Own your own hardware incentive
It is usual that an ISP charges a first-time connection fee and leases the required hardware to the customer. The hardware usually includes a modem, a router, and a TV box. The connection fee is charged because a transceiver needs to be installed, and some cabling is usually required at the user’s end. These fees are usually waived when the client commits to a longer-term contract.
A token economy provides a different solution to this problem and creates new value for all participants. We propose the “Own your own HW” incentive, where users can become the owners of their hardware with the company's help while the company receives long-term clients.
When clients first enquire about a service through the 3air platform, they will get the appropriate hardware to connect and use the provided services. At this point, the HW is leased, so they can use it without becoming outright owners. At the same time, the company (either the ISP or 3air) will provide the client with 3air tokens in an amount that is less than 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 while they have a valid subscription and the tokens remain locked. If they decide to unlock the tokens after 12 months, they must pay for the HW to keep the tokens and become outright owners. Unlocking tokens is governed by a smart contract where the value of the HW is kept in a stable currency. Upon unlocking, the 3air tokens needed to cover the HW expenses are transferred to the company and the rest goes 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 their subscription to 3air-provided services during the first 12 months, the locked tokens are returned to the company, and they will be required to return the HW.
With this, the user potentially gets to become the owner of their own HW without buying it out of pocket. They also gain some education on how staking cryptocurrency works. In exchange for the small initial investment, the company gets a long-term, crypto-educated client and the reimbursement of the provided HW after a certain period. The whole token economy benefits as the total value locked (TVL) increases with each new user.
These locked tokens are not part of any staking pool, so they do not generate any yield nor dilute any other rewards in the system.