Token system is at the very core of Indorse.
In order to create a reward mechanism that fairly distributes ownership and aligns the incentives of all parties, the Indorse platform has 1 tradeable token and 1 internal accounting token (based on the ERC20 interface):
- Indorse Token (IND) [tradeable]
- Indorse Score (SCR) [accounting of reputation]
These are the principal tokens of the Indorse Platform. The services that Indorse will offer, can be bought only through the use of the Indorse tokens.
Let us say, this token is like the gateway to Indorse services.
By the nature of its objective, IND tokens will be listed on crypto-exchanges and will be available to be bought and sold in the open market.
Does a user get IND?
Yes, every user will be rewarded IND tokens based on his / her engagement with the platform and based on a ‘revenue-sharing’ model; details of which are discussed below.
Since we envision this platform to be used by non-crypto users too, the SCR won’t even be mentioned as ‘token’ on the platform, but as SCR points.
We present them here so that the community can understand the mechanics of the system and how we are using them for the transparency of the network.
In simple words, these reflect the reputation that the user has earned on the Indorse platform on account of his / her activities.
How does SCR token work?
Pretty much like a Proof-of-Stake model. Every user intending to review a claim, will have to put-up a SCR on stake. The more the user acts in the benefit of the community, i.e. endorsing the right claims and flagging-off the wrong ones, the user will earn an SCR token (and hence, will have 2 SCR tokens credited back into his / her account).
Similarly, a user which acts in a malicious manner, i.e. is not able to curate the claims based on merits and goes against majority of the other endorsers will lose his / her SCR token.
This is mainly to avoid the gaming of the system. This allows the endorsers to endorse in an honest manner, while avoiding malicious actors and spamming the system.
Higher SCR tokens will earn higher rewards to the user. The designing of the reward system with the higher SCR is work in progress. Necessary details will be released as soon as these have been finalised.
Both the above tokens will be ERC20 tokens, as we see their utility beyond the Indorse platform! Imagine that you could see someone’s professional reputation by just putting their Ethereum address on Etherscan, and maybe this could also be used as a reputation score on Ethlance, or any of the exchanges!
Indorse Reward Points
This is the activity index of any user. The more the user interacts with the system, e.g. by putting-up a claim, endorsing other users’ claims etc, the user will be awarded with a Reward point.
Based on our current design, all the Reward points received by any user will be converted into IND tokens (the tokens that are traded on an exchange) at the end of a defined vesting period.
The manner / computation of conversion of BUC into IND is discussed in ‘revenue-sharing’ model below.
SPECIAL NOTE :
Please note, earlier there was an additional internal token: Indorse Buck (BUC). However, based on the community feedback, it has been decided to NOT make the BUC as a token. BUC (now called Indorse Rewards) will be an internal point based system and will be external to the blockchain.
What is the Revenue that we are talking about?
As a platform, Indorse’s key revenue model will be
(a) advertising services
(b) Skill-based recruitment services.
Each of these services can be acquired by Indorse’s client using the IND tokens. All the IND tokens earned by the platform (less the expenses) will be available for sharing with the users, in the following manner.
How is the Revenue shared?
As mentioned above, each user’s engagement with the platform will result in the user earning an Indorse Reward point. At the end of each month, all Reward points (on an aggregate basis) will be eligible for receiving a portion of the IND tokens earned by the platform.
We are at Indorse are reviewing our distribution model to make it more efficient and attractive to our users. This model is currently under revision. We will shortly be writing another article to discuss the updated revenue sharing model.
Important: All the announcements — Token Pre-Sale, Bounty Program & Token Sale will be first made exclusively on Indorse Slack. Join:http://joinindorse.herokuapp.com