Business Models

The FoF allows you to implement your Factory, and therefore in the contract cloned by your Factory, and therefore in your project itself, with a fee-based business model. ‘You’ could be anyone—an independent developer, a DAO, an EthereansOS Organization and so on.

There are two models available: the ‘creation fee’ model, and the ‘usage fee’ model. Why these two? Because they work the best on Ethereum—at least for now.

The EthereansOS organization earns a protocol fee: a percentage of the amount to pay to a Factory host is automatically sent to the EthereansOS Organization. If it is paid in $OS, EthereansOS automatically burns that received amount.

See the section on the EthOS business model.

Business Model 1

Creation Fee

This model allows the host of a Factory to implement a fee for cloning the model contract.

This fee can be of two types:

Burn Fee

To pay this fee, the cloner of the model must burn an amount of a token. The host specifies both the amount and the token.

Example

Imagine Factory Y, the model contracts of which are microservices that Organizations can easily clone and implement.

Let’s say that the host of Factory YI is an Organization with a governance token called $MACIE, and that the Organization codes the model with a $MACIE burn fee—to clone the model, other Organizations must burn 1000 $MACIE.

To do this, these other Organizations must first acquire enough $MACIE. This creates an incentive for the host Organization to increase $MACIE liquidity, and rewards the project’s investor base, as token burns affect supply and demand dynamics; and, using other EthereansOS tools, custom inflation strategies can easily and automatically be implemented.

Transfer Fee

To pay this fee, the cloner of the model must transfer an amount of a token to a receiver address. The host specifies the amount, the token, and the address.

Example

Imagine Factory Z, the model contracts of which are Organization Components, which users can easily clone and add to their Organization.

Let’s say the host codes the model with a fee, so that anyone who clones the model must transfer 0.1 ETH to the host wallet address.

Business Model 2

Usage Fee

This model allows the host of the Factory to implement a fee for use of all clones of the Factory’s model contract.

This fee can be of two types:

Static Fee

This is a fixed amount of a specific token that users must burn or transfer.

Variable Fee

This is a % of the value a user transacts.

Imagine hypothetical Factory, the model contract of which is a farming contract any developer can clone and implement their applications with to let users farm.

Let’s say that the host of the Factory codes the model with a liquidity withdrawal fee, so that every time a user withdraws liquidity from their farming position, the host receives 2% of the withdrawn tokens.

The host could do the same thing with a farming reward fee, so that every time a farmer claims his farming rewards the host receives 2% of the rewards.

A host can be an individual wallet, a smart contract with additional functionalities, an EthereansOS Organization etc. Whoever it is, they are providing a service in the form of a secure, working, ready-to-use farming contract that other developers can easily integrate without having to code it themselves from scratch.

The host here has created a real business model, from which he earns any time users farm through this application—any any other—that has integrated a clone of his Factory’s model contract.

The Factory business model system offers an economic incentive for developers, who can use it to earn profit—to actually be rewarded—for their work. From the point of view of a company—not just an independent developer—this is a very attractive prospect. EthereansOS organizations can use the system to earn income.

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