Verasity Contract Migration Journey - Q2 2024 Updates

Introduction

In this article, we look at the upcoming changes and strategic decisions that will shape the future of the Verasity ecosystem. Readers can expect a comprehensive overview of the transition to a dual-token model, the rationale behind the introduction of a tradable POV token, and the meticulous steps involved in this contract migration. We address key questions from the community, outline the benefits of the new system, and provide insight into how these changes will impact VRA and POV holders. This article aims to clarify our strategy, highlight the improved functionality within a two-token model and reassure our community of our long-term commitment to the sustainable growth of Verasity.

FAQs and In-Depth Explainers: Verasity Core Team Answers Pending Questions

Q1: Is Verasity planning to renounce $VRA contract authority post migration?

At present, Verasity has decided not to renounce contract authority of VRA after our migration. This decision is primarily due to the technical complexity and significant impact that would be involved. If we were to renounce authority, a new smart contract would need to be created to govern the token. Such a move would effectively reset the token and require a new contract address, which would then require re-listing on all exchanges and re-integration with all applications that currently support VRA, including our ad stack solution.

VRA is listed on 38 exchanges (according to CoinMarketCap) which took many years, substantial costs and effort to build. We are not going to renounce the VRA token and restart the listing process again which has taken six years to get here. That would be counter-effective for VRA.

We want to reassure our community that maintaining control of the contract will have no impact on the total supply of VRA tokens after the migration event. In fact, without the need for marker tokens moving across the blockchain, and our strategy on a dual token ecosystem, the total supply post-migration will remain fixed without the necessity of any minting events as seen in the past, such as a war chest fund for acquisition purposes, or additional tokens for our ad-stack operations.

Ultimately, our overall approach of preserving the authority of the VRA contract ensures the utility of VRA. In addition, we continue to support the deflationary nature of VRA through our ongoing token burn practices, which help reduce the total supply of tokens over time and sets VRA on a deflationary course.

We are committed to maintaining transparency, improving communications, and will continue to engage with our community as we evolve our blockchain strategy.

Q2: Why does Verasity need an entirely new tradable token, instead of using the current VRA token as the primary token in expanding the ecosystem?

The decision to introduce a tradable POV token reflects a strategic approach to improving and expanding the Verasity ecosystem. Below you can observe at a high level why a separate tradable token is necessary and how the migration will be carried out:

Transactional Transparency: The unique requirements associated with the Proof of View (PoV) system is specifically designed to require transactional data to be recorded on the blockchain in order to maintain the transparency of the relevant advertising data and metrics. As such, by having this data accessible on an open ledger database, a token is required to be transactable. If there were no transactions on-chain there would be no place on the blockchain for the data to reside.

Currently, this transactional transparency functions on the VRA contract. With the decision to split the market tokens based on community feedback and consultation, we are required to make POV tradable elsewhere so that transactions can occur. The added value for POV allows Verasity to expand our ecosystem with a multitude of incentives and functionalities that inherently incentivizes users to engage with our platforms.

We have selected the TRON blockchain for the contract migration and operation of our data carrier tokens. The transition to a two-token model offers token holders a new level of interaction within our ecosystem. With the added value bound to POV — which ultimately serves as a data carrier thanks to its on-chain transactability — we offer POV as a secondary token for our dual token ecosystem, where VRA retains its current utility and market dominance. In other words, a dual token ecosystem allows the utility of VRA to be expanded, allowing us to create new functionalities within our ecosystem and platforms. More information on the benefits of the dual ecosystem can be found below.

Technological Requirements: Our VeraViews system uses VeraChain, a fork of TRON, to record and store data on-chain. To enable a seamless transition from a $VRA-based marker token to a dedicated POV token contract on the TRON blockchain, as well as for the transaction reasons mentioned above, a tradable token specifically tailored to the needs of the VeraViews solution on the TRON blockchain is a mandatory requirement.

Contract Deployment: Upon deployment of our smart contract on TRON, we will ensure that VeraViews is fully functional with its new, purpose-launched POV token. From that point onwards, all new transparency data, previously stored on VeraChain, will be recorded on the Tron blockchain. After the migration, VeraChain will remain active indefinitely to retroactively access historical data.

Continued utility of VRA: VRA will continue to serve as a deflationary token with a fixed total supply, which is part of our dual token strategy, which you can read about below. The new dual token ecosystem essentially restores VRA as it was originally designed, while allowing PoV to function as a data carrier token with its own contract on TRON.

Finally, by adopting a two token model, Verasity is better positioned to capitalize on the unique elements of a dual-token ecosystem and pave the way for an abundance of development opportunities. We believe this approach not only supports the scalability of our operations, but also maximizes the potential utility of both tokens in the ecosystem which complement each other.

Q3: Will POV tokens be airdropped to VRA holders? Furthermore, would the Verasity foundation and team be allocated team tokens like VRA?

We are pleased to confirm that a significant amount of POV tokens will be distributed to active VRA stakers and holders (non-stakers included) in VeraWallet as a gesture of appreciation to our community for their continued support and trust in our platform.

The specifics of the airdrop, including our strict eligibility criteria and distribution terms, will be announced in due course. We will ensure that the community is well informed and can follow up accordingly to receive their POV tokens. In addition, we are reviewing common airdrop practices in the space to ensure a healthy and lucrative airdrop distribution for our community.

Regarding the allocation of POV tokens to the Verasity team, we would like to clarify that no POV tokens will be allocated to the team. The decision to exclude a team allocation underscores Verasity’s financial runway and our commitment to a fair and equitable distribution strategy that prioritizes the interests of our community and the long-term success of our dual token ecosystem.

We are excited about this next step in the development of our ecosystem and believe this is a great way to reward our community and token holders.

Q4: Will the new tradable POV token be listed and traded on centralized (CEX) and decentralized exchanges (DEX)?

We would like to confirm indeed, that the new POV token will be listed on CEX following our launch on DEX. Exchange listings announcements and disclosures will be made in an official and compliant manner as we’ve been doing with the multiple exchange listings of the VRA token to date. We are not in a position to provide any further information on exchange listings of the VRA and POV tokens. Please follow our social channels to stay informed on token exchange listings. Information on DEX launch will be provided at a later stage.

Q5: Why has it finally been decided to give utility and trade POV tokens? Why has the position changed?

We will take this question as an opportunity to elaborate on the intricacies of developing the POV token ecosystem in a separate contract, as opposed to the current structure on the VRA contract, in order to give our readers a sufficient level of information and understanding of the required timeline.

First and foremost, it is important to view this strategic migration as a significant evolution of our existing ecosystem. This process is not merely a technical switch from one environment to another where everything stays the same. It is a thoughtful adaptation and an absolute requirement to meet the fundamental operational and technological requirements of a contract operating on a blockchain.

Reiterating further, introducing the POV token into a new contract is more complex than many might think. It’s not about simply shifting functionalities from point A to point B, or as simple as updating systems from one day to the next. It’s about creating a new foundation for VeraViews on TRON on which the POV token can function independently. This is a crucial step to ensure that the blockchain functions optimally and as intended for our advertising stack.

This includes creating a dedicated contract for POV from the ground-up that supports all the necessary transactions and data interactions that are unique to our platform. It’s important to note that these changes will not happen overnight and currently require extensive development and testing to ensure everything works as intended without impacting existing services. We intend to complete this by the end of this calendar year.

We recognize that this careful planning and execution results in extensive lead and development times, which the community does not see as optimal and expects things to happen quickly. However, our careful approach and extensive testing underlines our commitment to the long-term viability of the ecosystem and ensures that our ad stack works as intended, and more importantly has no adverse consequences that could impact existing operations and our business as a whole.

The new POV token we are introducing is a completely different setup to what we currently have. The original setup shares the same total supply of VRA, and the same smart contract on the Ethereum blockchain. POV tokens on the VRA contract are used for POV data recording on VeraChain. Why Verachain? When we introduced the POV marker tokens on the VRA contract, the limitations of the Ethereum blockchain led to high transaction fees, which prompted us to develop the VeraChain (TRON fork) which is intended for data recording and storage purposes. This was done temporarily to mitigate the high fees, as well as to ensure a timely throughput on the blockchain.

At the time, we believed that the Ethereum blockchain would significantly reduce transaction fees when switching to the Proof of Stake consensus mechanism. The expectation was to be able to use the Ethereum blockchain as a single bearer for both data and tradable tokens without the need of the VeraChain. Unfortunately, and to the great disappointment of most of the Ethereum ecosystem, the change to the consensus mechanism did not result in a sufficient reduction in fees. The reaction to Ethereum’s consensus results consequently led to the rise of SOL and other chains. For us, this meant that we could not use Ethereum as the sole blockchain for POV. As a result the decision was made to maintain VeraChain indefinitely.

On the one hand, the confusion resulting from the shared total supply of tradable and non-tradable tokens led to the call to completely separate VRA and POV. On the other hand, the POV token as a data carrier cannot be implemented in the data-bearing scope alone, but must be linked and bound to a tokens’ transactional value (read more about this above). Therefore, last winter and following public consultations with our community, Verasity decided to make the POV token tradable to operate as intended by introducing a dual token ecosystem concept where both tokens complement each other functioning on separate contracts and chains. From then on, we set out to implement the plan and everything is going according to plan.

Furthermore, as mentioned above a dual token ecosystem opens the door and paves the way for future expansions with new incentives and utility for both tokens by implementing balancing levers to ensure a sustainable ecosystem.

Lastly, we acknowledge that the communication of the above points could have been better. We understand that the deadlines set in the past appear to have been pushed back. This is all against the backdrop of Verasity’s commitment to ensuring that operations and development are in the best interests of the company and our community. After all, working on a migration event leaves no room for error, and a hasty move could prove detrimental, even deadly, to Verasity. Reiterating further, we understand that the community sees this as too slow. However, in the developer world, proceeding with caution and intensive testing is critical. Additionally, as a development company with a number of products and services in the pipeline, we have to deliberate and execute according to our guidelines which are the strictest in the industry (and resulted in no product failure or security breaches).

To provide more clarity and reflect where we currently stand at the request of the community, please see our steps below as follows:

SHORTLISTING: The shortlisting step involved the identification and evaluation of potential chains for a migration event. Intensive testing was conducted to evaluate technical aspects such as the ability to support our feature set and handle the transaction volume expected from Proof of View. The decision to launch POV on TRON is based on TRON’s strong market recognition after Ethereum and its long-standing presence in the blockchain space. In addition, TRON has proven that it can be optimized for sufficient throughput for our purposes of recording and storing ad-related data, as demonstrated by VeraChain, which is a fork of TRON.
TESTNET: The testing step involves the use of an internal, private testnet, meaning the community could not participate. Every Ethereum element of the contract had to be meticulously replaced and adjusted from the ground up to ensure proper operation on the TRON network. This extensive revision requires intensive testing, which is currently being conducted in a controlled test environment. We are close to concluding this step as we speak.
TRON (Smart Contract): This next step will involve deploying the smart contract on the TRON mainnet. While this process is simple, it follows the established procedures for deploying contracts on the TRON network and additional testing as explained in the next step.
DEV LAUNCH: This next step, we will run final artificial tests, transitioning the POV development environment from the testnet to the mainnet. This will ensure that all functions for POV operate seamlessly and as scripted in the TRON Smart Contract and do not interfere with each other. By double checking and concluding the transition of the DEV environments and elements from the testnet to the mainnet, we can essentially confirm that the system is fully functional and ready for the following remaining steps.
ORACLES: In this preparatory step, we will customize the Oracle nodes to manage the circulation of POV tokens. Previously, this process was handled between VeraChain and Ethereum. During this step it will be readjusted to circulate between VeraChain and TRON. This step is crucial before entering the final production phase, as it ensures that the oracle nodes are correctly configured to handle the new blockchain environment and maintain the integrity and functionality of the POV system.
PRODUCTION: The production phase marks the complete and official rollout of the POV system on TRON, signifying the completion of the technical migration. During this phase, comprehensive monitoring will take place to ensure that all components are functioning as intended for POV to operate.
LISTING: The final step after the previous technical steps, involves the launch and listing of the POV token. This will start with a listing on a decentralized exchange (DEX), followed by listings on centralized exchanges (CEX).
BURN: The burn step involves the gradual and controlled burning of POV tokens from the Ethereum contract over time. This strategy ensures that a sufficient number of POV tokens remain in the Ethereum contract and serve as a fallback solution on stand-by, in case of an unforeseen event that necessitates a rollback without disrupting our ad stack operations and ongoing publisher campaigns. This phased approach allows us to provide a diminishing yet viable backup solution while we gain confidence in the robustness of the TRON contract and chain. With the ongoing development and evolution of our ad stack and its associated services, we want to assume the best while being prepared for the worst. In addition, it helps to mitigate sudden supply fluctuations and market reactions that could impact the VRA token, as was the case with the minting of POV tokens on Ethereum when we first introduced the war chest and POV marker tokens.

From a technical perspective, and as mentioned higher up in this article, we expect the above plan to materialize in an orderly fashion towards the end of this calendar year.

Q6: What is the current benefit of holding VRA and the future utility in the dual token ecosystem? Will a tradable POV token impact the utility and economics of VRA?

In its current structure, VRA is primarily used to fund campaigns, and staking on VeraWallet. Incentive rewards are currently distributed in the form of VRA tokens via VeraWallet. A tradable POV token will not affect the utility of VRA and VRA will retain all the features it has now as well as expand onto new projects and features in the near future. In fact, the upcoming changes and the introduction of a dual token ecosystem are designed to complement each other and extend the utility of VRA, while implementing levers that will stabilize the balance of the ecosystem of the two tokens and ensure its sustainability and continuity. Further down, we elaborate on a high level on the balance of a two token ecosystem

Q7: How will the introduction of a tradable POV on the open market affect the balance between supply and demand and the dynamics for VRA and POV within the Verasity ecosystem?

The POV and VRA tokenomics include several leverage mechanisms to keep the tokens in balance. These include APY staking, interdependencies, controlled exchange rates, the ability to buy POV directly for VRA resulting in a portion of VRA being burned, and other mechanisms to be announced in due course and as we progress and develop our two-token ecosystem model.

Below is an overview of the key points and a toolkit for balancing what the ecosystem of the two tokens will look like:

1.Pre-sale of POV tokens made available to VRA holders. Details and eligibility criteria will be shared with our community in a timely manner.

2.Tiered staking with the option of longer lock-up periods for a higher APY on staked VRA

3.Direct conversion of VRA to POV will lead to additional VRA burns by various methods. For instance, we are exploring automatic burns triggered by a timer within our VeraWallet platform, or manual burns from a dedicated pool on a quarterly basis. These and other strategies will support the VRA deflation mechanisms that are currently in place and provide for additional burns that are dependent on conversion rates. Verasity is continually evaluating additional buy-back & burn mechanisms and we expect to introduce more mechanisms as we develop our dual token ecosystem.

4.Lower VeraWallet withdrawal fees for those holding POV tokens on VeraWallet.

5.POV staking with a significantly higher APY compared to VRA. Rewards will be distributed in POV tokens.

6.POV Total supply control. While VRA will undergo further deflationary pressure — we will maintain the ability to dynamically control the supply of POV, tailored to the demands of our ad-stack. This will enable Verasity to build functionalities and further incentives as we advance through a robust and continuously evolving dual token ecosystem.

7.Quarterly revenue share model with POV stakers. As an incentive for long-term holding and active participation in our ecosystem, POV stakers will receive a share of quarterly revenue. Further details will be announced at a later stage.

8.By maintaining control over the supply of POV, we can mitigate potential volatility and give POV a stablecoin-like behavior. This strategy, first and foremost ensures a sustainable two-token ecosystem in which VRA remains the dominant token, benefiting from improved deflationary mechanisms and becoming more attractive on the open market in contrast to POV. Meanwhile, in the grand scheme of things, POV will act as a secondary token, providing additional incentives for holding and interacting with future public applications. It is worth highlighting once again, that by promoting this stablecoin-like behavior and maintaining control, we encourage the longevity and sustainability of our two-token ecosystem, which will allow Verasity to provide VRA and holders additional incentives on top of what is currently listed.

9.POV token rewards will be available for users who run the POV client app (TBA). To provide early context and clarity, this application will enable users to potentially share computational power or an alternative resource, through a decentralized network accessible to everyone. The rewards distributed in POV ensure that there is no added selling pressure on VRA. We are pleased to announce that VRA holders and stakers will be offered early access to the client so that they can test the client prior to public access and be rewarded for doing so. This strategy aims to include everyone, with no restrictions on who can participate and run the client. The model works best when more users interact with the client. With this approach, the POV token is introduced to new users in a non-intrusive way, as part of an ecosystem where VRA is present and the primary ecosystem token

In addition, the creation of a new dedicated POV contract offers Verasity the opportunity to expand the features of the smart contract. This will allow us to introduce new functionalities, utilities and incentives that will further enhance and complement the user experience within the Verasity ecosystem.

Lastly, we recognize that the above points raise a plethora of questions and may give rise to various speculative scenarios. We ask for your patience while we communicate and roll out these features in due course. It is important that our readers understand that this overview represents a high-level vision of our dual token ecosystem. We are committed to implementing measures that will ensure the sustainability and growth of our ecosystem and provide continued utility and benefits for VRA and POV holders.

Q8: How will the equilibrium between the VRA price and market capitalization be affected by the two token dynamics? Do VRA holders need to do anything when the POV token is introduced and launched?

There is no equilibrium in cryptocurrency. Tokens and markets are volatile and unpredictable. Verasity has a number of weightings and biases to navigate a reasonable balance within our two token ecosystem. However, there is absolutely no control of the overall market volatility.

Existing VRA holders will not need to make any changes to their existing VRA portfolio. The additional opportunities and future outlook associated with the POV token are explained above.

Q9: In what ways can we understand and utilize the two different tokens in their respective applications? What is the primary role of the VRA token in the future and should we expect more unexpected changes? Communications have not been good enough, can we expect more frequent updates?

We would like to acknowledge the community for their feedback on our communication. We understand that communications haven’t been optimal and are doing our best to communicate any changes as best we can. To answer and emphasize the question above once again: VRA will maintain its token functionality for staking and campaign funding. As already mentioned, the two token ecosystem paves the way for additional incentives and features ranging from revenue distribution and new burn mechanisms on VRA to increased staking APY for holders and stakers of VRA and POV on VeraWallet.

The dual token ecosystem enables and necessitates the expansion of the utility of VRA and POV tokens alike. This represents an opportunity for the development of our dual token ecosystem. The greater the utility of both tokens becomes over time, the more control we have over the balance of both tokens and each of them individually to encourage long-term sustainability. As you may have read above, the new POV token will launch with a multitude of additional features, while ensuring that VRA remains the primary token within our ecosystem. We remain committed to evolving our ecosystem and keeping pace with technological advancements in the ever-growing Web3 space.

Q10: Will both tokens be called VRA, but on different chains, or will POV have a different name, as in Theta/Tfuel model)?

PFuel could be a possible ticker name for the new tradable POV token. However, we are currently exploring different names that stand out without having to resort to existing models and brands. The idea of giving the token a different name is appealing, especially from the point of view that the new POV token could represent future use cases for Verasity and VRA outside the scope of the VeraViews system and its core use case as a data carrier.

During this contract migration journey, we are closely monitoring social media posts from our community that could present a unique ticker idea for the new POV token. We may even launch a rewarded community campaign to take ideas directly from our Verasian community.

Q11: Could VRA holders vote on whether they want POV tokens to be tradeable?

Neither the VRA nor the POV tokens contain external governance features in their smart contract. Such voting mechanisms are common in DAO projects. Verasity is a private company with access to a utility blockchain token on the open market. Verasity has never been a DAO in its entire history from inception to today and never will be.

Summary

As we transition to a dual-token ecosystem, Verasity is committed to addressing the new questions that may arise. Our approach is grounded in thorough planning and extensive testing to ensure the long-term sustainability and growth of our ecosystem.

We will continue to provide transparent and timely updates as we progress through each stage of the migration. Our goal is to ensure that our community is well informed and confident in the benefits and stability of the dual token model.

We thank you for your continued support and patience as we implement these strategic changes. Rest assured that Verasity is committed to fostering a robust and sustainable ecosystem.

Verasity 2.0 is underway!

Follow Us

Twitter: https://twitter.com/verasitytech

Discord: https://discord.gg/verasity

Reddit: https://www.reddit.com/r/verasity

YouTube: https://www.youtube.com/@VerasityCommunity

Zealy: https://zealy.io/c/verasity

Link3: https://link3.to/verasitytech

Telegram Official Channel: https://t.me/VRAchannel

Telegram Token Discussion: https://t.me/VerasityPriceChat

Telegram Token Announcements: https://t.me/verasity

LinkedIn: https://www.linkedin.com/company/verasity

Token Disclaimer: https://verasity.io/token-disclaimer