“What is the usage of your token? Why should I hold it?” These questions are not uncommon to many public blockchain projects, including Contentos and COS. Indeed, if the only demand for a token is just as a trading instrument in crypto exchanges, it won’t be a sustainable business. Any blockchain project should be able to represent the functions of their token with clarity, so here are the three main use cases of COS in the Contentos ecosystem. I call it the “three layers of demand.”
The three layers of demand for COS
1. Infrastructure layer
COS represents Governance Rights, or more accurately, Governance Rights are represented by VEST (COS to VEST ratio is 1:1). Holding VEST means you will be able to participate in various Contentos blockchain ecosystem decisions. For instance, to elect the 21 block producers needed to power the network, or to become a block producer candidate to join the election, having VEST is the first and most important qualification. Another use is for content moderation. Those who hold VEST will be part of content moderators. Moderators have varying roles, one of which is to help decide on the definition of inappropriate content. Positive and correct contributions will reward moderators accordingly. Meanwhile, when you “UpVote” a content, the content ecosystem reward is calculated so that your UpVote has higher weight if you hold enough VEST. This mechanism promotes a positive relationship between VEST holders and content creators, which will strengthen the entire Contentos ecosystem.
In short, by holding VEST, you will be part of the Infrastructure layer, which also gives you the privilege to influence the ecosystem operations. VEST is a non-tradable asset (but convertible to COS and COS is tradable) that lives within the governance mechanism of Contentos. Holding COS will allow you to participate in system governance by converting your COS to VEST (1:1). Essentially, when you convert your COS to VEST, it is akin to “staking” in other blockchain systems. And just like in the real world, if you’re part of the government, doing the right thing and putting the best interest of the populace is the core of your duty. Misbehaving, corruption, and other illicit behavior are all condoned. And within the COS ecosystem, these behaviors will be a blow to the value of your VEST — ultimately damaging your COS.
2. Business layer
A smart contract focused on content can be considered as a way to connect content creators and the business owners without having a middle man. The basic setup between advertisers and a content creator is to enter into service and payment agreements — produce promotional videos and receive payment. A more advanced setup might involve multiple content creators who will share the profit generated from the content.
Smart contract templates for content can fulfill various business agreement models. However, executing the smart contract requires system resources — and COS is the fuel to acquire enough resources to accomplish these tasks. We expect to see more and more “smart contract-powered” business cases in Contentos, with the demand for COS seen to rise along with it.
Issuing content tokens on Contentos is another potential use case for COS in the business layer. While still on the Contentos testnet, WalkCoin already tested its token and sent rewards to its users. Walkcoin is a concrete demonstration on the potential of the Contentos blockchain to help anyone issue their tokens. Soon you will see content creators or influencers issue their tokens on the Contentos blockchain to reward their fans, perhaps even non-fundable tokens (NFT). A whole new frontier in token usage — and even the entire influencer economy — could open up more favorable opportunities for the content ecosystem. And all these tokens can be further related to creators/influencers whose content are stored in the Contentos blockchain.
3. Application layer
The top part is the application demand for COS, which can be separated into two sub-categories; peer-to-peer transactions, and product payment.
- Peer-to-Peer transactions: Examples are GiftingVote, donations, or content subscription. In COS.TV or LiveMe, peer-to-peer transaction channels are still open for fiat currencies (e.g., US dollar, Euro, Japanese yen, etc.). But these platforms can also leverage COS as another payment system to facilitate transactions. Transactions done in COS can remove the 30% profit-cut from payment gateways such as Apple or Google, which can help maximize an app developer or creator’s earnings.
- Product payment: In some countries with no sophisticated online payment systems nor access to online banking services such as VISA or Mastercard, COS is a reliable alternative payment facility specially catered to content producers and app developers. For instance, extending the video length from 17 seconds to 1 minute would cost Cheez users US$0.99. Alternatively, a developer on Cheez could willingly accept 20 COS as COS payments could save them up to 30% since profit-sharing with Apple or Google is no longer necessary.
Very soon, the three layers of demand for COS will serve to strengthen the Contentos ecosystem, the value of COS, and its holders and users — from block producers and developers to business needs and even to day-to-day platform usage. Meanwhile, only 10 billion COS will be issued, with 40% to be mined in the next 12 years. With token circulation tightly controlled, the potential for the value of COS to rise is promising!
So now your next question might be, but how fast can we see these demands become real?
My answer is September 25 — the Contentos v1.0 mainnet launch! The first demand from the infrastructure layer will be launched — the block producer election. Either as candidate or voter on the block producer election, you need high amounts of VEST to be a reward-earning block producer within the content ecosystem.
But wait, there is a second demand for all content creators! Also on September 25, the new version of COS.TV will be released, which is the version integrated into the Contentos mainnet. Anyone can now participate in the content ecosystem reward via the content one produces! Don’t forget, the more UpVotes you collect from VEST holders, the more rewards you will be able to earn.
So what else should you anticipate on September 25? Tune in on the second part of this article to learn everything you need to know about the Contentos mainnet launch!
TUNE IN TO THE SECOND HALF OF THIS ARTICLE TO KNOW MORE DETAILS ABOUT THE CONTENTOS MAINNET LAUNCH!
The statements herein do not constitute technology, financial, investment, legal or other advice, nor do they apply to any particular situation or implementation. Please consult with professionals in appropriate areas before implementing or utilizing anything or any information contained in this document.