Tokenomics

Summary

Blockstitch designs its tokens to reward its different stakeholders: customers, partners, employees and investors.  
It does so to align everyone together to do what's best for both themselves and the entire ecosystems.  
To do this, we have a two-token model: $BLOCK and $STITCH.

$BLOCK

$BLOCK is our value-seeking token. We designed it with the following objectives:
● Reward early believers by giving them a stake in the success of Blockstitch● Tie the value of the token to the paid usage of Blockstitch's infrastructure● Increase the business returns to our customers while giving them a voice in the business
Right now, $BLOCK is issued manually from a fixed supply to reward and incentivize partners and customers.

$STITCH

$STITCH is the utility token. Customers convert their dollars into $STITCH. $STITCH is consumed for every workflow and varies on the complexity and type of underlying blockchain primitives are involved. This token has a fixed value of $0.01.

Burn-Mint Equilibrium

The Burn-Mint Equilibrium (BME) is a token mechanism on the blockchain that ties the value of $BLOCK to the spend on the Blockstitch network.
Whenever a customer wants to convert dollars to $STITCH, $BLOCK tokens must be burned at the prevailing price. That price would fluctuate according to demand, with a floor of $0.01.
When a customer want to spend $1000 of workflow jobs on the network, they convert $1000 into 100,000 $STITCH (1000 x 100).
However, in order to do that, the corresponding value of minted and available $BLOCK must be burned. If in the block period there is 100,000 available $BLOCK, then the price would likely be $1000/100,000 = $0.01.
Imagine $10,000 of workflow jobs were flowing through the same period. The $BLOCK value would be $10,000/100,000 = $0.10. The value would increase 10x in accordance to the 10x increase of dollar value flowing through the period.