PAYDAO Business Landscape

5.1 Value for Users

• Convenient Payment: As seamless as using a traditional bank card.
• Earn Incentives: Earn tokens for every transaction.
• Asset Security: Self-custody of private keys in a non-custodial model.
• Borderless: Cross-border payments without the need for currency exchange.

5.2 Value for Merchants

• Instant Settlement: Real-time payment settlement with no waiting period.
• No Chargeback Risk: On-chain transactions are irreversible.
• Lower Fees: Significantly lower costs compared to traditional payment channels.
• Financial Freedom: Withdraw funds at any time without the need for approval.

5.3 Value for Installers

• Recurring Income: Earn long-term token incentives.
• Scale Effect: Higher returns driven by network expansion.
• Easy Promotion: Simple installation and operation with high market demand.
• Long-term Stability: Based on DAO decentralized governance, free from centralized management.

Priority Markets

• Regions with high cryptocurrency adoption.
• Regions with underserved traditional financial services.
• Regions with frequent cross-border trade.
• Regions with high concentrations of Web3 users.

User Groups

• Long-term cryptocurrency holders.
• Users seeking enhanced payment privacy.
• Individuals with frequent cross-border transaction needs.
• Populations with limited access to financial services.

2.1 Relationship Between Roles

PAYDAO Platform
    │
    ├─→ Installer ───→ Install Payment Terminal ───→ Merchant 
    │     ↓
    │  Onboard Merchant
    │     ↓                       
    ├─→ Merchant ────→ Accept Payment 
    │     ↓
    │  Acquire User
    │     ↓
    └─→ User ───────→ Card Payment ───────→ Installer & User
                                                  ↓
                                            Earn Incentives

2.2 Installer Workflow

1. Obtain payment terminals, authorization cards, and payment cards from PAYDAO-designated suppliers.
2. Responsible for merchant acquisition.
3. Assist merchants with the physical installation of payment terminals. Complete the initialization process and configure the Installer Reward Address.
4. Conduct merchant training sessions to ensure they learn how to operate the system and provide troubleshooting support.
5. Once the merchant successfully collects payments and initiates a withdrawal, the Installer Reward Address automatically receives token incentives, which can be withdrawn at any time.

2.3 Merchant Workflow

1. Bind the designated merchant withdrawal address to the system.
2. Learn how to operate the payment terminal and collection methods.
3. Understand the user-side workflow, distribute payment cards to customers, and assist them with activation.
4. Conduct daily payment collections with the flexibility to withdraw funds at any time.

2.4 User Workflow

1. Obtain a PAYDAO Card and complete the activation process at a participating merchant location.
2. Link the PAYDAO Card to the mobile app to monitor the stablecoin balance and token incentive balance.
3. Deposit stablecoins into the account and complete purchases via Tap-to-Pay.
4. After completing a transaction, the PAYDAO Card automatically earns token incentives, which are available for withdrawal at any time.

4.1 Transaction Fees

4.2 Incentive Distribution (Refer to Whitepaper for details)

3.1 Account System

User Payment Account

• Each PAYDAO Card has an independent payment account (Contract Account).
• Users deposit stablecoins to this account.
• Deductions are made from this account during payment.
• Private keys are stored in the PAYDAO Card, giving users full control over funds.

Merchant Collection Account

• After initialization, the POS Terminal will create a collection account (Contract Account).
• Each POS Terminal has its own collection account.
• Receives stablecoins paid by users.
• Merchants can withdraw to an external wallet address, which is unique and cannot be changed once bound.

3.2 Incentive Mechanism (Refer to Whitepaper for details)

In the PAYDAO ecosystem, transaction fees are no longer a consumption, but a redistribution of value. Through the incentive mechanism, transaction fee revenue can be directly rewarded to ecosystem builders and participants. The incentive model is designed to reward early participants to the maximum extent; the earlier the participation, the more incentive tokens are obtained.

Token Distribution Rules

• Automatically triggered based on transactions.
• As the overall transaction volume of PAYDAO increases, the token generation speed will halve periodically.
• User receives: Transaction amount x Incentive token emission rate x User incentive ratio.
• Installer receives: Merchant withdrawal amount x Incentive token emission rate x Installer incentive ratio.
• Tokens arrive in real-time, can be viewed and withdrawn at any time.

Token Buyback Mechanism

• PAYDAO will use transaction fee revenue to continuously buy back tokens from the secondary market and burn them, ensuring real value support for the token.

3.3 Security Mechanism

• Contract Security: Contracts are audited by professional third parties, safe and transparent (In progress).
• Authorization Mechanism: Payment terminals require a registered Authorization Card to function.
• Payment Security: Although payments can be completed without a password, the payment protocol ensures payment security.
• Withdrawal Restrictions: Only supports withdrawal to a specific merchant wallet address, which cannot be modified once bound.
• Account Recovery: Lost payment cards support reporting loss, and users can recover via email(In progress).

The PAYDAO payment system adopts a decentralized architecture. Its core consists of the payment protocol, payment terminals, payment cards, and supporting application software.

┌──────────────────────┐
│      User Side       │
│ (Payment Card + APP) │
└──────────┬───────────┘
           │
           │ NFC Payment
           ↓
┌──────────────────────┐   Blockchain Transaction   ┌──────────────────────┐
│    Merchant Side     │ <────────────────────────> │   Payment Protocol   │
│  (Payment Terminal)  │                            │  (Fund Management)   │
└──────────┬───────────┘                            └──────────────────────┘
           │
           │ Withdrawal
           ↓
┌──────────────────────┐
│  External Wallet     │
│     (Merchant)       │
└──────────────────────┘