The main objective of the PS Platform is to share the profit it generates equally, transparently and autonomously among the core 3 Stakeholder groups defined above. As such, the technical implementation of the PS Protocol can be viably achieved by using the combination of Distributed Ledger Technology (ie Blockchain) and Smart Contracts. In order to create a transparent, censorship & fraud resistant and fully autonomous decentralized protocol for distribution of monetary value, the technical implementation of the PS Protocol has 3 prerequisites:
PUBLICLY ACCESSIBLE, CENSORSHIP RESISTANT AND IMMUTABLE LEDGER OF SALES TRANSACTIONS
Blockchain technology represents the most cost effective and reliable method to create a publicly accessible record of transactions. Transactions on the blockchain cannot be altered and thus the foundation of the PS protocol begins with recording every purchase and every company expense on the public blockchain using a custom cryptographic token. A simple token construct can provide full transparency of sales operations so any Stakeholder can verify the fairness of cashback rewards and profit distributions without us having to build extensive technical infrastructure or having to sacrifice protocol integrity and payments security.
TOKENIZED VALUE REPRESENTATION OF FIAT CURRENCY THAT CAN BE DISTRIBUTED TO STAKEHOLDERS AUTONOMOUSLY AND SEAMLESSLY CONVERTED TO BACK TO FIAT CURRENCY
The prerequisites of PS Protocol are achieved by creating a stable currency token to represent the PS bank account balance. The PS Protocol utilizes a self-auditing Stablecoin branded as “ProductShare Cash” or simply ShareCash ( <$ PSC) . PSC will be used to mirror all PS transactions on the blockchain and pay out cashback rewards to customers as well as profit share distributions to all Stakeholders in real-time.
PSC is a USD-equivalent stablecoin design that:
a) Is minted every time a purchase is made on PS using credit cards, debit cards, Paypal, Apple Pay, Google Pay etc.; and b) Is burned when converted back into USD (ie withdrawn from bank account)
Is blockchain-agnostic and can mirror PS payment transactions on multiple immutable and publicly accessible distributed ledgers such as. Binance Smart Chain, Ethereum, Solana, Avalanche and Tron.
Can be distributed using smart contracts without censorship across each major layer-1 blockchain.
Does not fluctuate in value and can instantly exchanged for fiat USD at 1:1 ratio or for equivalent USD value of other crypto currencies using decentralized exchanges (DEXs)
TOKENIZED REPRESENTATION OF THE STAKEHOLDERS' OWNERSHIP OF THE PS DAO
The third core prerequisite for both the seamless value distribution among Stakeholders and the decentralization of PS Governance is PS STAKESHARE (<S PSS), a value accrual and governance token that represents Stakeholder ownership in the PS DAO. PSS has a fixed supply of <S 333,333,333 PSS that will be divided equally among the three Stakeholder groups. The profit generated from sales on the PS Marketplace will be locked in a smart contract and distributed in the form of ShareCash (PSC) to each individual stakeholder at the end of the month according to their pro-rata ownership in the PSS Token Supply.
PSS Group Allocation
Figure 1. - PSS Group Allocation
Profit Calculation
Profit distributions to Stakeholders will be calculated by an audited smart contract on the last day of each month according to the standard set of accounts commonly found in the Profit & Loss (P&L) statement for a dropshipping marketplace. The NET Profit is calculated by subtracting the Cost of Sales and Operating Expense from the Gross Marketplace Sales Volume (GMV). The GMV is captured in the form of PSC to the PS Treasury wallet , so the accounting transactions are first performed on the blockchain in PSC and then the PSC amounts that correspond to each expense account are burned and converted to fiat USD currency in order to make the payments to vendors unable to accept the payments directly in PSC.
A snapshot of the projected P & L for June 2024 is provided below as an example (24 months P&L Forecast is included in Appendix A):
Table 1. - Stakeholder Groups: P&L and Profit Sharing Formula
