Communities ID: A Comprehensive Guide to Our Business Model and Brand DID Contract Setup

1. Introduction

In the ever-evolving landscape of decentralized identity, Communities ID has taken a groundbreaking step with its “DID as a Service” protocol. This innovative approach offers an permissionless and highly customizable domain-like NFT contract framework.

What does this mean for the average user? It empowers anyone to create their unique Top-level domain (Brand DID, .brandname) without any coding. Based on this Brand DID, individuals and businesses can craft an identity system tailored to various operational scenarios. The subdomains under Brand DID, termed as User DID (username.brandname), not only possess the universal wallet resolution capability of traditional domain NFTs but also boast a plethora of extended features within their respective product ecosystems.

However, it’s essential to recognize that different application scenarios have distinct DID requirements. As such, the accompanying economic model and DID distribution mode cannot remain static. Merely granting users the authority to choose a top-level domain doesn’t ensure the high extensibility of Brand DID. A rich and customizable economic model is the cornerstone upon which applications are built atop Communities ID.

Communities ID is revolutionizing the way businesses interact with decentralized identity through its “DID as a Service” protocol. This article aims to provide a clear understanding of our business model and guide businesses in setting up their Brand DID contract.

2. Overview of the Business Model

At the heart of Communities ID is the “DID as a Service” protocol. When businesses deploy a Brand DID contract through Communities ID, they pay a fee to Communities ID for the Mint and Renew services. Notably, these services are currently being offered for free as a promotional phase of our DID as a Service subscription protocol.

After deploying the contract, businesses are empowered to design an economic model related to User DID that aligns with their specific requirements. When a User DID is minted, a fee is directed to the Brand DID owner. A portion of this fee, determined by the set royalty, is retained as profit by the Brand DID holder. Meanwhile, the remaining amount is staked in the Token Locker. For users, there’s an added advantage: they can reclaim a certain refund by opting to burn their User DID.

Here’s a visual representation to simplify the economic model:

3. Mint Settings

Brand DID holders have the liberty to define the economic model parameters within the Mint Settings. Communities ID, understanding the diverse needs of businesses, offers an array of customizable parameters. These include the Mint Mode and a flexible price curve, .etc.

3.1 Mint Mode

• Invited Mint: This mode is exclusive. Only those with invited wallet addresses can mint User DID, making it ideal for closed organizations and institutions.
• Public Mint: In contrast, this is an open mode. Any individual or wallet address can mint User DID. It’s perfect for projects aiming to establish a B2C social graph on the blockchain.
• Holding Mint: A unique mode where only holders of specific NFTs can mint User DID. This is particularly apt for NFT communities.

3.2 Flexible Pricing

Communities ID champions flexibility. Businesses can use their tokens to mint User DID, thereby enhancing token utility and fostering a tighter bond with their ecosystem.

Moreover, with Communities ID, businesses can set a dynamic price curve to match the ever-changing supply-demand relationship of User DID:

• Constant: The price remains steadfast, unaffected by total supply
• Linear: Here, the price correlates with the total supply, increasing linearly as the supply grows.
• Plateau: Initially, the price rises with the total supply but eventually plateaus, reaching a maximum value.
• Square: A more aggressive model where the price sharply rises with the total supply.

3.3 Royalty

Communities ID offers the option to set a royalty, which adjusts the staking percentage of the payment. This fee can range between 0% and 100%. The implications are clear: a higher fee means more profits for the Brand DID owner, while a lower fee ensures more funds are staked for potential refunds.

3.4 Refund Options

Communities ID breaks the traditional mold by offering a refund feature for all User DIDs. Refunds can be obtained by burning the NFT, either directly on the Communities ID website or through integrated SDK interfaces.

Several refund conditions are available:

• Input Value: Refunds based on the original minting cost.
• Burn Index: Calculations based on the burn order and the price curve. Aka, the later the refund, the higher the return.
• Total Supply (Bonding curve model): Determined by the total supply and the price curve.

Furthermore, businesses can decide the refund timings, allowing for refunds at any time or only during renewal periods.

4. Conclusion

Communities ID’s “DID as a Service” protocol is a game-changer in the realm of DID. By understanding and leveraging the features and settings provided, businesses can optimize their operations and create a more integrated and user-friendly ecosystem.

We hope this guide has shed light on our business model and will assist businesses in effectively setting up their Brand DID contract.