The poor & unbanked, migrants and refugees, unprivileged & suppressed, have suffered for the longest time. It’s just sad to see the barbaric treatment they suffer sometimes in today’s day and age. Most of this populace is struggling to put bread on the table. They live in inhumane conditions and lack one basic necessity — Digital Identities, that could completely revamp their struggling lives. That, in essence, is what LALA ID is all about.
It all begins by identifying this poor population, that is providing digital ID’s and hence our focus on LALA ID, a true global e-passport for everyone, especially the poor. Let’s see how it works and what is the Tokenomics behind this viz-a-viz LALA Tokens.
1. LALA TOKEN USE
Three clear goals below, for LALA ID, help us navigate towards right direction:
- There should always be a demand for LALA Token
- There should always be sufficient supply for LALA Users and Investors alike
- The design of LALA services and products should assure long-term stability of LALA World ecosystem.
Fig 1 LALA Growth Path
- To purchase premium services or use premium partners services within the LALA Wallet (for example, premium usernames even [email protected], [email protected], etc).
- Commercial transactions between two LALA ID partners within LALA Wallet, anonymous or disclosed
- Loyalty rewards from any other partner, not just LALA creating interoperability between loyalty rewards
- Payment at local businesses through L+ programs
- LALA ID user-generated bounty viral referral programs a viral referral for the business development plan.
2. LALA ID AND L+ LALA REWARD POINTS
LALA Wallet had a soft launch recently in India and Malaysia. We have been constantly improving, testing and getting feedback for a proper launch which is planned within the next two months in many more countries than these two alone. Every LALA Wallet download creates a unique LALA ID for every user (“LALA User”).
The motivation behind LALA ID and LALA Tokens is to reward users, vendors, suppliers and token holders at every step and capture that on the Chain. This would thereby create liquidity and demand which should ideally help for LALA token price to go up and reap more rewards for token holders. Let’s understand how.
Every LALA ID is based on a five-star rating. Think of this as a reputation system using multiple data points, updated live on Blockchain to make sure its transparent, immutable and more importantly, everyone in the system benefits — from payment provider to payment receiver, merchant to a trader, lender to a borrower, banker to a KYC applicant, a global comprehensive one ID approach. This is to bring the next 2 billion into the system who have been so far deprived due to right or wrong reasons.
LALA ID has three prime qualities — its broken down to specific details, rewarding to the whole ecosystem — rewarding at every stage and we are now gearing towards decentralized rating system over the months to come.
Every LALA ID user gets a default one-star rating upon the first download of the LALA Wallet App and verification of email and phone numbers. This allows for basic services like LALA Pay — utility and bill payments, a service that we will be rolling out in multiple countries in the next three months. Users also receive rewards on the first transaction on LALA Wallet and on each successful referral, all in L+ (LALA Loyalty points) which is directly equivalent to LALA Token, 1:1.
We strictly abide by all regulations in each and every country and depending on regulations in your country, you will either see LALA or L+ or both. Customizing for each country is what is taking time, but we have seen the demo and we shall roll out more specific dates in the updated roadmap newsletter later this month. For now, everyone shall see default L+ loyalty points. More information provided by the user earns them more stars and in turn more L+ loyalty points. L+ can be used at various merchants globally which shall also be announced as we integrate them. Eventually, the system is being built in such a white label model where everyone can just take the API / SDK of LALA ID and switch it on.
Fig.2 Star Rating Flowchart
Fig.3 Loyalty Point Reward Program
How To Redeem The L+ and LALA
L+ and LALA are as good as cash. The idea is not to have multiple loyalty points that cannot be cashed. Rather have a system where everyone is equally incentivized. Allow us to explain how. Every LALA user has a unique LALA ID and earns L+ at every step. These L+ can be immediately redeemed inside the LALA WalletApp itself to pay for goods and services like LALA PAY, LALA TRANSFER AND LALA LENDS and host of other services at the global merchant and business locations. These LALA partners where you can use L+ and LALA will start announcing next week. Few major partnerships will be announced in the month of May and that should become an ongoing affair as we expand globally
Fig.4 How it works
The user will be able to use and redeem L+ in receiving services of respective value in LALA Tokens (at the current price and current Fx exchange rate) or directly convert them into LALA Tokens and store/spend them using our partner crypto wallet (partnership will be announced within 2 weeks).
LALA will also continue to buyback these L+ and LALA from various partners as well as exchanges to make sure we always have enough reserves. This serves the dual purpose of allowing them to get some basic services via LALA partners globally, as well as increase the demand and circulation of LALA Tokens.
LALA ID & LALA TOKEN COMMERCIAL MODEL FOR PARTNERS GLOBALLY
Service providers (merchants, vendors, banks, Institutions, hotels, travel agents etc.) have a lot of monotonous paperwork trail to cover which causes the delay in getting their services. Sometimes they are burdened by over regulations and sometimes sheer lack of simple and efficient tech. This leads to frustration for both users as well as service providers. LALA ID eliminates this concern and will be able to provide services in an easy, fast and efficient way.
Service providers / LALA Partners across the globe pay for LALA ID API in annual as well as transactional fee as detailed below, in LALA Tokens. Merchants have to purchase these tokens from the market, other partners and specified locations, which should further increase the demand for tokens.
Fig.5 Commercial Model
Token: “A unit of value that an organization creates to self-govern its business model, and empower its users to interact with its products while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.”
For simplicity sake and for those who are new to the concept, we are going to divide the concept into simple functional units. Since LALA World is a full financial services ecosystem, we are going to release the Tokenomics one by one to fully and clearly understand how each product and its Token Economics are going to be defined. Every product has its own unique Tokenomics and put together defines the whole ecosystem — LALA World. We envisage a world where LAL A Token is used to transact as a single mode of payment, especially the unbanked and unprivileged market — a 2 billion population that is yet to be financially included.
LALA Token is used by various participants in the ecosystem. The largest pool of users is real unbanked population. There are also investors holding the tokens which include both short term and long term “Holders”
- Migrants, unbanked and real Users: Earning tokens via 5-star completion and paying LALA services and products with LALA Tokens, earning tokens for referrals, rewards, promotions, KYC, document upload, paid for giving access to merchants & partners etc
- Merchants and Partners: Paying annually as well per transaction basis, for accessing Users and their records (only via User permission, paying for services), advertising on LALA platform, but also earning Tokens via promotional activities, and accessing their services if any LALA World ecosystem wants via LALA Tokens
- Investors & Bounty: can earn more LALA Tokens from exchanges to promote LALA ID adoption across the globe where they are by introducing merchants & Partners to the concept of LALA ID. Free rewards in LALA (best Community, Best projects, best LALA ID ratings, fastest, quickest etc., will all be there as ad hoc promotions to promote LALA ID. The Users and First users must be your best ambassadors.
We are also very aware and always calculative about the overall Token pool and how it’s going to pan out till 2020. It is very essential for LALA World more than anyone that we have a proper Tokenomics calculation based on various current and anticipated products. The receiving and giving away token models, and most importantly the “Sales” (read as partnerships) to spread Token usage should be very clear.
We are considering each and every flow as a product, partnerships, network, and geographies are growing. Once we send out all products unit economics separately over next 2 weeks, we shall also release a more comprehensive Tokenomics model for the entire LALA World with full Token usage over next two to three years, every quarter. That should also help us to use different mechanisms to regulate the total LALA Token pool. Ideally, we want to hold this pool optimally, (not big enough neither too small volumes), regulating it with the number of promotions, referrals, “Sales”, partnerships etc. and Active Users needs to derive Conversion metrics.
LALA ID MOVING TOWARDS DECENTRALISED RATING AND REPUTATION SYSTEM
LALA ID rating system is AI and ML-based and now we are further planning and moving towards a decentralized rating system with many more features as described below. It is similar to many transactional or identity-based reputation systems, plus advanced AI and ML, moving towards a pure peer to peer decentralized fashion.
To see the future of LALA ID, we just examine few key fundamentals:
- LALA ID as a global Identity
- Services, Products and Transactional Nature
- Peer to Peer Referrals, Ratings, Documents and Reviews
- LALA Score as a Reputational Element
LALA ID AS ONE SINGLE GLOBAL DIGITAL IDENTITY
LALA ID is your real-world identity which signifies everything you do. We use a distributed hash table (DHT) to connect peers, and a public key cryptography is used to generate a global LALA ID identifier, via a random number (2²⁵⁶), which is the private key of the User, representing a pseudonymous node on the network.
This can be used for:
- Authenticating network messages between peers
- Private keys used for initial authentication
- Subsequent key pair generated to encrypt subsequent messages between peers for forwarding secrecy
- Digitally signing Smart contracts & digital agreements on the subject and terms of the transaction
- HD keychain for multi-signature transactions
- HD master private key = SHA256
Since the Private keys are long & complex, we are working on Twitter style self-generating usernames that act as a memorable handle (e.g. @lala). We have also introduced LALA ID as a login ID used along likes of Facebook, Twitter, Login with LALA. If a user registers their LALA ID handle, you will be able to search for that identity by that handle in the LALA Wallet or LALA Partner system.
We intend to use Ethereum based smart contract system initially but we are already discussing and researching on other contracts and systems to have the following main components:
- Cryptographic keys to establish identity
- Semantic data to establish the terms and conditions of an interaction (e.g. money exchanged for a good/service)
- Digital signatures to create fraud-proof evidence that an identity agreed to these terms and conditions
- The cryptographic hash of the contract, as a reference identifier, to create a tamper-proof record of the contract
This should also allow for:
- Transactional details linked to LALA ID
- Buy / Sell, Lending / Borrower and other Transactional details, terms, and conditions linked to LALA ID
- Confirmed and recorded transactions and their receipts recorded with LALA ID for further data analytic and ratings
With our global expansion, current processes and development positioned in sync, we couldn’t be more excited for what’s to come as we continue to work tirelessly building the single-most powerful and trustworthy global ecosystem — Your LALA Word!
We’re truly humbled and grateful for the continued support from our LALA family, without whom this wouldn’t have been possible.
Thank you for being part of this incredible journey!