3. Business Model

The PADO project integrates Thailand’s well-established tourism infrastructure with the global cryptocurrency ecosystem, offering crypto holders an innovative and differentiated experience that allows them to utilize their assets in real-world applications. PADO’s business model is built around three core values—Innovation, Stability, and Integration—which are implemented through the following differentiated strategies.

Core Values of PADO’s Business Model

1. Innovative Finance-Tourism Integration

• Real-World Utility of Digital Assets: PADO extends the use of cryptocurrencies beyond investment purposes by linking them directly to high-end tourism and financial services.

• NFT-Based VIP Membership: By offering customized premium services that traditional financial systems cannot provide, PADO creates a unique financial experience for cryptocurrency holders.

2. Ensuring Stability and Trust

• Payment Stabilization Mechanism (PSP): The Payment Stabilization Pool (PSP) is used to hedge the risk of PADO token price fluctuations from the time of transaction approval to conversion into THBP (Thai Baht PADO). PSP automatically intervenes based on market conditions to minimize uncertainty in transaction and settlement processes, ensuring stable transaction values at all times.

• Deflationary and Lock-Up Mechanisms: PADO employs token-burning strategies by removing a portion of transaction fees and VIP membership fees from circulation. Additionally, token staking and swap pool mechanisms lock up assets, gradually reducing the circulating supply of PADO tokens over time. This enhances token scarcity, contributes to long-term value appreciation, and strengthens the stability of the overall ecosystem.

3. Integration and Interconnectivity

• Diverse Participation Channels: The ecosystem is designed to allow all users—including investors, tourists, and merchants—to contribute through various participation methods, such as cryptocurrency deposits, staking, and altcoin swaps.

• Hybrid Payment Network: By integrating a proprietary payment network with existing card payment systems, PADO ensures that both cryptocurrency users and non-users can conveniently access its services.

PADO’s business model is structured around six key development components, each of which is interdependent and essential to completing the entire ecosystem. The following sections detail each of these components.

3.1 Cryptocurrency VIP Membership Model

PADO introduces an NFT-based VIP membership system, providing high-net-worth cryptocurrency holders with customized premium services. This system goes beyond simple tier assignments by evaluating BTC/ETH deposits and PADO staking activity to determine membership tiers and benefits, encouraging long-term engagement within the PADO ecosystem.

NFT-Based Tier System:

• Four membership tiers: Silver, Gold, Platinum, Black

• Determined by BTC/ETH deposits (or PADO staking), deposit amount and duration, and VIP membership fees

• Black Tier: Achieved through large deposits and long-term staking, offering exclusive benefits such as hotel suite upgrades, unlimited VIP lounge access, and concierge services

Customized VIP Benefits:

• Travel & Accommodation: Hotel and resort upgrades, private tours, airport VIP services

• Shopping & Culture: Discounts on luxury shopping, invitations to exclusive Thai cultural events

• Financial Services: Lower transaction fees and additional rewards within the PADO ecosystem

• PSP Participation: Black-tier VIP members contribute substantial locked-up capital to the PSP, promoting exchange rate stability and deflationary effects.

3.2 DeFi and NFT Membership System

PADO’s ecosystem is designed to enable investors and participants to channel assets into the platform in multiple ways, ensuring long-term token appreciation and access to premium benefits. This is achieved through three key mechanisms:

BTC/ETH Deposit Program

Business Model:

Investors deposit BTC or ETH into the PADO platform, earning interest over a predetermined period. Interest is paid in PADO tokens, creating a stable yield opportunity for cryptocurrency holders.

Key Features:

Annual Interest Payouts:

Depositors receive annual interest in PADO tokens, boosting investment returns and incentivizing asset inflow.

VIP NFT Tier Connection:

The deposit amount and duration determine NFT-based VIP tiers (Silver, Gold, Platinum, Black). Long-term and high-value deposits qualify users for Black-tier benefits such as hotel upgrades and private tours.

Enhanced Rewards for Long-Term Deposits:

Long-term depositors receive additional rewards, ensuring asset stability and liquidity in the ecosystem.

PADO Staking Program

Business Model:

Participants lock up their PADO tokens on the platform for a set period, earning additional rewards in return. Staked tokens are temporarily removed from circulation, reducing supply and contributing to the token’s long-term value appreciation.

Key Features:

• Additional Reward Distribution: Regular incentives are provided to staking participants, ensuring continued engagement.

• Deflationary Effect: Staked tokens are excluded from market circulation, progressively reducing the total supply and increasing the token’s scarcity and value.

Altcoin Swap Pool & NFT Tier Determination

Business Model:

Altcoin holders contribute liquidity to the PADO Swap Pool, earning NFT tier rewards based on their participation. Users who provide liquidity to the pool qualify for VIP NFT tier upgrades, particularly the Black tier when combined with PADO staking.

Key Features:

• TVL-Based Tier Calculation: The Total Value Locked (TVL) in the pool determines NFT tier allocation. High contributors receive elevated VIP statuses.

• Dual Requirements for Higher Tiers: Users must stake PADO tokens in addition to providing liquidity to qualify for higher NFT tiers.

• Swap Pool Structure: - Automated Market Maker (AMM): PADO token and altcoins are paired in an AMM model to provide seamless trading. - LP Token Issuance: Liquidity providers receive LP tokens, representing their share in the pool and providing additional staking rewards. - NFT Rewards: Participants who remain active for a specified period receive additional NFT tier upgrades, enhancing their VIP membership benefits.

3.3 Payment Services

PADO has developed a hybrid payment system that integrates its proprietary payment network with existing card networks, aiming to provide both users and merchants with a secure and efficient transaction environment. By combining the strengths of cryptocurrency payments with traditional methods, the system ensures that all consumers have access to various payment options.

Key Features of the Hybrid Payment System

• Lower Transaction Fees: Merchant fees are approximately 1%, significantly reducing costs compared to conventional card payments (around 2–4%).

• Blockchain-Based Transactions: Real-time settlement and high-level security guarantee reliable crypto transactions.

• Support for Multiple Cryptocurrencies: BTC, ETH, and PADO tokens can be used as payment methods, enabling crypto holders to utilize their assets in daily life.

• Price Stability via PSP: The Payment Stabilization Pool (PSP) absorbs any fluctuations in the PADO token’s price from payment approval through final settlement, ensuring merchants receive stable amounts.

Integration with Existing Card Networks

• Comprehensive Payment Options: Customers who do not use cryptocurrencies can still join the PADO ecosystem through credit cards and mobile payments, broadening the user base.

• Merchant Incentive Programs: Special discounts and rewards encourage more merchants to adopt cryptocurrency payments.

Hybrid Payment System

By merging cryptocurrency payments with traditional methods, PADO’s hybrid payment system delivers the following benefits:

Proprietary PADO Network

• Low Fees Compared to conventional card fees (2–4%), PADO charges around 1%, greatly reducing costs for merchants.

• Blockchain-Based Payments Real-time settlements and high security offer both efficiency and reliability in crypto transactions.

• Multiple Cryptocurrency Support Major cryptocurrencies—BTC, ETH, and PADO tokens—are accepted, enabling holders to easily spend their digital assets for everyday use.

• Price Stabilization (PSP) The Payment Stabilization Pool mitigates PADO token price volatility between the time of payment and final settlement, ensuring merchants receive a stable amount.

Integration with Existing Card Networks

• Broad Payment Options Even customers who do not transact in crypto can participate with credit cards and mobile payments, thereby expanding PADO’s overall user base.

• Merchant Incentive Programs Additional discounts and rewards stimulate merchant adoption of crypto payments, further advancing the ecosystem.

PSP Pool Configuration Strategy

The Payment Stabilization Pool (PSP) is a financial engineering mechanism designed to reduce payment volatility and maximize the stability of PADO’s payment system. Built in phases through collaboration between the foundation and the community, the PSP evolves as follows:

Initial Phase – Foundation-Led

• Foundation-Funded Setup: Early in the project, when membership (especially Black-tier) and swap pool funds are still limited, the foundation contributes its PADO tokens or BTC/ETH to establish the PSP.

• Immediate Stability: Foundation-led oversight quickly addresses exchange rate volatility, minimizing uncertainty during initial operations.

Mid-Phase – Expanded Community Contribution

• Increased Community Involvement: As NFT-based VIP memberships proliferate and the altcoin swap pool’s Total Value Locked (TVL) grows, funds from VIP members and the swap pool bolster the PSP’s stability.

• Reduced Foundation Role: Over time, the foundation’s contributions diminish, with the PSP transitioning to community-driven operations.

Long-Term Phase – Full Community Autonomy

• Community-Centric Funding: Eventually, the majority of PSP funds originate from VIP members, swap pool liquidity providers, transaction fees, and other community initiatives.

• Independent Stability: The foundation only maintains minimal assets to preserve exchange-rate stability, allowing the PADO ecosystem to develop into a fully autonomous structure.

Effects of PADO’s Payment Services

Stable Transaction Environment

• The combination of a hybrid payment system and the PSP Pool minimizes financial risk during transactions, offering predictable stability for both users and merchants.

Cost Reduction and Improved Efficiency

• Lower transaction fees and rapid settlement reduce operational expenses for merchants while enhancing the overall efficiency of the payment infrastructure.

Community-Driven Growth

• The PSP Pool’s phased approach—foundation-led at first, then gradually community-driven—fosters a self-sustaining model that supports the long-term expansion of the PADO ecosystem.

Through this innovative hybrid payment system and a strategically designed PSP Pool, PADO aims to establish a secure and efficient transaction environment that unites cryptocurrency and traditional payments. By effectively managing currency volatility throughout the payment process, the platform maximizes stability across the entire ecosystem.

3.4 Business Expansion Strategy

Building on the core values of Innovation, Stability, and Integration, PADO pursues a phased strategy from the short term to the long term. Initially, the foundation leverages its own resources and expertise to establish a solid base, and subsequently expands community participation to enhance the platform’s self-reliance.

Attracting Global Crypto Holders and Establishing the Foundation (Short-Term Strategy)

Foundation-Led Initial Activities:

• By utilizing its BTC/ETH and PADO assets through deposit and staking programs, the foundation seeks to attract early investors. During this phase, PADO sets up infrastructure for premium financial and tourism services, allowing initial VIP members to experience premium benefits.

• The early formation of the Payment Stabilization Pool (PSP) mitigates PADO token price fluctuations during transactions, ensuring a stable payment environment for both users and merchants.

Short-Term Objectives:

• Increase global cryptocurrency holders’ interest in Thailand and the PADO platform, focusing on building trust through early service adoption.

Integration of Payment Systems and Service Expansion (Mid-Term Strategy)

Reinforcing the Hybrid Payment System:

• Based on the payment infrastructure developed by the foundation—including the proprietary network and existing card networks—PADO provides a secure and cost-efficient service that supports both crypto and traditional payment methods.

• By introducing additional discounts and reward programs, PADO naturally draws in users who do not actively use cryptocurrencies, thereby broadening its overall user base.

Expanding Community Participation:

• Starting from a foundation-centric approach, PADO gradually encourages voluntary involvement and contributions from the community. This transition reduces reliance on the foundation’s resources for PSP and other financial mechanisms, strengthening the stability of the platform.

Mid-Term Objectives:

• Establish the PADO payment system as a standard payment method within Thailand’s tourism industry, making services convenient for both global crypto holders and mainstream consumers.

Deflation, Swap Pool Expansion, and Achieving a Fully Independent Ecosystem (Long-Term Strategy)

Activating Deflationary Mechanisms:

• PADO progressively reduces the circulating token supply by burning transaction fees, VIP membership dues, and locking assets within swap pools. Over time, this deflationary effect increases the scarcity of PADO tokens and drives value growth.

Transition to a Self-Reliant Ecosystem:

• Moving beyond foundation-led operations, PADO ultimately shifts to a fully community-driven model for the PSP and other financial mechanisms through voluntary contributions and engagement.

Long-Term Objectives:

• Achieve a balanced ecosystem in which deflationary effects and liquidity provision work in harmony, solidifying PADO’s leading position in the global digital finance market.

By leveraging the foundation’s capabilities in the short term, broadening community participation in the mid-term to enhance payment systems and financial mechanisms, and ultimately establishing a fully independent ecosystem in the long term, PADO’s business expansion strategy aims to connect Thailand’s tourism industry with the global cryptocurrency landscape. This step-by-step approach enables the PADO platform to create an innovative and sustainable growth model.