Core Insights - The article discusses a high-yield investment scheme that combines static high returns with a dynamic multi-level marketing structure, resembling a pyramid scheme [1][4]. Static High Returns - The scheme offers three locking periods: 1 day, 7 days, and 15 days, with an annualized return rate reaching up to 780%. For instance, an investment of 10,000 USDT can yield a 30% return over 15 days [1][2]. Dynamic Multi-Level Marketing - Participants can earn commissions by recruiting others, with a commission structure that allows for earnings up to 20 levels deep, starting at 30% for the first level and decreasing to 1% for the last [1][4]. Fund Pool Mechanism - All user investments are pooled into a single fund, where the "returns" for earlier investors are paid from the principal of new investors. The operator has the ability to secretly control and transfer assets from this fund [4][6]. Sustainability Concerns - The platform must ensure that the inflow of new funds consistently exceeds the withdrawal rate. If the user base reaches a critical point (e.g., 100,000 users), the inability to cover interest payments could lead to a collapse of the funding chain [6]. Compliance Recommendations - To transition to a compliant platform, it is essential to abandon the "fund pool + recruitment" model and shift towards genuine services and transparent profit-sharing [9][28]. Alternative Business Models - Suggested models include: - **Technical Service Fee Model (B2B)**: Charging businesses for on-chain verification services [10]. - **Transaction Fee Model**: Charging a fee for asset exchange services without token issuance [13]. - **Regional Agency System**: Implementing a single-level agency system with a deposit requirement and service fee based on actual services provided [15]. Legal and Financial Guidelines - The article outlines legal boundaries, such as avoiding multi-level recruitment beyond three levels and not promising guaranteed returns exceeding 24% annually [23][24]. - It emphasizes that platforms should not handle user funds directly and all transactions must be conducted on-chain [24]. Conclusion - The article concludes that while schemes like "Jiuhuan" can generate short-term profits, they are destined to fail. Sustainable blockchain business models should focus on using technology to solve real-world problems and generating long-term value through services [28][29].