An introduction to the Sway Social Protocol, the SWAY token and staking
We are currently witnessing one of the biggest wealth distribution events in recorded history. NFTs represent the early stages of this phenomenon. So, this beginner’s guide to the SWAY Token is a great place to start if you would like to get involved. When everyone is talking about how much SWAY they have, you can proudly say that you were one of the first to learn about it!
In this guide, we will first of all explain what the Sway Social Protocol is. Then you can read about the SWAY token itself, and how that fits into the concept. Lastly, we’ll talk about staking, a key way to participate in the ecosystem. Staking is the new following, but more about that later.
Let’s get started first with the Sway Social Protocol and what that is.
Sway Social Protocol
The Sway Social Protocol is a social media platform that is owned by the creators who use it. So that means it is decentralized and the content is not controlled by any one central body. Quite cool, if you think about it! But the ace up our sleeve is that, thanks to the power of blockchain technology, you can use Sway to turn your “social capital” into an asset class.
What is “social capital”? There is no unified definition, but all have their merits. Investopedia refers to it as “a positive product of human interaction”. The Cambridge Dictionary defines “social capital” as “the value of the relationships between people who work or live together and the knowledge and skills that they have and share”.
In Web 2.0, you could define your social capital as the number of likes or followers you have. However, in Web 3.0 that can then be directly transferred into value. Any quantifiable metric that measures the social worth of something can be used to measure social capital.
Until now, however, it has been difficult to monetize our social capital in a decentralized, transparent and fair way. That’s where the Sway Social Protocol comes in!
Concept
Like many people, you may have an Instagram or Twitter profile. As you know, the number of people following you matches your earning power. If you have a lot of followers, your earning power goes up. If you don’t have so many, it goes down.
But the problem until now has been that this huge amount of value has never been represented in the form of an asset. That actually constrains its value and future growth, leaving vast amounts of value yet to be unlocked.
Sway solves this problem by giving followers the chance to share directly in their favourite content creators’ revenue streams — and bask in the reflected glory, of course!
You may not yet have heard of the “Shareconomy”. But Sway is focused on removing outdated barriers to growth and resetting the archaic economic principles of social media. By letting creators and followers share in each other’s success.
SWAY Token
By the way, we thought Sway was the right word to use because the influence someone has over another — their social capital (or sway) is the value we’re unlocking.
The SWAY token is the basic functional unit of the platform, its critical building block, and is used for the following 4 purposes:
- Voting — SWAY token holders will be able to vote on platform content and the tokenomics, including staking rewards and fees. The voting mechanism in place ensures community consensus.
- Incentivizing positive behaviour — 100 million SWAY tokens will be used to incentivise adoption of the platform.
- Minting utility — to mint an NFT, a certain number of SWAY tokens are required. This amount must also correspond to the number of followers at the time of account set up and is subject to social media profile validation.
- Creator Staking Pools — SWAY tokens fuel staking/rewards by supporting the creators and curators directly through special pools called Dynamic Creator Staking Pools (DCSP for short). All platform users will be able to stake their native tokens with any of the platform’s user accounts.
The token is intended to coordinate the network between NFT tokenization and a staking platform for the creator economy.
After the token generation event (TGE), the SWAY tokens will be allocated to all airdrop participants. It will also be available for buying/selling and full trading on leading exchanges, starting with QuickSwap and Gate.io.
SWAY staking
So, once you have your SWAY tokens, you will want to put them to work. Put simply, that means “staking” them. To help understand this, it is helpful to think of each SWAY token being a way to represent a “follow” or “like” in a monetary format.
This means that it can be “staked”, which is a way of allocating your SWAY token to whichever content creator you choose to follow or like.
How does SWAY staking work?
- Content creators establish individual staking pools for their NFTs. These staking pools are places where you can “stake” or store your SWAY tokens if you support them.
- SWAY token holders then can choose which pool owner (content creator) they want to support. They do this by actually staking their SWAY tokens to the pools they wish to support.
- The SWAY tokens staked entitle the owner of those tokens to a share in the revenue generated from their specific pools.
As the infrastructure for SWAY is still being built out, we’ll gradually onboard people into this new ecosystem. However, very soon after the initial listing we will start by opening the initial version of the staking pools.
Somewhat still archaic, but staking in these pools will already grant you a very early spot with your favourite creators, even if they’re not using the platform yet. More details on this to follow very soon!
Adoption mining
The initial issuance of SWAY in the token generation event (TGE) will be 100 million. There will be a further 100 million to be distributed as incentives for platform adoption, which is what gave creator adoption mining its catchy name! It is a way to help ensure that Sway adoption increases.
These adoption tokens are allocated as staking rewards and given to content creators. The split between these two is dependent on the total proportion of SWAY staked. The issuance of new tokens up to the 200 million cap is entirely dependent on content creators joining the platform and creating pools. This is how the ecosystem will expand — remember, only by staking some tokens in your pool initially are you able to establish a creator pool in the first place.
Token allocation
Here is a breakdown of how the SWAY tokens are being allocated.
Where will I be able to buy SWAY?
The SWAY token will be listed for trade from October 7th, 2021 on QuickSwap and Gate.io. Details on timings for listings can be found below:
QuickSwap
19.30 hrs (UTC+8) / 13.30 hrs (CET/GMT+2)
Gate.io
20.00 hrs (UTC+8) / 14.00 hrs (CET/GMT+2)
What now?
Gate.io Startup Sale
In the runup to the Clourt.art IDO, Gate.io will be running a startup sale for our SWAY token.
Start: Wednesday, October 6th, 2021 at 17.00 hrs (UTC+8).
Price: $0.07 (USDT)
Goal: 50,000 USDT
For more details, visit Gate.io’s pre-heat page for Clout.art.
Mantra DAO Zendit Flash Sale
Later the same day, Mantra DAO Zendit will be running a flash sale on Wednesday, October 6th. Due to open on Wednesday, October 6th at 20.00 hrs (UTC+8), expectations are that the goal of 35,000 USDT will be reached within minutes.
Start: Wednesday, October 6th, 2021 at 20.00 hrs (UTC+8).
Price: $0.07 (USDT)
Goal: 35,000 USDT
If you would like to learn more about SWAY, please check out our white paper here.
About Clout.art
Clout.art powers the creator economy of the future by turning the most valuable content, such as your most successful Instagram posts, into unique NFTs. As a microservice, a marketplace, and a staking platform, Clout.art is where creators and fans come together to create, grow or exchange social capital through the $SWAY token.
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