Powered by the native BOSON token, Boson Protocol is a decentralized autonomous commerce (dCommerce) protocol that uses non-fungible tokens (NFTs) and game theory mechanics to automate digital to physical redemptions. The Boson Protocol tokenomics model incentivizes users to participate in a trustless Web3 marketplace for consumer data. With the aid of the Boson Protocol dCommerce DAO, this has created an environment for developers to build novel dCommerce tools and services that harness the power of blockchain.
In this article, we’re going to explore Boson Protocol and the BOSON token. Also, we’ll discuss the Boson Protocol tokenomics structure and the use of non-fungible tokens (NFTs). Plus, we’ll look at the game theory mechanics that incentivize the use of the decentralized autonomous commerce (dCommerce) platform, and the use of commitment tokens and Thing tokens!
Boson Protocol is a cutting-edge project assisting in the mass adoption of blockchain technology, helping make the centralized, decentralized. To learn more about how blockchain facilitates decentralization, see the Blockchain & Bitcoin 101 course at Ivan on Tech Academy! We offer expert-led tuition across a variety of mediums to suit all learning styles. Then, our Ethereum 101 course is a great follow-on to learn about how smart contracts work and the origin of decentralized finance (DeFi).
What is Boson Protocol?
Boson Protocol is a capture-resistant decentralized autonomous commerce (dCommerce) ecosystem that automates digital to physical redemptions. Using non-fungible tokens (NFTs) encoded with gamified dynamics, Boson is a “foundational Web3 primitive” that leverages “planetary-scale value pools”.
Powered by the ERC-20 BOSON token, the platform provides public infrastructure that uses smart contracts to coordinate commercial transactions and exchange digital value for physical goods and services. Moreover, Boson Protocol minimizes arbitration and costs to provide a trustless Web3 commerce marketplace for consumer data. The Boson Protocol marketplace facilitates the exchange and monetization of secure Web3 consumer demographic data and product preferences.
Connecting the real world with the metaverse, Boson Protocol aims to disrupt traditional e-commerce platforms. This is made possible by tokenizing products and services along with relevant data on the blockchain as non-fungible tokens (NFTs). Combining NFTs and game theory incentives, Boson Protocol envisions a decentralized commerce ecosystem accelerated by blockchain-based applications.
These applications aim to disrupt and democratize commerce while removing unnecessary intermediaries. In turn, this makes for a more equitable platform for retailers, brands, and service providers, while giving value back to consumers. This is achieved by reducing fees and friction while providing a comprehensive commerce interface. Moreover, users can buy and sell products and services that are tokenized as futures contracts, represented by NFT “commitment tokens”. Each commitment token represents a specific item, good, or service, and the commitment to purchasing it using a dedicated token known as a “Thing token”.
Furthermore, the Boson Protocol ecosystem is at the forefront of decentralized autonomous commerce, or “dCommerce”, as it is often known. This follows a surge in demand for blockchain-based shopping services and decentralized autonomous commerce solutions.
Boson Protocol Technology
Boson’s core mechanism is effectively a sequential game. Buyers and Sellers commit deposits that are coordinated in a way that incentivizes all participants to act fairly. The “Open Thing Economy” brought forward by Boson Protocol is built upon a foundation of many specialized, composable dCommerce applications.
These blockchain-based applications provide access to a growing library of developer tools and reference applications for real-world redemptions. This includes a decentralized marketplace for Things, plus a decentralized autonomous organization, known as the Boson Protocol dCommerce DAO.
Boson Protocol dCommerce DAO
The Boson Protocol dCommerce DAO aims to be a fully community-governed DAO to fund the expansion of the dCommerce ecosystem. It is based on the “Web3 Sustainability Loop”, which is a model for the sustainable growth of Web3 projects developed by Ocean Protocol.
Furthermore, the Boson Protocol dCommerce DAO will provide funding for new projects built using Boson Protocol technology. This will provide developers with grants to expand the Boson Protocol ecosystem by building innovative dCommerce tools and applications. Plus, the DAO will provide developer initiatives and oversee platform integrations.
Moreover, Boson Protocol is helping to build an open “Economy of Things”. This is achieved by incentivizing developers to build applications, tools, and interfaces for the “dCommerce stack” via the dCommerce DAO. The DAO will be implemented in three stages. This includes the initial start-up, followed by scaling, and finally, full decentralization.
The DAO aims to be capture-resistant from centralized entities and provide “a fair and equitable distribution of ownership, value, and control” while remaining compliant with regulatory authorities. Also, the DAO will oversee the supply and distribution of the BOSON token until full decentralization has been established.
The BOSON Token
The native BOSON token is the protocol’s utility token. The BOSON token accrues value from minimally extractive fees derived from transactions and third-party data access on the Boson Web3 data marketplace. This allows Boson Protocol to facilitate two “planetary-scale value pools”. The first is a decentralized network for commerce transactions. The second is a global Web3 and commerce data store.
The BOSON token has three main use cases:
- Protocol Governance
The Boson token is used to govern the protocol and establish consensus around fund issuance and protocol changes through voting in the Boson Protocol dCommerce DAO.
BOSON tokens can also be used to make commitment deposits. This reduces network fees for transaction coordination for both Buyers and Sellers of dCommerce data while reducing the circulating supply of BOSON tokens.
Also, the BOSON token is used to incentivize participants of the ecosystem. This is achieved in several ways. Firstly, via the BOSON token reward supply through Aggregators and Sellers. Secondly, Relayer marketplaces accrue BOSON token fees as an incentive for inventory distribution. Thirdly, the BOSON token is used to incentivize data sharing. This means that Buyers can share their data and earn an equitable return for any value created as a result.
Boson Protocol Tokenomics
The Boson Protocol tokenomics model doesn’t seek to just replace traditional commerce infrastructures with blockchain-based equivalents. Rather, the Boson Protocol tokenomics structure is designed to facilitate an open, liquid, and tokenized economy of disruptive technologies that challenge traditional e-commerce platforms.
Furthermore, the BOSON token is the primary unit of account throughout the decentralized autonomous commerce (dCommerce) ecosystem. The supply of BOSON tokens is reduced using staking and burning mechanisms, while the value of the token is accrued via data usage and increased network participation.
Also, the Boson Protocol ecosystem incentivizes developers, users, and platform participants. Around 5% of all revenue generated from platforms under the Boson Protocol umbrella is channeled back into the ecosystem with a buyback and burn mechanism. Moreover, the BOSON token can be staked in several ways. This allows participants to earn a passive income with crypto via data curation, aggregation, and product distribution.
Boson commitment tokens are highly interoperable, composable, and programmable tokens that are universally transferable and storable. Commitment tokens are used to tokenize Buyer and Seller commitments to the exchange of digital value for physical items, or “Things”. This streamlines the digital to physical redemption process facilitating deposits into an escrow contract within a “stateful non-fungible commitment token”.
Furthermore, commitment tokens act much like a futures contract for Things. This contract is programmed into a non-fungible token (NFT) that gives the holder exclusive rights to a Thing. Moreover, the redemption process is automated, making it extremely simple.
Plus, commitment tokens can be transferred to any crypto wallet that supports ERC-20 tokens, such as MetaMask. Indeed, the representation of commitments to exchange Things in the form of highly programmable and customizable NFTs has the potential to turn the traditional e-commerce model on its head.
Thing tokens are ERC-20 tokens that are required to purchase commitment tokens. Each Thing token can be transacted using any ERC-20 compatible wallet and can be used as a gateway to decentralized finance (DeFi) infrastructure to facilitate liquid markets.
Decentralized exchanges (DEXs) including Balancer and Uniswap allow for Thing token price discovery and yield optimization. Also, Thing tokens can be used for crowdfunding new projects through Initial Thing Offerings (ITOs). Furthermore, Boson Thing tokens are highly composable and interoperable with various DeFi platforms. This allows for highly liquid marketplaces for real-world assets.
Boson Protocol Web3 Data Marketplace
Boson Protocol serves as a planetary-scale decentralized Web3 data marketplace and commercial data exchange coordinator. This is because the protocol is gathering a valuable pool of data about consumer preferences. However, unlike tech giants that gather and monetize huge amounts of consumer data without sharing it equitably, Boson Protocol uses “a planetary-level Web3 data marketplace for commerce” powered by Ocean Protocol.
This allows users to buy and sell data regarding product preferences and purchasing behavior in a way that helps establish market insights in an efficient and equitable manner. Consumers can sell their data to brands and companies, which in turn helps to efficiently expedite the production of goods and services to meet the needs of target audiences in an informed way.
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Why use Boson Protocol?
In today’s digital world, the term “commerce” generally refers to e-commerce. The transfer of financial value when goods and services are exchanged online tends to happen on a small handful of centralized digital platforms. As such, powerful e-commerce platforms have dominated the market, siphoning excess value using several intermediaries and unnecessary costs. Furthermore, these costs are almost always passed on to the user of the platform.
Rather than gathering masses of data while feigning customer-centricity, obfuscating economic systems, global supply chains, and markets, automated decentralized commerce (dCommerce) platforms such as Boson Protocol are democratizing the e-commerce space in a way that could disrupt the status quo and displace traditional commerce and payments monoliths such as eBay and PayPal.
By addressing the needs of consumers, Boson Protocol is creating a fair and sustainable environment for automated decentralized commerce. Boson is automating the digital to physical redemption model by using tokenized commitments to trade real-world items, or “Things” in the form of non-fungible tokens (NFTs) that use game theory mechanics to govern the platform and incentivize participation. Not only does this remove unnecessary intermediaries and arbitration, but it also minimizes costs and friction. By utilizing smart contracts and blockchain technology, Boson Protocol is developing a trustless decentralized commerce (dCommerce) ecosystem that has the potential to replace legacy commerce infrastructures.
Boson Protocol Summary
The Boson Protocol ecosystem enables plug-and-play decentralized commerce (dCommerce) facilities that empower retailers, manufacturers, service providers, and consumers. By harnessing the power of blockchain technology and non-fungible tokens (NFTs), the Boson Protocol tokenomics model provides a compelling landscape for decentralized autonomous commerce (dCommerce) solutions.
Plus, the broader Boson Protocol ecosystem makes it easy for consumers and brands to exchange market insights and buying preferences in a way that is fair and equitable.
Blockchain technology is being implemented sector-wide, requiring many roles to be filled! Whether you’re working in marketing, human resources, management, customer services, or as a CEO, you can educate yourself around this cutting-edge technology! Check out the Blockchain Business Masterclass at Ivan on Tech Academy to gain sufficient knowledge to run your own blockchain-based project! Moreover, our Blockchain for Enterprise course shows students how global corporations are implementing Baseline Protocol. Join a community of over 30,000 students at Ivan on Tech Academy today! Also, don’t forget to follow us at @Academy_IOT! We want to hear your thoughts on Boson Protocol and the BOSON token!