A closer look at TNET Tokenomics — Community Mining Offering

In this article, we’ll provide you more insights on the why, what and how about #CommunityMiningOffering.

Almost 50% of ICOs from last year have failed

While the cryptocurrency market is the apple of the eye of many investors during recent years, since earlier this year the market has been affected by some volatility. Many people made some quick profits during the rally times. However, according to an article from coinbureau.com, nearly 50% of ICOs launched last year have failed. Some of the main factors that contributed to this high failure rate include:

1. Overpromising technology, or overly optimistic regarding technological implementation
2. Struggles of applying projects real-world scenarios, and last but not least
3. Lack of engagement with active users in the community

We believe the last factor contributes most to the failures of ICOs — lack of real user adoption, and lack of investors who actually understand the true value behind these projects. In other words, as projects are trying to raise a large amount of money in a very short time frame, typically raising this money through massive PR, paid ads, unsustainable community growth, chances increase for these projects to attract folks who are trying to make some quick bucks instead of attracting an organic audience, because people are more likely to focus on the short term ROI in these cases and these short-term investors are always ready to dump the tokens rather than staying with the project until its success.

Figuring out what would work the best for TuringNet

Based on the observations mentioned above, we spent a lot of time reflecting on what is the right way to proceed with fundraising.

• Yes, we have a very ambitious project, we are reinventing how the public participates in the development of Artificial Intelligence, and fostering a self-governing ecosystem for AI.
• Yes, our project will need a lot of money in order to hire the smartest minds and build our platform.
• Yes, we will continuously need an engaged and active community that believes in us and in our work in bringing this vision to life.
• And yes, it’s also crucial for us to ensure our token price is truly market driven and justified by the value of our platform.

The Birth of #CommunityMiningOffering (CMO)

As an open and trustable platform for AI, our first and foremost metric should be how we positively impact the community that actually provides valuable work to advance AI. Our goal is to use blockchain technology to create a transparent and streamlined system which automates fair distributions amongst all participants. In constant collaboration and iteration with all participants, we will ultimately have a self-regulating tool and ecosystem that changes how AI embeds in people’s daily lives.

#CommunityMiningOffering

So combining these thoughts, we brought this metric into a bold decision. Instead of proceeding with the traditional ICO model to raise funds for our project, we came up with a new model that will bundle and maximize the benefits for our community and our investors. The new model is named Community Mining Offering (CMO). In CMO, all TNET tokens are obtained through accomplishing a variety of requested tasks operated by smart contracts (aka mined) on our platform. Users will retain for themselves a majority percentage of tokens mined, while the remainder percentage will go to the project to support ongoing development and maintenance.

In a nutshell, CMO has the following characteristics:

• No pre-mined token
• No pre-sale or crowd-sale
• No monetary investment needed
• All tokens are obtained through mining
• A portion of tokens mined will be received by the project
• So as project creates value, it earns token support

#CMO v.s. traditional ICO

Now take a second to think about it — the only way to obtain TNET tokens is through mining, and the project only receive a portion of mined tokens. What does that mean? That means if there’s no real and active community members, or ecosystem participants who are willing to apply their efforts to mine tokens, the project will not receive tokens to support the project, there will not be enough tokens circulating, and obviously no one would want to keep the tokens for the longer term, and this would become a vicious cycle that would diminish the price of the token.

This is an industry that is built on trust, we wanted to make sure that every community member on our platform understands that we are in this for the long run. The CMO model demonstrates our long term commitment to bringing the best AI platform to our users. We also wanted to make sure that our investors recognize and agree on the long term value of this platform, with a common goal of maximizing the value and ultimately the price of the TNET token together. The CMO model allows our community, our investor and the project team to reach a consensus in the longer term.

Market Supply and Distribution

The total market supply of TNET Tokens is pre-defined to prolong a sustainable ecosystem. We will release the total market supply of TNET Tokens to 6,000,000,000 (6 Billion) by the year of 2026.

• TNET Tokens will be distributed to miners who contribute to TuringNet Platform by performing various requested tasks.
• Miners will retain a majority portion of the tokens rewarded, and provide a portion to the Ecosystem Foundation which will be managed by TuringNet project which will use it for building network infrastructure, maintaining, operating, and advancing the ecosystem.
• Participants will mine tokens through training, inferencing, or contributing valuable datasets to advance AI models, all at zero monetary cost.

Token Mining and Activation Criteria

Before our Mainnet launches, we will be offering fun mining tasks for our community members to obtain ERC20-based TNET tokens. We will share more details on instructions of how-tos In our next blog article. Please stay tuned and get ready obtain TNET tokens while having fun, and improve AI at the same time!

Once Mainnet launches, more mining tasks would include block generation, voting, training and inferencing AI models, verifying and confirming results.

Publicly mined TNET Tokens are immediately activated for trading on decentralized secondary markets, or centralized exchanges where TNET Token is listed for trading.