Philosophy
The Pareto platform and ecosystem aims to create value through increasing the overall efficiency of cryptocurrency markets. The Platform has several aspects to detail:
Prospective users of the Pareto Network must own Pareto tokens (PXT) in
order to access the Pareto Network. By means of its rewards mechanism, the
Pareto Network encourages the production of actionable market information
and helps Pareto token users filter noise from meaningful information.
More subtly, through its taxonomies and organization of information feeds, the Pareto Network will play a role in structuring the types of information
produced and advance the level of understanding of cryptocurrency investment analysis.
The infrastructure of the Pareto Network was designed after researching the ideals, shortcomings and advantages of other blockchain token offerings over the last half a decade. Failing to address or align the economic incentives of the target market participants hampered the execution of many projects. The philosophy of the Pareto Network can be extended to existing and future crypto-asset offerings to attract capital to this space and realize the shared ideals of evolving the finance sector and the world around it by proxy.
Platform Overview
The Pareto Network will facilitate the growth of an ecosystem for the creation
and distribution of content related to investment in crypto assets.
Original Information Content
The Pareto Network will ingest and distribute a broad range of information that may be of value to its participants in making investment decisions in the cryptocurrency markets. Such information will include (but is not limited to) the following:
- Analyst reports — coverage of new & existing tradable tokens or
investments
• Sector reports (e.g. storage, prediction, computing)
• Analyst reports on return on staking/mining
• Technical trading alerts and reports
• Codebase reviews
• Code vulnerability and security assessments
• Evaluation of investor tools
• Evaluation and discussion of fund management tools
• Crypto investment manager surveys
Content Contributors
Content contributors may be individuals, groups or organizations. They may
generate single items of information or multiple items produced over time.
They may generate ongoing streams of information.
There will be two phases to adding content contributors. During the first
phase, Pareto will recruit qualified contributors to start building a flow of
information that can be used immediately by token users. These initial Content Contributors will be compensated by the Pareto to ensure that the database on information available to users is robust and has value. In phase two the contributors will grow organically, as the contributors will be
drawn to the Network; they will be incentivized to add content to earn rewards and PXT tokens from users.
Submissions of content to the Pareto Network are open to anyone. Content
Contributors will pay a fee to Pareto to make their content available to the
users. This fee will also deter spam or other inappropriate or irrelevant
content.
Incentives & Rewards
The Pareto Network uses a ranking algorithm to determine the order in which
Pareto token users are provided with the information created by the Content
Contributors. The outcome of the ranking algorithm is called the waterfall, and it is akin to a leaderboard.
There are a variety of criteria which have an influence on a user’s position
within the waterfall and these can be used strategically to obtain information
sooner than other users.
Content Contributors are likewise incentivized to create content which can be
actionable amongst the users as well as compete for the optimal kind and price of information for the Pareto Network.
- Content Contributors submit content to Pareto Network
- Pareto Network distributes the content to Token Users in a prioritized sequence
- To maintain or improve their position on the waterfall, Token Users award PXT to Content Contributors. Users that do not spend their tokens, or attempt to use Pareto
tokens for speculation, are at a disadvantage by not maximizing their place in the network. Tokens are awarded to Content Contributors — this supplements direct rewards from Pareto Network
Pareto Market Value
Where does the Pareto Token value come from?
Pareto tokens are as valuable as the information in the Pareto Network is, or as valuable as future information in the Pareto Network is perceived to be.
Pareto tokens are required to access the Pareto Network. Spending tokens by
paying Content Contributors is the best way to move up in the rankings to
receive the information available in the Pareto Network sooner. Thus, Pareto
tokens represent the cost to the user of accessing the Pareto Network and
receiving its content at the optimal time relative to other users.
People are incentivized to put information into the Pareto Network because
they can earn more from distributing the information than from acting on the
information themselves. Analysts and engineers typically do not have the
capital or infrastructure necessary to most effectively take advantage of
nuanced information. Aside from finding the people with capital, negotiating
the most favorable incentives is a minefield and the information’s actionable
time period is short lived. Finally, many forms of privileged information have
increased liability if it is acted upon
Secondary Markets
The utility of the Pareto token is that it is the only way to access information
disclosed on the Pareto Network. The Pareto Network ranking algorithm is
heavily weighted to owning and spending Pareto tokens to pay Content Contributors, which promotes scarcity of Pareto tokens. There are functions
that promote the liquidity of a secondary market, providing ease of acquiring
Pareto tokens to access and obtain an optimal ranking in the Pareto Network
and confidence that the market supports the price it was acquired at.
The price of Pareto tokens will reach equilibrium at a level reflecting the
perceived value of information available in the Pareto Network. Any balance of Pareto tokens above that equilibrium will be sunk capital, as it has a value
which could be allocated in other valuable or potentially profitable
opportunities. Users who have reached the equilibrium will therefore sell off
some of their Pareto tokens on the secondary markets. Users reach the
equilibrium by making profits with their external trading capital, based on the
information they receive in the Pareto Network.
Another venue of liquidity will come from the Pareto token payments that
Content Contributors receive for disclosing information. In order to realize
usable payment for their contributions, these analysts and perceptive
individuals can be expected often to sell off their Pareto tokens to people that
want the Pareto tokens in order to pay for further content and to replenish
Pareto tokens that they have previously spent (and thus elevate their ranking on the leaderboard). With a limited number of PXT being created, the need for users to acquire information from contributors will result in current and new users purchasing tokens through secondary markets.
Competition amongst the rankings will promote buying of more Pareto directly from the secondary markets, as well as paying Content Contributors
Conclusion
The Pareto Network is creating a new Ecosystem that will improve efficiencies
in the generation and distribution of information of value to investors.
The Ecosystem will provide incentives and a mechanism for a wide range of
individuals and organizations to create and share this information and
subsequently receive compensation for their effort. It will broaden the range of available information and provide a market-based mechanism for investors to obtain access to information of value.
This Ecosystem will contribute to the rationalization of the market for
blockchain-based investments and facilitate the more efficient allocation of
capital within this revolutionary and rapidly growing sector of the global
economy. In a more everyday, human context, it will allow those devoting their time and talents in this arena to benefit from Vilfredo Pareto’s insight that afraction of the inputs account for the majority of the results
for info : https://www.pareto.network/
Whitepaper : https://pareto.network/download/Pareto-Technical-White-Paper.pdf
profile : https://bitcointalk.org/index.php?action=profile;u=1326879
