How Proof of Stake Works in NOIZ Tokenomics
A traditional ad exchange is a centralized digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through a real-time bidding (RTB) algorithm. Such exchanges are most often used to sell display, video and mobile ad inventory.
The NOIZ ad network allows advertisers to directly buy ad inventories from participating publishers. Advertisers can set up their ad campaign from the advertiser dashboard by selecting their criteria and ad preferences. Ad campaign requests will then be sent to the publisher dashboard, where requests will await authorization by the publisher.
Unlike current ad exchange networks, which place publishers and advertisers in silos and limit access to consumer data, the NOIZ ad network platform grants transparency to all parties, providing them with greater control over data.
Actors in the NOIZ Ecosystem
The key actors participating in the NOIZ ecosystem include:
- Platforms (Publishers)
- Social Impact Projects
Token Flow Ecosystem
This section describes the token flow between the key actors within the NOIZ ecosystem, utilizing NIKOLA, the chatbot, as the entry point and tool for consumer engagement.
1. Advertiser — Publisher
As a peer-to-peer ad marketplace, advertisers and publishers may directly engage with one another through the NOIZ platform by creating an advertising campaign powered by a smart contract. Advertisers will be able to enlist their ads, which publishers may opt to pick up, or directly approach publishers and apply for the enlisted rates of banner advertising on the publisher’s media network.
Advertisers may pay a digital advertising fee in the form of NOIZ tokens, which are then subsequently used to pay publishers in exchange for their advertising space, for ad creation, and consumer engagement through NIKOLA.
2. Consumer — Advertiser/Publisher [Data Collection Campaign]
NOIZ tokens are awarded to consumers based on the “level of intent” measured with the NIKOLA chatbot and consumers granting permission for advertisers / publishers to view personal data. Through this vehicle, not only is ad fraud from spambots removed, but the data is also secured.
3. Consumer — Advertiser/Publisher [Coupon Redemption]
NOIZ tokens that are purchased or earned may be used to redeem coupons, vouchers, or loyalty points at participating advertiser / publisher sites. Furthermore, NOIZ tokens can also be donated to social impact projects or participating charity organizations.
4. Social Impact — Advertiser/Publisher [Coupon Redemption]
With each coupon redemption (as seen in the chart above), NOIZ tokens will be donated to social impact projects using smart contracts. Different social impact projects can apply and register to be part of the NOIZ ad network and become beneficiaries of the tokens.
The primary objective of the staking mechanism is to ensure that actors in the ecosystem are incentivized to act properly in a manner that is conducive to the overall growth of the platform.
The 5 Stages of NOIZ’s Proof of Stake Mechanism
Stage 1: Holding Tokens
To begin, actors of the NOIZ platform are encouraged to hold tokens for the purpose of developing a higher trust score, though this is not the only factor affecting the trust score (more details in Stage 4). It is uncommon for bots or malicious actors to hold tokens; for this reason, the more tokens a NOIZ community member holds, the more trust the NIKOLA algorithm will place in their account. The purpose of this is not only to help NIKOLA recognize malicious actors in the NOIZ platform, but also to make it so when NOIZ actors place stakes in favor for or against content or other community members, their stakes will be viewed by the algorithm as being stronger.
Stage 2: Placing Stakes
Actors of the NOIZ platform place stakes for two reasons. First is to stake the authenticity of content, ensuring that it meets the NOIZ community’s standards, or the lack thereof. This could refer to the content of an ad placed by an advertiser or the content on a publisher site. The second reason to place a stake is to support or flag another member of the NOIZ community.
Stage 3: Consensus and Validation of Stakes
Taking into consideration the trust score of actors in the NOIZ community, the stakes that are placed [in favor or against content/actors — as mentioned in Stage 1] hold weight; thus, making it so that if a NOIZ member with a high trust score places a stake, his or her stake does not need to consist of as many tokens to hold the same weight as a member with a lower trust score. In addition to this, the community will select a number of NOIZers to help validate the community’s consensus. These NOIZers will be responsible for determining if a community consensus is genuine or created by multiple malicious actors.
Stage 4: Distribution of Stakes
Once the consensus is verified by the NOIZers, the community members who ‘win,’ in a sense, are awarded the tokens from the community members who lose their stakes. Those who are part of winning parties will also receive a boost in their trust score. If stakes turn out to be invalid by consensus or there are no flags raised, then the stakes put forward to authenticate content are returned to the owner.
Stage 5: NIKOLA Stakes
NIKOLA matches the content (via world wide web crawlers) of the publisher websites with the ad inventory made available, before pushing content to the marketplace. While making this match, NIKOLA also puts a stake on it, as a proof that it made the right match. The NOIZ community can challenge NIKOLA and bet stakes against this match to keep check of relevancy on the ad to content matching. Each wrong match acts as a training tool for NIKOLA to improve its matching in the future, making NIKOLA more efficient over time.