Boson’s vision is to enable a single digital market for physical things (think ‘Uniswap for e-commerce’); where all the world’s products and services are listed and searchable, with commerce automated via code (think TCP/IP for commerce). Boson is built on decentralized infrastructure as a minimally extractive coordinator, with value mediated by the $BOSON token, ensuring that participants can share in the value they create.
In order to achieve the vision of a single digital market for physical things, Boson addresses three primary problems. Firstly, the physical asset oracle problem: if Alice tokenizes her car, and Bob buys the token; how can Bob be sure he will receive the car? Secondly, the fair-exchange problem: if Alice wants to remotely buy an item from Bob, how can they ensure that the exchange happens atomically (i.e either both parties receive what they are due or neither do)? Thirdly, how to digitally represent physical items.
Minimally extractive fees
Boson Protocol is designed so that all participants share in the value they create, with fees that are sufficient to sustain and grow the ecosystem, and with community governance to ensure that Boson remains minimally extractive, forever.
$BOSON: the native utility token of the protocol
The $BOSON token serves three primary purposes:
- Governance – $BOSON tokens are used by participants to govern Boson Protocol, ensuring consensus around critical decisions and the issuance of funds from the dCommerce DAO.
- Fees – Boson implements a minimally extractive fee that can be activated or amended by the Boson Protocol DAO through the Protocol fee switch. Fees accrue to the DAO treasury.
- Incentivization – $BOSON tokens are used to incentivize actions across the system. Including incentivizing supply and demand acquisition.
Fees and Governance
Protocol Fee
Boson Protocol is designed so that all participants share in the value they create, with fees that are sufficient to sustain and grow the project and its ecosystem. Its governance aims to ensure that Boson remains minimally extractive, forever. Boson Protocol v2 implements a minimally extractive Protocol fee that is configurable by the DAO.
The Protocol fee (PF) is levied on the item Price (p) and is charged for successful exchanges only. PF is between [0,100] and represents the percentage number of the Item Price that is taken as protocol fee.
The fee charged is calculated as PF=Item Price * PF / 100
The Protocol fee is set to 0 if Offers are priced in $BOSON.
Protocol fee revenue will be collected by the DAO treasury, where, ultimately, $BOSON holders will vote on how funds are allocated. This is essential to sustain and grow Boson Protocol itself, and the ecosystem of applications and tooling leveraging Boson.
Incentivization
New networks face the bootstrapping problem, where overall utility is low for users if the overall number of users is low. To overcome this bootstrapping problem, Boson Protocol leverages the $BOSON token.
The Boson Protocol DAO will distribute $BOSON tokens to early users to incentivize early adoption of the protocol. This incentivization will continue until Boson Protocol has achieved strong network effects.
Boson v2 protocol fee governance
The Protocol fee only applies if the Offer price is not priced in $BOSON. If the Offer is priced in $BOSON, no Protocol fee applies to the exchange.
The Protocol fee is levied on the Offer price and is charged for successful exchanges only. If an exchange’s outcome is an undesirable endstate, such as the Cancellation by the Buyer, Revoking of the exchange by the Seller, or the resolution of a dispute, no protocol fee will be charged.
The Protocol is designed to allow all participants to share in the value they create, with fees that are sufficient to sustain and grow the project, and with community governance that ensures Boson remains minimally extractive, forever. This is a crucial step in the progressive decentralisation towards community governance via the Boson Protocol DAO.
Read more about the protocol fee DAO vote here.
Read on: download our v2 whitepaper
Boson enables the decentralized exchange of physical assets- tokenized as redeemable NFTs.
The launch is planned later this year, and over the coming weeks, we will be releasing additional information about what Boson is, how it works, and how you can build on the protocol, and participate as either buyer, seller or integrator.
To read more in our white paper, you can download it here
