It is an exciting time for the SOLVE token as we are entering the age of adoption of the one and only digital token for all your healthcare needs. SOLVE is essential to the functionality of the Solve.Care platform. It is used for healthcare payments, subscription fees, and gas for events in Care.Networks. Let’s explore each of these types of utility individually.
SOLVE as Gas
Let’s first discuss SOLVE utility as gas on the network. The various functions that a user would utilize SOLVE as gas on our platform include:
- Establishing identity
- Giving and receiving consent
- Sharing data with network participants or across networks
- CEVM transactions that handle business applications flows, logic, and data handling which require more than smart contracts functionality.
- Listing healthcare dApps on our marketplace
- Purchasing or sending healthcare dApps to wallets
This utility alone is enough to drive massive adoption of the SOLVE token. For example:
In 2016, Epic handled 20B transactions in one year for 1000 hospitals. On average that is 20M data transactions per hospital per year.
If Solve.Care was to charge $0.01 for a standard transaction and $0.05 per large data transaction, at the current market rates this equates to 0.4 SOLVE to 2 SOLVE per transaction. This means an average hospital would utilize 2M SOLVE to 40M SOLVE in gas transactions per year. It may sound like a lot, but in reality, this is a significant cost reduction to the hospital. In the US, for every dollar spent on healthcare, 34 cents is spent on administrative costs. That is a whopping 34% that goes into administrative costs. Utilizing SOLVE as gas will lower spending on administrative tasks and staff, free up valuable time for physicians to take more appointments, and reduce fraud and waste.
Subscription Fees
Subscription fees are another big utility driver for SOLVE. Care.Platform is an open platform that allows anyone to create healthcare dApps and monetize them. These can be sold as either a one-time charge (for example: purchasing a nutrition plan for diabetes care) or can be subscription based (for example: purchasing an active nutritionist who creates custom meals).
Care.Networks can also sponsor their members so they do not have to worry about paying for things like transactions. When they do this, they have subscription fees for the number of wallets in their network, and how many healthcare applications, services, and endpoints they use. Therefore, the amount of SOLVE required for each network depends on the number of members and the scope of their network.
SOLVE as a Payment
The largest utility of SOLVE comes in the form of healthcare payments. Solve.Care has created a dual-redemption model for our token. This means payments made on Care.Platform can be fixed (stable price upon payment) or variable. The risk from volatility can be managed by the network, by Solve.Care, or a combination of the two. This is decided upon the creation of the network.
To put SOLVE as a payment into perspective, let us look at an example of an insurance company in the United States. On average, each member in the US spends $5,000 to $10,000 on insurance premiums every year. This does not include out-of-pocket expenses which are on average a maximum of $6,000 per year.
Insurance companies typically spend 90% of collected premiums back on the member. This is called the medical loss ratio. Good insurance companies spend more but we will focus on 90%.
Not all of this 90% will go through Care.Platform, that is not realistic, but as new networks are added, the amount going through our platform will grow. Insurance companies will want most of these costs to go through Care.Platform because it is more efficient, cost-effective, auditable, and in real-time. The platform ensures that this money is spent wisely in a way that makes their members happy and that they get the care they need when they need it, and make it easy for them to use their insurance.
Even if we only manage to route 50% of these medical payments through Care.Platform, it results in massive utility for our token. Let’s explore the numbers:
A typical member spends $5,000 to $10,000 on healthcare premiums every year. A 90% medical loss ratio means $4,500 to $9,000 is spent back into healthcare systems. Routing 50% of these costs onto our Care.Platform will result in $2,250 to $4,500 in payments in SOLVE per member per year.
At today’s market value this means 90,000 SOLVE to 180,000 SOLVE per member per year will be utilized. One large insurance company can easily add 100M+ people to the platform.
In Conclusion
The utility of SOLVE is extremely strong and we have built the platform over the last five years and have developed it to the point where it is now ready for mass adoption. We have made the onboarding of clients easier and made the process cost less than ever. We have a large demand for our platform and an even larger pipeline as we cover all aspects of care. For this year and the next, our biggest focus is integrating these clients onto our platform and having them utilize our services. Not only will our token utility be one of the greatest in blockchain but a real-world adoption that makes the world a healthier place.
