For purchasing Crypto Insurances products, You would need to purchase it using the CVR token only.
For the other insurance products, (Health/ Life/ Home, etc. ), you can pay in CVR, BTC, ETH or USDT to start with. However, you receive discounted premiums for paying with CVR.
This will operate in the following manner;
1) This is not open to all cryptocurrencies but mainly larger (less volatile) cryptocurrencies
2) Currency drops 25% for over 24 hours (less than 24 hours, not eligible)
3)The price needs to remain at a lower price point for over 24 hours
4) the First 15% is at your risk, the remaining price drop is covered by the insurer
We are speaking to a few providers which we would integrate into our user’s account wallet on our portal allowing a direct exchange between CVR/USD \ CVR/ETH to start with.
We would look at adding more currencies but initially, we would have USD & ETH (and DOT once we migrate to Polkadot) for conversion.
Once the platform is live, we would be generating revenue for the policy sales (from the traditional insurers) and operations revenue for the P2P insurance platform in the longer run.
After we covered our operational costs over a quarter, from the remaining revenue available to us, we would use 25% of the revenue to buy out tokens from our listed exchanges and burn them out of the supply (similar to how Binance does it as well)
On every policy sold, 10% of the premium would go towards burning our tokens until we reach 70,000,000 tokens as final supply (which is about 50% of the supply)
We will be providing both options to users (Acala’s Stablecoin or CVR). What we have witnessed from our experience is that once a claim is made for the user, the intrinsic value of our provider/token grows substantially due to the positive user experience which gains the user long term loyalty. Such experience creates additional value for users to again take out another policy & hold onto our token for future transactions within the platform.
We are also building our several other use cases on the token to build further retention of our token once a claim is transacted which would be shared in the next version of the whitepaper.