A summary of the application scenarios and deflation scenarios of ZBC

Author: Zebec

Entering 2023, the Zebec ecosystem is evolving towards a new narrative direction. On one hand, we see that the streaming payment ecosystem Zebec has officially transitioned to a DAO and launched the DAO governance voting platform Zebec Node, allowing any user holding ZBC to participate in voting.

On the other hand, we observe that the ecosystem is bursting towards its original vision, about to transform from a streaming payment protocol on Solana, Zebec Chain, into a public chain ecosystem. Previously, it had already provided streaming payment services for over 200 partners on Solana, outlining the early commercial contours and the landscape of the streaming payment ecosystem.

With the downtime of Solana and the ensuing trust crisis, it has migrated and expanded to the BNB Chain and Near ecosystems, accumulating over 70 partner agreements. Currently, the early development of the Zebec ecosystem is maturing, having built a streaming payment public chain Zebec Chain based on the modular blockchain system Eclipse, which features privacy, compliance, and high scalability. Before the launch of this chain, a proposal to launch the preliminary chain Nautilus Chain was approved through DAO voting. This is beneficial for the development of the ecosystem and the value enhancement of the ecosystem token ZBC.

As the Zebec ecosystem is thriving, let’s take a look at the application scenarios and deflationary scenarios related to its ecosystem token ZBC.

Application Scenarios Overview

• Streaming Payment Service Discounts

Zebec is currently the largest streaming payment ecosystem in the Web3 space. It not only provides streaming payment services for users setting up streaming payment programs but also offers API/SDK interfaces for developers to help more on-chain protocols and Web3 applications integrate streaming payment functionalities. Previously on Solana, one-third of Solana projects used the Zebec system to distribute salaries, and over 250 projects have been built on Zebec, creating the largest ecosystem on the Solana chain.

At the same time, the early user base of Zebec Protocol has already reached over 30,000, and without any staking mining, the TVL once exceeded $300 million. Zebec achieved $20 million in revenue in 2022, bringing a net profit of $2 million to $6 million to the ecosystem, and it is expected to achieve $40 million to $50 million in revenue through streaming payment services by August 2023, resulting in even more considerable net profits.

Currently, the streaming payment business of the Zebec ecosystem is serving industry partners including ARB, Synchrony, Francium, Mirror World, HalkSight, Drippies, Rewards Bunny, Aver Exchange, Moonlana, etc. Meanwhile, Coinbase has expressed its intention to use Zebec's streaming payment functionality for salary distribution, and the Nepalese government will use Zebec to build digital payment infrastructure. The streaming payment ecosystem of Zebec has also received praise from the founding team of Visa.

Thus, we see that Zebec's streaming payment business brings substantial revenue to the ecosystem each year, especially after the launch of Zebec Chain, which features compliance and privacy, where the business volume is expected to achieve qualitative improvements. The ZBC token can provide fee discounts (approximately 25%) for any holder using streaming payment services. As the streaming payment business of the Zebec ecosystem progresses, especially with the increasing access of high-frequency Web2 users, the ZBC token will be widely adopted in streaming payment services, which will not only promote the market demand for ZBC but also enhance its value foundation.

• Incentives from Zebec Card

Currently, Zebec has partnered with Visa to launch the Visa card Zebec Card, which can be used for consumption with cryptocurrencies. This card possesses all the features of a traditional Visa card, such as online payments and withdrawals. Additionally, this debit card allows users to spend cryptocurrencies at Visa-affiliated merchants, of which there are currently up to 60 million, meaning that the large-scale adoption of cryptocurrencies in the payment field is being rapidly promoted through Zebec Card.

Zebec Card itself has no annual fees or transaction costs, making it one of the lowest-cost debit cards on the market. As the popularity of cryptocurrencies continues to rise in the traditional world, Zebec Card is gaining significant favor among cryptocurrency investors, and the number of applications for the card is surging.

In addition to using cryptocurrencies as a payment method, Zebec Card can also provide users with cashback on their spending. Users can stake ZBC tokens in their Zebec Card to receive a cashback of 0.25% to 7%, with the cashback rate depending on the amount of $ZBC tokens deposited in the Zebec Card. As the number of users using Zebec Card increases and cryptocurrencies are widely accepted, the application of ZBC tokens in the consumption field will further surge.

• As Gas Fees on Zebec Chain and Nautilus Chain

Currently, the Zebec community has announced the economic model for the upcoming Nautilus Chain and Zebec Chain, where the ZBC token will serve as a functional token on these two chains. On one hand, users can use ZBC tokens as gas on both chains, and any developer will need to use ZBC tokens as deployment fees when developing and deploying DApps. Although both Nautilus Chain and Zebec Chain have high interoperability and can use ETH as gas, using ZBC tokens as gas is cheaper.

Before the early launch of Nautilus Chain, it had already received support from over 20 ecosystem partners, who promised to start deploying applications after the launch of Nautilus Chain. As Nautilus Chain and Zebec Chain are gradually launched, the increase in ecosystem applications and further deployment of streaming payment services will also lead to a large-scale adoption of ZBC.

• Staking Mining

Whether on Nautilus Chain or Zebec Chain, any user holding ZBC tokens can receive a nice airdrop benefit, which is to stake ZBC tokens in the native DEX on the chain to receive airdrops of some on-chain project tokens. In fact, these projects may allocate 1% to 3% of their total token supply to airdrop to ZBC token holders and Zepoch node holders. Of course, the specific details depend on the subsequent market, but this mining based on ZBC and Zepoch nodes in the form of airdrops will definitely be launched. Therefore, this is also a relatively important role of the ZBC token.

• Participating in Governance Voting

Currently, the Zebec ecosystem has launched the governance system Zebec Node, where any resolutions related to ecosystem development will be proposed on Zebec Node, and any user holding ZBC tokens can use ZBC tokens to vote, helping the community make final decisions in a DAO manner. Currently, the launch of Nautilus Chain has become the first proposal and has successfully gone live after community voting recently.

In addition, users can participate as guessers by voting on the prediction results using ZBC tokens in a staking manner. Users who predict correctly will be able to share the ZBC tokens staked by users who predict incorrectly, which will encourage ZBC token holders to participate actively in governance, and important proposals are expected to be distinguished in this manner.

ZBC is being endowed with the function of a governance token, further promoting the native adoption of ZBC tokens.

Deflationary Scenarios

Burning of Nautilus Chain

Currently, the Zebec ecosystem has announced the economic model related to Nautilus Chain and Zebec Chain, defining and explaining the consumption ratio of ZBC tokens.

We see that Nautilus Chain itself will not issue tokens and will use ZBC tokens as gas. For every transaction, 25% of the ZBC tokens consumed as gas will be allocated to the ecological fund to promote the development of ecological projects, 25% will be distributed to validators, and the remaining 50% will be directly burned. The aggressive burning mechanism on Nautilus Chain will drive a large amount of ZBC token burning. It is reported that if Nautilus Chain reaches 80% of the transaction scale of the Solana ecosystem, 80% of the total supply of ZBC will be burned, and ZBC is expected to enter an extreme deflationary mode soon.

Staking Scenarios Reducing Market Circulation

Staking is having a positive impact on the Zebec ecosystem. Previously, Zebec collaborated with CEX platforms such as Gate, Kucoin, Huobi, and DeFi platforms like Izumi to initiate staking and liquidity mining activities, causing a short-term surge in the price of ZBC tokens. The launch of staking and governance voting in the Visa card, as well as staking mining (airdrop) after the launch of Nautilus Chain and Zebec Chain, is reducing the market circulation of ZBC tokens, and the deflation of ZBC tokens is long-term and sustained.

Fee Burning from Streaming Payments and Visa Card

The streaming payment business and payments made with the Visa card can also use ZBC as a consumable asset to offset fees, where 50% of the fees in Zebec Protocol will be burned. Additionally, registering and using the Visa card for payments will also create scenarios for the burning of ZBC tokens. In the continuous burning process, the amount of ZBC tokens burned may exceed 20% to 30%.

Overall, as the ecosystem continues to develop, the ZBC token is being endowed with new application and burning scenarios. A small part of this promotes short-term deflation, while the majority will play a role in sustained deflation, and ZBC is about to enter an extreme deflationary era.