Attracting Whales (Financially Speaking)

in #hive-167922last year

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   Anyone who has played any mmo resource management game understands the level of money that flows through those games by whales that demand to be at the top of the game. It's pure liability on their part. They get no RTO, but they don't even care, just so long as it helps them achieve that goal of pushing closer to the top of the game.

   The Blog Industry side of Hive Blockchain doesn't have this element yet. I can't tell you what it would be, that's up to the devs. It has to some sort of pure liability that whales would part for, allows cash value to increase in rank, and uses the underlying Token exclusively for attainment. I offer the following idea example to demonstrate how this process might work.

   For popularity reasons, I am going to use LEO and Threads for this example, but any frontend can work something out. Let's pretend LeoThreads has a vanity product called Tiers. Tiers are a theoretical class system to threads, where their level of Tier allows them to progressively segment the threads displayed to them to only those between the Tier filter they have selected and the Highest Tier they have purchased for the month. Furthermore, the purchaser can limit the viewing audience by posting to a higher Tier, prohibiting lower tiers from seeing the threads, but displaying the thread to any viewer with the same Tier filter level up to the viewer's Tier level. The vanity product might have 5 Tier Levels (purchased by month) of varying degrees of price. Now that we have a theoretical product, I can explain to you how the economics work.

   LeoThreads uses LEO as it's underlying Token. The Token can be earned, or purchased. It would also be required, exclusively, as the purchase medium for Tier levels for the month. The value for each Tier is shown only in LEO and not estimated to any fiat value. So, Tier 1 might be 1000 LEO, Tier 2 might be 2000 Leo, etc, regardless of how that translates to fiat values. So, in order to pay for their Tier Purchase, they would have to earn or buy the Token from other users, thus, giving users a way to earn from their Token Holdings by putting some up for sale for Tier buyers to buy. Tokens used for Tier purchase would be divided, a portion to a LeoThreads revenue account, as revenue (which they would put on the market for users and whales to buy to produce a hive based income to the company) and a portion for redistribution to users as posting rewards (labor expenses, per se), based on how the public interacts with their efforts. You might say that each upvote (multiplied by weight) would indicate how many shares the user has towards the day's profits.

   From the LeoThreads side, they would take the day's earnings and divide it by the shares for the day and distribute each user's share that way. Users can then take those and save them up for their own Tier purchase, put them up for Whales to buy and take a revenue for them, or stake them for Token production.

   I believe the Tiers concept might be attractive to certain types of users who want an easy, paid for way, to be included into groups of similarly resourced persons. A desire to be included in the upper echelon has always been attractive to people with money to spend. Again though, this is an imaginary concept that I developed to explain how the Tokenomics would work. Whether it would actually work would be something the Blog Blockchain devs would have to work out for themselves.

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https://leofinance.io/threads/michaelklinejr/re-michaelklinejr-m26n6oyx
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i think i'll need to read this 3 or 4 more times to get to grips with it.

I hope you do, cuz it does go pretty deep into creating an economic cycle for threads. Again, the product is just an example, it's the economic cycle that's important. Any vanity product that can be bought with the underlying token will work.

i wil.
Can you think of an alternative name to Vanity product?

Vanity simply means that it is a purely aesthetic purchase that doesn't provide any real asset and is completely an expense. For example, buying a Dasani instead of just filling a jug to carry with you is a vanity expense. You want the water, but willing to pay extra for the unnecessary bottle. Vanity products are ways of taking advantage of the human nature to want more than is required to serve a purpose.

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