MILES is the cryptographic token on the Miles application and network that powers its ecosystem. MILES is issued natively on Ethereum as an ERC-20 token and will be bridged to Cardano. This enables compatibility with the vast Ethereum ecosystem and infrastructure while enabling reward incentives for ADA pool stakers.
This document is prepared to describe the usage of the token and the economics of its token sale.
Miles is a token-powered Visa credit/debit card rewards platform that rewards users for everyday purchases and spending on their card. Users earn MILES tokens based on the total value of purchases made. MILES can be used to redeem airline miles, or goods and services through our exclusive travel partner network.
Below we describe how these tokens function within the ecosystem and drive value for their users.
The premise behind the Miles ecosystem is a crypto-supported credit card, combined with an integrated digital asset exchange.
The platform issues the credit card to successful applicants who can then load up their platform wallet or “accounts” with a number of supported currencies, initially BTC, ADA and ETH. As a user spends against their limit, they can pay down their balance using the crypto positions held on their platform wallet automatically.
The automated liquidations can even be structured to set a preferential order for liquidations, for example selling BTC first, then ADA, then ETH. Miles will feature an integrated exchange to sell any crypto positions into USD which can then be used to pay off any accrued credit card balances.
By spending on the credit card, loyalty points will accrue at the rate of USD 25 worth of MILES tokens per USD 1,000 spent or equivalent to 2.5%, making it one of the highest reward cards of its kind.
The platform will work with participating airlines and other travel partners to enable the MILES tokens to be redeemed directly for products and services with the merchant partners. For example, USD 1,000 worth of MILES tokens can be redeemed directly with the airlines for USD 1,000 worth of airline miles.
Prior to this, MILES may be listed on secondary market exchanges which will allow users to convert MILES to USD as needed.
In order to bootstrap working capital, the Miles platform intends to form a staking node on Cardana to allow holders to stake ADA in return for a highly competitive rate + additional staking bonuses in the form of MILES tokens, greatly incentivizing staking in the Miles ADA Staking Pool.
Miles will run a full Cardano staking node by creating a pool with a minimum of 2.4 million ADA with a target of 66M ADA.
Users will be able to acquire MILES through its token sale, as rewards, through ADA staking earnings in our staking pool or on the secondary market.
Miles employs a token buyback program which is funded by a portion of the platform’s profits. Miles earns a fee from the credit card issuer for every purchase performed.
The token buyback program is designed to drive value to the MILES token ecosystem through one or more of the below activities:
Post token sale, MILES is expected to be available on decentralized exchanges, however, no new MILES tokens will be created. New MILES can be redeemed exclusively through token staking.
MILES can be earned when participants add liquidity to the Miles DEX liquidity pool. Miles will create a staking contract that is activated when LP shares generated from liquidity providers are deposited into the MILES staking contract. MILES is paid into the staking pool and earned by LP miners based on their pro-rata share in the staking pool.
Staking is designed to reward participants who lock their MILES tokens while providing muchneeded liquidity to the DEX pool. In return, they are given MILES from the staking reserve.
MILES can also be earned by directly staking MILES tokens into the token staking contract. This enables participants to earn additional MILES in return for locking their MILES tokens within the staking contract. Staking reduces the overall circulating supply and may increase the value of
tokens given the same demand, however, the introduction of new tokens from earned rewards is inflationary to the token ecosystem over the long term, and therefore staking is designed to defer early speculative selling to provide the project with the time necessary to build and scale.
The staking reserve is a finite and exhaustible resource that is expected to incentivize early participants. Should the platform become profitable, the staking reserve may be replenished, whole or in part, by token buybacks.
Miles allows stakers that fulfill the minimum token holding requirements to earn additional bonuses from LP staking simply by staking these token balances. There are three tiers of bonus enhancement depending on the number of tokens held.
Example staking reward bonuses are detailed below:
For example, if the LP staking rewards are set at 120% APY, then a Miles bonus tier participant will earn the equivalent of 144% APY.
Miles also enables committed, long-term stakers to earn additional bonus rewards for locking their tokens over increasing intervals of time as per the chart below:
APY Bonus Multiplier
MILES tokens are also limited governance tokens that allow token holders to propose and vote on community changes to the platform. Votes run through a 3-step process starting with an initial solicitation of interest on the community forum, followed by a consensus vote in the form of a Miles Improvement Proposal and finally, implementation.
Examples of decisions that may be candidates for proposals and votes include uses for tokens acquired in buybacks, and votes around platform feature requests, improvements and enhancements.
MILES shall only be made available for purchase through its token sale or on the secondary exchange market.
Miles has created 45,000,000,000 (45 billion) MILES tokens at the token generation event as its total token supply. No other tokens will be created. These tokens will be sold according to the following structure:
Tokens created by the contract will be distributed based on the following: