Utility #2: Consumption Fee
To enforce security and integrity across Unido, UDO is used to validate every transaction that flows through the ecosystem. Every enterprise client, application, user and developer validate each transaction by spending UDO which means that:
Every transaction utilizing Unido technology will be validated and recorded on the Unido network.
Fee payments can be secured by Unido’s proprietary multi-party computation (MPC) key obfuscation algorithm, drastically improving security for transferring on-chain assets.
Transactions taking place on Unido will be charged a small fee in UDO based on a FIAT value e.g. if the monthly volume of transactions equates to $20/month, the equivalent will be paid to the Unido Treasury using UDO, however, the price will be dynamic and adjusted based on market supply and demand.
For the Enterprise Platform, 60% of the fees paid from consumption fees will be burnt, 20% will be allocated to the Ecosystem Development Fund, and 20% into the Reserve. As enterprise adoption takes off and the velocity of token consumption increases, this model will move from a “burn” to a “recycle” model, where 50% of “Consumption Fees” will be distributed into the EDF and 50% into the Reserve for continued development of the Unido Core technology (see “Token Emissions”).
Developers utilizing the Unido Core API to build dApps will have complete flexibility in choosing the appropriate business model for their dApp, in line with their target market via a selection of revenue models:
Subscription Model: users pay daily/monthly/ annual subscription to utilize the dApp.
Freemium Model: users don’t pay to download or use the dApp but are unable to access premium features without a fee.
Paid Model: users pay once to download the dApp and access all of its functionality without additional charges.
In-App Model: users able to download the dApp for free but are charged when using in-app functionality. Developers have the freedom to decide how much they charge end users.