Business model
In the Palpables ecosystem, there is no consumption, only investment and production.
First, we will explain an overall overview of the ecosystem and detail our business model from both the perspective of individual users and the entire system. Through this, we aim to show how the growth of individual users leads to the growth of the entire system, ultimately creating a business model where the interaction between the two encourages more individuals to participate.
Our system, as will be discussed in more detail, can collapse under certain conditions:
The routines provided by Palpables do not contribute to the user's growth.
The attention and time invested by users in routines do not establish sustainable value.
External malicious attacks disturb the NFT's price.
Regarding the first point, various studies and real experiences have confirmed that the routines we propose effectively enhance both physical and mental growth. For the second point, numerous cases and experiences have shown that daily-used services and products are valuable to users. The third point poses the greatest risk. To hedge against this risk, we will allocate a predetermined portion of the coins and cash we receive from the purchase of devices and NFTs as a reserve, deposited in a transparent wallet accessible to everyone. This will help us protect the price of our NFTs. Further details on this plan will be provided below.
Overview of the Ecosystem
There are two main ways to participate in the Palpables ecosystem
Minting a Shiro NFT(including Premium Palpables Device) : Web3 User
Purchasing a Palpables Device (Smart Scale) : Web2 User 2.1 Normal version : Limited reward system and only 1 customized report 2.2 Premium version : Reward system and limitless customized report
Web3 User Participation
When a user mints a Shiro NFT, they also receive a Smart Scale.
The user, referred to as a Web3 user, receives the NFT in their personal wallet and the Smart Scale is shipped to the provided address.
Shipping may take several days to weeks depending on the region. If the package is delivered to the wrong address or not received due to our error, we will reship once. If mining using the lost Palpables Smart Scale occurs, the respective $PALT will be automatically burned.
After receiving the device, Web3 users can connect it to the Palpables app and perform routines to earn $PALT.
To participate in "Adventure with Shiro," the Shiro NFT must be transferred to the in-app wallet.
Theoretically, a Web3 user can hold up to three Shiro NFTs (one from initial purchase, one from $PALT mining, and one more by repurchasing* the Smart Scale with $PALT).
Web2 User Participation
General users (Web2 users) can purchase the Palpables Smart Scale from the Palpables website or Amazon.
After receiving the Smart Scale, Web2 users will install and connect it to the Palpables App
Just like Web3 Users, Web3 Users also follow the instructions to perform routines and earn $PALT rewards.(premium version only)
Theoretically, a Web2 User can hold up to two Shiro NFTs (one from $PALT mining, and one more by repurchasing* the Smart Scale with $PALT) (premium version only)
*Every Smart Scale owner can repurchase a Smart Scale once using $PALT, and this Smart Scale can be sold to a third party.
NFT and Device Sale Prices, and Reward Amounts
NFT Prices(shipping fees excluded)
White List NFTs : $TBD
Public Mint NFTs : $TBD
Palpables Smart Scale Prices(shipping fees excluded)
Prices are subject to change based on country or policy
Normal version(Limited mining) : $60
Comprehensive Tracking : Measures weight, body composition, muscle mass, BMI, and more
Connectivity : Supports Bluetooth and Wi-Fi connections
Available Palpables platform(app, routine, studio)
Limited community participation possible
Limited Blockchain based Reward System
Only 1 free customized Health report
After the free offer, each report costs $5 - $30 (+additional fee)
A premium upgrade is available for $270 (+additional fee)
Premium version(Fully mining) : $300
Includes all services provided in the normal version
Unrestricted community participation possible
Centering NFT for Premium User
Offer Blockchain based Reward System
Limitless free Customized Health Reports
Reward Amounts for PALT Mining(in 100 days)
Quantity of minting PALT below are for the premium version and 1/10 is applied for the normal version.
Daily Quest Completion : each 10 $PALT(Total 40 $PALT per day)
Special Activities : 50 $PALT (Complete routines for 5 consecutive days)
Additional Bonuses : 10 $PALT (Complete all four quests in a day)
Maximum Rewards in 100 days : 6,000 $PALT
Target Rewards(66days) : 3,300 - 3,950 $PALT
Goods Prices(shipping fees excluded)
Accessories : 150 - 250 $PALT (3 - 5 days)
Clothes : 250 - 500 $PALT (5 - 10 days)
Shoes : 250 - 500 $PALT (5 - 10 days)
Shiro NFT : 3,300 $PALT (55 - 66 days)
Palpables Smart Scale : 2,000 $PALT (34-40 days)
Reset Routine(1 time) : All mined tokens and transaction history will be lost, and the 100-day mining period will start over from the beginning. Get back the time you missed! (This is possible if you haven't purchased anything from the studio.)
Renewal Routine : $TBD. All mined tokens and transaction history will be preserved, and new mining will begin again.
Dynamic Pricing and Value Generation in the Palpables Ecosystem
The key differentiation from traditional blockchain projects is that we do not rely on new user acquisition for sustainability. Instead, our ecosystem grows and develops through the time, money, and attention invested by existing users.
The price of the Palpables Smart Scale can fluctuate based on how well users perform their routines. Currently, the price of 1 $PALT is approximately set at $0.3, so with the Smart Scale priced at $300, this equates to about 1,000 $PALT. Since users can earn 50 $PALT per day, the price of 1,000 $PALT assumes that users will complete their routines for an average of 20 days over a 100-day period. However, if users complete routines for an average of 50 days, they would earn around 2,500 $PALT, which is 2.5 times the value we initially set. Consequently, the value of the Palpables Smart Scale could rise from $300 to up to $750. If the price rises this way, users could sell the repurchased Palpables Smart Scale for less than $750 and still make additional profit.
Through this mechanism, we will monitor $PALT generation by users every six months to assess how much value our ecosystem is creating and then adjust the price accordingly. This will increase the value of the Palpables Smart Scale and elevate the value for existing users as well. A higher perceived value by existing users indicates high usefulness of the Palpables Smart Scale, making it likely to attract new users who will want to join before prices increase further.
Business model of Individual User
Three Essential Inputs in the Palpables Ecosystem
In the Palpables ecosystem, there are three key inputs from individuals: investment of money, time, and attention. To perform routines for more than 66 days, users need to purchase (invest in) a device, dedicate a certain amount of time daily, and pay attention to performing the routines.
This comprehensive individual growth includes both inner and external growth. Inner growth encompasses customized report for personal health, wellness lifestyle habits, and mental growth through self-care. External growth involves tangible economic assets like Goods and Shiro NFTs.
This growth will satisfy existing users, encouraging them to use the platform more extensively and deeply, ultimately turning them into fans. Their positive experiences will naturally spread through their use of Shiro NFTs and goods, enticing other users to engage with the platform as well.
Cash Flow Explanation
The money from device purchases goes into a reserve fund to cover the production costs of everything created in the studio: clothing, shoes, accessories, NFT design/production/distribution, and device production costs.
For example, if the platform sets a maximum of 6,000 $PALT, and a piece of clothing costing 100 $PALT can be obtained up to 60 times, the cost per item exceeds $10, with a minimum total cost of $600 plus additional production costs.
At first glance, providing rewards worth over $600 while charging $300 per device might seem unsustainable. However, the reward amounts vary based on user behavior and engagement, so it is uncommon for most users to reach the maximum of 6,000 $PALT. Also, if most users earn above-average rewards, this is a good sign that the ecosystem is growing in value, and we have introduced a dynamic price adjustment mechanism to maintain rewards in line with this. This mechanism flexibly adjusts the device price to match the volatility of reward payments, ensuring the sustainability of our operations.
This business model follows the structure of insurance. Like insurance, we plan to pool the amounts received from users into a reserve fund and operate it transparently through blockchain.
If routine adherence rates increase, the average reward amount may exceed $300, in which case we will increase the device price to compensate. High routine adherence also indicates the effectiveness of Palpables Platform’s routines, raising the overall platform value and the price of Shiro NFTs.
Business model of Entire system
Budget Management and Transparency
Each budget item will be managed separately in blockchain wallets and made publicly accessible to users. Detailed breakdowns of each item will be periodically reviewed by selected monitors. While the quantity and amount of NFTs minted for Web3 users can be transparently disclosed, it is practically challenging to instantly disclose funds from device sales to Web2 users due to country-specific regulations, taxes, and shipping costs. Therefore, these funds will be managed with an 80% funds allocation and 20% general liability (G/L), with reports published annually for the official community.
Budget Management in the Palpables Ecosystem
Reserve Funds:
80% of funds raised from minting NFTs will be allocated to a reserve fund to protect against NFT price drops due to malicious attacks. This is crucial to prevent one of the conditions that could destabilize the Palpables ecosystem.
Production Costs:
15% of funds from NFT minting or 80% of funds from device sales will be used to cover the production costs of goods, devices, and NFTs. These funds are reserved to ensure that rewards can be provided when $PALT is issued.
Detailed records of these expenditures will be provided periodically to selected monitors for review (to protect privacy, these details will not be shared with all users).
Operational Costs:
This includes salaries for the team, rent, various fees, and operating expenses necessary to run the Palpables Ecosystem. As a corporate entity, Palpables will cover these costs from this budget.
Profit Allocation:
As Palpables is a corporate entity, profit allocation reflects retained earnings. Currently, this is set at 0% since we are in the early stages of building the ecosystem. As the ecosystem grows and stabilizes, the profit allocation will be increased to 5% to enhance the company's stability and profitability.
Palpables' Profit Structure
*The company will not initially own any governance tokens, and will only hold governance tokens swapped from the $PALT paid by users
As mentioned above, Palpables operates as a for-profit corporation, seeking profit while aiming to make a surplus through cost savings within transparently disclosed budget items. Additionally, profitability is secured through interest income from the reserve funds, similar to an insurance model. These profit-driven activities are expected to attract more capital and high-quality talent into Palpables, ultimately serving as vital resources for the development of the ecosystem.
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