RefToken’s Tokenisation Model
REF Tokens integration & use in the affiliate platform
The token to be sold at launch will be known as the ReferralToken (REF). A fixed number of 50M REFs will be issued thereby limiting supply. Fees will be charged to users of the platform as a percentage of commissions paid (however, should a brand be using the platform to track their own in-house marketing activities, and thereby setting a commission rate of 0%, use of the platform will be free, this will encourage adoption of the platform and assist in establishing a competitive moat). Since advertising inventory and other costs borne by publishers are set in fiat currencies, a commission sub-token called COM will be created that will be pegged at €1. This stable-coin model will allow affiliates buying advertising inventory with fiat currencies to hedge against the fluctuations of the cryptocurrency in which the commission is denominated. Brands will need to use REFs to generate COMs.
- A merchant buys €100,000 worth of REF Tokens
- The merchant locks these tokens in an escrow wallet for a fixed time period and deploys a smart contract offering a reward in REFs for each conversion as specified in the smart contract that affiliates can subscribe to. The smart contract will self-terminate should funds run below the cost of a single conversion. This protects the merchant from overspending and, conversely, protects the affiliates from promoting a campaign that has exhausted its budget
- On each completion of the smart contract's conditions (sale/conversion etc.) an amount of REF equivalent to the commission amount will be instantly paid out from the escrow account to the affiliate's wallet within the RefToken platform.
- The merchant’s original REF tokens are now held by the company and re-issued to the market where they are bought at market prices by other brands. This will allow the company to act as a market maker and protect the token's price from wild fluctuations in price
Real World Applications
- A mobile game publisher could create a commission structure offering €5 per new user account that is accessed 3 times within 5 days of registering and in which at least 10 turns are played. This set of criteria minimises the risk of fraudulent account creation, and also ensures that the publisher is only paying for engaged users.
- In another example, a Gnosis based sports book offers affiliates a €30 commission on any new player deposit that is wagered at least 4 times along with a 40% commission on net profits generated by that player.
- In a third example, a company planning its ICO would offer partners and publishing houses a bounty paid in its own currency for successfully referring investors to it. Affiliates would then have the option to hold onto the issued coin, or to exchange it for ETH or BTC and withdraw into their own wallets.
- WeTrust see that the borrowers begin to outweigh the savers, so they need more people investing and saving their money within WeTrust to keep up with the demand. They decide that they want to get started with affiliate marketing, so they turn to RefToken Affiliate platform and offer 5 COMs per new user account that deposited at least 10 worth of COMs for saving in TRST funds. Token conversion rates will be done via API.
- Jen reads on steemit.io that investing in WeTrust is a great way to save money, the author of the article includes a RefToken affiliate link to WeTrust
- Once Jen clicks the link RefToken updates the WeTrust affiliate blockchain that a new lead was generated by that particular affiliate and drops her at the WeTrust registration page
- Once Jen completes her registration the WeTrust affiliate blockchain is updated, instantly triggering the smart contract between WeTrust and the affiliate transferring 5COMs to the affiliate's wallet
- The affiliate can immediately see that one of their readers just signed up for WeTrust via their admin in RefToken, that originated from their article on Steemit, and decides to double down on this channel. WeTrust can instantly see that the affiliate has delivered another valued user in a short span of time and considers offering them a bespoke offer to entice them to give their brand more attention
Thanks to RefToken's platform, it will be easy to design very complex conditions which leads will need to satisfy, thereby eliminating affiliate fraud, which is an endemic problem in today’s affiliate marketing.