Request for (thoughtful) Feedback: Token Model for Incentivizing Accurate Data in Exchange for a Service
I am building a BLANK game that compensates Contributors for Proof of Work via a Proof of Stake blockchain.
I have been noodling on this framework and business model for a little over a year and am excited to hear some feedback. The people I discuss this with are very familiar with BLANK industry but the utility blockchain is totally foreign to them, so I am excited to hear feedback here.
*I am purposefully (and unfortunately!) being vague with some of my phrasing to obscure the actual industry I am going after.
*I have 10+ years of experience in this industry and am in one of the five largest cities in the US. I am only interested in Algorand and Bitcoin; I’ve voted in every Governance round and am currently staked as an XGov.
*Anytime I use the word “Data” it is very, very important that it be read as “accurate” Data. Incorrect or dishonest data is surprisingly still very valuable but because Blank, Inc. compensates for this data we demand and have plans to ensure accurate data is provided.
I explain the following information below:
- Parties involved.
- Types of data provided.
- Token and payment model.
a.) Example
There are two parties in the tokenization model below:
Party A: Blank, Inc.
Party B: Contributor
Blank, Inc. is a software company that gathers accurate data from Contributors, centralizes, and repackages the data for broader consumption.
Contributors There are ~3 million active Contributors in the United States today that willingly upload their data (time and energy) and annually pay ~$2B for this service. They are not compensated for their data but need the data repackaging and centralization service.
This industry is controlled by a monopoly but with the help of blockchain Blank, Inc. can continuously compensate Contributors via a XYZ Token for their data. The more data Contributors provide, the less they pay for the service.
There are three (3) kinds of data Blank, Inc. values:
- New Data
- Old Data
- Public Data
To illustrate the weighted importance of the data to Blank, Inc. assume a total distribution of ten (10) tokens is available:
New DataÂ- Is data that, once repackaged and centralized, is actively engaged with for anywhere from 0-180 days. It is the most valuable data for both Contributor and Blank, Inc. and will receive the highest weighted distribution of XYZ Token. Contributor receives seven (7) XYZ Tokens for providing this New Data.
Old Data- Is data that is beyond its useful life of 0-180 days. This data still holds significant value for Contributors but less for Blank, Inc. so Contributor receives two and a half (2.5) XYZ Tokens for providing this backlog of Old Data.
Public Data- This is data that is freely available via simple searches but that the Contributors do not own. Due to the sheer volume of this data that is available it is difficult to compensate Contributors for this data and Blank, Inc. will actively be backfilling but there will certainly be opportunities for Contributors to earn XYZ Tokens particularly as Blank, Inc. expands. Contributor receives one half (.5) XYZ Token for providing this Public Data.
The XYZ Token does not represent equity or a share of any Blank, Inc. profits/losses and is only useful/valuable within the Blank, Inc. ecosystem. The more value Blank, Inc. provides Contributors the more useful the XYZ Tokens become. The more useful the XYZ Tokens become, the more valuable they are to both Blank, Inc. and Contributors.
Blank, Inc. pegs the value of the XYZ Token at $1.00 USD. Regardless of the tokens being traded on the secondary market for $0.10 USD or $3.00 USD per XYZ token.
Similar to Starbucks rewards or Airline frequent flyer miles, Blank, Inc. foregoes USD payment and happily exchanges Blank, Inc.’s services for the XYZ Token. If the Contributor does not have enough XYZ tokens to pay for the service Blank, Inc. provides they may pay $1.00 USD per item per day.
EXAMPLE: In explaining how the XYZ Token model below works I would like to imagine the Contributor is someone selling books on Amazon. The seller has 3 different books for sale. Each book has its own page and Amazon charges $1.00 USD per day per listing OR one (1) XYZ Token per day per listing.
NEW DATA- The seller earns seven (7) XYZ Tokens for each book they’ve listed for sale for a total of 21 XYZ Tokens (7 x 3).
OLD DATA- The seller earns two and a half (2.5) XYZ Tokens for uploading three (3) old book listings (photos, price sold, date sold, description, etc…) for a total of 7.5 XYZ Tokens (2.5 x 3).
PUBLIC DATA- In the sellers spare time they also uploaded the title, author and ISBN numbers for 10 books that were not already in the database and earned 17.5 XYZ Tokens (.5 x 5).
In total the seller has 31 XYZ Tokens (21 + 7.5 + 2.5) that can be used to pay the seller’s daily listing fees.
Book 1 sells after 7 days on the platform, Book 2 sells after 12 days on the platform, and Book 3 sells after 14 days on the platform. The costs for the seller to list and sell three books over 14 days total 31 XYZ Tokens and $2.00 USD.
There are a lot of exciting opportunities for Blank, Inc. to use the XYZ Token to assist in scaling and incentivizing Contributors but I wanted to stop here to avoid asking you to digest too much information.