I want to take a deeper dive behind the SPK Networks tokenomics. The SPK network consists of the Hive community, many have contributed, some publicly some anonymously. This is the work of many years of trials and tribulations and looking upon the work of others.
Learn from other's mistakes because you can't make them all yourself.
The idea for SPK network tokenomics is to absorb maximum value at maximum efficiency with few to zero leaks. A positive value loop that creates a sustainable ecosystem for the long haul.
This is purely from my perspective. Token systems are perceived differently by all that view them. The one thing that remains constant, my hope, is the outcome.
https://hive.blog/speak/@theycallmedan/q-and-a-about-the-speak-network
https://hive.blog/speak/@theycallmedan/tokens-and-mining-philosophy
Some of the above may have been slightly changed as the vision progress, but the core concepts are the same.
People needing to buy miners to mine is not a novel concept. Bitcoin made this method the standard. To me, that is a value gap. To get maximum return from this situation would be to extract the value of the miner's sales directly back into the ecosystem. The maximum return I can see here is to tokenize the miners. You need a miner to mine; the more you have, the more rewards you get. This creates the need to buy as many miners as one can afford if they wish max returns. To bring it full circle, the only way to buy that miner is with the actual asset it's mining. That automatically creates a positive value loop. To avoid the chicken and the egg scenario and tackle token distribution with one rock is to claim drop the first miners freely to all Hivers. With the future sales of the miners, one could burn the currency, or they could lock it into defi contracts to earn yields.
To get max returns, auctions would need to happen daily. With price swings in the underlining asset, in this case, SPK, that means the miner needed to mine the asset will fluctuate in price with SPK. IE, the higher the price of SPK, the more demand for miners, the more demand for miners in a auction means the more each miner cost. Having it daily means we miss none of that emotion. We catch every pump, and the network benefits from those pumps as much as possible. These daily auctions have been shown to be the best way to raise capital, IE EOS raised substantial capital using this model. However, instead of one year, it lasts a lifetime.
Daily miner auctions that last forever create daily deflationary action for HIVE and SPK.
Vicious Tokenomics.
Speak will be a hyper-deflationary token that creates a higher and higher price floor for every miner or ad purchased.
Miner sales is something created out of a concept that could have been easily overlooked, leaving so much value on the table. It's important to understand the full picture. It's easy to miss value as it's always hidden and can only be seen when looking at the full picture—connecting all the dots.
Ads are a huge value sink. The largest value sink should have built-in models to create bullish buy pressure on the underlining assets of HIVE and SPK. Ads are daily, autonomous, 24/7 365m forever. Yet another way to add deflationary pressure on HIVE and SPK.
The SPK token will live on the Hive blockchain, which is the end goal. The only thing separate from this is IPFS, which is a superior way to store videos. Since videos are so large, something like proof of access must be used. The goal is to incentivize miners to store as much of the network as they like while giving them a choice to store as little of the network as they like. The concept of "rare files" IE videos that have not been stored by many miner’s reward more. The reason rare files reward more is that they are sharing the reward with fewer miners.
Example: If 10 miners all have the random file called, you get 1/10th of the reward.
If 2 miners have the random file called, you get 50% of the reward.
If 1 miner has a random file, that miner gets 100% of the reward.
This strategy means that it is most lucrative to store files others have not, which means once the network grows so big that no one entity can store it, the whole network will still be stored efficiently due to people naturally storing the parts of the network that are least stored.
The ability to mint NFTs using BROCA will increase demand for BROCA in a big way. Right now, most NFT's are not real NFTs. They live on centralized databases. The Speak Network will offer users the ability to truly own their NFT in a decentralized manner. Every SPK token that is burned, sent to the SIP, or earned via holding gains more and more BROCA rewards due to the hyper-deflationary tokenomics of SPK.
Trojan Horse Effect
Since the tokenomics of SPK rewards long-term holders while also being hyper deflationary, this creates the ability to reward those most loyal to the network.
Hodlers become immensely powerful at the expense of short-term speculators, as it should be. The tokenomics act as a trojan horse because the supply has been decimated before you know it, while the hodlers only gained more SPK.
I will be doing more of these types of breakdowns since the project is so vast there are many parts to cover in just the tokenomics alone. While the tokenomics may seem complicated, IE mutlitokens. The wallet will make it very user-friendly and effortless to use the network. Most will not know they are even using a token unless really vested into the ecosystem. We believe platforms will offer BROCA for their users to offer a free experience and can later monetize their userbase how they see fit.
Keep these coming! I was digging into the paper today as well as taskmasters write ups to learn more and get a better understanding for how it all works but still had questions and missing pieces. These types of posts will greatly help myself and others keep up to speed and fully understanding how to best support the project once launched and even before it launches by creating more awareness and understanding. This truly so far seems like a fully decentralized system which is going to make for some interesting times.
You often talked about "mining". Sorry if I didn't get it but I'm just wondering if the tokens SPK will do mining? Also, you mean the content that will be posted in 3speak will now be separated from hive?
You will need Larynx Miners to mine SPK. SPK is 100% mined, no other way to get it.
3Speak is a flagship app living on the already created Speak Network. The big difference is moving from a non incentivized IPFS storage model (which we currently are) to one that pays miners to store the network. Without incentive, the storage of any network will become centralized. Our goal is to decentralize the video/image storage for Hive. You can't store videos or images on Hive (for a good reason), so we are simply adding a stack layer to Hive that allows Hiver to do so.
Why are tokens named the way they are? It will take time to get used to the token names and what their functions are. As you said it will probably become more clear and easy to understand once we see the wallets and the implementation.
Larynx = The voice box.
Broca = motor speech area of brain.
Speak = Your voice.
It’s a play on words.
Larynx creates the voice (the voice box) thus is pretty cool name for a miner as the mining is mining "speak" aka your voice token in the system (gov token)
BROCA is the motor speech, what you need to actually use your voice. BROCA is the fee token the allows you to speak on the network.
And of course SPEAK, speaks for itself :)
Hi Dan, when is the Hive snapshot for the initial airdrop going to take place? Or still to early to say.
There will be a 3 month heads up. Hard to say when that countdown will happen, but it's months not years.
Nice, bought myself a new computer specifically in preparation for mining this token.
I love the theory behind the project and locking up large amounts of hive is a huge win.
My only real concern is the complexity of the system. We have seen so many times that unless it's easy to use, people won't get involved. I've been here for four years and struggle to follow the concept through the whitepaper with four different tokens attached and what seems to be a very complicated system.
Is the actual system going to have idiot proofing so to speak?
A simple way for people to actually use it so that it will appeal to a wider audience. It is a huge reason why hive has never brought in huge numbers is the complexity of the system.
I'm expecting great things from the speak team and hope it is a big success.
Sites are what make technology easier for the end-users.
Example: You can log on to Facebook with a internet connection from any device. Sign up, post, and you're there.
Or, you could set up your own site, get your own server, domain name, etc. To take it a step further, you could set up your own server using your computer.
That's how we should look at this technology. We are still so early. Sure, we can require every user to have RCs, to fully understand the system, things like private keys, etc. That's similar to my analogy of having someone set up their own server and learn how to use things like WordPress. Very few people will want to do that, just as we see way more users on Facebook than we do users that create their own sites.
Most users will flock to the web 3 site that offers a web 2 experience. Web 3 sites that provide the users with the best user exp and are clever enough to monetize a userbase will do the best. Centralized sites built on decentralized technology are where all of this is heading. Sites become skins, yes they are centralized and can remove you from their skin, but they have zero control over your account. Skins that overly ban become useless, and no one uses them, why would they.
You don't have to tell me twice. I know the advantages of a Web3 site and four years on hive has taught me a lot of lessons.
My real question is I suppose, how will this technology deliver that web2 experience for new users as that is where we have been waiting to arrive at for a long time. A Web3 experience that new users will be able to plug straight into without the need to see any miners, rc, ect....
I am the idiot that we are proofing against and just speaking on behalf of all my other companions as I would love to see this technology reach a place where we can bring in more users and retain them to the different sites on hive.
Users will need to have a small bit of Hive RCs and Broca to post. As the co-founder of a web3 skin called 3speak.tv, we plan to offer our users a free experience giving out small bits of BROCA to new accounts and delegating RCs (once available) so the user just signs up and starts posting.
Sites are what make this technology "idiot proof." However, it allows anyone to go outside of the sites (skins) and go directly to the source and post, but they will need some RCs and BROCA to do so, but that's the cost of freedom from reliance of others.
Very Interesting, keep explaining, it's going to take a bit for me to fully understand how they work together.
I do not know much about this but I am learning little by little, and this information that I find here seems very interesting to me, so it will motivate me to continue investigating, to understand a little more, getting excited to familiarize myself with the tokens and sometimes he often asks me If I'm earning tokens in a community and I don't know, but I'm still attentive to learn, your post is very interesting, I'm going to go to the link you left.
I really feel a bit confused about it, I will also find it hard to understand. This kind of post is a great help for me as I am new and am slowly adapting. Thank you!
Any questions let me know, and I'll answer to the best of my ability.
Awesome
Yo Dan, do we need to posses hardware or miners store It in digital manner?
Are there going to be some kind of witnesses that will govern the changes or?
No hardware miners, the miners are digital. You will need harddrives and a computer if you want to mine because you need to store files in order to get rewarded
What happens in case I have to delete some files?
Since there are no fees on hive, thus no demand to buy hive to pay for transactions, how will this project push up the price of hive? If the only way to get this new token is to buy it using only hive then I’d say that’ll sure cause a nice little spike
The only way to buy larnyx miners is with hive. The only way to buy ad rights on the system is hive. The system is designed to suck up and lock as much hive as possible.
Thats key, because lets be real, the only thing that effects price is buying pressure VS selling pressure.
We have significant selling pressure, lots and lots of selling pressure from those using hive as a from of residual income. Which is fine and all but not good for price. I also noticed the hive price stopped pumping around the same time the HBDstabalizer project stopped posting like 2ish weeks ago. That constant buying pressure helps the whole network.
So if someone wants to buy ads or miners they need to buy hive potentially pushing the hive price up, but if those who are providing the miners and ad rights then sell the hive then it isn’t really pushing the price up anymore. It gets pushed up when someone buys the hive but then gets pushed down when said hive is then sold.
Unless of course the hive received is held onto instead of liquidated.
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Great idea to break down the information in the light paper and any additional insights into a series of posts.
Will the speak tokens be in hive-engine? Or your own 2nd leyer?
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Layer 1 hive is our goal.
The world has seen nothing yet! 👍😎
We are going to show them.
Thank you very much for the information! It helps a lot and as I'm still learning it helped me a lot I hope you keep publishing such good content.
I like the idea of 3 speak.
But I think tokens are a bit complex. I would maybe think to make it more retard friendly, so people like me understand it.
If hive users become the airdrop, why don't use hive for it for something?
IMO it would be cool and share the idea of 1 token for more networks. And it would be easier to understand and gives something like a miner a base value. Only an idea. I don't know how it would work out in practice or you already think about it.
Some offtopic, would you support 1-week powerdown + security/tressure features? I like the idea, because of the possible cycle that can follow up without any bigger risk.
I love this post, despite understanding maybe 10% of it, lol.
The parts I do understand though, are some of the most important I would say. Like, if I'm getting this correctly, you're focused on:
Spotting missed value and making sure it gets claimed/leveraged/added back into the community.
Encouraging truly loyal, committed, long-term hodlers over short-term speculators.
Gamifying and incentivzing the above two things, whether applied to video storage or something else.
I hope I've managed to understand you properly with my limited knowledge. I've only been on Hive 3 weeks and have just managed to grasp crypto & blockchain basics, but I didn't want to 'act scared' and avoid these deeper topics about SPK, Hive, Tokenomics, etc.
So this is me doing my best to get my feet wet. 🙃
(P.S. Thank you very much for upvoting my Hive Beginner's Guide, I really appreciate it.)
Para estudiar y analizar con sumo cuidado.
Muy interesante, sigue explicando, me va a costar un poco entender completamente cómo funcionan juntos.
PoA favors those with the maximum amount of hard drive. There is nothing stopping dedicated servers being set up, which we already have with 3speak.tv. We host over 100 TB of data in HD all over the world. The plan is to get other video networks to plug into the system. PoA is meant to consolidate to those that have the most earn the most.
However, small miners can still compete as well but the system does not rely on small miners, its naturally designed for max efficiency.
IPFS is far superior than blockchain for storing videos. Blockchain setups had a ton of limitations, overhead and inefficiency’s. IPFS was made for what we are doing.
Hey Xiko, we are not in 1995 and some but not all have more than dial-up 56k modems and Intel 486 computers. You don't need a dedicated server to deliver video globally in today's world. The idea of decentralization is NOT having DEDICATED SERVERS but having a lot of small distributed nodes. Thanks for the feedback and let me know if I am missing something here 🙂....we have come a long way since the days of:
