Blocto Token White Paper

BLT is the utility and governance token of Blocto, which serves as the foundation of our ecosystem and the interconnective link between the wallet, Blocto-made products, and our users.

Abstract

In this whitepaper, we introduce Blocto and Blocto token, hereinafter referred to as Blocto token or BLT. Blocto is an integrated, cross-blockchain smart contract wallet service, which enables users and developers to interact with their cryptocurrencies, dApps, and NFTs frictionlessly. BLT is the utility and governance token of Blocto, which serves as the foundation of our ecosystem and the interconnective link between the wallet, Blocto-made products, and our users.

Table of Contents

Overview

1.1 Blocto Ecosystem
1.2 For users
1.3 For developers

The Blocto wallet

2.1 Blocto mobile application
2.2 Blocto browser extension
2.3 Blocto SDKs
2.4 Blocto supports native blockchains
2.5 Blocto supports Ethereum layer 2 protocols

The Blocto token

3.1 Utility
3.2 Staking
3.3 Mining
3.4 Governance
3.5 Blocto Token Allocation

Products

4.1 Blocto Swap
4.2 Blocto Balancer
4.3 Blocto Auction House
4.4 Blocto Vault

Summary


Overview

1.1 Blocto Ecosystem

Blocto is building a cross-blockchain ecosystem with the best user experience available. Through Blocto, users can easily access blockchain applications (dApps), crypto, and NFT assets, no matter which blockchain they are built on; developers can integrate with the identity and payment services that Blocto provides and create a frictionless onboarding experience.

With improved interoperability built upon our smart contract wallet architecture, the ecosystem expands exponentially and brings blockchain to market mass adoption empowered by the Blocto token economy. In a nutshell, Blocto is the Steam for blockchain applications.

1.2 For users

Blockchain is an innovative and revolutionary technology with the capability to help stamp out fraud and bring transparency in a scalable way for a myriad of uses. Its multifaceted utility brought forth new iterations of banking, gaming, exchange applications every day. Yet there is still a huge gap to mass market adoption due to the difficulties one must overcome to access these blockchain applications. That’s why Blocto is here to build an entrance for users to access cryptocurrencies, blockchain applications (dApps) and NFTs (Non-Fungible Tokens) easily.

Blocto is a smart contract wallet service that supports multiple blockchains. We built an entrance for users to easily access cryptocurrencies, dApps and NFTs. Users can log in with their email, interact with dApps, buy and sell NFTs just like how one would use any daily mobile applications.

Bloctos’ unique feature allows users to pay their network fee across all supported blockchains with only Blocto points. Blocto also supports fiat to crypto purchasing, a convenient and safe portal for our users. Users can also convert their Blocto account to non-custodial mode with direct access to their private keys once they are more familiar with blockchain usage.

1.3 For developers

Blocto is the first and only mobile wallet that supports Flow as of today. Flow is a fast, decentralized, and developer-friendly blockchain, designed as the foundation for a new generation of games, apps, and the digital assets that empower them. Notable projects running on Flow include NBA Top ShotMotoGP Ignition. Blocto now runs the node which constitutes more than 70% of all FLOW delegators on Flow, is also the 4th biggest node with more users joining in each day. We’ve also been rewarded with Solana and Serum grant. Solana is a fast, secure, and censorship-resistant blockchain providing an open infrastructure required for global adoption.

Since we integrate all these robust blockchains, including Flow, Solana, Ethereum, and Tron in our service, users from different blockchains can roam freely and explore dApps and NFTs in our ecosystem. Developers can leverage the enormous user base in the Blocto ecosystem and our SDK to develop and capture the maximum amount of potential users.

More and more developers are developing in the Blocto ecosystem every day. This is your chance to join and grow with us.


The Blocto wallet

2.1 Blocto mobile application

Most if not all smart contract wallets on the market failed to address the user experience gap between general applications and dApps. Issues such as private key management, gas fee mechanism, complicated wallet address still plague the road to mass adoption.

Blocto is designed with a user experience first approach and equipped with multiple features to address the aforementioned pain points.

Manage funds & NFTs across different blockchains:

Blocto now supports Ethereum, Tron, Flow, and Solana blockchain. Blocto users can get access to dApps and NFTs on different blockchains in just one App which eliminates the learning curve of getting familiar with different kinds of wallets. Blocto will soon support other newer blockchains with growth potential as well.

Interact with multiple blockchains without holding its native tokens:

Bloctos’ smart contract wallet design allows users to interact with various blockchain applications across all supported blockchains. Users can manage their assets with ease. Blocto also supports fiat to crypto purchasing, a convenient and safe entry point for our users.

Customizable user experience with seedless account management:

Blocto users can log in via their email account, a much more streamlined experience as if you’re logging in with any App you download within your App Store and Google Play Store. Once the user is more familiar with Blocto, he/she/they can choose to manage their private key of their own, creating a more flexible and customizable experience. dApp developers can leverage Bloctos’ services and SDK to swiftly amass and scale their user base.

2.2 Blocto browser extension

Most existing dApps, especially those running on the Ethereum, rely on browser extensions to interact with the blockchain. Experienced blockchain developers and users are also more accustomed to interacting with blockchain applications through browser extensions.

Blocto will soon release its browser extension wallet, where users can easily manage their crypto assets and interact with dApps directly within their desktop browsers including Chrome, Firefox, and Brave.

Blocto browser extension provides all the advanced security features and functionalities of the mobile version while bringing even better interoperability with web-based dApps.

2.3 Blocto SDKs

Blockchain applications are becoming popular in the mainstream markets, especially in 2021. These applications are in desperate need of a better onboarding experience. Asking non-crypto-fluent users to download an additional browser extension or mobile application before using the blockchain application severely damages the experience and in turn yields a terrible conversion rate.

Blocto provides blockchain identity and payment SDKs for these mainstream market-facing dApps. With Blocto SDKs integrated into the applications, users can easily create wallets, send transactions, purchase cryptocurrencies… directly inside the blockchain application. This is by far the most user-friendly onboarding experience.

We are bringing Blocto web and mobile SDKs to all the chains we support. We have built the web SDK for Flow and is currently used by most of the projects running on Flow. We will soon develop the SDKs for other blockchains and on other platforms.

2.4 Blocto supports native blockchains

The ecosystem of each blockchain is separated. Users have to create multiple wallets and hold many native tokens to use blockchain applications (dApps) on each blockchain network.

Each Blockchain network has its advantage. For example, Solana is fast and secure, suitable for exchanges, and Flow is made for dApps, games, and digital assets. If dApps of different blockchains can be integrated and make up for the deficiency, it will benefit both users and developers.

To optimize the Blocto user experience, we supported multiple native blockchains to make sure users can access the services they want. In the flavor of Blocto point, users can interact with various blockchains without holding multiple native tokens. Blocto now supports Ethereum, Tron, and new blockchains with potential such as Flow and Solana. The following are the introductions of each blockchain :

Flow

Blocto is the first and only mobile wallet that supports Flow. Blocto now runs the node which constitutes 70%+ of all FLOW delegators on Flow, is also the 4th biggest node with more users joining in each day. Flow is a fast, decentralized, and developer-friendly blockchain, designed as the foundation for a new generation of games, apps, and the digital assets that power them. Notable projects running on Flow include NBA Top ShotMotoGP Ignition.

Solana

Solana is an open-source project implementing a new, high-performance, permissionless blockchain which can process 50,000 transactions per second. Due to the high gas fee on Ethereum, Defi has become a whale game, and Solana is one of the front contenders in solving this problem.

Upcoming Integrations

One of Blocto’s core objectives is to enable mass adoption for blockchain applications. We are actively seeking partners that share the same vision. Blocto will soon support other newer blockchain protocols with great growth potentials, besides Flow and Solana.

2.5 Blocto supports Ethereum layer 2 protocols

Due to the rapid growth of decentralized finance applications on Ethereum, transaction volume and gas price have skyrocketed since 2020. This has resulted in non-financial Ethereum applications practically unusable and it has driven a significant amount of users away. People are setting their eyes on 2 major developments to address this issue: Ethereum 2.0 and layer 2 solutions.

With Ethereum 2.0 still a couple of years away, layer 2 solutions are essential to Ethereum applications in sustaining the increasing traffic. The future of Ethereum lies in 2.0 + layer 2 solutions. However, it requires a joint effort between dApp developers, wallet providers, and users for layer 2 migration to take place.

Blocto will be among the early adopters of layer 2 solutions. We have started working on integration with zkSync, Loopring, and xDai and will soon launch native layer 2 asset management and dApp support. We will provide seamless integration with layer 2 protocols, users will be able to enjoy the high throughput and low cost of layer 2 solutions without any additional hurdles.

The Blocto token

Blocto token (BLT) is the utility and governance token of Blocto, which serves as the foundation of our ecosystem and the interconnective link between the wallet, Blocto-made products, and our users. In this section, we introduce BLT, how it generates the growth of the ecosystem through various utilities, its mining, staking mechanism, and its tokenomics.

3.1 Utility

  • Privileges and benefits using Blocto products:

BLT holders are granted benefits/privileges when using Blcoto-made products. Brief introductions of these products are included in Section 4

  • Pay BLT as network fee :

Blocto users can pay BLT as their network fee in supported blockchains. With each new blockchain integration, this particular feature is imminent to the successful adoption of new dApps and blockchains. BLT echoes the goal of smooth and painless conversion as users can simply interact with all supported blockchains without its native tokens.

3.2 Staking

BLT staking serves the incentive to foster positive growth in the ecosystem. It also solidifies BLT as the foundation layer of the Blocto ecosystem. In short, mining is the growth medium of our ecosystem, and staking is the stabilizer of the ecosystem. This minimizes the risk of malicious activities within the ecosystem and continues to distribute BLT to developers and users.

Staking reward takes up to 8% of the total BLT supply and both developers and users can stake BLT to receive benefits in mining. While developers are required to stake BLT to qualify in BLT mining, users may stake BLT to receive maximum mining yield. Staking reward will be higher during the early phase to incentivize BLT staking, then gradually decrease as more tokens are being staked and more mining reward is minted.

3.3 Mining

BLT mining is an essential component of the BLT tokenomics and Blocto ecosystem. 40% of BLT supply will be distributed through BLT mining, meaning the majority of BLT is minted to our active users/developers. Since BLT is both a utility and governance token, the mining mechanism reinforces BLT holders position as part of the governing body of the Blocto ecosystem.

We have established an easy to use entrance with Blocto wallet. BLT mining is the next step to incentivize potential users to be more active and to reward our current users for their actions and activities. In short, through mining, we activate and sustain the ecosystem and in turn convert our user and developer activities into token value supports.

The developer and user qualification and mining allocation are defined as below:

Developer Mining Qualification:

  • Develop a dApp that integrates Blocto wallet and stake BLT, accredited by the Blocto team.
    *Developers can stake additional BLT to receive Blocto Dev team assistance

User Mining Qualification:

  • Various activities including transaction amount and referral.

Mining Allocation

  • Mining reward is distributed monthly, reward amount received is in proportion to the total mining volume each month.
  • Users can stake additional BLT to receive maximum (3x) mining reward.
  • Mining reward is distributed from the monthly mining pool, adjustable through governance voting

3.4 Governance

BLT serves as the governance token of the Blocto ecosystem. As stated in the previous section, the majority of BLT is minted via mining and staking (48% of total supply). This ensures the BLT empowers our most active users/developers to shape the future direction of Blocto. We believe in building a decentralized ecosystem for our users by our users.

60 % of BLT token supply will be distributed to the community gradually. The governance will be fully decentralized and fair in the Blocto ecosystem in the long term. BLT token holders will be able to decide which features to be implemented and which chains to be integrated.

3.5 Blocto Token Allocation

The total supply of Blocto tokens is 500 million. The genesis token circulation is 40 million BLT (8% of the total supply). 200 million BLT (40% of the total supply) will be minted via mining rewards for Blocto users and developers. New BLOCTO tokens can be minted through governance voting corresponding to the launch of the products in the Blocto ecosystem.

The token allocation is shown below:

Token Allocation

  • Mining & Staking — 240 million BLT (48%)
    Released monthly
    *Please refer to the BLT token economy for more details
  • Ecosystem — 50 million BLT (10%)
    Community Moderator & Advisors
    Bounty programs
    Operation & Marketing
    Promotional events
    Exchange listings
    Fund further development of the project
  • Token sale — 100 million BLT (20%)
    Private Sale (12%)
    Initial Exchange Offering (IEO) (8%)
  • Investor and team reserve — 100 million BLT (20%)
  • Community build — 10 million BLT (2%)
    Incentive program (Translation, dev tool…etc)
    Airdrop for early supporters/users

Products

4.1 Blocto Swap

Blocto Swap is the first decentralized exchange (DEX) built on the Flow blockchain, made by the Blocto team. Blocto Swap supports Ethereum / Flow Tether (USDT/tUSDT) teleportation, the accumulated trading volume now exceeds USD 10 million.

Uniswap has established its leading position in the DeFi space. The design of the protocol has become an industry standard, and many projects have adopted its principles. Blocto Swap is the first DEX on Flow that implements the automated liquidity protocol identical to the Uniswap mechanism.

Blocto Swap is the first market to trade between FLOW and FUSD, supporting more assets on the Flow blockchain soon.

Teleport

Teleport is the unique feature of BloctoSwap. Teleport enables cross-chain transfer between Ethereum and Flow. Our team is working on enabling this feature on more blockchains. This feature paired with Bloctos’ innate simple cross-chain asset management further eliminates the obstacle between chains, and the use of assets will become more efficient.

4.2 Blocto Balancer

Blocto Balancer is a cross-chain automated market maker (AMM) where users can deposit their entire crypto portfolio into Blocto Balancer and earn fees as other users trade against their portfolio.

Built upon our cross-chain teleport and asset management capabilities, we can expand on the already existing Balancer concept and cover the entirety of the Blocto ecosystem (Ethererum, Flow, Tron, Solana). A user can join an existing liquidity pool or create their own with custom fee and asset weightings, essentially creating your own crypto portfolio out of your idle assets similar to the ETF of the stock market.

With the plethora of blockchains each addressing different needs and functions of blockchain usage, the demand for investing in assets across multiple blockchains is raised. While It is easy to trade cross-chains assets in a centralized exchange, this hinders one’s ability to maximize utilization of funds on both investing and using dApps/ purchasing NFTs. Blocto Balancer as part of the Blocto ecosystem eliminates the need to choose as it is all hosted within the Blcoto ecosystem.

4.3 Blocto Auction House

Blocto Auction House is a cross-chain NFT marketplace. The NFT market has been growing exponentially in these couple of months. However, with the introduction of newer consumer facing, high performance blockchains, these new NFTs are created on various blockchains and the markets are fragmented.

With the similar asset bridges and cross-chain oracles used in Blocto Swap and Blocto Balancer, Blocto will build a cross-chain teleport service for blockchains in the Blocto ecosystem. Users can trade their digital collectibles on Blocto Auction House no matter where the token is initially issued. Users can lock up their NFTs on the original blockchain and get a placeholder token for trading. Later, they can then turn in the placeholder token and claim the original NFT on its native chain.

4.4 Blocto Vault

Blocto Vault is a decentralized revenue sharing pool of the Blocto ecosystem. Revenue generated by Blocto-made products including Blocto Swap, Blocto Balancer, and also future selected/partnered products will partially return to the BLT holder through the Vault. With multiple products generating revenue in the forms of different tokens, BLT holders can burn their share of BLT in exchange for equivalent portions of the Vault pool.

The formula are shown below :

(BLT burn / BLT total supply)*Total Assets of the Vault = Assets withdrawal from the Vault

Summary

With the inception of Blocto token, our team will be able to expand our effort in integrating with more blockchains and projects into our ecosystem. For example with Flowusers can easily trade FLOW on Blocto Swap, purchase NFTs solely with their Blocto account. Developers such as MotoGP Ignition utilizes our SDK for a native built in log in on their website, which eliminates the need for a second wallet; a win-win for both users and developers. This integrated ease and convenience will only amplify with the launch of BLT, creating a ripple effect in the Blocto ecosystem and fully realized Bloctos’ goal in making blockchain simple and accessible for users and developers.

Bloctos’ cross-chain ecosystem and its interoperability is what differentiates us from other crypto wallets. Take Blocto auction house & Blocto Balancer as an example, these products are only made possible with Bloctos’ cross-chain capability. Both these products eliminate the need for wrapped tokens, maximized fund utilization rate and in turn establish the Blocto ecosystem and Blocto as the entrance of all things blockchain.

We aim to establish a mutually beneficial, decentralized ecosystem for users and developers, and Blocto token is the catalyst of growth. Hence BLT holders are able to receive benefits when using Blocto-made products, participate in governance voting, stake and mine BLT (48% of total BLT supply) which in time cultivates and motivates users and developers into actively shaping the future of Blocto.

As our CEO Hsuan Lee puts it:

We believe in the long term potential of blockchain. However, the current blockchain ecosystem is still young and far from perfect. We built Blocto to reduce entry barriers and accelerate the growth of blockchain applications. A crucial step in our plan is the introduction of BLT, which serves as the catalyst of the Blocto ecosystem and the fuel to empower a thriving blockchain community with aligned goals.

We invite you to be part of the Blocto community.