Categories
Uncategorized

Macabris is a DeFi protocol simplifying what life insurance companies are doing all the time

Receive increasing monthly payouts for 50 years, as long as the underlying celebrity is alive.

Macabris is a non-fungible token (NFT) on the Ethereum blockchain. Each token is unique and represents a specific celebrity. Owner of each token receives share of the monthly payout from distribution pool as long as the underlying celebrity is alive. Since total monthly payout amount is fixed, every token receives an increasing payout as other token celebrities keep on dying. 

What is Tontine?

A tontine is an investment plan for raising capital, devised in the 17th century and relatively widespread in the 18th and 19th centuries. Tontine enables subscribers to share the risk of living a long life by combining features of a group annuity with a kind of mortality lottery. Each subscriber pays an agreed sum into the fund and thereafter receives a periodical payout. As members die, their payout entitlements devolve to the other participants, and so the value of each continuing payout increases. On the death of the last member, the scheme is wound up.

What technology is behind Macabris?

Macabris is build on Ethereum ERC-721 Non-Fungible Token (NFT) standard. There are 7250 unique tokens, each representing a specific celebrity. The number of tokens is fixed: there will never be more or less.

What are the economics of Macabris?

Roughly every month a share of distribution pool will be paid out token holders. The pool is distributed in 600 installments. Every 30 days one installment will be paid out automatically and distributed to alive token holders. Example: let’s say there are 100 ETH in the pool and 100 alive celebrity tokens. Monthly payout is 1/600 * 100 = 0.1667 ETH, distributed per 100 alive tokens. As such, each token automatically receives 0.1667 ETH / 100 = 0.001667 ETH per token. Suppose, a month has passed, and 5 celebrities met their ends. There are total 95 alive tokens. Monthly total payout is the same – 0.1667 ETH, however it is distributed among the living tokens. Each alive token now automatically receives 0.1667 / 95 = 0.00175 ETH. Eventually, as more and more celebrities perish as the times goes by, the last remaining alive token will collect entire pool payout every month.

How long will the payments last?

The pool will be distributed in full in 50 years, a total of 600 periods. At the end of the periods the pool will be fully distributed and payouts will stop.

Which tokens receive a share of monthly payout from the Distribution pool?

All tokens that meet two criteria will receive an equal share of monthly payout: 1. a token is sold during ICO processes (i.e. revealed) and 2. underlying celebrity is marked as alive at the time the payout happens.

What happens when a celebrity dies?

Once a real-world death is confirmed, a celebrity is marked as dead by the Death Master. As the next payout happens, the token no longer receives the payout (it’s funds are instead proportionately distributed to other tokens that are alive). You may still trade a dead celebrity token.

Where do the funds in the distribution pool come from?

Funds in the distribution pool come from two sources: initial token sale and trade commission from subsequent token sales. During ICO, 80% of funds from sold tokens will be transferred to the Distribution pool. Wallet-to-wallet token transfer commission fee is 5%, 2.5% of which will go to the Distribution pool. The rest of fees will go to the Developer pool. As times goes by and tokens get traded between wallets, distribution pool will grow accordingly, and therefore – monthly payouts.

How are tokens marked as dead?

Macabaris is governed by multisig approach, managed by five wallets. 3 of the five wallets can replace any other governing wallet Majority vote is used to elect a “Death Master” wallet. Once the death of an underlying celebrity is confirmed from the public sources, the Death Master will marks it as dead in the contract. The five governing wallets can only access Developer pool and elected the Death Master. There is no way to access the Distribution Pool, change the rules or economics of smart contracts. Hence, Macabris is certain: same as death and taxes.

Leave a Reply

Your email address will not be published. Required fields are marked *