Custom Fees on 0bsnetwork

Altcoins used to be complicated

Even on blockchain platforms which allow custom token creation, you still need the platform’s own primary coin in order to conduct any transactions. Transaction fees on such platforms are paid in “gas”, but that is just an unnecessarily confusing special name for the platform’s primary coin. On Ethereum, for example, if you create a custom token called “BizCoin” and distribute it to your investors and the users of your service, in an ICO or otherwise, you will always need Ether to pay for transactions. All users of “BizCoin” will as well.

This extra step in the transaction adds a layer of complication that is a barrier for adaptation to the wider customer base.

That’s all fine and dandy if the users of your token are sophisticated and experienced cryptocurrency investors, or “hodlers”, who already understand the ins and outs of how previous-generation platforms work and are fine with jumping through hoops in order to send some tokens to another wallet. But what if your business wants to reach out to customers who are not regularly, or have never been, exposed to cryptocurrencies? What if your brand is so carefully built over years or decades that you want your token to “just work” and the inner workings of the blockchain platform to disappear from the users’ sight?

Imagine the following

Imagine you’re running the tokenization of a global luxury fashion brand The Fashion Company and you’re creating FashionCoin. You’ve built a set of web and mobile applications, digital storefront where your customers can spend hours being inspired by your latest designs, give you their comments and proposals, put together outfits and send them to their friends, build lists of gifts, summer, or autumn collections, and so on and so forth. And for this interaction with your brand, you reward your customers by sending them some FashionCoins that they can then apply towards the price of your products. It’s feasible to create a loyalty program where your most engaged customers can buy your products only using FashionCoin.

It is this scenario which Srdjan saw as fundamental to the success of a true Blockchain For The Real World platform and in February 2018, he came up with the initial outline for the design of this feature.

0bsnetwork opens the Blockchain economy to all.

On 0bsnetwork, your customers don’t ever have to be exposed to our platform if you don’t want them to be. Aside from building web or mobile user experiences that beautifully and seamlessly integrate the token wallet functionality into your existing apps, on 0bsnetwork it is possible to avoid using any coins, tokens, “gas” or however you want to call it, other than your own. Including paying for the transaction fees!

While all transaction fees on 0bsnetwork are by default paid in EUR coins, you as a custom token issuer also have the option to enable payment of all transaction fees in your token as well.

The design of the feature itself is quite elegant in its simplicity:

1. As the token creator, you enable the Custom Fees feature on your token, paying the setup fee of 50 EUR coins.
2. You decide how much a transaction should cost when paid in your token. Default transaction fee on 0bsnetwork is 0.03 EUR coins, but you can set the transaction fee when paying in your token to any value, lower or higher than that.
3. From that point onwards, until you disable Custom Fees on your token, anyone will be able to transact on 0bsnetwork paying the fee that you set in your token. Again, you can choose any amount, but as an example, if you set the fee at 0.5 YourTokens and 10 YourTokens are worth 1 EUR coin, the effective value of the fee paid in YourTokens will be 0.05 EUR coins: 0.02 EUR coins more than the default fee.
4. Your customers will never see this, but what happens in the background is the following: when a user of YourTokens pays the fee in YourTokens, that entire fee will go to your wallet. At the same time, the default 0bsnetwork fee of 0.03 EUR coins will be subtracted from your wallet. So effectively, you will earn the equivalent of 0.02 EUR coins per transaction.
5. In order for that to work, you will need to keep sufficient amount of EUR coins in your wallet. If the balance of EUR coins in your wallet falls to 0, the Custom Fee functionality will be automatically frozen until you replenish the EUR coin funds in your wallet.

We have created a truly zero friction process that will boost the adoption and use rates of altcoins. This is the next logical evolution in the crypto economy.