BGC X IBLOOMING WHITE PAPER DRAFT

Integrating Loyalty, Value, and On‑Chain Transparency

Impact on the 5 Strategic Objectives (LIVING Doc)

• Revenue ↑: on‑platform utility drives GMV & ARPU.

• Cost ↓: automated event ledger & rate limiting reduce operational/transaction costs.

• Tax burden ↓: compliant internal settlement lowers taxable events.

• Affiliate ↑: clear incentives & utilities improve activation/retention.

• Active users ↑: unified utility + Web3 Login reduces friction.

Tokenomics (at a glance)

• Principle: behavior‑based (ALPHA simulation outcomes), not speculation.

• Utilities & Sinks: purchase products/classes/features, premium access, staking for boost; value absorption through usage fees & event‑based burn.

• Conversion Policy: PC/SP → ALPHA rights (default: spend/access/stake); scheduled cash‑out windows, with quotas and anti‑abuse.

• Governance & Compliance: staged governance; jurisdictional compliance notes (separate memo).

Concise Roadmap

• 1a) ALPHA simulation → 2a) Whitepaper v1 → 3a) Tokenflow Map v1 → 4) Single Founder Sign‑Off (incl. Legal Gate) → 5) Pilot utilities iBC/iBTC → 6) Cross‑app expansion.

• 1b) Web3 Login plan → 2b) Web3 Login implementation → 3b) Web3 Login launch → 4) Single Founder Sign‑Off (incl. Legal Gate) → 5) Pilot utilities iBC/iBTC → 6) Cross‑app expansion.

Decisions Requested (Founders)

Approve Whitepaper v1 with three open parameters to be finalized at Single Founder Sign‑Off (incl. Legal Gate): initial PC/SP→ALPHA conversion ratios, cash‑out windows policy, and Q1 sinks priorities.

1. Executive Summary

BGC × iBLOOMING mirrors value flows operating since 2023 to Base via an EventHub (append‑only) that records key events with hashed off‑chain proofs. Rights/loyalty are structured with ALPHA—an ERC‑20 interface that is non‑transferable; mint/burn occur only via an AlphaController—so value by default circulates inside the ecosystem (spend/access/stake). USD payouts for specific BGC components remain AS‑IS per the UNDERSTANDING Doc, while cash‑out windows schedule and throttle value flowing outward. The Web3 Login + Wallet Registry → Smart Account (AA) architecture sustains low‑friction UX with high auditability. After 24‑month data validation and legal sign‑off (hard gate), the public phase iBC/iBTC expands utilities across applications. This three‑act strategy targets 5 Strategic Objectives (Revenue↑, Cost↓, Tax↓, Affiliate↑, Active Users↑) with measurable KPIs, including Reward Gini Coefficient for distributional fairness. Launches are gated by a Single Founder Sign‑Off (incl. Legal Gate) prior to deployment.

• Core problem set (six value‑flow gaps) → Solution (ALPHA → iBC/iBTC) mapped directly to the 5 Strategic Objectives.

2. Problem Statement (Brief)

• Gap‑1: Limited outcome from PC/SP conversion bridge.

• Gap‑2: Interoperability & value leakage (out of ecosystem).

• Gap‑3: Admin dependency (manual operations).

• Gap‑4: Low real‑time transparency (limited audit trail).

• Gap‑5: High tax burden from fiat‑first processes.

• Gap‑6: BGC growth > iBLOOMING (imbalance).

Note: gap list refers to UNDERSTANDING Doc + LIVING Doc; details are condensed in the TOKENFLOW Doc.

3. Solution Overview (C → A → B)

3.1 Concept

• Reframe PC/SP as tokenized rights via the ALPHA settlement layer.

• Target: default utility inside the ecosystem; cash‑out as a secondary, controlled path.

3.2 Analogy

• An internal “conversion bridge”: PC/SP → ALPHA rights → spend/access/stake across apps.

• Value circulates longer inside; leakage outward decreases.

3.3 Design (High‑Level Implementation)

• Settlement Layer (ALPHA): conversion rules, event model, rate‑limit, and audit trail.

  • ALPHA uses an ERC‑20 interface, is non‑transferable, and mint/burn only via AlphaController; free transfer is disabled (except system‑governed flows).

  • EventHub acts as an append‑only ledger with hashed proofs anchoring off‑chain documents.

• Utility map: spend (products/services), access (features/classes), stake (commitment).

• Transparent dashboard (append‑only ledger) for claims/entitlements.

• Sponsor gas (active – Pilot v1): onboarding, convert_to_alpha, spend/access; per‑account daily cap ≈ $0.10; global daily cap ≈ $20; throttle/pause enabled.

4. Tokenomics (Framework)

4.1 Objectives ↔ KPIs

• Revenue↑ → KPI: ARPU/GMV on‑platform.

• Cost↓ → KPI: operational cost per 1,000 transactions.

• Tax burden↓ → KPI: fewer taxable events via compliant internal settlement.

• Affiliate↑ → KPI: number of active affiliates; 30/90‑day retention.

• Active users↑ → KPI: MAU/WAU across applications.

• Fairness → KPI: Reward Gini Coefficient (distribution inequality).

Note: baselines & targets will be populated after the 24‑month data session.

4.2 Supply & Emission

• Principle: behavior‑based (ALPHA simulation results), not speculative.

• Parameters: [PLACEHOLDER initial figures + periodic adjustment method].

4.3 Distribution

• Utility pools (spend/access/stake), affiliate incentives, ecosystem reserves.

4.4 Utilities & Sinks

• Utilities: product purchases, feature/class access, staking for boost.

• Sinks: usage fees, event‑based burn, premium fees.

4.5 Conversion Policy (PC/SP → ALPHA → iBC/iBTC)

• PC → ALPHA: 100 PC (= $1) → 1 ALPHA; fee 0 bps; cooldown 0 days.

• SP → ALPHA: $1 SP → 1 ALPHA; fee 0 bps; cooldown 0 days.

• Default use of ALPHA: spend / access / stake inside the ecosystem.

• USD payout for certain BGC components remains AS‑IS (see UNDERSTANDING Doc).

4.5.1 Cash‑Out Windows (Pilot v1)

• Frequency: 4× per year (quarterly).

• Window duration: 7 days per window.

• Minimum payout: $50.

• Payout fee: 100 bps (1%).

• KYC required for every payout.

• Note: cash‑out windows are the secondary, scheduled path for value leaving the ecosystem.

4.6 Governance & Risk

• Staged governance; rate‑limit; policy orchestration.

• Risk map: operational; market; compliance; reputation.

• Anti‑Abuse & Sybil (Pilot v1): referral cooldown 1 day; max 10 Tier‑1 joins per actor/day; require_unique_device = true; duplicate_device_limit = 2; audit sampling 5%; penalties: wash_trade_zeroing = true, cooling_off 7 days.

4.7 Compliance Notes

• PC is the proof of physical‑product transactions (MLM legal requirement).

• Affiliate membership can only be purchased with fiat (not with PC nor with tokens).

• Legal sign‑off is required before the public iBC/iBTC launch.

• KYC is enforced for payouts executed via cash‑out windows (Pilot v1).

5. Roadmap (High‑Level)

• ALPHA simulation → Whitepaper v1 → Tokenflow Map v1 → Single Founder Sign‑Off (incl. Legal Gate) → Pilot utilities iBC/iBTC → Cross‑app expansion.

• Web3 Login Plan → Web3 Login Implementation → Web3 Login Launch → Single Founder Sign‑Off (incl. Legal Gate) → Pilot utilities iBC/iBTC → Cross‑app expansion.

6. Data & Methodology

• 24‑month data sources; metric definitions; cleaning rules; reproducibility.

• Privacy standard: PII anonymization and dataset manifest for reproducibility.

7. Open Questions

• Cash‑out thresholds, initial conversion ratios, Q1 sinks priorities, prioritized use cases.

Appendices

• Glossary; event table; compact architecture diagram.

Initial Parameter List (v1 Pilot)

Convert to ALPHA (v1)

• pc_to_alpha.ratio = 100 PC : 1 ALPHA; fee = 0 bps; cooldown = 0 days.

• sp_to_alpha.ratio = $1 : 1 ALPHA; fee = 0 bps; cooldown = 0 days.

Cash‑Out Windows (v1)

• windows_per_year = 4; window_length_days = 7; min_payout_usd = 50; payout_fee_bps = 100; kyc_required = true.

Sponsor Gas & Caps (v1)

• sponsor_gas.enabled = true; actions_covered = [onboarding, convert_to_alpha, spend/access];

• daily_cap_per_user ≈ $0.10; global_daily_budget ≈ $20; throttle_global = true; pausable = true.

Anti‑Abuse & Sybil (v1)

• referral_cooldown_days = 1; max_tier1_joins_per_actor_per_day = 10;

• require_unique_device = true; duplicate_device_limit = 2;

• audit_sample_rate_pct = 5; wash_trade_zeroing = true; penalty_cooling_off_days = 7.

Settlement Rhythm (v1)

• accrual_frequency = daily; points_settlement_frequency = weekly;

• pool_distribution: GPS = semiannual; WEC = quarterly; MC = monthly; GMP = monthly; GEC = monthly.

Event Model (Minimal Final)

Event list (audit trail): JoinAffiliate, MintPC, SpendPC, EarnSP/AccrueLTS, CPContribution, PoolAccrual (GPS/GMP/WEC/MC/GEC), ConvertToALPHA, SpendAccess / Stake / Vote, CashoutWindowOpened, CashoutWindowClosed, PayoutUSD.

Minimal columns per event: actor, what, amount, unit, timestamp, refId, dataHash (anchor to off‑chain proof).

Glossary

Here's a glossary of abbreviations and terms that appear/are related in this WHITEPAPER—concise and clear.

A–C

• AA (Smart Account / Account Abstraction): Contract-based wallet with programmable policies (e.g., sponsored gas, rate limits), mapped via the Wallet Registry.

• Actor ID: Internal identifier for a user/entity in events.

• ALPHA: Non-transferable ERC-20–interface loyalty/rights unit; mint/burn only via AlphaController; used for spend/access/stake.

• AlphaController: Policy gateway for ALPHA (conversion ratios, caps, cooldowns, cash-out windows, pause).

• Append-only (ledger): Record system that only appends entries (no edits/deletes); audit-friendly.

• ARPU (Average Revenue per User): Average revenue per user in a period.

• AS-IS: Existing process kept unchanged (e.g., specific BGC USD payouts).

• Audit trail: Verifiable chain of evidence/events for review.

B–D

• Baseline/Target: Initial KPI value and future goal (filled after 24-month data session).

• bps (basis points): 1/100 of a percent (1% = 100 bps).

• Cash-out windows: Scheduled periods to move value out of the ecosystem (quarterly 7 days; $50 min; 1% fee; KYC).

• Cooling-off: Temporary lock after violations.

• Cooldown: Required wait time before re-attempting an action (v1 = 0).

• ConvertToALPHA: Event converting PC/SP into ALPHA under policy.

• CSV/Parquet: Data file formats for exports/analysis.

E–H

• Entitlement (rights): User claims/permissions backed by ledger records.

• Event: Logged action in EventHub (e.g., MintPC, EarnSP, SpendAccess).

• EventHub: Append-only event sink with hashed proofs anchoring off-chain documents.

• GEC/GMP/GPS/MC/WEC (pools): Distribution pools (GPS=semiannual; WEC=quarterly; MC/GMP/GEC=monthly) per UNDERSTANDING Doc.

• Gini (Reward Gini Coefficient): Inequality metric for reward distribution (0 = equal, higher = more unequal).

• GMV (Gross Merchandise Value): Gross value of transactions on the platform.

I–L

• iBC / iBTC: Post–legal sign-off on-chain utility phase (for cross-app expansion).

• KPI (Key Performance Indicator): Core metrics (ARPU/GMV, cost per 1k actions, MAU/WAU, retention, Gini).

• KYC (Know Your Customer): Identity verification required for cash-out payouts.

• Ledger: System of record (here: append-only).

• LTS: Long-term tally of SP for affiliate levels/analytics.

M–P

• MAU/WAU (Monthly/Weekly Active Users): Distinct active users per month/week.

• MC/GMP/GEC/GPS/WEC: See “GEC/GMP/GPS/MC/WEC (pools).”

• Mint/Burn: Create/destroy ALPHA (controller-only).

• MintPC / SpendPC: Events for issuing/using PC (physical-product proof).

• Non-transferable: Not freely transferable between accounts (only system-governed flows).

• Pausable / Pause–Unpause: Emergency switch to stop/start contract features.

• PC: Proof of physical-product transaction; 100 PC = $1 baseline for ALPHA conversion.

• Pilot v1: Initial operating configuration for the pilot phase.

Q–T

• Q1: First quarter (initial sinks priority).

• Rate limit: Per-user/system frequency/volume caps.

• Ref ID: Reference identifier linking events to invoices/docs.

• Settlement: Periodic rollups/clearing (daily/weekly/monthly/… rhythms).

• SP: Affiliate points based on revenue (v1: $1 SP → 1 ALPHA).

• Spend/Access/Stake: Three ALPHA utilities (purchase, feature/class access, commitment/participation).

• Stake-to-vote: Participation/voting gated by stake (optional later phase).

• Sybil: Abuse via multiple fake accounts to gain unfair advantage.

U–Z

• UNDERSTANDING Doc: Source of truth for business/marketing model & USD payout rules (AS-IS).

• USD payout (AS-IS): Existing USD disbursements for specific BGC components; separate from ALPHA.

• Wallet Registry: Mapping of users ↔ wallets/AA after Web3 Login.

• Web3 Login: Unified sign-in that provisions a wallet/AA and ties identity to on-chain actions.

• WEC/GPS/MC/GMP/GEC: See “GEC/GMP/GPS/MC/WEC (pools).”

Operational terms

• Audit sampling 5%: Randomly reviewing ~5% of events/accounts.

• Daily cap per user ≈ $0.10; global ≈ $20: Sponsored-gas daily limits (per account and system-wide).

• Duplicate device limit: Max accounts allowed to share one device signature.

• Require unique device: Enforce minimum device uniqueness to deter Sybil attacks.

• Throttle: Automatic throughput reduction when thresholds are exceeded.

• Quarterly/Semiannual/Monthly: Pool distribution and reconciliation cadence.

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