Alternative to Bitcoin Mining: A User Reward System
Forget bitcoin mining — there is an easier and safe way to monetise and grow your cryptocurrency.
Previously, we have shared the Chat Community Monetisation (CCM) Model which utilises network effects to benefit active users while creators can tap on the revenue share based on their group size. These network effects are only applicable because of the Community and User Reward System, which is done through a tiered reward approach.
In Consentium, the chat application of communities, there is a quality group measurement matrix at each juncture of group creations. The categorisation of group type would determine the size of group rewards received by each user within said group. Having mentioned that, the categorisation of group type is dependent on the total number of quality users within each group.
Here are some measurement matrix you need to know:
Reputation scores are assigned to every user on the platform of communities to determine and ensure that users are actively engaged on the platform for the right reasons. These scores are determined by the volume of transfers (by dollars) as well as the number of transfers each user has made within the last 30 days, attributed using a sliding window approach which encourages constant activity.
The total number of quality users, bearing a reputation score of 5 or higher as shown in the chart above, determines the group type. The group type, in turn, determines the users’ percentage of share of the redistribution pool accumulated by the transactional fees. This means that the larger the group type, the higher the share of pool.
As according to the chart above, the share of pool refers to the percentage of share the users get within the redistribution pool of transactional fees.
An example would mean that if there are a 100 groups of these Ultra group types, all 100 groups of them will have a share of 50% of the monthly pool equally.
How Does this System Benefit You?
The monetisation model based on quality users ensure constant and updated activity which in turn encourages quality content and users.
The importance of quality content and users should not be undermined. Let’s take Facebook as an example — our go-to social media platform to keep ourselves updated with our friends’ lives and the latest happenings in the world. The algorithm of pushing out relevant and quality content is ever-changing to fit not just the need of our daily updates, but also to ensure that users are attracted to the platform and always going back to it for better content.
The constant update of algorithm, which makes it almost impossible for all content creators to find out and keep up with, ensures that nobody is able to exploit the algorithm on Facebook to fill the feed with bad, non-related and advertising content to everyday users. While scrolling through the newsfeed, you would realise that a majority of content shown to you are the ones you would interact with, as the algorithm learns your behaviour on the platform. This is one of Facebook’s key features which has helped kept its place as one of the most-used social media platforms since it has publicly launched 13 years ago.
Similarly, the group rewards on Consentium ensure that everyone who contributes, stays active, and are also encouraged for such behaviour. The rating of group types make sure that these rewards are based on the total number of active and trusted users, instead of the number of users of any behaviour and types. This results in less exploitation and gaming of the CCM system, which in turn builds a trusted environment of relevant communities.
With these right, relevant and quality connections on the platform, a trusted and secure environment encourages more activity and transactions to take place. This in turn generates more transactional fees which are then redistributed to these users through group rewards via the CCM system.
As technology evolves and with more altcoins budding in the crypto-world, prepare yourselves as this monetisation model is the near and new future even to crypto-applications.
Consentium is a best-in-class chat application with consumer-to-consumer (C2C) multi-digital currency transfers and a proprietary Chat Community Monetisation (CCM) Model. The cryptocurrency, Consentium Coins (CSM), generated on the platform are based on the Ethereum platform, which is the world’s largest leading smart contract blockchain.