The token mechanics and crypto economics of TAP Coin and the TAP Network
Many successful apps today provide convenience at the swipe of a smartphone screen, from ordering take-out to finding romance.
These apps are creating a “couch-economy”, and as an unintended consequence, a new generation is growing up with less and less interpersonal interactions in the real world.
For Millennials and young professionals between the age of 20–35, experiences are everything. By far the most technologically engaged generation, Millennials grew up on mobile apps and social media, and prioritize experience much more than products.
Travel, dining, drinks, and experience such as concerts are the top categories of their discretionary spending. Brands are scrambling to cater to the experience economy, however, data breaches at major corporations and misuse of insights at centralized advertising megaliths such as Facebook are sowing deep mistrust amongst consumers.
We’re launching TAP Coin to provide an alternative to this current paradigm. This alternative decentralizes data and gives more control to both brands and consumers. Users earn TAP via the sharing of their purchase data, or for interacting directly with brands. Tokens are rewarded based on a percent of your credit card charges at approved partner venues from top hotels to premium bars, which in turn can be used to facilitate trustless redemptions for experiences within the TAP Network eco-system.
In order to facilitate the type of 1:1 relationship that we believe is the future of advertising, here’s how our utility token works.
What is TAP Coin?
The TAP system intends to provide the following notable services:
1. TAPs are scarce, fungible, tradable digital assets which may be earned through opt-in sharing of consumer purchase data, or purchased through token exchanges.
2. TAP can also be purchased through the Hooch App on-demand using fiat currency and utilized for hospitality purchases, as well as Hooch Black celebrity experiences.
3. TAPs may also be redeemed for related services through a partner (registered merchant/service provider). Any redemption may be made contingent on the delivery of verifiable consumer data from the purchaser — for example, proof-of-purchase from a connected card.
4. TAPs can be transferred among users as a gift or a tip to promote the usage of the tokens and the platform. We want to make TAP more seamless than the hefy transfer fees charged by most loyalty programs.
5. TAP transactions create a network of buyers, sellers and suppliers where additional marketing, consumption, and supply chain fulfillment programs may be deployed and managed.
6. TAPs act as the transactional token between users, venues, brands, and Hooch. The transactions may trigger a transfer of advanced data based on purchases and behavior of the behavior of the TAP users.
The TAP Network Infrastructure
Public ledger: TAP is powered by an ERC-20 token contract which maintains a ledger of balances for all token holders. This is intended to run on the public Ethereum blockchain network, which provides strong security and immutability.
By maintaining the balance contract on a well-known, publicly-accessible, censorship-resistant blockchain network, token holders can be confident that their holdings are secure even against the malfeasance by any token issuers.
In addition to the token balance contract, a connecting mechanism is employed to enable verifiable communication between the other network contexts described below.
Among other important functions, this connection allows the TAP to leverage the immutability of the Ethereum network (which may be thought of as a settlement layer).
Private ledger: Hooch intends to maintain a private ledger of transactions in order to facilitate instantaneous and feeless transactions throughout the TAP ecosystem. The ledger will behave as an authority over the transactions that take place in the TAP ecosystem and allow for seamless interaction between customers and partners.
The use of the private ledger would allow users of TAP to redeem their drinks with the same interface and in the same manner that they are used to. From the perspective of the consumer, seemingly nothing has changed. From the perspective of Hooch, the transactions are being stored on and taking advantage of the functionality of the private ledger.
Transactions posted on the private ledger have the added advantage of avoiding any related fees, whereas transactions on the public ledger would have transaction fees.
Data privacy: While the entire history of events within the TAP ecosystem is collectively recorded on the Ethereum network, the actual private consumer data is not. A great deal of information must likewise be kept private, e.g. the cryptographic key material required to prove ownership of tokens. Generally, no private information is recorded on the network – only cryptographic commitments to private information. This commitment/validation flow is managed by client-side applications.
Partner applications: Partners’ primary requirements for interacting with the system are the abilities to send/receive TAPs and to receive and validate consumer profiles. For partners who already have existing infrastructure for managing traditional payment, and have their own reward redemption systems, rather than prescribing a complete mechanism, Hooch instead intends to produce a lightweight integration module. This module includes a standalone mode of operation controlled through a RESTful HTTP API, which reduces friction during the integration process and accelerates partner adoption.