Understanding Oily’s B3TR Token Management

We believe in facing challenges directly, so today we’re sharing a comprehensive breakdown of our token management strategy regarding Oily’s B3TR token allocations, what we’ve learned, and our path forward.

The Situation

Recently, some users pointed out issues with our redeem feature. While investigating these technical problems (which have now been resolved), community members reviewed on-chain data and noticed that Oily has been selling portions of our weekly B3TR allocations from VeBetterDAO.

We acknowledge that we made an error in our token withdrawal classification by not clearly distinguishing between community present and future rewards and team allocations. This lack of transparency created understandable confusion and concern, which we are now addressing and rectifying.

An important context: While we’re securing private equity funding (expected to finalize in March 2025), we’ve faced delays in closing this round. During this period, we decided to utilize the VeBetterDAO funds to ensure the continuity of our operations and development. We’ve strategically allocated these resources to ensure we can maintain immediate community rewards, build reserves for mapping-level rewards (which create higher real-world impact), and cover essential operational expenses that allow the project to continue developing. While we mislabeled these allocations, the underlying strategy has been to ensure Oily’s sustainability throughout this funding transition period.

The Numbers

• Total B3TR received from VeBetterDAO allocations: 3.74M tokens
• Community rewards distributed: 1.3M+ tokens (approximately 35%)
• Operational allocation: 2.44M tokens (approximately 65%)

From the operational allocation, we sold 2,979,449.64 B3TR, generating 6,801,829.16 VET with an average sell price of 2.28 VET per B3TR.

Why We Managed Tokens This Way

Community Rewards (35%)

This portion has gone directly to our community through Learn & Earn challenges. We’ve proudly rewarded over 1.3M tokens to genuine users while fighting against bot exploitation.

Unfortunately, as many projects discovered, our initial reward distribution faced bot exploitation challenges. We’ve since implemented robust security measures (more on this below).

Operational Allocation (65%)

This portion supports:

1. Development costs: As a team of 12 professionals, we’re building not just Oily but the entire UCO Network ecosystem, including our Collection App and Trading Hub
2. Operational expenses: Our monthly expenses average $50k to maintain and grow the platform
3. Strategic reserves: We’ve maintained a portion (currently 0.4 BTC) as contingency funds for continuous development regardless of market conditions
4. Future reward pools: We’re sandbagging tokens specifically for our advanced mapping levels (6+), ensuring sustainable rewards for users creating real-world value
5. UCO Network’s Token Generation Event (TGE): Preparing for and supporting our upcoming token launch, which will bring additional utility and opportunities to our ecosystem.

Security Improvements

We take bot exploitation seriously. We’ve already blocked over 50,000 scam/bot addresses through comprehensive measures:

• Telegram ID verification and account linking
• Wallet limitations (1 VeChain, 1 XDC and 1 ICP wallet per account)
• Re-entrance protection on smart contracts
• Automatic blocking of suspicious behaviour via various thumbprint metrics
• Randomized questions and answers

Why Map & Earn Matters

Our recent Map & Earn feature deployment represents a significant milestone. This isn’t just another reward mechanism — it’s the core of our real-world impact strategy.

Important context: We currently have only a handful of users who have reached mapping levels (6+), despite having over 30,000 total users. These advanced features offer substantially better reward rates because they create real-world value by identifying restaurants not properly recycling their used cooking oil.

We’re not here to reward farming — we’re building a platform that incentivizes meaningful environmental action. The tokens we’ve reserved are waiting for users willing to make this real-world impact.

Our Path Forward

Starting immediately, we’re implementing a clear token allocation structure:

• 50% for immediate community rewards
• 50% for operational needs and future high-level user rewards

This balanced approach ensures both sustainable development and proper community incentives.

Once our funding round closes in March 2025, we will shift to allocating 100% of VeBetterDAO allocations to community rewards, with:

• 20% for levels 3–5 users
• 80% for levels 6 and above users

Additionally, we’ve developed a buyback strategy using our own funding to ensure there are always tokens available for users to redeem, particularly for those creating real-world value through our mapping feature.

What’s Next for Oily

1. Account abstraction: Making the platform more accessible to non-crypto natives
2. Multi-chain expansion: Continuing our deployment beyond VeChain
3. Buyback strategy: Beginning May 2025, we’ll implement our buyback strategy to support token value
4. Recycle & Earn: Later this year, we’ll launch our SocialFi-inspired Recycle & Earn feature, allowing users to document their UCO recycling efforts and earn rewards

A Final Note

Building something meaningful in the real world comes with challenges, tough decisions, and sometimes, growing pains. We want to speak from the heart about where we are in this journey.

To our VeBetterDAO supporters and endorsers: We sincerely apologize for our lack of transparency. You believed in us when we needed it most, and we should have been more open about how we were using that support. Growing a business that bridges blockchain and real-world sustainability isn’t straightforward, and we’ve had to make difficult decisions along the way. We’re deeply grateful for your faith in our vision and promise to be worthy of that trust moving forward.

To our mapping-level users: You are the heart of what makes Oily truly impactful. Your efforts identify real restaurants that aren’t recycling UCO, creating tangible environmental change. We’ve ensured you’ll always have tokens (B3TR or other chain tokens) available to redeem because your contribution matters most.

To our entire community: Thank you for your passion — including your criticism. When you call us out, it shows you care about what we’re building together. We’re committed to earning your trust through consistent action, not just words. We’re building Oily for the long term, not for quick wins, and we invite you to be part of this journey with us.

The future of UCO recycling is bright, and together, we’re making it happen — one mapped restaurant, one recycled drop, one community member at a time.

With gratitude and renewed commitment,
- UCO Network Team