Tikoly Whitepaper v0.21

1. Introduction

1.1 The Challenge of Bringing Real World Asset Data On-Chain

Bringing reliable, verifiable, and timely data from the real world onto blockchain networks is a significant hurdle for the widespread adoption of decentralized applications (dApps) and the tokenization of Real World Assets (RWAs). Traditional data sources are often centralized, opaque, and lack the immutability and transparency required by blockchain ecosystems.

1.2 Introducing the Tikoly Network

The Tikoly Network is designed to address this challenge by providing a decentralized and transparent infrastructure for bringing Real World Asset data on-chain. Through a network of verifiable data sources and a robust oracle mechanism, Tikoly aims to unlock new possibilities for DeFi, RWA tokenization, and data-driven dApps.

2. Problem Statement

2.1 Limitations of Traditional Data Sources in Web3

Traditional data feeds are typically managed by centralized entities, making them single points of failure and susceptible to manipulation or downtime. Integrating these into decentralized applications compromises the trustless nature of blockchain.

2.2 Centralization Risks in Existing Oracle Solutions

While existing oracle solutions have made strides, many still rely on centralized components or a limited number of data providers, introducing centralization risks and potential points of attack or collusion.

2.3 The Need for Verifiable and Transparent RWA Data

For RWAs to be effectively represented and utilized on-chain, the underlying data (e.g., ownership, valuation, performance, resource usage) must be verifiable, immutable, and transparently accessible. This requires a new approach to data sourcing and delivery.

3. Solution Overview: The Tikoly Network

3.1 Decentralized RWA Data Oracles

Tikoly empowers a decentralized network of data providers to supply real-world data streams. This distributed approach minimizes reliance on single entities and enhances the resilience and censorship resistance of the data feeds.

3.2 High-Level Architecture

The Tikoly Network architecture comprises decentralized nodes responsible for sourcing, verifying, and submitting RWA data to smart contracts via a robust oracle mechanism. The network is designed for scalability, security, and interoperability across various blockchain platforms.

4. Tikoly Network Design

4.1 Tikoly Node Architecture

Tikoly nodes are the backbone of the network, responsible for connecting to real-world data sources, processing and verifying data, and interacting with the blockchain. Nodes utilize secure hardware and software to ensure data integrity.

4.2 Network Communication and Data Flow

Data flows from real-world sources through Tikoly nodes, where it is validated and aggregated before being transmitted to the blockchain via the oracle protocol. Secure and efficient communication protocols are employed to ensure timely data delivery.

4.3 Data Integrity and Audit-ability

Leveraging technologies like Immudb at the data source and implementing cryptographic proofs, Tikoly ensures the integrity and audit-ability of the data. Every data point delivered on-chain can be traced back to its origin and verified.

4.4 Cross-Chain Integration

The Tikoly Network is designed to be blockchain-agnostic, supporting integration with multiple blockchain platforms to serve a wide range of dApps and RWA tokenization initiatives.

4.5 Security Considerations

Security is paramount. The network incorporates robust security measures, including cryptographic data signing, decentralized consensus mechanisms for data validation, and staking-based incentives and penalties to ensure node operator honesty.

5. Tokenomics

Design and Tokenomics Summary

Real-life data streams originating from sources like Tiktag Edge Nodes are listed and traded as distinct data API products. Each data product has a unique ticker symbol (e.g., ABC).

Core Components & Mechanism:

• Native Token (TIKO): The TIKO token is the native utility and economic token of the Tikoly.com platform. It serves as:
  • The primary pricing mechanism for all data API products listed on the marketplace (e.g., the price of the ABC data product is set in TIKO).
  • The base currency for data stream trading pairs (e.g., the trading pair for the ABC data product is ABC/TIKO).
  • A key asset in the liquidity pools that power the AMM.
  • The token used for incentivizing participation and rewarding contributors.
  • The token involved in the eventual settlement process against a stablecoin like USDT or eCNY, e.g., the TIKO/USDT trading pair.
• Automated Market Maker (AMM): The platform utilizes an AMM design (potentially based on models like Uniswap, Balancer, or a tailored approach) with liquidity pools for trading pairs like ABC/TIKO and TIKO/USDT. Price discovery for data products is dynamic, determined by the ratio of assets within the liquidity pools.
• Liquidity Providers: Participants who contribute assets (like TIKO and USDT to the TIKO/USDT pool, or a data asset token and TIKO to a data-asset/TIKO pool like ABC/TIKO) to the liquidity pools. They are essential for enabling smooth trading.

Tokenomics of TIKO

The tokenomics of TIKO are designed to balance supply and demand, incentivize ecosystem participation, and support platform growth.

• Issuance: New TIKO tokens can be issued strategically (e.g., through initial distribution events like public sales or airdrops, or through ongoing reward mechanisms).
• Inflationary/Deflationary Balance: The tokenomics aim to balance inflationary pressures (new issuance) with deflationary pressures (burning).
• Burning Mechanism: A portion of TIKO tokens may be burned (permanently removed from circulation) during specific events, such as when users cash out their TIKO for other assets like USDT. This creates a deflationary force.
• Incentive Mechanisms: Newly issued TIKO or a portion of transaction fees are used to incentivize key participants:
  • Liquidity Provider Rewards: Encouraging users to contribute assets to liquidity pools by rewarding them with TIKO or a share of trading fees. Tiered rewards can incentivize early or long-term liquidity provision.
  • Data Stream Provider Rewards: Compensating owners of Tiktag Edge Nodes for contributing verifiable, high-quality real-life data streams (as discussed in previous tokenomics models).
• Platform Growth: Using TIKO to onboard new users, partners, or projects.
• Governance: Holding and staking TIKO tokens grants participants governance rights over the Tikoly.com marketplace parameters and future development decisions.

5.2 Gas Fee Mechanism (Requester-Pays Model Adaptation)

While not explicitly detailed in the provided text, the likely model for data requests would follow a requester-pays mechanism, where users consuming data streams pay fees, potentially in TIKO, which could then be distributed to node operators and liquidity providers.

5.3 Staking and Incentives

Staking TIKO tokens on the data streams originating from Tiktag Nodes is a core mechanism. Staking signifies a commitment to a stream’s accuracy and availability, providing a quantifiable security guarantee for consumers. The risk of slashing incentivizes Node owners and stakers to ensure reliable and accurate data streams, as their staked value is on the line. Verification mechanisms, potentially leveraging the immutability of Immudb data at the source, are crucial for triggering slashing events based on objective evidence of data issues.

Node owners benefit through several mechanisms:

• Data Stream Revenue Sharing: They earn a share of revenue when consumers access their data streams via Tikoly.com oracles, facilitated by the TIKO token for payments and distribution.
• Rewards for Operational Excellence: Given to nodes consistently providing streams meeting or exceeding performance thresholds (uptime, freshness, low latency, verifiable integrity leveraging Immudb).
• Staking-Based Reputation and Discovery: Enhanced by staking TIKO on a Node’s data stream, contributing to its reputation score and visibility.
• Rewards for Active Contribution: Given simply for successfully operating a registered Node that actively publishes valid real-life data streams to the NATS cluster connected to Tikoly.com.
• Governance Participation: Allows holders and stakers of TIKO to participate in the decentralized governance of the marketplace.

Through these mechanisms, the TIKO token aligns the economic incentives of data consumers, data stakers, and Tiktag Node owners.

Key Flows:

1. Data Stream Providers list data products (e.g., ABC) and set a starting price in TIKO.
2. Liquidity Providers inject capital (e.g., USDT, TIKO, ABC data tokens) into corresponding liquidity pools.
3. Customers buy data API access using TIKO via the AMM (e.g., trading TIKO for ABC data tokens in the ABC/TIKO pool). Price adjusts based on pool dynamics.
4. Customers/Participants can trade TIKO for USDT in the TIKO/USDT pool.
5. TIKO tokens may be burned during cash-out or other defined events.
6. New TIKO may be issued and distributed as rewards, particularly to liquidity providers.

This model creates a self-sustaining marketplace where the TIKO token is central to pricing, trading, liquidity, and incentive, supporting the exchange of real-life data streams.

5.4 Governance

Governance rights, tied to holding and staking TIKO, allow the community to propose and vote on changes to the marketplace parameters, tokenomics, and future development of the Tikoly Network, ensuring a decentralized and community-driven future.

6. Use Cases for Real World Assets

6.1 Overview of Supported RWA Verticals

Tikoly is designed to support a wide range of RWA verticals, including but not limited to:

• Energy Consumption and Production Data
• Supply Chain and Logistics Data
• Environmental Data (e.g., air quality, temperature)
• IoT Device Data
• Real Estate and Property Data
• Agricultural Data

6.2 Examples of RWA Data Streams

Specific examples of data streams could include:

• Real-time electricity usage from smart meters.
• Location and status updates for goods in transit.
• Temperature and humidity readings from agricultural sensors.
• Production output data from industrial machinery.

6.3 Potential Applications

Verifiable RWA data streams from Tikoly can power numerous dApps and use cases:

• DeFi: Enabling RWA-backed lending platforms, stablecoins collateralized by real assets, and tokenized real estate markets.
• Tokenization: Providing the necessary data infrastructure for the transparent and verifiable tokenization of various real-world assets.
• Analytics: Powering on-chain analytics and reporting based on reliable real-world data.
• Supply Chain Management: Creating transparent and automated supply chain tracking and execution based on verifiable data.
• ESG Reporting: Enabling verifiable and automated reporting of Environmental, Social, and Governance data.

7. Roadmap

7.1 Development Milestones

A detailed roadmap will outline key development milestones, including:

• Network design and protocol finalization.
• Node software development and testing.
• Tokenomics implementation and smart contract audits.
• Testnet launch.
• Mainnet launch.
• Cross-chain integrations.
• Development of developer tools and SDKs.

7.2 Network Expansion

Future expansion plans will focus on onboarding more data providers, supporting additional RWA verticals, and fostering a vibrant ecosystem of dApps utilizing Tikoly data.

8. Team

• Chance Jiang
• Ryan Sy
• ZoomQuiet
• Artem

9. Conclusion

The Tikoly Network provides a crucial piece of infrastructure for bridging the gap between the real world and blockchain ecosystems. By enabling verifiable, decentralized, and transparent access to Real World Asset data, Tikoly unlocks the potential for a new generation of dApps, RWA tokenization, and data-driven decentralized applications, paving the way for a more connected and efficient digital future.

10. Appendix

10.1 Glossary of Terms

• RWA: Real World Asset. Tangible or intangible assets that exist outside of the blockchain.
• Oracle: A service that provides smart contracts with external information.
• AMM: Automated Market Maker. A decentralized exchange protocol that uses mathematical formulas to price assets.
• Tiktag Edge Node: A device or system responsible for collecting and potentially pre-processing real-world data at the source.
• Immudb: A tamper-proof database that provides verifiable data integrity.
• TIKO: The native utility and economic token of the Tikoly Network.
• Slashing: A mechanism in some blockchain networks where a portion of a validator’s or staker’s staked tokens are removed as a penalty for malicious behavior or poor performance.

10.2 Project Volta Campaign | 捐赠新能源智能锅给街边美食家

10.2.1 Introduction to Project Volta

Project Volta is a social impact initiative aimed at supporting street food vendors by providing them with energy-efficient and smart cooking technology. This campaign seeks to improve the working conditions, reduce environmental impact, and potentially increase the economic viability of these small businesses.

10.2.2 Project Goals and Objectives

• To provide new energy smart cooking pots to a target number of street food vendors.
• To improve energy efficiency and reduce reliance on traditional, less sustainable cooking methods.
• To collect and analyze real-time usage data from the smart pots.
• To demonstrate the positive impact of technology adoption on informal economies.

10.2.3 Target Beneficiaries

The primary beneficiaries of Project Volta are street food vendors in specific geographic areas, particularly those who currently rely on less efficient or environmentally friendly cooking equipment.

10.2.4 Project Activities and Implementation Plan

The project involves sourcing and distributing the smart cooking pots, providing training on their usage, and implementing a system for collecting real-time data from the devices. The implementation plan includes outreach, distribution events, training workshops, and ongoing technical support.

10.2.5 Expected Outcomes and Impact

Expected outcomes include reduced energy consumption, lower operating costs for vendors, potential improvements in air quality, and a better understanding of the energy usage patterns of street food businesses. The impact aims to be both economic and environmental.

10.2.6 Monitoring and Evaluation Framework

A monitoring and evaluation framework will be established to track the distribution of pots, monitor their usage through collected data, assess the impact on vendors’ businesses and the environment, and gather feedback from participants.

10.2.7 Leveraging Real-time Data for Project Volta Success

Real-time data collected from the smart cooking pots through mechanisms potentially integrated with the Tikoly Network can be leveraged to:

• Monitor the usage and effectiveness of the donated equipment.
• Quantify energy savings and environmental impact.
• Identify maintenance needs or issues with the devices.
• Provide data-driven insights for future project iterations or similar initiatives.
• Potentially provide verifiable on-chain evidence of the project’s impact for transparent reporting to donors and stakeholders.