Business Model
Last updated
Last updated
The economic model of Communities ID is divided into three parts: Brand DID, User DID, and Communities ID itself. Here's how each part interacts and contributes to the overall business model:
Project or Community owners pay for the use of the DID as a Service protocol by minting Brand DID. Once the Brand DID is set with community settings and minting settings, it allows the community or project users to mint User DID. The Brand DID holder, as the contract deployer, also has the right to receive royalties, such as from the trading of User DID on platforms like OpenSea and other NFT marketplaces.
User DID minting requires staking a preset amount of tokens to the Token Locker. A portion of this will be paid as a commission directly to the Brand DID Contract Owner. The remaining part can be refunded from the Token Locker by burning the User DID. Additionally, User DID holders will incur a small protocol fee paid to Communities ID when interacting with User DID functions (such as burn, set as primary, soulbound, etc.).
Communities ID facilitates the entire process, establishing the entire DID framework and collecting protocol fees. The fees include a percentage from the protocol fee collected by Brand DID and small fees from User DID interactions. Communities ID does not profit from the cross-chain fees paid for non-Ethereum chain minting.
