Incentivisation’ section for more details). Hosts referred by other users will see the % of the price that will be deduced as a part of a referral fee, and the final net amount they will receive after it’s deducted, so they can adjust the gross price respectively, if they feel it’s needed. # 6. FUTURE ROADMAP Intro Below chapter contains an overview of future Wicrypt features that will be developed and added to the products in upcoming months. # 6.1 Stimulus Loans Any $WNT token holder can add tokens to the lending pool used to fund incentives for hosts setting up their hotspot hubs in designated areas chosen as a part of the stimulus campaign. All lenders participating in a stimulus project will be paid back through future revenues made by hosts from that area. Revenues are locked away by the smart contract automatically, upon every purchase of mobile data access from these routers. ![Wicrypt lending project](/files/pNy69eOuWYhTudbvP7sD) # 6.2 Decentralized Storage Cloud Each wicrypt router enables plugging external devices via USB to increase their storage (e.g. you can connect an external 500GB SSD drive to your router and use it as a cloud drive). Any Wicrypt Host that adds and shares storage space with users will gain access to additional revenue streams (payments for shared storage) as well as additional rewards for extending Wicrypt network storage capacities. # 6.3 NFT-Based Router Recovery Every host will be recommended to increase the security of NFT-based routers by setting up a recovery backup. Such a system protects users from accidental wallet access loss or worse - compromising private keys. NFT routers recovery is enabled by creating additional NFT duplicates and dividing them into 2 groups: * One prime NFT (called parent), which is the original NFT router**.** * 5,7,9,11 or higher odd numbers of so-called ‘children’ NFTs, linked to the parent. All NFTs are transferable and can be freely distributed (Parent NFT retains exactly the same features as it had before, including accumulated, unclaimed rewards and revenues). In case users accidentally lose access/ ownership to their parent NFT (e.g. due to wallet access loss or theft of parent NFT ID), children can be used to trigger a router restoration procedure. To do that, user simply needs to gather the majority of children NFT on a single wallet (e.g. 3 out of 5), and then use that wallet to perform metamask login to Wicrypt Network. Account restoration procedures are always accessible directly from the main landing page. Upon clicking it, Wicrypt will check if logged wallet actually meets account restoration prerequisites i.e: * Wallet does not have any parent NFT * Wallet have majority of children NFTs assigned to the single parent NFT If the above criteria are met, the user is asked for additional confirmation before running a recovery, and once that confirmation is provided - the product deactivates the previous parent NFT and all of the linked children by putting them on the blacklist. Smart Contract then mint a fresh package of NFT parent and children. Upon finalizing the account restoration procedure, the user successfully regains ownership of the NFT router. ![ NFT router restoration procedure using 1+5 NFT multisig setup](/files/6qWrSwpJMnL8hFHKHaMP)