By Dr. Uri Klarman, Co-Founder and CEO
Over the past two years bloXroute has made tremendous progress, testing improvements with the largest ETH pools on mainnet, and the largest BTC/BCH mining pools on the BCH testnet. At the same time, new insights allowed us to improve our business model to provide more value to users, miners/pools and investors. Specifically, we introduced a tiered subscription model to replace the pay-per-transaction model and the requirement for blocks to allocate some of their capacity for such bloXroute-paying transactions.
A Subscription Model
To improve user experience, reduce overhead, and focus bloXroute’s efforts where it creates the most value, bloXroute will soon offer a tiered subscription model; any user, be it an individual, a company, a blockchain service, a DApp, or any other entity which produces tranascations, can sign up for bloXroute’s free tier, and broadcast up to 100 transactions each day*. Users wishing to broadcast higher volumes of transactions can sign up to a paid tier of their choice, allowing each of them to broadcast up to 1,000/day, 10,000/day, etc, based on the tier they have chosen. The tiered subscription model is therefore similar in spirit to SaaS companies like Dropbox which offer a free tier for individuals, a low-cost subscription for small businesses, and higher-tier options for enterprises.
A Better User Experience
The move towards a tiered subscription model not only reduces complexities and overhead on the user side by eliminating the need to add a recipient to each transaction, but also removes complexities for miners, validators or pools who no longer need to track individual transactions to identify whether or not they pay bloXroute, or to allocate a portion of their block for such transactions. Instead, miners, validators and pools are free to construct blocks in any manner they wish, and benefit from orders of magnitude higher volumes of transactions, and the mining fees they carry.
In addition to the above, bloXroute has been collaborating with the development teams and foundations of multiple blockchain projects. To their request, we support their efforts to integrate bloXroute into their client software and protocols, in exchange for a portion of the fees collected by their foundations. Therefore, in some of these cases, bloXroute will not offer subscriptions to users, and will be paid directly by the blockchains’ foundations.
The changes to the business model outlined above do not affect the holders of the BLXR token in any way. BLXR holders will continue to receive 100% of bloXroute’s net revenues on a pro-rata basis, based on their BLXR holdings, and said revenues will include those originated from paid-tiers users and from direct integrations.
bloXroute continues its role — solving the scalability bottleneck at the network layer, and allowing blockchains to scale — and it will improve and simplify the interaction with it. bloXroute will replace the need for transactions to include a payment to bloXroute, and will instead offer users a tiered subscription model which allows them to choose a service customized for their needs.
We will be releasing a video further describing our business model in the coming weeks — stay tuned!
- bloXroute might add or adjust tiers to better fit customer needs and to better support blockchains.
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