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Business Model

Fee Structure (Community-First Model)

Note: This is the primary fee model for MVP and initial launch. A tiered fee model may be introduced in later stages based on operational needs and market conditions.

Deposits (On-ramp)

  • Local currency → ACBU: 0.3%
  • USDC → ACBU: 0.3%
  • Covers: Fintech partner costs, KYC/AML
  • Example: 100,000 NGN → 299 NGN fee

Withdrawals (Off-ramp)

  • ACBU → Local currency: 0.3%
  • Covers: Fintech partner costs, liquidity
  • Example: 5,000 GHS → 1.5 GHS fee

Peer-to-Peer Transfers

  • ACBU wallet to ACBU wallet: FREE
  • (or 0.01% to cover blockchain fees)
  • Encourages staying in ACBU ecosystem

Merchant Payments

  • Pay merchant in ACBU: FREE
  • Merchant accepts ACBU: 0.2% (vs 2-3% card fees)
  • Incentive for merchant adoption

Total Cost for Cross-Border

  • Traditional: 5-8% (banks/Western Union)
  • ACBU model: 0.6% (0.3% in + 0.3% out)
  • Savings: 88-93% cheaper ✓

Future Fee Model (Optional - Stage 3+)

A tiered fee model may be introduced in later stages:

  • Basket deposits/withdrawals: 0.5%
  • Single currency: 1.0-1.5%
  • Dynamic fees: Based on reserve levels and demand

This will be evaluated based on operational costs and market conditions.

Revenue Model (Not Fee-Dependent)

Since fees shouldn't be the primary business model, here's how to sustain operations:

Primary Revenue Streams

1. Float Interest (Where Legally Possible)

Countries with interest-bearing accounts:

  • South Africa: ~8% annual on ZAR reserves
  • Kenya: ~10% on KES reserves
  • Ghana: ~25% on GHS reserves (high inflation)

Potential: If $50M in reserves across these:

  • $2-4M annual interest income
  • Covers: Operations, tech, compliance

2. Currency Spread (Minimal)

  • Buy/Sell Spread: 0.2-0.3%
  • Example: Buy NGN at 1,551 NGN/USD, Sell at 1,547 NGN/USD
  • With $100M annual volume: $250K-300K annually

3. Premium Services (Institutional)

For Businesses/Institutions:

  • API access: $500/month
  • Higher withdrawal limits: $1,000/month
  • Priority settlement: $2,000/month
  • Custom reporting/analytics: $500/month
  • White-label solutions: Revenue share

Target: 100 businesses
Revenue: $3-6M annually

4. Ecosystem Services (Future)

Once ACBU adoption grows:

  • ACBU-denominated lending (interest income)
  • ACBU savings products (spread on interest)
  • ACBU payment processing for e-commerce
  • Cross-border B2B settlement services
  • Partnerships with airlines, hotels (accept ACBU)

Cost Structure

  • Fintech partner fees (custody, transactions)
  • Oracle costs
  • Audit and compliance
  • Rebalancing operations
  • Technology infrastructure

The "Stay in ACBU" Strategy

Keep users in ACBU, reduce off-ramping:

Phase 1: Payment Infrastructure (Year 1-2)

Make ACBU spendable everywhere:

  • Partner with African e-commerce (Jumia, Konga, Takealot)
  • Integration with POS systems (Yoco, Amplify)
  • Mobile money interoperability
  • QR code payments (works offline)

Goal: 100,000 merchants accepting ACBU
Incentive: Lower fees than card payments (0.2% vs 2.5%)

Phase 2: Financial Services (Year 2-3)

Make ACBU useful for savings/investment:

  • ACBU Savings: Users keep ACBU, earn yield (2-3% APY)
  • ACBU Staking: Lock ACBU for 3/6/12 months, earn 4-6% APY
  • Reduces redemption pressure

Phase 3: Ecosystem Lock-In (Year 3+)

The Network Effect:

  • Travelers: "I can use ACBU in all 10 countries"
  • Merchants: "I accept customers from 10 countries"
  • Freelancers: "I get paid in ACBU across borders"

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