SENSE Token Mechanics — Whitepaper Part 2

Ben Sigman
Sep 6, 2019 · 10 min read

This post is focused on the SENSE token and how it is utilized within the Sense.Chat platform. It is Part 2 of the updated whitepaper, which we lovingly call, the “Purple Paper” — you can find Part 1 here.

Sense.Chat — What can I do with SENSE tokens?


We are at the dawn of a new world for digital communities and economies. Chat applications power the majority of social interactions in the digital world. Enormous communities have established on platforms, such as Telegram, WhatsApp, and WeChat. Many of these group leaders have patched missing features with bots and hacked programs to provide better tools to their communities, indicating significant demand to evolve the current chat ecosphere.

Sense.Chat presents a new evolution in messaging and community tools. SENSE token is the utility, fueling the cooperative tools missing from existing chat ecosystems and offering the framework to transform communities.

The Sense.Chat platform enables both communications and value transfer in a unified chat application where sending a transaction is as simple as sending a message. The SENSE token is utilized in the Sense.Chat platform as a tool for facilitating the usage of the application, and fostering community growth.

This paper defines the following demonstrations of the consumptive utility of SENSE token:

  • Creating a community by redeeming SENSE.
  • Committing to the community by staking SENSE.
  • Promoting their community by staking SENSE.
  • Earning SENSE tokens in a chat and starting a chat requires a token balance.
  • Giving rewards based on the quality of other users’ contributions to their community via SENSE pumps.
  • Getting rewards based on the quality of one’s own contributions to their community via SENSE pumps.
  • Vouching for another user by staking SENSE.


Existing online communities produce a monetizable product for the platforms that accumulate and resell the data from those communities. The efforts and attention of a group convert into data, targeted advertising, and correlated growth for enterprises accessing these communities. However, are community members equitably rewarded for the individual value they produce?

Centralized platforms, such as Facebook, attract online residents with free functionality, yet clandestinely tax the inhabitants. Most mega-platforms may be monetarily free for users; however, the communities pay tariffs by surrendering all value derived from the byproducts of their community. These tariffs create digital value equivalent to the $25B generated each year by social platforms — a revenue line not equitably shared with the communities and users producing the product. In the new age of the internet, the ownership of the platform can be put into the hands of its users. Furthermore, they are privately owned by themselves such that the monetary compensation for their output is under their own control.

Humanity has learned that people work more effectively if they have the freedom to own the value produced by their labor (capitalism vs. feudalism). Secondly, modern society understands that humans instinctively compete and produce better results if they can choose and measure the effects of their actions (democracies vs. dictatorships). Considering these factors, do current platforms promote social growth in cooperation with the values offered by society?

Current platforms limit the ability for entrepreneurs to create their own sustainable communities. Advertisement based content platforms like YouTube share a very small portion of revenue with their producers. Even Medium, which charges subscription fees instead of relying on advertising, shares very little reward with its contributors, only reserved for the top writers. Inversely, a decentralized platform allows audiences and contributors to connect directly and supports the tools needed to make those connections without reliance on data or advertisements. Building direct cooperation between parties creates a sustainable ecosystem capable of extending far beyond the current centralized limits.

Online communities decentralized platforms, on which communities can attain rewarding growth through collaboration... Sense.Chat builds tools to enable human-centric growth with the SENSE token, providing a unit to establish communities, promote communities, and reward or be rewarded for contributions to communities.


The SENSE token is a tool for empowering communities on the Sense.Chat platform.

Most community platforms control their entire market from users to sales. A singular centralized entity controlling all value from a group of communities generates revenue for the platform, but not for the users of the application, because the collective data of the users is gathered and stored privately by the platform itself, then sold to the highest bidder. At SENSE, our goal is to make data from our opted-in public communities open and available for everyone.

Current community chat platforms rank traction based on the number of users in a group, however, this lacks the proper mechanics to rank the value of a community. Some large groups have tens of thousands of users, who never participate in the community. On the other end of the spectrum, some groups may only have 30 people communicating regularly throughout the day to grow a startup. What should be the basis for a unit of a digital community? Communities consist of people, and people yield a uniquely world-shaping output — .

In current community chat platforms, it is nearly impossible to distinguish signal from noise in large group chats. Through the mechanism (a tokenized upvote), the SENSE token is used by community members to enhance the visibility of content that they have found valuable. The more that a piece of content gets pumped, compared to other content in that community, then it will inform the visibility of that content as it gets delivered to other community members.

The SENSE token is a utility for measuring the actions of community members as well as valuing the collective actions of that community. Sense.Chat divides community member action into two groups: support, and commitment.

Support: The act of SENSE token as a vote of appreciation and to increase the visibility and importance of content. Users earn support tokens (sent) from other users and earn support tokens as a reward for their engagement.

Commitment: The act of SENSE token to for usage of chat features, membership of a channel or verification of trust. Committed (staked) tokens earn rewards.

Each opportunity to SENSE token is also an opportunity for the community to SENSE token. This core value is critical to the cyclic ecosystem placing users at the center of a user-centric digital economy.

Sense.Chat fills a gaping hole in the existing digital economy by merging the live and intuitive nature of chat engines with the functions of larger platforms (Facebook, Instagram, or Reddit). On Sense.Chat content is not just generated, but scored by users. Unlike platforms where users connect to pages featuring content, Sense.Chat users connect with people, and their content is contained within their chat-based communities.

Human actions take many valuable forms in a digital world, such as producing and curating content, building influence, or verifying information. Sense.Chat is an ecosystem for the digital community and as such, Sense.Chat supports micro-entrepreneurs in their endeavors to create more direct relationships with audiences through purposeful communities.

The purposes supported in Sense.Chat replicate many purposes commercialized elsewhere on the web, all beginning with the ability for to register . A Sense.Chat community is registered similarly to a web domain, hosted and accessible from within the platform, and formed as a . Founders can design channels in accordance with their needs by managing rules and functions that utilize SENSE tokens.


Sense.Chat users are able to earn SENSE tokens via activity in chat communities and through transactions from other users. There are two calculations which influence the number of tokens a user earns through activity: SENSibility and SENSEscore.


SENSibility is both a measurement of a user’s activity and a multiplier of the power of a users’ actions. The calculation based on the number of pumpssent and received along with the count of content a user has sent in public channels.

The formula gives greater weight to the tokens received via pumps (pumps in) than the number of pumps sent (pumps out) + messages (content) sent by the user. Additionally, there are a maximum 5,000 pumps received and 100 pumps given that the formula will consider during a limited period (initially defined as 1 week). The count messages and pumps will reset, but not vouches or committed tokens if those have not changed.

How is SENSibility utilized?

SENSibility is a multiplier designed to give more emphasis to the actions of users who are highly engaged and rewarded by other users. This also has an impact on SENSEscore, which is the ability of a user to earn tokens.

When a user shares content that is found valuable by other users, the content is pumped (this equivalent of an upvote or ‘like’ powered by SENSE tokens). The power, or impact, of each pump, will depend on the users SENSEibility.

The greater the SENSibility of a user, the greater weight is given to a pump by that user to increase the visibility of pumped content to other users.


Building off the SENSibility multiplier, the SENSEscore determines how much SENSE each user will earn. The number of SENSE tokens committed (staked), the count of other users who vouch for a user, and the amount held are also taken into account in the SENSEscore.

The higher the SENSibility of the user, the more Vouches a user has from other users, the more SENSEcommitted by the user (amount of tokens staked), and the more SENSEheld (total SENSE held, but not committed) — the higher a user’s SENSEscore will be. The weight of SENSibility is greater than the weight of SENSEcommitted, and the amount of SENSEheld (but not committed) carries the least weight in the SENSEscore.

How is SENSEscore utilized?

SENSEscore is used to calculate the amount of SENSE a user is eligible to receive in rewards during any period.


At the end of each period (initially defined as 1 week), users will earn an amount of SENSE based on their SENSEscore for that period.

SenseToUser (User Reward Rate)

How SENSE Influences Channel Rank

SENSibility and SENSEscore both have an impact on the display of user-created chat groups, called .

When a user commits SENSE to a channel, it promotes that channel among the ranked list of channels in the Sense.Chat application. Committing SENSE is an action that is lossless to the user, but locks the tokens up for the period (initially set to 1 week) as defined in the SENSEtoUser formula above.

The higher amount of SENSE a channel has committed by its members increases the prominence of that channel in the channel ranking. The rank of a channel is calculated based on the SENSibility of the users, SENSEcommitted of the users, and the SENSEscore of all users.

How Channels Earn SENSE

Channels (and their members) earn SENSE based on the level of activity in that channel within a period. The amount of SENSE given to a channel for any period (initially defined as 1 week) is based on the total SENSE, SENSE circulating, the SENSibility of the channel members, and the SENSEcommitted by the channel members. ChannelFlow is a variable to regulate the rate at which SENSE is being distributed.

SENSEtoChannel Reward Rate

At the end of each time period, a percentage of SENSE tokens will be awarded to a channel. The amount of SENSEtoChannel is based on the SENSibility of all of the channel members and the SENSE committed to the channel. As we described earlier, SENSibility is a measurement of the power of a user based on the activities of that user on-chain through messages sent and pumps sent/received. This way, if a channel has more activity and, therefore, high-quality members, the channel will earn more SENSE which can be distributed to the members of the group as decided by the channel Founder.

What is the SENSE DAC?

The SENSE token and the variables in the smart contract formulas above are controlled by a DAC (Decentralized Autonomous Community) which means that all of the SENSE tokens that were reserved for community and development (by far a majority) are controlled by token holders. Part 3 of the Purple Paper which will detail the DAC and how it is governed by you — the token holders!

Here is a sneak peek at how each user’s votes are calculated in the DAC based on the SENSEscore of that user as it relates to the SENSEscore of all users.

Thank you for reading and stay tuned for more updates! Feel free to message me on Sense.Chat at benmakesense .

Are you Interested in testing out our beta features for iOS and Android — sign up here!

Sense Chat

Sense Chat is a blockchain encrypted messenger with SENSE…