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Own your own hardware incentive

It is usual that an ISP charges a first connection fee and leases the required hardware to the customer. The usual hardware includes a modem, a router, and a TV box. The connection fee is charged because a transceiver needs to be installed and usually some cabling is required at user end. These fees are usually waived when the client commits to a longer-term contract.

A token economy provides different solution to this problem and creates new value to all the participants. We propose the “Own your own HW” incentive, where users can become the owners of their hardware with the help of the company and the company gets long term clients.

When a client if first enquiring for a service through the 3air platform, he will get the appropriate hardware to be able to connect and use the provided services. At this point the HW is leased to him meaning he can use it but is not the owner. At the same time, the company (either the ISP or 3air) will provide the client with 3air tokens in the amount that is less the HW value (this value is adjustable but should constitute a large percentage of the total value of the HW). These tokens need to remain locked for at least 12 months.

The client can use the HW freely as long as he has a valid subscription and the tokens remain locked. If after 12 months he decides to unlock tokens, he needs to pay for the HW to keep the tokens and become the owner of the HW. The unlocking of tokens is governed by a smart contract where the value of the HW is kept in a stable currency. At unlock the amount of 3air tokens needed to cover the HW expenses are transferred to the company and the rest is transferred to the client. If the value locked is less than the HW value, the user can add the remaining tokens and proceed with the unlocking.

If the client discontinues his subscription to 3air provided services at any point during the 12 months, the locked tokens are returned to the company, and he needs to return the HW.

With this the user potentially gets to become the owner of his own HW without having to buy it out of his own pocket. He also gets educated on how staking cryptocurrency works. And for the small additional initial investment, the company gets a long-term, crypto educated client and the reimbursement of the provided HW after a certain period of time. The whole token economy benefits as the total value locked (TVL) is climbing with each new user.

These locked tokens are not part of any staking pool or similar, so no yield is generated on them and they do not dilute any other rewards in the system.