Numbers Protocol Tokenomics: A Deep Dive into $NUM (Part 2)
With a variety of functions, $NUM token is the driving force behind Numbers Protocol.
In Part 1 of our deep dive into Numbers Protocol, we covered some of the key components behind $NUM, including an overview of $NUM, the general tokenomics and upcoming roadmap, and the token allocation.
Today, we will introduce some of the ways you can earn and receive $NUM as a reward, earn $NUM through staking, and how Numbers Protocol can be used across different network apps.
Integrity and Verification Rewards
In the decentralized photo network powered by Numbers Protocol, it is essential that content should be traceable and verifiable. This allows users to trust the content in order to consume it. Although there is no hard limitation on creating content without a certain level of integrity, users who create content with good integrity, such as a photo with immutable provenance information, or consume content with good integrity will be rewarded with $NUM tokens.
Integrity can only assure the traceability of the content, but good integrity still cannot ensure that the content is trustworthy; therefore, the trust of the content can be built in two ways. The first is through professional trust. If a professional who has accumulated a good reputation in related fields backs the content, it will be considered trustworthy. The second is social trust. This occurs if a majority of users agree that the content is trustworthy. By creating content that gains professional and/or social trust, users will be rewarded.
Earn $NUM Through Staking
Through our staking program, interest will be distributed to participants that stake $NUM on the platform. Users can also use the staked tokens to participate in the governance of the network. More details of the staking program will be announced in Q4 2021.
Used Across Different Network Apps
Photos registered with Numbers Protocol will provide information such as creator signature, ownership, transfer history, and provenance information, unlike photos uploaded to Instagram or other social media platforms. This opens up a new path for 3rd-party apps to provide photo services and help users better utilize their photo assets. In some cases, users will be able to monetize these photo assets. These 3rd-parties are called Network Apps and include NFT marketplaces, Web3.0 storage, social media platforms, and stock image/video services.
To put this into perspective, we have provided two sample scenarios:
Scenario A:
A user can create a photo asset using the Capture App and mint an NFT for this asset. The user can then list it in one of the marketplaces listed as Numbers Protocol Network Apps.
Scenario B:
A user can create a photo asset using the Capture App and archive the asset to Filecoin using the Filecoin Network App.
As these photos have now become verifiable, 3rd party media sites can collaborate with local respondents and leverage verified user-generated content with relatively low costs. All Network Apps can be accessed from the Capture App and paid for using $NUM tokens. This will create a better user experience for anyone hosting or using photos.
About Numbers Protocol
Numbers is building a decentralized photo network for creating community, value, and trust in digital media. Its Numbers Protocol redefines the nature of digital visual media as assets, and is the backbone of a suite of tools for registering and retrieving photos and videos in the Numbers network — the Capture app, Seal API, and Trace website — plus the CaptureClub marketplace and a proprietary NFT Search Engine. Numbers champions the purity of digital media and enables people to think more critically about the interactions between our images and the world around us.
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