Chirp is a wireless system connecting people and IoT devices in a single network. Here, we explore some founding principles of Chirp’s economy, namely sustainability, our flywheel model (virtuous cycle) and how these will accelerate practical, real world adoption.
Built For The Long-Term
Chirp’s economy is designed with long-term sustainability at heart. Crypto markets have unfortunately been defined these past two years as short-term focused, often degenerating into “get-rich-quick” schemes. We think the industry should shift away from unsustainable temporary rewards that promote pump-and-dump schemes, if we all plan to be around in a decade — as we are. This is why our reward distribution is scheduled to occur over several years, while still incentivizing short-term growth.
We’re combining existing technology — which, to this date, has lacked massive adoption — with blockchain, as it’s the most effective way to achieve decentralization and ensure its longevity.
Economical sustainability is reached through a mechanism to adjust supply according to token demand. This is why we designed a mechanism through which the revenue generated by the Chirp network is converted into our native token, which is then taken out of circulation.
Chirp’s vision encompasses future network expansions to other communication protocols and technological deployments, within the current deployment of rewards distribution. These expansions should result in added utility to the network, thus making Chirp’s ecosystem larger and more valuable.
Chirp’s Flywheel
Our economic model is designed as a flywheel. Instead of the funnel model of traditional businesses, Chirp’s platform levers on its network effects to sustain growth. This flywheel reinforces our platform in two simultaneous cycles: fostering the demand side (token) and the equipment/hardware supply side.
In the beginning, network participants are incentivized to provide network coverage by acquiring Blackbirds attracted by the relatively higher token rewards. As more Blackbirds enter the network to provide wider coverage, Chirp network becomes more attractive to use. As the revenue generated by usage is taken out of from circulation, the circulating supply of tokens reduces, thus growing long-term value for token holders. As a consequence, rewards for providing coverage become more attractive, incentivizing growth of the number of Blackbirds.
Regarding the supply of equipment/hardware, as the network increases in size, the greater its economies of scale, making it more attractive for device manufacturers to enter, both by manufacturing Blackbirds and providing other network devices for end consumers. This decreases the cost of equipment/hardware and makes the network even more attractive for its users.
Decentralized Wireless (DeWi) for Real Adoption
Chirp is designed for real-world adoption. Our economic model is designed for sustainability and reinforcing network growth. Of course, this would all be in vain if the technology did not work or were difficult for end-users to function with. This is why Chirp is designed with the end-user at its core.
Over the last 15 months, our product team has invested in developing the supporting IoT technology. In our testing environment, the process of connecting a device to the Chirp network is quickly done in a few steps and takes less than 5 minutes. And it’s getting better by the day!
We believe this is the way forward to drive real demand for this type of networks: facilitating onboarding and practical use for day-to-day tasks. In parallel, we are also focused on onboarding B2B partnerships, to foster adoption for business and industrial purposes.
With this, we are well-grounded to build a user-friendly network that meets personal and commercial needs and enables communication between humans and IoT devices. From here, sky is the limit!
