White Paper

What is VIP3？

VIP3 is the first CashBack platform in Web3, raised $2 million in seed funding during the bear market in May 2023. After minting the VIP3 Pass (SBT), users can receive CashBack rewards for trading and cross-chain fees from over 70 top platforms, including Binance, OKX, DODO, WooFi, Bitget, IZUMI, and Orbiter, with CashBack rates ranging from 40% to 100%. Within just 5 months of dapp launch, there are already over 100,000 pass holders.

VIP3 can be simply perceived as the VIP of Web3. Users holding the VIP3 Pass become VIP users in the Web3 space, enjoying a list of rights and benefits on various Web3 application platforms.

In 2024, VIP3 introduced the first real-time CashBack feature for Web3, allowing users to instantly receive a CashBack for transaction fees or cross-chain fees when using on-chain platforms like DODO, WooFi, IZUMI, Meson, and Orbiter.

(Learn more: https://twitter.com/web3vip/status/1750714833341919598)

Why did we build VIP3？

  1. From the user's perspective, users in Web3 are relatively disadvantaged compared to platforms. Our vision is to aggregate Web3 users through VIP3, negotiate with mainstream platforms to secure better user rights, reduce user costs, and achieve real profits. This is the core value of VIP3.

  2. From the perspective of Web3 platforms, user growth has always been a challenge. Even platforms with a market value of $1 billion might only have a few dozen active users per day. We hope that Web3 platforms can attract real users and achieve product growth by offering cashback and benefits through VIP3.

  3. We aim to achieve differentiated user services in Web3. There are two main costs in Web3: Trading Fee and Gas Fee. Currently, these costs are at the same level for all users. However, in the real world, this is not the way how it works. Quality and loyal users enjoy cheaper and more convenient services, such as membership discount cards. Through VIP3, we hope that quality Web3 users can enjoy lower Trading Fees and Gas Fees, meaning that VIP3 users can receive more CashBack subsidies on these two costs.

How does VIP3 work?

This is a simple business logic, quite similar to the group-buying model. VIP3 gathers a large number of high-quality, genuine users, and Web3 platforms are inclined to offer special rights to attract such high-quality users. Therefore, the VIP3 platform will choose popular, high-quality projects to negotiate with, to obtain discounts or benefits from those platforms. Generally, these privileges might be reflected in lower transaction fees or gas fees, and there might also be platforms willing to offer our users a larger percentage of airdrops. Under this model, VIP3 aggregates more users, thereby gaining more benefits from top-quality projects. The increase in these premium rights, in turn, attracts more users to join, creating a flywheel. This not only creates more value for both users and platforms but also ensures the sustainable development of VIP3's business model.

How do I use VIP3?

At VIP3, users can enjoy a wealth of rights and benefits. In addition to CashBack on transactions from mainstream Web3 platforms, you will also receive airdrops from several top-tier projects, Gas subsidies for some projects, whitelists for top NFT and GameFi platforms, discounts on tickets for Web3 industry conferences, and discounts on flights and hotels. All these premium benefits are accessible on the VIP3 platform.

Among these, the CashBack benefits from Web3 trading platforms (including DEXs and cross-chain bridges) are some of the most frequently used. Next, we will explain how users can obtain USDT CashBack through VIP

1.Mint VIP3 Pass(SBT) at https://dapp.vip3.io/mint

2.Use VIP3 Benefits at https://dapp.vip3.io/

3. Claim CashBack at https://dapp.vip3.io/

Instant CashBack Use Case(Video)

VIP3 Pass

The VIP3 Pass is an on-chain membership card issued by the VIP3 platform, available in multiple different levels. Users must hold a VIP3 Pass to become a member of VIP3 and thus enjoy the various Web3 product benefits offered by the VIP3 platform. As of January 2024, the VIP3 platform has issued over 100,000 SBTs on chains such as Ethereum, Polygon, Zksync, and Scroll. The use of SBT (Soul Bond Token) for VIP3 Pass has specific reasons:

  1. Nature of VIP3 SBT: VIP3 SBT is not a typical NFT. Users can perceive it as a non-transferable NFT bound to the Mint address. However, being non-transferable or non-tradable doesn't mean it lacks liquidity. VIP3 has conducted technical pre-research and plans to provide liquidity to some VIP3 Passes at good timing through a Bonding Curve model.

  2. Proof of Genuine and High-Quality User Identity in Web3: The VIP3 Pass serves as a marker or proof of identity for real and high-quality users in Web3. For identity proofs like ID cards, diplomas, or MasterCards, the issuing institutions do not intend for them to be traded freely, as this could lead to confusion and inconvenience. Similarly, we want the VIP3 Pass, which is a proof of high-quality and genuine users in Web3, be non-tradable.

VIP3 offers four different levels of Pass passes:

  1. Silver Pass: This is the most basic level of membership on the VIP3 platform, introduced at the launch with a price of 0.08 ETH per pass. To encourage wider participation, VIP3 will offer limited-time free Mint services, allowing more users to enjoy most of the rights and benefits of VIP3. Silver passs are expected to be the most common among VIP3 users, accounting for over 80% of the total user base. Having a larger number of Silver pass users will strengthen our bargaining power with Web3 platforms, securing more benefits for users.

  2. Gold pass: Planned to be introduced six months after the Silver pass launch, Gold pass users must pass a series of verifications to be eligible. We expect Gold pass users to have richer Web3 experience and enjoy higher-level benefits. User interaction on the blockchain will be analyzed to establish criteria for Mint eligibility. Additionally, high-quality Web2 users might also qualify for a Gold pass, possibly verified through Twitter, LinkedIn, Steam, or using work/educational email addresses. Gold pass users are expected to make up about 15% of VIP3's overall user base.

  3. Diamond pass: This pass will be released one quarter after the Gold pass, targeting top-tier Web3 users with a limited issuance of 10,000 passes. Diamond pass holders will enjoy rare rights and benefits, such as whitelists for top projects and even private investment opportunities for some high-quality projects. We plan to provide liquidity for Diamond passs through the Bonding Curve model, allowing users to Mint a pass at market price and return it (not a trade, more like returning or destroying the pass) at the current market price. The refund amount will be roughly equivalent to the price paid by the last person who minted the pass, minus some transaction fees.

  4. Black pass: The release date of the Black pass is not yet specified, with a total supply of 1,000, making it extremely rare. It's prepared for the top whales in Web3 or developers who have made significant contributions to the industry. Black pass holders will not only enjoy all top-tier Web3 benefits but also have the chance to directly receive VIP3 platform Token rewards. Additionally, we plan to offer Black pass users numerous top-tier Web2 and real-world benefits, such as airlines, star-rated hotels, and luxury brands.

At VIP3, we segment users into different categories based on their preferences and attributes in Web3. For instance, we might classify users into GameFi enthusiasts, DeFi enthusiasts, CEX traders, NFT collectors, etc. This segmentation helps us expand more benefits efficiently, distributing them automatically to users who need them, thus enhancing the match between benefits and users. This approach allows users to easily access the Web3 benefits they are interested in, ensuring an excellent experience.

VIP3 Credit Infrastructure:

During the development of VIP3, we have established partnerships with numerous CEXs, DEXs, cross-chain bridges, and many Web2 platforms, collaborating with over 80 platforms to date. We have observed that VIP3 can easily accumulate credit data for users in Web3. With user consent, VIP3 can utilize advanced technologies like zero-knowledge proofs to create a privacy-protecting Web3 credit model for users. This model accurately describes key information such as a user's activity level in Web3, asset level, and risk preference. The input for this credit model includes but is not limited to user interactions on different blockchains, activity on CEX platforms, participation in Web3 events, and even data from Web2 platforms to enhance the accuracy and reliability of the credit model.

Credit is an intangible but powerful asset that plays a crucial role in our social and economic systems. In the Web3 domain, credit is even more essential. We understand that the lending model in Web3 is based on an over-collateralization mode, meaning users can only borrow 60-70 USDT with 100 USDT worth of ETH. This model reduces the available liquidity for users, hindering the achievement of financial prosperity. In contrast, credit cards and uncollateralized loans in the real world create more liquidity, fostering financial prosperity. The U.S. stock market has significantly benefited from this, becoming the world's most renowned stock market.

VIP3 has already initiated close collaborations with some on-chain lending platforms. We aim to enable qualified VIP3 users to get access to more funds in the over-collateralized lending process using the credit data provided by VIP3. For instance, where a regular user can only borrow 60 USDT with 100 USDT worth of ETH; we hope that with a VIP3 credit score, they could borrow up to 75 or even 80 USDT.

From the lending platforms' perspective, they are eager to lend funds to increase income. However, the lack of a fair, decentralized credit infrastructure in Web3 makes it challenging to accurately assess a user's credit value, hence limiting their ability to expand lending limits for more income. VIP3's credit infrastructure will fill this gap, providing lending platforms with accurate user credit information, and helping them to increase limits and achieve higher returns.

In the future, VIP3 looks forward to launching an on-chain credit card with a moderate limit, a true uncollateralized credit card, marking a significant milestone in credit lending in the Web3 domain.

VIP3 Roadmap

2023 Q3

  1. develop and launch VIP3 V1.0 DApp ✅

  2. VIP3 Silver Membership pass open for mint✅

  3. aggregate more than 20 web3 products’ benefits ✅

2023 Q4

  1. VIP3 holders reach 50,000.✅

  2. 2.launch layer2 vip3 pass mint✅3. aggregate more than 50 web3 products’ benefits✅

2024 Q1

  1. Launch new feature "Instant Cashback".✅

  2. VIP3 holders reach 100,000, Dapps offering benefits reach 80✅

  3. Open Gold pass Mint with certain standards.

2024 Q2

  1. Instant Cashback benefits exceed 20, with a total of over 150 benefits.

  2. VIP3 holders reach 200,000.

  3. Launch VIP3 Diamond pass and enable Bonding Curve trading.

2024 Q3

  1. Release VIP3 Chrome extension and integrate 100+ Web3 Dapps.

  2. Introduce Web2 benefits, providing privileges for VIP3 holders in areas such as hotels and airlines.

  3. Collaborate with mainstream L2 to launch Gas Fee discount CashBack.

2024 Q4

  1. Begin building a Web3 credit system based on VIP3 benefits usage and cashback.

  2. Collaborate with on-chain lending platforms to provide less collateralized lending models.

  3. VIP3 holders reach 500,000 and launch VIP3 Black pass.

2025 and forward...

  1. Based on VIP3 credit system, provide first web3 on-chain credit cards

  2. Launch VIP3 AA wallet based on the VIP3 chrome extension to further enhance the VIP3 membership experience.

  3. Establish mutual recognition of benefits between VIP3 Black pass and American Express Centurion Black Card.

VIP3 Tokenomics（Draft）

Token Distribution：$VIP3 will be the governance token of VIP3， limited supply of 1,000,000,000

The $VIP3 token features several key characteristics:Large User Base of Token Holders:

  • VIP3 is the first CashBack platform in the Web3 space, and within just four and a half months of its launch, the number of users holding VIP3 Pass exceeded 100K. The business model of VIP3 ensures that its core users become token holders, providing $VIP3 with a substantial user base.

Multiple Real Token Consumption Scenarios:

  1. Renewal Fees for Higher Pass Levels: VIP3 is divided into four different levels. Higher-level Pass need to consume or stake a certain amount of tokens monthly to maintain their status and enjoy more benefits and CashBack rewards.

  2. Exchange for Premium Benefits: Some scarce benefits, such as freemints in other Dapps or NFT projects, require users to stake or consume tokens.

  3. Charges for B2B Advertising: As a traffic hub, VIP3 will charge projects a certain amount of VIP3 Tokens for advertising, top placement, or community media promotions.

  4. User Profiles and Credit Agreements: With the accumulation of VIP3 user on-chain data, a Web3 credit infrastructure is formed (with user authorization), which is provided as a service to other projects. A certain number of tokens are charged as fees for this service.

Token Buyback Logic for Continuous Token Deflation:

  • VIP3's core benefits mainly take the form of commissions/rebates. For instance, when users trade on Binance, Binance regularly pays the agreed fees to VIP3. Then, VIP3 disburses the actual funds that users are entitled to through the CashBack section. Users can regularly collect their funds from the CashBack section.

  • Before the VIP3 platform token listed on exchanges, the liquid funds in this model primarily exist in the form of USDT. The entire process can be referenced in the "Before Listing" stage in diagram 3.

These features position $VIP3 not just as a digital asset but as a functional token within the VIP3 ecosystem, fostering both user engagement and platform growth.

As VIP3 grows and the user base expands, following the listing of $VIP3, a new incentive model is being considered. This model will shift from directly giving USDT to users to returning an equivalent value in VIP3 Tokens (without the risk of loss for users). If users need USDT, they can obtain it through direct trading. Holding the token also allows users to benefit from potential price increases. The USDT originally provided by partners to VIP3 will be used to continuously buy back and burn VIP3 Tokens on the open market. This process leads to the continuous deflation of the $VIP3 Token, thereby providing strong upward momentum for the price of $VIP3. The specific details of this model, including the shift in process post-listing, can be referenced in the 'After Listing' stage of diagram 3.In summary, this new incentive model post-listing aims to enhance the value of $VIP3 by:

  1. Changing the Reward Mechanism: Switching from USDT to equivalent VIP3 Tokens for user rewards.

  2. Facilitating Direct Trading: Allowing users to trade VIP3 Tokens for USDT if needed.

  3. Encouraging Token Holding: Users holding VIP3 Tokens can potentially gain from price increases.

  4. Implementing a Buyback and Burn Strategy: Using partner-provided USDT to buy back and burn VIP3 Tokens, promoting token scarcity and value.

This approach is designed to bolster the liquidity and value of $VIP3, aligning with the overall growth and expansion of the VIP3 platform.

It's clear that the amount of $VIP3 Tokens repurchased depends on the total funds users acquire in the CashBack section of the VIP3 platform. Currently, the highest monthly CashBack amount for top users is $15,000 USDT. Taking a bullish market scenario as an example: if high-quality VIP3 users, on average, can earn $200 USDT in CashBack each month, then having 1,000 such users would yield $200,000 USDT for token repurchases each month. If the number of users increases to 10,000, the monthly funds available for token repurchase would rise to $2 million USDT. A consistent monthly repurchase fund of $2 million USD would provide a very strong impetus for the increase in the token's price.

It should be noted that the token repurchase model is currently still in the discussion phase and has not yet been finalized; it remains in draft form. The VIP3 team is working closely with several top token economists. We are committed to creating a token economic model to ensure that both the community and token holders can receive more substantial returns.

VIP3 Fly Wheel

VIP3 has a strong growing flywheel due to a great model design.

Firstly, VIP3 employs a bilateral model, encompassing both users and platforms. This fosters a growth mechanism for both the number of benefits and the number of users. As benefits increase, VIP3 can attract more users; the increase in users, in turn, attracts more top Web3 platforms to offer benefits. This forms a positive flywheel of continuously increasing benefits and user numbers.

Secondly, as more users utilize the benefits of the VIP3 platform, more CashBack funds are generated for the repurchase of VIP3 tokens. The increase in token repurchases will drive up the token price, making the VIP3's Invite2Earn model more attractive, thereby attracting more users to join. This constitutes a second positive flywheel: an increase in users leads to more usage of benefits, which drives up token price, attracting even more users. This flywheel enables the VIP3 community and its users to gain more benefits.

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