The Power Ledger Platform is the Ecosystem that enables interoperability
between diverse market management/pricing mechanisms and units of
electricity (kWh) by way of pre-purchased tokens.
The Power Ledger Platform provides a transparent governance framework that
allows the Ecosystem to seamlessly interface with energy markets around the
globe, bringing innovation and a wide range of network benefits to consumers.
This approach means the Ecosystem is adaptable and scalable for applications
within any existing or future regulatory environment, achieving the dynamic
agility required to adapt to any number of regulatory structures. This dynamic
agility, allows a redefinition of where Application Hosts (utilities, retailers,
property managers, etc.) and customers (users) are positioned in the
Ecosystem and who has market power in any transactive arrangement.
The market flexibility of the Ecosystem is facilitated by deployment of a dual
token Ecosystem (POWR and Sparkz) operating throughout its two blockchain
layers.
POWR tokens are the frictionless blockchain tokens that allow Application
Hosts and Participants access to and use of the Platform (like a limited
software licensing permission).
Sparkz tokens are issued against escrowed POWR tokens, via a Smart Bond,
and used by the Application Host to onboard its customers.
Application Hosts are entities and businesses that run an Application on the
Platform. For example, a utility company using the Platform will be an
Application Host, as is an EV-charging services business. A Decentralized
Autonomous Organization can also become an Application Host.
“Off the shelf” applications may be used in the Ecosystem. Applications such
as FuseBox, Power Ledger’s P2P Energy Trading Application which acts as a
“Utility in a box”, allowing Utilities to manage and on-board participants to the
Platform and to reap the technology benefits and cost advantages it offers.
Applications may also be developed by third parties, using the Platform’s
designs and services to fast track innovative consumer applications. The
POWR to Sparkz ratio for third party developers may be adjusted depending on
their customer feedback and reputation.
Sparkz, the “low level” token, are specifically limited to representing the
tokenized value of a unit of electricity in varying markets around the world.
Sparkz and POWR tokens will be exchangeable, connecting the functions of the
Ecosystem. Sparkz maintain a steady exchange rate between local market
electricity prices and the exchange priced POWR token.
Figure 4.1.1 shows the design architecture where Application Hosts (i.e. an
energy utility company) will buy POWR tokens from the open market.
Consumer and Prosumers buy and sell energy, which is settled with Sparkz
tokens and may redeem the Sparkz for cash via their Application Host.
The level of disruption from the Ecosystem is able to be controlled by
Application Hosts ensuring rapid and early adoption of the technology whilst
supporting Utilities’ needs to migrate at a speed that works for their
organization. This controlled deployment of the disruptive benefits will also
help Application Hosts to transfer technology to consumers, helping them to
grow their consumer base using their local market knowledge.
Figure 4.1.2 advances the concept such that POWR tokens can be used directly
in P2P trading between Prosumers and Consumers, with near zero
intermediation - and this is the way markets will operate as deregulation in the
sector moves forward in the years to come.
4.2 POWR TOKEN
The POWR token will serve as the fuel of the Power Ledger Ecosystem.
POWR tokens help to facilitate low cost and better returns on electricity. They
interact with the Ecosystem through:
• Providing governance and consumer protection through Smart Bond
technology (section 4.4)
• Facilitating access to use the Platform (section 4.4)
• Providing loyalty rewards to Participants (see section 4.6);
• Contributing and connecting with renewable energy charities and
organizations (see section 4.6);
• Providing access priority to Asset Germination Events and benefits from
an asset’s ‘POWR’ generation (see section 5.5.7); and
4.3 DUAL TOKEN ECOSYSTEM
To synchronize the Ecosystem globally and create cross-market electricity
compatibility, a second token, Sparkz, is used for Ecosystem transactions.
Sparkz tokens are priced, issued, and redeemed in the local currency of the
Platform Participant.
Purchasing a sufficient amount of POWR tokens allows Application Hosts
access to the Ecosystem from where they can convert their POWR tokens to
Sparkz and on-board their customer base.
POWR tokens are required to generate Sparkz. Sparkz are a local market level
token and are priced for the exchange market they are deployed in, e.g. In
Australia 1 Sparkz = 1 cent AUD. They allow for frictionless transacting
throughout the FuseBox applications.
4.4 POWR TOKENS ARE ACCESS PERMISSION TOKENS
POWR tokens allow the Application Hosts and their consumers to gain access
to the P2P trading features and other Power Ledger applications.
As an example, an Application Host would need to purchase enough POWR
tokens to generate the necessary Sparkz for their consumers to transact
electricity in their home market. The Application Host will need to maintain a
sufficient number of POWR tokens to generate the necessary Sparkz required,
for their consumer base.
In a deregulated market, where Participants are able to trade directly with each
other without the need for intermediaries, Participants will be able convert their
POWR tokens directly to Sparkz and transact on the platform without an
Application Host.
To use services on the Platform each Application Host will require POWR
tokens to transact for Sparkz, in their local jurisdiction. POWR tokens can be
seen as the global token that opens access to the Platform for all Participants,
to on-board the system. The POWR token is the access token, like a software
license, that grants ability for Application Hosts to transact on the Platform,
through trading POWR tokens for Sparkz.
Once an Application Host has exhausted all POWR tokens they can no longer
transact on the Platform until they obtain more POWR to provide Platform
access.
4.5 POWR FUNCTIONS AND SMART BONDS
For incumbent market participants, the POWR token will provide not only
access to the network, but also the Smart Bond functionalities.
POWR tokens from the growth pool will be gifted to incentivize Application
Hosts to use and contribute to the development of the Platform Applications
and on-board their Consumers to facilitate its global reach.
Application Hosts such as Energy Retailers and Network Utilities will be
required to provide the POWR tokens as surety for the Sparkz they receive from
the Platform. The Sparkz are then used to transact electricity between their
Customers in their home market.
POWR tokens will be escrowed for Sparkz in an Ethereum Smart Bond, and can
only be unlocked from the Smart Bond upon the return of the Sparkz.
It is expected Application Hosts will need to acquire more POWR tokens over
time to facilitate an increase in transactions as their consumer base grows and
the technology becomes more widely adopted. The more POWR tokens that are
escrowed for Sparkz, the more organic demand is created for the POWR tokens.
The Smart Bond contract will ensure consumer protection in the event of the
failure of an Application Host (i.e. bankruptcy). P2P Consumers are able to