On test.2key.io, you can already test out creating campaigns to incentivize the human network to distribute ANY link on the web. Go try it out:
(1) Log in to test.2key.io
(2) Create a page or open your page if you have one.
(3) Click Start A Campaign and choose “Create You 2key SmartLink”.
Paying Per Verified Click
These Link Distribution Campaigns are campaigns in which the contractor Pays Per Click; hence they’re also called PPC campaigns. Each time someone verified clicks to view the content in the link, the referral chain leading to that new reader earns a reward. Only valid clicks are rewarded, and 2key also acts as the default integrator in these campaigns, verifying that they only pay-out for clicks generated by users confirmed as human and that passed other anti-fraud checks.
Budget Campaigns are coming
PPC campaigns are an entirely new type of campaign on the 2key.network. They are the first example of a Budget Campaign on the network. These are campaigns requiring the converter to perform a non-monetary action to generate a conversion. For PPC campaigns, a conversion consists of clicking on a link for PPC campaigns.
In the near future, we will publish new types of budget campaigns such as:
- Lead Generation campaigns: a conversion event is someone leaving their details to get contacted by a business
- Voting/Petition campaigns: a conversion event is someone casting a vote or signing for a petition
- HR campaigns: a conversion event is someone getting hired
- Many other types of Web2.0 conversions (e.g., signing up for a newsletter, app, site or blog)
There are a few main novelties in budget campaigns:
(A) (Almost) ALL Txs happen on the 2key Layer 2:
Budget campaigns are the first campaign type on the network for which all transactions (excluding campaign creation and conclusion) occur on the 2key Layer2. In the donation and token campaigns, the conversion event entails someone sending some ETH/DAI to donate or purchase tokens, and that required interacting with Layer1 (Ethereum). But on budget campaigns, the 2key Layer2 scalability increases even further, as ALL campaign transactions, including referrals AND conversions, take lace on Layer2 with 0 tx fees or gas cost.
(B) All campaign budget is translated into 2KEY demand:
Budget campaigns are the first campaign type where the ENTIRE US$ volume of the campaign is converted into demand for 2KEY token right from the start of the campaign, and the auto-distribution and auto-hodl of the 2KEY referral rewards are maintained for everyone during the entire run-time of the campaign.
In terms of token-economics, this is huge!
Whereas in donations and tokens sale campaigns, the demand is driven by the referral reward percent from the conversions and drips in one conversion after another, in budget campaigns, the entire budget of the campaign is used for referral rewards and is bought up-front by the contractor. This results in considerable and steady demand for 2KEY, right from the beginning of each PPC campaign launch, and during the entire life cycle of the campaign, as rewards are only pushed once the campaign concludes.
(C) Rewards are auto-distributed to referrers wallets (with 0 fees)
In terms of the rewards distribution mechanism, budget campaigns reward only in 2KEY. To save referrers the need to worry about transaction costs on Layer1 when withdrawing their rewards, we created a built-in process that automatically distributes these rewards to referrers’ wallets when each PPC campaign ends, with no action or Ethereum transaction fee required on the referrers side.
(D) Rewards are rebalanced against volatility in 2KEY
We’ve also baked in a rebalancing mechanism, to make sure the 2KEY rewards keep a stable US $ value equivalent to the original reward value per click promised by the contractor. If the US $ value of 2KEY drops between the time the contractor purchases the budget and the time rewards are distributed, more 2KEY are allocated (at no extra cost to the contractor) for rewards, and vice versa. This ensures that both contractors and referrers can rely on a stable reward per click US$ value regardless of 2KEY value fluctuations during the campaign lifecycle. Throughout that lifecycle, the original ETH used to purchase the budget was immediately hedged to DAI and kept as collateral in the 2key Exchange Contract to fund the rebalancing, if required, when the campaign ends.
A slightly deeper drill down into the layer2 tech stack in budget campaigns
In general, budget campaigns are a step forward towards our grand-vision of a 2key Protocol enabling General Purpose Multi-Party-State-Networks — run on browsers, for browsers, enabling users to form decentralized off-chain networks that play out smart contracts. We’ve outlined our general approach to developing these here.
Budget campaigns in their current version, as they will be released for PPC campaigns early Q2'2020, basically work with:
- 2key POA Plasma network functioning as consolidator and miner for conversion events
- 2key Protocol functioning for the state management of the contracts,
- Users’ browsers operating as validators for conversions mined by the plasma chain
When a PPC campaign finishes, a Merkle proof of the entire finality state is computed transparently by the 2key auto-maintainer, and published to the Layer1 chain (Ethereum). This then enables any participant in the contract to independently issue their personal proof of rewards on the 2key Plasma chain, and then submit it to the Layer1 chain campaign contract on Ethereum, where it will be verified and where rewards can be submitted. This marks a successful implementation of the first of four steps towards achieving autonomous general-purpose browser-based MPSNs.
Going Forward Towards General-Purpose Multi-Party-State-Networks
As we progress, we’ll start relying less on the 2key Plasma chain for mining conversions on budget campaigns, and replace it with our fractal consensus mechanism currently under development in 2key Labs. In this mechanism, campaign contracts will have not only participant users but also 2key miners. 2key miners will be 2key app users not participating as referrers/converters/contractors in a campaign, but as miners, who will be doing the mining and achieve state consensus within the campaign transactions on Layer2, instead of the 2key Plasma currently mined only by 2key. We will update on our channels as these innovations mature and are deployed into our testing and staging environments.
Thanks for Reading!
