Announcing the mainnet launch of DIMO, including an airdrop, ongoing token issuance, token holder governance, and on-chain vehicle minting and pairing.
There are important actions that you as a user need to take to make sure you are eligible to receive $DIMO. The token is scheduled to launch on December 12th, 2022.
First, what is it? $DIMO is the native blockchain based token of the DIMO protocol that is issued to users and contributors. You can think of it like an airline reward point for your car, but with additional superpowers.
Why is it useful? When drivers connect their cars and stream data, they earn $DIMO. Everyone earns a portion of the weekly drop (baseline issuance), and they earn more when app developers and data consumers pay for their data or vehicle access (marketplace issuance).
Great so far… but why would anyone want this token, and how does it enhance the DIMO experience for users?
1) It’s required for transacting on top of the platform.
Buying Data. Any transaction involving the sale of user data requires $DIMO. Any portion owed to the user is always in $DIMO and some $DIMO is also burned (taken out of circulation).
Hardware. If a hardware OEM wants to create new DIMO-compatible devices, they’re required to back individual device IDs with $DIMO. This has already happened with the DIMO Data Miners produced by AutoPi. Other fees, such as a token burn for each new vehicle minted, can be added at any time using the governance functionality described below.
Products and Services. In the future, all transactions on top of DIMO rails that involve payment for goods and services could also generate rewards and token burn — like the 30% Apple App store fees… but surely a more reasonable percentage. Car payments, insurance payments, car rentals, car sales, and more should all result in $DIMO tokens being burned. Such a mechanism should be implemented at a time in the future when DIMO adoption and regulatory clarity are suitably far along.
Simply put: increased transaction volume on the network = increased $DIMO token burn + users earning increased rewards.
Similar utility to: ETH, MATIC, (and essentially all other L1s/L2s), HNT (+DC)
2) It gives holders the right to make decisions about how the network works.
$DIMO token holders are able to vote on how the protocol works. They control decisions like: upgrades to software code; protocols and standards; who can license the IP; how fees are generated; and how rewards are issued. Holders are even able to update the properties of the token itself and what it can be used for.
Modern tech giants have shown time and time again how quickly they’ll take advantage of their users for the benefit of their shareholders. For that reason, it’s important that those who control DIMO are the ones who use it.
Similar utility to: UNI, GTC, and other governance tokens
3) It aligns the incentives of other participants in the ecosystem with staking and spending.
It is important that the businesses that produce DIMO compatible hardware, transmit user data, and build apps have skin in the game and a reason to care about the long-term success of DIMO. Therefore, they must stake and/or spend $DIMO tokens in order to maintain a license and deploy products to the network.
Staking in this context is comparable to a security deposit, like one you might put down when you move into a new apartment. If the staker misbehaves, they may have some or all of their tokens taken away. While this doesn’t generate yield for the staker, it does force them to be long-term holders of the token.
Similar utility to: ETH, MATIC, (and essentially all other PoS chains), GRT, LPT
Additionally, all DIMO data miners deployed on the network require a payment of $DIMO tokens as described in section one.
Similar utility to: HNT
4) It shows who’s a part of the community.
As a token on a public blockchain, it couldn’t be easier to prove who is part of the DIMO community. $DIMO holders may receive special access to various app features, events, and more. Owning the $DIMO token should amplify a user’s experience in this ecosystem. This is ultimately up to the app ecosystem and community to implement and offer.
Similar utility to: FWB, BANK
Why not just pay drivers in cash?
The traditional model for building a platform entails selling half the company to venture capital firms to raise money, to advertise to users and get their attention and slowly grow a network. At the end, the project is controlled by professional investors and the early users who are responsible for its growth have nothing.
Communities built on top of blockchain technology, whereby control is given to those users, are stronger, better, and more equitable. The technology is also more transparent, practical, and programmable. We believe this new paradigm is here to stay and will become increasingly common.