Gradually Formulating The ColorlessPaper For Our Side-Project ‘CryptoUlogs’. Part Seven!
ULOG Token (Provisional) Tokenomics.
The ‘u’ in ulogs stands for ‘you’.
ULOG is a simple utility token that will be used to power cryptoulogs.com. Being a product of the Teardrops ecosystem, it will make use of a ‘proof of tears’ (mining the human) reward-distribution model.
The ULOG token should succeed whether ‘bulls or bears’ because ‘humans’ are involved. This means that we will develop our tokenomics around humans, rather than ‘bulls or bears’.
We want to create a token that everyone wants to hold. Everyone should be able to earn our token. To earn it however, they will need to ‘mine their human’. An example of a ‘mining the human’ activity is ‘ulogging.
Where our token can incite ‘breakthrough in human’, ULOG succeeds.
At this stage, it is important to highlight that our ecosystem will build around a core of ‘certified uloggers’.
Thus, when it comes to user-growth on ‘cryptoulogs.com’, our sole focus will be on growing our ‘grey-list of certified uloggers’. ‘Certified uloggers’ will constitute our ‘true fan-base’.
Now, let us assume that our ‘grey-list of certified uloggers’ has a soft-CAP of ‘100,000’ people. This will mean that at every instance, even if we have billions of users, we should maintain a grey-list made up of ‘100,000 certified uloggers’.
Our scarce model is our ‘grey-list of certified uloggers’.
In formulating our tokenomics, it is also important to consider that ‘cryptoulogs.com’ will play a tangible role in supporting the development of other projects under the Teardrops ecosystem e.g ‘ulogs.org, marlians.com, steemgigs.org, ‘Macrohard’ (a physical hub for brother-programmers located in the Philippines.)
Based on the insight discussed, here is are some token/tokenomics-characteristics that we will consider:
- Build a token/tokenomics fit for ‘cryptoulogs.com’, a blockchain-based social-media platform for cryptoulogs.
- Model the token/tokenomics to give prominence to our ‘grey-list of certified uloggers’. (Note: everyone can get ‘certified’.)
- Model a token that garners sustained interest (e.g people should desire to hold it, people should want to discuss it, people should want to spend it, people should want to distribute it etc.)
- Create a token that makes uses of a ‘proof of tears’ reward distribution model.
- Create a token that has utility, whether bulls or bears.
- The token should have social properties e.g users can earn it via content-creation, content-promotion, content-curation.
- Create a token that possesses underlying DEFI properties e.g people can earn it by staking it, people can delegate their stake etc.
- Token should have social, commerce and DEFI utilities.
- Create a token that inherently abates ‘whale’ impact.
- Create a token that propagates the ULOG movement.
- Create a token that maintains intrinsic value, even in fractional amounts i.e ‘may people aspire to possess a unit of the token’.
Now, let’s draft the token parameters for ULOG coin:
- ULOG will have a small supply and low-inflation rate, where inflation is based on a reward pool. (Provisional initial supply = 100,000 ULOG; provisional token-emission (reward pool) = 100,000 ULOG per year.)
- ULOG reward pool (Provisional allocation: Author = 30%, Curator = 20%, Staking = 40%, DAO = 10%)
Note: ULOG is likely to be a Hive-based token, inheriting the social-properties native to the Hive blockchain such as zero transaction fees, 3-seconds block-time etc.
Based on this tokenomy, we can create a token fit for ‘cryptoulogs.com’.
Cryptoulogs.com is a social media platform based on ‘cryptocurrency-related ulogs’. As seen above, people will be earn tokens from a reward-pool (which has a low emission-rate of ‘100,000 ULOG per year’), in accordance with this allocation; ‘author = 30%, curator = 20%, Staking = 40%, DAO = 10%’.
As seen above, ‘50% of the reward-pool’ (i.e author = 30%, curator = 20%) goes towards rewarding ‘content’.
Typically, these rewards are distributed via ‘likes’. For ‘likes’ to have influence on reward-distribution, users need to stake or power-up their ULOG tokens. (By powering up their ULOG tokens they reduce the circulating supply.)
Authors earn ULOG token, when staked-users like their ‘cryptoulogs’, staked-users also earn ULOG tokens in the form of curation-rewards from ‘cryptoulogs’ that they have liked. Alas, there is more…
on ‘cryptoulogs.com’, users can also earn ULOG tokens directly, by staking (powering up) their ULOG tokens. As shown earlier, ‘40% of the reward-pool’ is allocated to staking-rewards, rewarding users who stake their ULOG tokens daily.
While you can see this as a DEFI layer, it is slightly different. Staking-rewards need to be claimed per day. To complete a claim however, users will need to ‘mine their human’ by posting a simple cryptoulog. Assuming a user forgets to claim their their daily staking-rewards or declines to do so, their reward for that day is distributed among ‘x’ number of active ‘certified uloggers’ or sent to DAO. This suddenly means that users across ‘cryptoulogs.com’ can also earn randomly or for ‘past deeds’. To maintain a ‘proof of tears’ (mining the human) element to even ‘random earnings’, these users will need to be ‘certified uloggers’. Ofcourse, everyone can get ‘certified’!
10% of the DAO is used to further the growth and development of ‘cryptoulogs.com’, spent as required. Funds from the DAO can also be used to empower ‘certified uloggers’, those who want to build their noble dreams.
As we have continued to reiterate, we will build our ecosystem around a core of ‘certified uloggers’. In eventuality, these ‘certified uloggers’ will form the core of every project emanating from the Teardrops ecosystem such as
‘ulogs.org, marlians.com, steemgigs.org, ‘Macrohard’
and ‘cryptoulogs.com’ will help us in the process of identifying and establishing these ones.
Our tokenomics and token model has to take this into consideration too.
The ULOG token as such, is modeled in such a way that ‘each person on our ‘grey-list’ should have 1 ULOG at least’ (i.e initial supply = ‘100,000 certified uloggers’ * 1 ULOG).
This creates our ‘scarce model’ and creates an atmosphere whereupon everyone can participate (with the influence of ‘whales’), whether they have giant ‘stake’ or not.
Users who maintain a certain tier of ULOG-stake per month (e.g 10 ULOGs) are ‘certified’ by default. Others can become ‘certified’ through a simple verification-process, that involves a monthly-subscription (in the range of 1$).
‘Certified uloggers’ are empowered with ‘tools, UI-perks, discounts, teardrops etc’ that gives them extra influence across ‘cryptoulogs.com’, irrespective of their stake-size.
“You are whale to me!” @surpassinggoogle
With the ULOG token, even fractions of it should maintain intrinsic value.’Each user should aspire to amass 1 ULOG at least’.
The ULOG token will have many utilities across ‘cryptoulogs.com’ as we will highlight later. For instance, users may post ‘long-form ulogs’ by spending ‘ULOG’ or projects may need to spend ‘ULOG’ to create their ulog-based crypto-communities on ‘cryptoulogs.com’ etc. These utilities will give ULOG is deflationary property, helping us maintain a low circulating-supply, even though we have an annual inflation of ‘100,000 ULOG’.
Yes, we want a strong token backing ‘cryptoulogs.com’. We want to empower many humans, especially our ‘grey-list of certified uloggers’, helping as many people as possible build their noble dreams. To accomplish this, we must create a token that succeeds whether bulls or bears because humans are involved.
Here Are Some Other Reasons For Our ‘Small Supply’:
- Focusing on short-form content, authors and curators can better afford fractional rewards.
- Cryptoulogs.com will create additional external economies. Ulogs are revealing in nature. Ulogs about cryptocurrency will constitute beauty. (‘A one-liner cryptoulog is expensive’.) Adopting a culture of ‘mining their human’, uloggers will explore ‘cryptocurrency/blockchain’ in new, dynamic ways, revealing tangible information, that they may i have once hoarded. (‘Learning is the ultimate earning’. @surpassinggoogle).
- We want to abate the ‘whale’ effect, enabling an environment where everyone can play e.g it is psychological bearable for a user aspiring to be ‘whale’, when a whale’s wallet has a stake-size of ‘1000 ULOG’ instead of ‘1,000,000 ULOG’. In general, anyone can be ‘whale’ on ‘cryptoulogs.com’ by becoming a ‘certified ulogger’.
- We want everyone to aspire to possess and hold 1 ULOG at least.
- Exploring this token dynamics with the ULOG token, will help us better formulate our primary token called ‘TEARDROPS’.
Provisional — Initial Supply Distribution
Initial supply = 100,000 ULOG
- Pre-sale = 80,000 ULOGS (Provisional price = 1$ per ULOG). Max of 100 ULOG can be sold to a person. Unsold tokens after pre-sale will be held, either staked or used for development costs.
- 10,000 ULOGS — staked as needed to direct the platform from the outset. Can also be used for things ‘development’, team-expenses etc in the future.
- 10000 ULOGS — used for marketing, bounties, teardrops etc.
Funds raised from pre-sale will be used on-goingly for development, in this order:
- UI-development for ‘cryptoulogs.com’, including IOS and Android apps.
- Setting up the first physical ‘Macrohard’ hub in the Philippines. (This hub will gather brother-programmers. This physical venture will back our online ventures.)
- Possibly list wrapped-ULOG on uniswap and add liquidity.
- Restore life to ‘marlians.com’ and use that platform to create awareness to ‘cryptoulogs.com’.
- Continuing the development of ‘ulogs.org, steemgigs.org and teardrops.network’.
- Target exchange-listings using ‘community movement’ or direct-finance.
Would you like to help with building Cryptoulogs? Are you a programmer? Contact me via ‘firstname.lastname@example.org’.
Your Boy Terry
Originally published at https://hive.blog on August 25, 2020.