One of the original goals of blockchain and cryptocurrencies was to democratise wealth. However, it has been over 10 years since the Bitcoin white paper was released and we still live in a world where the rich are getting richer, and many of the new opportunities available in blockchain and crypto are only accessible to those who are already wealthy.
SwissBorg’s latest initiative is returning to the core values of blockchain. We are developing a sustainable yielding program for the CHSB token that will be calculated based on our new scoring system - the Community Index.
The Community Index is inspired by the Proof of Stake model. Proof of Stake is one of the trendiest topics in crypto, with many new projects using it as a consensus mechanism, and even Ethereum transitioning to the model in their recent ETH 2.0 upgrade. Proof of Stake rewards a community for helping an ecosystem to function and scale by validating transactions, as well as for their commitment to the ecosystem by choosing to hold a token for a set period. Similarly, our Community Index reflects how well the SwissBorg ecosystem is performing and rewards members of the community who are committed to supporting it.
Currently, the main incentive to hold CHSB tokens is to access the benefits of a Premium account. But what incentive is there for holders who have less than 50,000 tokens, or those who have a CHSB balance beyond the amount required for their Premium account?
The Community Index and our coming CHSB Smart Yield will incentivise large token holders by paying a yield on the tokens they hold beyond the 50,000 they have staked, while smaller token holders will earn a yield that could help them go Premium at a faster rate.
Ultimately, with this program, the ability to earn passive income won’t be restricted to those who have tens of thousands to invest, or who have the ability to lock their funds for months at a time. Instead, it will be open to all CHSB holders using the SwissBorg app.
With this new utility, we are confident that the CHSB token will become one of the most valuable multi-utility tokens in the crypto space.
Now, let’s jump into the specifications.
Goals of the Community Index
The goal of the Community Index is to determine a score based on the key figures of the SwissBorg ecosystem. This score, which is set between 0 and 10 and updated on a weekly basis, is used to define the yield that users will receive in their CHSB Smart Yield account. The plan is to extend that mechanism to set the value of the Reward Program, the Protect & Burn level as well as the DAO Reward based on the Community Index.
The Community Index for the week to come will be officially communicated in the Pow Wow.
The goals of this approach are:
- Link the growth and performance of the SwissBorg ecosystem with its community
- Coupled with the CHSB Smart Yield account, give a sustainable income to users based on ecosystem growth
- Provide an incentive to hold CHSB tokens, beyond what is required to get a Premium Account
- Involve users with passive income in the monitoring of SwissBorg's development and growth
- Increasing SwissBorg’s positioning as a leader in community-centric initiatives and products
- Improve retention and boost the engagement of existing and new community members
How the score works
The Community Index is a weighted sum of the following six sub-scores defined between 0 and 1:
- Svolume: SwissBorg App Volume Score
- SCHSB: CHSB Token Score
- Sactivity: SwissBorg App Activity Score
- SCAP : Community App Score
- SDAO: DAO Engagement Score
- Ssocial: Social Media Engagement Score
The total Community Index, set between 0 and 10 is calculated as follows:
CI = 3 x Svolume + 2 x (SCHSB+ Sactivity) + SCAP + SDAO + Ssocial
Each of these scores are defined between 0 and 1 and are functions of key ecosystem metrics. Two different functions are used for different types of scores and are updated weekly.
SwissBorg App Volume Score
An important component of our ecosystem is the volume generated in the SwissBorg App from exchanges and the amount locked in the different Smart Yield accounts (CHSB Smart Yield account excluded).
This score is linked to the weekly volume generated in the SwissBorg App (exchange and yield). Thus the higher the exchange volume and the amount locked in the Smart Yield account, the higher the score.
CHSB Token Score
The second most important component of the Community Index is the CHSB token subscore. This score is a function of the trading volume (on CoinMarketCap) and the price of the CHSB token in US dollars. Thus, a higher volume with a higher price will give a larger score.
SwissBorg App Activity Score
This subscore is a combined measurement of the SwissBorg App weekly growth in terms of new users and the activity of the users in the app. When significant growth and large activity is observed in the previous week, the score will be higher.
This means that the more users who open the app, make deposits, trade, check their portfolio or use the hourly asset analysis, the higher this score will be.
Community App Score
The Community App Score is similar to the SwissBorg App Activity score, but for the Community App.
DAO & Social Media Engagement Score
The Engagement Scores on the DAO measure the growth in terms of engagement in the DAO and on social media:
- The number of weekly Active Members in the DAO
- The sum of weekly engagement on Facebook, Twitter, LinkedIn and Instagram
Backtest of the SwissBorg Community Index
Since the release of the SwissBorg App, it has been possible to determine the historical value of the Community Index as well as the detail of these components over time.
In times of strong growth, the score is boosted by important activities and commitments. In order to reach significant levels above 6.00, it is critical to have engagement and growth but also a high exchange volume on the SwissBorg App as well as a healthy trading volume on the CHSB token.
Community Index & CHSB Smart Yield Account
With the introduction of the Community Index, we are happy to announce the development of a CHSB Smart Yield account.
- The number of CHSB that will be distributed the following week is computed on the Tuesday before the Pow Wow, based on the Community Index and the number of CHSB held in the CHSB Smart Yield Account
- The Community Index is mapped to a reward value in CHSB (this table is updated every quarter and adjusted)
- CHSB tokens will be bought back and distributed according to this table
- All the users who hold CHSB tokens in their Smart Yield account will get a reward proportional to the amount held in the account!
The reward per annum (p.a.) will be thus proportional to the Community Index and will depend on the number of CHSB held by the users in the SwissBorg Smart Yield account. In the following table, you will find an example of the mapping between the Community Index and the CHSB reward distributed (for Premium users).
