Eternal Trusts Review

Introduction

The first dApp based on ET Protocol that other trustees can use as is, or fork, customize, and white label in collaboration with the ET development team, is currently in development.

The original ET dApp will be the world’s first dApp providing trustee services for the crypto world, by fulfilling simple “Dynasty Trust” scenarios for clients and replicating the traditional fiduciary inheritance and asset redistribution schemes. This application will serve as an example of how the ET Protocol can be used by trustees to establish more convenient and faster channels of direct communication with clients and experts.

The business model for the original ET dApp

In the first ET-dApp, in accordance with the so-called Purpose Execution Flow implemented by the protocol, all clients are supposed to purchase ET Tokens and go through onboarding services with Oracles to get everything customized – this part of the business process is paid with the initial fee, to be adjusted by the dApp founders if needed. Within the lifecycle of a product or service, the client pays transactional fees that may be of a different nature. It is recommended to purchase one specific service regularly, at least once a year – that is a revision of an investment strategy for the client’s assets. There are no more compulsory fees included in our financial model in order to keep it reasonably pessimistic and simple to verify. To sum up, there are three main sources of revenue for the original dApp. They can be 100% tokenized, i.e. paid by ET tokens, or can be paid as a part of the traditional management fee as a portion of Assets Under Management (AUM) in case of long term purposes:

ET dApp Long-term Purposes

ET dApp Dynasty Support Algorithm

Objective – replicating the model of a Dynasty Trust, which provides all kinds of support for the family members of the client for an unlimited amount of time.

Solution – Finding asset managers that would secure returns of traditional developed liquid markets and sending generated income via smart contracts to the wallets of the given beneficiaries after the dApp receives external triggers (age of the beneficiary, educational degree, marital status, loss of legal capacity of the settlor, etc)

Tasks for Oracles – to properly identify preset triggers, to properly identify beneficiaries, to ensure the safe and reliable transfer of assets, and to check that payment was received

Initial assets to be input – cryptocurrency, not less than 10 ETH

Decentralized Trusts of ET

Unlike classical trusts, the trustee in Eternal Trusts is represented by a system of smart contracts and a network of oracles — a group of individuals acting anonymously in the interests of the whole platform reputation and being rewarded for the right actions. In terms of asset management, decentralized trusts can store clients’ assets at smart contract addresses, not only in the cryptocurrency form or in the form of EOS / ETH tokens, but also in the form of tokenized traditional assets and funds. Automatic trading between various tokenized assets is possible through the mechanism of cross-chain swaps and decentralized exchanges (DEXes).

Holding assets in cryptocurrencies remains quite risky given that the crypto market has been extremely volatile. However, in recent years the trend of digitizing the traditional market assets has become more and more popular: e.g., the tokenization of national currencies, raw materials and precious metals, portfolios, stocks, and indices. At the moment, the most prominent projects that employ tokenization technology are TrueUSD, Tether, Basis.io, ColoredCoin, polymath.network, and Called Havven. Many analysts are expecting a large growth of tokenization projects in the nearest future, and the influx of big capital associated with it into the crypto world is deemed to stabilize cryptocurrencies and make the market less volatile.

ET-dApp vs ET-Protocol

The step towards creating the full-scale protocol has been perhaps the most crucial milestone that can increase the magnitude of the project and its impact on the whole blockchain ecosystem. On one hand, the decentralized application of Eternal Trusts (ET-dApp) will consist of an integrated and stable network of DAO directors, with an initial network of oracles and providers preselected by the founders that will be working with a single customer base.

On the other hand, the open source protocol in development (ET-Protocol) will allow for the creation of new ET-dApps on its basis using the ET token. Any company interested in integrating such mechanism of the decentralized trust into its business processes can do this by spawning a network of DAO directors and a network of oracles and contractors, setting up hosting and executive logic in private nodes and off-chain networks.

ET Tokenomics and Revenue models

The Eternal Trusts Token is a service token needed to execute the Purpose Execution Flow for the dApps built on the ET Protocol. The revenue model for the ET Protocol is based on the expectation of the increase in the ET token demand. The strict rules for token holding specified by the protocol architecture and dApp founders are necessary to ensure there is always a scarcity limiting the supply of tokens in circulation. The expansion of the participant pools and the growth of the number of dApps made with the protocol are also primary factors that influence the growth of the token.

Holding of the token is ensured by several mechanisms:

The ET Token is a reward token for participants on the platform. Those who are rewarded have to hold a predetermined share of their tokens from each reward to retain their voting/participation rights within the ET ecosystem and participate in the dApp’s purpose execution flows.

The token is used as an intermediate currency for internal payments (from and to EOS). This can guarantee a token holding lag of few hours to several days.

The token is needed to initiate redistribution of stake and hold (hold demand is determined by the smart contract) for allowing the token holders to remain active on the platform or receive services.

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