Wait… you are paying me to speak my mind?
It is difficult to put a number value on peoples’ opinions. In fact, when someone places a monetary value on your words, they are lending credence that they are worth anything at all.
What if you had a digital currency that allowed you to reward others around the world simply with an ‘upvote’? This is the essence of Kreds first social economic use-case.
We would like to share Kreds with the world, and also share a conversation with the community our team recently had. If you saw our launch, or just now seeing Kreds for the first time, this candid conversation may help users understand several early aspects of the currency, the first website economic model, and the reason for the premine.
Community:
Two things come to mind, from looking at the above table:
1. Some of the costs seem extremely low. Even if some day Kreds will be worth 1 dollar, creating a comment would only cost 2 cents !? I don’t think charging/ rewarding comments and votes and articles would change anything at these prices.
2. If I understood the table correctly, you can buy ranks and in return earn daily kreds? How are you planning on keeping this up? You would run out of coins at some point.
Oh and one more thing: The sign up bonus and daily earnings seem a bit extreme given the low prices.
Kreds team:
Users will earn contributor ranks from number of comments and time, not direct purchase. We will expand on the website ranks over time the first news site is a launch of product, and a live data test of the economics. We may have to adjust as user base grows. Our team can only make educated calculations for now so this launch, and live data of the on site earnings model, is super important. This way the following news media sites we can take that data and adjust the model if needed. The key is to create a balance of spending and earning where good comments and opinions are up-voted to encourage quality responses to articles.
Community:
No one would ever need to buy kreds.
Kreds team:
We will add more in time, currently its a launch model designed to on-board mainstream users. Our initial target with the News websites is not current Blockchain users. We (in the industry) already know how to use and buy Kreds, but mainstream users will be learning through adoption, distribution, and education.
Website withdraw and deposit will not be live at launch. This is on purpose so we can evaluate user actions before enabling withdraw and deposit.In other words we know people attempt to game these models and will adjust values as needed. (We developed a couple casinos in Blockchain, it really helped us understand the length people will go to siphon freebies.)
Our hope is that enough people from outside crypto use the site and Kreds is the first coin they ever use or gain. Then want to learn more. That is when we reveal its not just a business reward token, then bring them here, to the Kreds currency social platforms if they desire to learn more. Meanwhile, the Kreds cryptocurrency community is growing and the technology (source code) behind it.
And these “cryptonoobs” come in to a lot of educated users. That is basically the model summary.
Community:
First of all, thanks for the detailed insight.
I am a bit skeptical as to how effective this will really be in bringing anyone outside of crypto any closer to it. Nevertheless, I think it is a really interesting experiment and I am looking forward to see how it turns out. Would really like to be proven wrong here.
And yes, I agree, you will have to be extra careful when handing out free coins upon account creation. Could easily be taken advantage of. First thing that came to my mind, was someone writing a bot / script that creates new users. You would just need a 1000 accounts to get a Masternode. People can get really creative here, as you already mentioned. Awesome that you already collected some experience regarding these issues btw.
Kreds Team:
Yes, and we will do our very best to take those concerns into account, and we share them as well, this current model is several times refined from October of last year. We are looking to find a balance between feast and famine. Give a new user coins too low and they wont care, give too many and it loses their interest.
Community feedback and others will be taken into account before withdraw and deposit is enabled. If we see a massive bot farm that is detected it will be countered to the best of our teams ability. Each news site will have a similar roll-out, improved from data collected on the former site. The model is a bit experimental, we may need to push more un-lockable features with Kreds as payment un-locker sooner if we see an imbalance. It is a challenge, but a worthy one and it enhances the businesses with Kreds integrated. As Kreds gains value (assuming it will of course) we can adjust the earning model to reflect per coin price. This way distribution is not completely countering market value.
Add in some potential partner sites observing Kreds model and wish to enhance their user experience with a twist on our example and this could catch on.
Community:
I (and probably everyone else) really appreciate your listening so much to what the community has to say. I also completely understand that it is not easy to find the right balance, especially when the platform hasn’t even launched yet and you have no numbers to refer to. Given these two statements and the fact that the tables values are in respect to the “current” price (lets assume 5c per kreds for simplicity), this is my opinion:
If one comment costs only .1c and you plan on readjusting prices so that they stay the same, isn’t that against your slogan “where your thoughts have value” ? Or is that slogan meant figurative? Even if so, I think it would not be a bad decision to have higher prices, since you once mentioned that you are looking for good writers and I think that you can attract more writers the more there is to earn.
I totally understand that the tables values are not set in stone and are probably going to change and I absolutely don’t want to tell you how you should do your job, I just wanted to get that off my chest.
Kreds team:
Ok after you write a comment, lets say its simply amazing. Every person that upvotes will be adding more Kreds to your account. So for example on a medium.com blog you earn claps, these have no value except praise. Some authors and writers earn tens of thousands of claps. Take the above picture of the economic model and assuming a decent sized user-base. In time, per comment/thought/opinion, Kreds could see a respectable value. However, if value per Kreds stays at current. Yes, we can adjust this website economic model in order to encourage more people and quality posts become regular contributors.
The amount you spend to upvote another user comments will help keep each sites Kreds flowing, but if we see a deficit we will make economic adjustments. Each website’s economics must use a liquid economic model.
Discussions about Kreds cryptocurrency, business endeavors, and community work can be found in many social circles. If you would like to learn more please visit any of the available channels. Our team looks forward to delivering ‘Kredible’ work to digital world.
Kreds is a Proof of Work mined coin with Proof of service through Masternodes:
Website: https://www.kredsblockchain.com/
Discord: https://discordapp.com/invite/PE5xbsr
Telegram: https://t.me/KredsBlockchain
Twitter: https://twitter.com/kredsblockchain
Bitcointalk: https://bitcointalk.org/index.php?topic=2886837.0
Credit to Kreds community member ‘Zyklone’ for many of the awesome questions.
