- IOP is partnering with Latoken and doing an IEO
- Paving the way to the most efficient, cheapest and trusted decentralized ID system in the crypto space!
- IOP is introducing a new blockchain and switching to an open DPoS System
- Collaboration with the Autonomous University of Nayarit - growing user base every semester
After a long period of hard development, we are proud to announce a significant, groundbreaking step in the IOP system. The latest achievement is going to change everything - from the token economy to proper community governance and beyond.
99% of all coin/token prices are driven by speculation only, not by demand for real-world use cases. With the new blockchain and collaboration with universities, we are breaking this circle and becoming a real-world asset!
What is IOP
Internet of People project is building a web3 stack: a complete infrastructure for decentralized IDs, an Open Social Graph with direct access to people & P2P and direct device to device communication - all cryptographically secured by a blockchain. This goal will be accomplished as MVP soon.
Further projects that enhance the stack will follow, making it one of the most ambitioned open-source web3 projects.
History of IOP
Let us shed some light on the history of IOP and explain the reasons why this project is doing an IEO.
First, you need to know that IOP is a community project, as was created as a fork of the former Fermat project.
Second, despite Fermat, IOP never raised funds, had an ICO or other sources of income than mining and private donations of founders and members. It recently raised the supply to create a development fund to secure ongoing operations, but they won’t last till the end of the year.
Problems to solve
With this fork, we inherited many problems. In short, Fermat was a corporate interest-based project, with a permission-based blockchain ecosystem. A part of the Fermat community split off as they were not happy anymore with individual business decisions and decided to go their way. In a community voting, they decided with over 90% not to erase the old IOP coins of Fermat and destroy value (wallets are untouchable), but one by one, eliminate the restrictions and still fulfill some of the original ideas that the old project initially had.
Centralization of power
That is why the IOP community inherited a permission-based blockchain based on Bitcoin (whitelisting needed), with admin keys to revoke and grant mining permission. Blockchain-based voting for granting access was broken and slowed the blockchain down. A fix seemed impossible without changing the chain, so we kept it centralized and didn’t waste more energy on it, because we wanted to switch the blockchain later after completing Mercury. We solved the centralization a bit by creating an off-chain voting system and kept so the trust of the community.
Crypto Winter hit us
During the crypto-winter, both projects faced an economic situation that made clear that both projects alone cannot reach their long term vision without facing severe insecurity and funding problems. Thus, IOP and Libertaria joint forces and fused into the IOP project.
Libertaria will focus on political ideas, governance and it’s Titania Operating System; IOP took over Libertaria’s comprehensive technology and merged it into the IOP Stack and stays apolitical.
From that moment we knew (and always communicated) that at some point in the future we need to merge IOP coins and Hydra Tokens (thus changing both token economies) and to create something new out of it, once the time is ready.
Token Economy is broken without decentralized governance
The IOP coin was a commodity and had no other function despite financing development and operating infrastructure. On top, Chapters where mining and selling off the coins which hurt the price on long-term even more, as there was no incentive to keep the coins; we even encouraged the chapters to mine and sell them to finance local operations like marketing and building products around the IOP system. But many chapters did not do much but selling off for their interest.
Develop first, raise money later
Through the crypto-winter, our duty became our burden: The promise to develop first and raise money later.
To keep our reputation and build trust we promised in Libertaria and later in IOP to first deliver one or two projects of the long term roadmap and then do a proper ICO. Unfortunately, the development took one year longer than anticipated, as a lot of our work is based on scientifically new fields and needs more research time than development. Building infrastructure is hard, a lot harder than building a service/product on top (which is easier to calculate).
Finally, the time has come
We finally have accomplished the promised tasks and reached a turning point:
- We delivered a prototype of our decentralized communication protocol “Project Mercury”.
- We finished a Prototype of “Project Morpheus”
- We finished an MVP of “Project Prometheus”
- We signed an agreement with the Autonomous University of Nayarit (UAN) to collaborate; they will be the first University to use the IOP Stack!
The last step - a new Blockchain
Now we need to glue those three protocols together and patch them to an open, decentralized blockchain, that is sustainable, fast, mature and fits all needs to build further upon and paves the way to Hydra. We are still working on our own implementation of an Algorand-like consensus, called project Hydra. This will be a true decentralized lottery-like POS system.
But we realized that our Algorand tests and necessary implementations might take many more months to come. Our soon production-ready DIDs (Prometheus & Morpheus) as described in the whitepaper, need a fitting blockchain ecosystem that suits to our philosophy (cheap and fast creation and verification of IDs, for example, off-chain execution of projects, Universities demands, etc…)
To satisfy all sides, we decided to realize Hydra in 2 steps:
- Merging IOP Blockchain and the current Hydra Token to one decent chain as basis for the later Algorand-based Hydra DLT.
- We are then switching the final consensus once Hydra Algorithm is mature enough and our DIDs are properly implemented and compatible with the final Hydra-Algorand.
This merge is already tested in the developer network and is working well. As a result of this, we want to let you know that the coming switch to our new blockchain is coming soon, to be more concrete, in just a couple of weeks.
The switch to the DPoS system is a first intermediary step to merge IOP and Hydra and have a utility token based blockchain. We have agreements with Universities that demand we deliver asap a chain that is ready for a social graph with ultra-quick updates. That is why we decided to fork Ark and switch as an intermediary step to a DPoS system that satisfies the needs of the market and finally opens the blockchain to the community and makes a future consensus switch to the Hydra-Algorand painless and easy.
All current Hydra Investors will be able to transfer their tokens to the new blockchain. We will implement a service for this switch; the same accounts for IOP wallets: you will be able to move them to the new blockchain, without any hassles.
Advantages with the new blockchain
- we get all benefits from the ARK Blockchain which is awesome and in this stage sufficient and more compelling than Ethereum for example
- we are finally keeping our promise and opening the blockchain system, ditching the mining whitelist and let everyone being able to join the network, no matter what - no barriers, no buying into, no coin locking, no other obstacles, true decentralization
- we get proper community governance, which is better and more elegant than the first implementation of the rigid chapter system
- the new consensus brings you rewards similar to staking, but it is a lot more flexible and elegant. We have a kind of cold staking on steroids without any strings attached - means, no need to lock tokens, being online, investing into a master node, etc…)
- the ARK ecosystem that we adopt and contribute is very active, we find many synergies and could support each other. Everything is so much easier and accessible for developers and entrepreneurs
- the modern state of the art and solutions-oriented technology, that allows not only us to implement the DIDs much faster, but third party developers and business to easily build tools and services on top
- finally, a POS system - we can ditch the costly POW - and in this case, we even get a more open and flexible delegate based POS which is just done right (DPoS)
New Token Economy is more sustainable
First, not the project, no company or individual has any kind of control over the mining or the blockchain anymore. We become decentralized.
Second, With this merge IOP coin is turning into a Hydra token, we change the Token Economy from a deflationary commodity (digital gold that has no use-case) to a Hydra utility token powering the student’s decentral IDs, which grows moderately with 6% inflation in the first year and then falls from year to year (while we expect the user base to grow exponentially).
It is very likely that the demand for Hydra tokens compared to IOP coins will increase drastically. And this for the following reasons:
- We switch to a much better consensus and associate it with the DIDs, which gives the IOP Ecosystem a technological upgrade and thus a significant added value through the Utility function.
- With the new open consensus without central authorities that can decide on licenses, a significant increase in network participants will be the result, which leads to an increase of the token demand.
- The possibility of staking will also lead to a large proportion of participants withdrawing their tokens from circulation, as a result of which supply will decline while demand will increase due to staking opportunities.
- All those who participate in staking from the beginning will benefit fully from inflation since you (the stakers) will be the first recipients of the new tokens. In addition, those who participated in the Hydra ERC20 Airdrops benefit twice from the swap while new investors do not receive this bonus.
- We have a contract with the UAN University in Mexico, which will bring 30k students to join the network as users, and then 8000 new student IDs every semester. That is a fact. And all need later IDs, certifications, proof of courses, etc. That all creates a demand and value to the network. Many other universities also want to join, but they have made it a prerequisite that our DIDs are connected to an open blockchain (not a closed chain like the current IOP chain). This significant user growth, which is not driven by speculation, but by using the token in real applications, will also increase demand.
- The IEO will give us a lot more attention, as we will, of course, be doing a big marketing campaign. And since everyone can participate in the network this time, this will support points 2 & 3 massively, which will also lead to more demand again.
We are now officially partnering with Latoken to ensure a proper merge and more widespread and transparent distribution of tokens. We decided to run a form of IEO on Latokens trusted platform, which is among the biggest IEO providers in the industry!
We strongly believe that the interest and demand of the token will increase due to the technical innovations that will come with the new chain. On the one hand, the token gets a utility function with the DIDs, which will be used right from the start by 35k students in Mexico. On the other hand, the demand is additionally strengthened by the new DPoS system and the staking possibility of the token. Owning tokens will bring you a great dividend, and delegates will try to accumulate instead of selling off.
As an example, Ark currently has a circulating supply of ARK 113.443.488, of which 82.342.019 ARK are in staking mode. This number is mind-blowing.
Of course, we hope this leads to a fruitful collaboration between these two amazing projects.
With switching to the new blockchain there is no other better timing for doing an IEO, changing the token economy and distributing tokens as broad as possible. Of course, we are catching two birds with one stone, as we can raise development funds as well.. But this time in Fiat money, thus, there is no selling pressure on the market from the project itself.
And yes, the supply is being raised. Switching from POW bitcoin-like with 21mio to a POS utility-based economy needs more tokens and ultra-cheap and fast transactions. The extra amount of tokens is being offered in an IEO above the current market price of IOP, which makes it very unlikely that someone will sell below the purchase price after the IEO.
After the IEO
The switch to the new blockchain economy opens up the whole project and turns IOP into a decentralized organization that does not rely on a single company or certain people anymore.
IOP core team can concentrate on research & develop the web3 stack and the IOP community can continue building apps and services on top, that make use of this IOP Stack.
From this moment, we can basically build anything on top - the sky's the limit 🚀