The end of ownership is fast approaching. Since 2012, the subscription economy has grown an astounding 435%, as more and more people choose access over ownership. Whereas certain objects were once seen as a sign of status, more than 68% of international adults recently surveyed no longer believe that they are defined by what they own. And in general, as home sizes are getting smaller (at least in the US), and the price per square meter to buy an apartment rises globally, it is no wonder that 57% of international adults also thought that they could get by with less “stuff.”
As this consumer behavior shift further deepens, more and more companies are revisiting existing business models, and evaluating how they too, can convert their offerings into a subscription.
Running right alongside this change in consumer behavior, is also the increasing adoption of cryptocurrency, which has seen growing acceptance amongst all communities – individual and institutional alike. With a growing number of companies adding Bitcoin to their balance sheets, or considering the implementation of crypto payments, crypto enthusiasts are finally seeing the blockchain world enter the mainstream.
Despite strong growth in both areas, the combination of both sectors has previously not been possible. After all, subscription payments traditionally operate by processing transactions on an automated, recurring basis – made possible through the use of payment processing intermediaries (not exactly a solution in the crypto world). Given this, what does the infrastructure to support recurring subscription payments look like in the blockchain world? The answer is PARSIQ’s IQ Protocol.
The First Cryptocurrency SaaS, Explained
As the creators of IQ Protocol, the PARSIQ team has devised a blockchain agnostic solution for implementing subscriptions on-chain in a flexible and cheap manner. This has been done all while preserving the all important workflows such as cancel/refund policies, different time-frame considerations, consumption rate quotas, discounts, and more. This was accomplished through the introduction of a concept utilizing PowerTokens. PowerTokens are not used as a means of payment, but rather, as a deterministic over-time “energy” generator. Within IQ, energy plays a role in accounting for the unit of service consumption (like gas units in Ethereum).
PARSIQ serves as a platform for blockchain monitoring and interpretation: allowing businesses and individuals to build custom Smart Triggers and embrace real-time blockchain data streams.
Solving the common crypto “token not needed” problem, the company has become the first enterprise to transform the traditional subscription model using IQ Protocol. As of today, every PARSIQ user can use the platform and build monitoring solutions simply by holding PRQ tokens as a method of payment.
IQ Protocol helps companies build a circular economy and take into account the interests of the main shareholder groups: HODLers, service users, and traders. Under IQ, the new PARSIQ subscription model works as follows:
- Platform users, mainly businesses, pay for the service by holding special PRQ tokens. Consumers have two options: either buy the original tokens that have life-time value, or rent PRQ tokens from the renting pool. The main idea here is that the original tokens are not released from the renting pool. Instead, the pool mints an expirable version of these tokens.
- Lenders can loan their PRQ into the IQ Protocol and start earning yield. If a person lends his PRQ to the pool, he will be issued iPRQ (interest PRQ) as proof that he has placed PRQ into the pool. As the name suggests, the lender earns an interest on his PRQ when PARSIQ customer borrows them from the pool.
Subscription as a Service (SaaS) – Powered by IQ
Leveraging PARSIQ’s revolutionary IQ Protocol, businesses will now be able to seamlessly construct blockchain SaaS models – enabling companies across all industries to tokenize their product or service for consumption on-chain.
This is possible via IQ and the introduction of a concept known as Life Time Value (LTV). When a company tokenizes their offerings, each token is assigned a LTV, giving the token holder the right to consume a defined amount of goods or services.
Such a concept allows practically anything to be put on the blockchain – from the content streaming business to your local market, a business can tokenize their product offerings and assign each issued token a LTV. Using these as examples, content streamers can issue tokens which allow the token holder to consume one hour of content each day for the next 365 days. The local market could offer a weekly delivery of home essentials (fresh fruits, milk, bread), which would be delivered at the beginning of each week for 52 weeks. The possibilities are limited only by how the business aims to tokenize its offerings. On the consumer side, individuals would simply purchase the tokens. By virtue of holding the token, the token holder would be the recipient of the value that has been defined for that token, for the life of that token.
Additionally, consumers who do not wish to hold tokens but would prefer to rent them can also do this, via the introduction of a renting pool – made possible by the Protocol. So long as these tokens are held or rented, the consumer can enjoy the value tied to the token. In doing so, a blockchain subscription model has been born.
Through this approach, IQ enables businesses to cater to their existing audiences, and unlock new revenue streams. It does this by allowing companies to produce uniquely tailored offerings to a potential customer that may not be ready to fully commit to a company’s product or service just yet.
Additionally, crypto projects struggling with existing tokenomics structures can benefit from IQ. After initially raising funds, many projects suffer from finding a use case for their tokens. At best, a consumer may be incentivized to buy the project’s token, only for the purpose of spending it to acquire a particular service. Under this model, it makes little sense to go through this intermediary step if in reality, the transaction can be conducted entirely in fiat.
However, with the IQ Protocol, such companies can tokenize their product offerings – incentivizing communities to hold project tokens for the life of the token, while enjoying the value that has been assigned to that token. Further, token holders have potential to earn, by depositing their holdings in renting pools, and acquiring interest payments. Through IQ, a project can develop a circular economy, drive demand for their services and their token, which ultimately benefits all believers of the project being supported.
Free, Transparent, and Open Source
As an open source protocol, any project can utilize IQ to fit their needs. Because of this, companies can customize the solution to ensure a proper fit to their existing business models. Further, the costs of implementation are manageable, limited to the costs for paying GAS.
Under this efficient and easy to adopt model, PARSIQ is currently working with over twenty companies in deploying IQ Protocol. If you have any questions on how IQ can be incorporated into your existing business model, the PARSIQ team is ready to assist in your queries.
For more on how Parsiq is using its unique IQ Protocol to power the world’s first Saas company, visit their main site here.
This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.
Source: Read Full Article