How is the social mining platform naturally dump resistant after the workdrops?

When we are integrating Social Mining into new communities like Harmony now, we are getting some concerns from the community. People are scared that all of the tokens that will be earned, will be dumped on the market. Well, with bounty or airdrop that would be the case, but SM was designed to avoid it. In this article, we will dive deeper into how we are making sure that only holders will be rewarded.

Investor index

• This is the most important index if we are talking about rewarding the holders, not the dumpers.
• investor index is very complex and it contains smaller indexes like accumulation and hodl, Let’s have a bigger look at those and than we talk about how are they making the perfect cushions for people to stay or become holders.

Accumulation

• One of the main things while calculating the social mining investor index is accumulation. Are you accumulating or are you moving more towards dumping? This matters.

Hodl

• This is the core index. It’s made from 2 main facts. How much do you hodl and for how long period of time. So not only the big stakeholders will be rewarded, but you can obtain a lot of points via holding for a long time, even a smaller amount.

But now let’s go to the point. Those indexes will make sure, that dumpers won’t get many tokens, so even if they dump it will have little impact on the market.

Let’s say that one of the big holders decide to dump his tokens after the payout. His payout was big because he is holding his tokens for long now and on top of this, he added good value to the ecosystem. Well, if he dumps the tokens his investors’ index will be ruined. The more he dump the bigger of a hit his investor index will get. So, in the end, he can dump once, but for the next payout, he will get far fewer tokens. This way people need to think twice before dumping.

What can I say from the experience

• Working with LTO, FRM, and 2KEY all I can say that people that are contributing to the SM platforms are simply not dumping. The among of tokens that are being staked on the SM platform is growing on a daily basis in every project that integrates SM.
• This is just the best prove that SM is targeting the real community members, but on the other hand, converting the new ones into faithful ones.

DAO MAKER

Benji

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