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.
@theycallmedan/q-and-a-about-the-speak-network
@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.