Whitepaper Explained② — All About the Pixels (Updated on July 24, 2018)
So by now if you’ve read our Whitepaper you’re probably wondering, “OK, Pixels sound interesting, but how do they work”? For the uninitiated we define Pixels as follows: “Pixels are a conditional sharing mechanism aimed to disincentive hoarding, promote giving, and increase the circulation of the Color Coin”. In this blog, we will cover some practical use cases, explain the technical aspects of pixels, and outline our vision for what we believe the Pixel Program will help the Color Platform accomplish.
First of all, people might be a bit confused with how the distribution of Color Pixels will work. Pixels will be distributed to KYC enabled wallets only, and will be redeemable as Color if certain conditions are met. Pixels will exist as a separate token that have a 24 hour expiry period. The reason for this expiry period is to promote an active sharing of Pixels to new users. This isn’t just another savings account. If people are incentivized to take an active role, we believe that this will instill a sense of community in Color Platform users and ensure users stay engaged on the platform.
So how exactly are Pixels redeemed as Color? Once they are sent to another valid Pixel recipient, Pixels will be converted to Color by the system. The Pixel to Color Coin conversion happens at the end of the week, and unsent Pixels will be burned and invalidated if not sent to valid recipients within 24 hours. So what are some of places you can send it? How about a family member, a charity or a local politician? Perhaps a project that needs support, or an app that wants to launch on the Color Platform and needs funding. All of this will be possible through the use of Pixels. Another great aspect is that, since Pixels expire and have no value unless they are sent to someone, they can be given out freely without any stress on the user. Imagine being able to give to charities without anything coming out of your own pocket!
Later in our platform we will work to validate such members such as registered charities, non-profit organizations and other organizations to be able to be permanent recipients of Color Pixels. What does that mean? Well, you might be wondering by now, “What is stopping me from just sending pixels amongst all my friends all day”? We have future plans to combat this. One such method would be that if you have already sent Pixels to one KYC’ed member, each time you try and send more funds to that user, the time between allowable sends will increase (unless it is a “permanent recipient”). So if Fred sent Bill 5 Color for the first time, he may be able to send him Pixels 3 days later, but the next time he could send pixels to Bill might be 10 days, and after that, 30! The reason for not blocking it entirely after the first time is to incentivize your friends and family every so often to re-engage in the platform. The exact mechanics and details here are not confirmed, but we will update this post and the white paper as more details become available.