Part 7:
Robert: [00:27:56] What's the service infrastructure pool?
Matt: [00:27:58] Service infrastructure pool (SIP)? Ok, so yeah, you're right. You're right, it gets deep. So there's I'm assuming your followers may be familiar with DeFi and DeFi pools, but just off the top of my head, that is a pool of cryptocurrency that provides liquidity to trades. And then those trades occur within the pool. Everyone can stake money into that pool and everyone can withdraw money from that pool and the people executing the trades into that pool. They pay a small fee that then goes to the people who have stakes so as effectively like becoming the bank in the trading world. And so these DeFi pools have grown up all over the place, and that's a very basic idea of what I DeFi because it gets much more advanced than that and there's lots of different types now.
Robert: [00:28:45] So basically, if I if I believe in your concept and I either hold Hive or I'm not even sure yet some token or I acquire some token through exchanging it through bitcoin or fiat or whatever, I can stake it into this pool. And this pool is what guarantees that there are people with computers doing the work.
Matt: [00:29:09] Yes, yes. No, you're right. You're right. That's that's partly what it is. Effectively, we've taken the concept of a DeFi pool and it's still the same technology. But whereas all the stakers get paid out, all of the fees in this case, what we're doing is we're coming up with a way for the community or the chain or the protocol to provide a service to people i.e. distributed distributed infrastructure for content. People want to pay for that. Some people want to make sure that they can have access to that technology. So instead of paying directly to the service providers, it peers in the network, which part of it will be a direct payment. But the other part of it will go into the sip into the DeFi pool, which is called, we call it, service infrastructure pool. And this will become clear why we call it this in a second. So those payments go in. But because you're paying the protocol, then they never need to come out of the pool. It's like you're paying the protocol and you know, you're receiving the service. So for example, the first thing that we're doing is you pay in and you receive money tokens from the chain. You receive new money tokens from the chain, which then you can stake in the mine with. What it does is it creates what we hope will be a continuous flow of money into the pool that never leaves the call. So you'll have an ever growing liquidity pool backing the project and the fees that then generate some of those fees will get paid to the people staking the people who stake in and stage just like a normal DeFi pool. But some of the other fees will get paid to the service infrastructure providers or into the die to fund what projects that the community is doing. So effectively, what you're doing is you're taking some of the energy that's going into the system, directing it into the DAO. Sorry, directing it into the service infrastructure pool that then grows continuously because it never comes out. And then those fees are used to fund the service infrastructure providers to fund projects that are going on within the ecosystem.
Matt: [00:30:58] And so it's a more it's a bit like putting a turbocharger on on a on a on a combustion engine. It's like instead of just having a DeFi called at stake to get state money from everyone who earns fees, you directly some of those fees back into the projects, which should create a cascading kind of circular value that gets reinvested into the ecosystem autonomously and based on community votes. So as the members of the community vote where that money is going to go, that's where the money will get distributed. Again, we want to have zero say in that just whatever tokens we end up accumulating from mining with everyone else, we will have that say. So it's just the kind of new concept because at the moment, the world is going crazy about DeFi and how to make money off DeFi. Whereas what we've realized is instead of making money off DeFi, you can reinvest that and create a backbone for your projects. And here's the other beauty of this I don't know if I'm getting a little bit too far down the rabbit hole. Not great. We'll have a cat governance token, which is what the Speek token will be. Basically, you earn it for taking part in the mining in the network, which is being an infrastructure provider mostly. And that will be a cat governance token issued slowly over time, like bitcoin. So it will have a cap eventually and it will kind of stop being issued. What that does is it gives us time to slowly but surely accumulate payments into the service infrastructure pool so that it grows to a certain point whereby the fees coming out of that pool because it will be such a big liquid pool, maybe after three or four or five years, know, hopefully it will allow enough fees to be generated such that the project can now start to self-sustaining without having to worry about external investors or whether the governance token performs or not. The idea is you're supplementing the initial reward distribution with a cat governance token so that people are still getting paid some value, while at the same time you kind of Trojan horse in this big DeFi pool in to a certain point where after a couple of years, hopefully there'll be enough staked in there and enough accumulated payments into that pool that it's sustains the project or at least creates a good chunk of the cost of the project that the service infrastructure providers are going to need.
Matt: [00:33:06] And then, you know, hopefully by that time, the cap kind of starts to get rich in the governance token. It's now distributed to the value providers of the network, and you never had to ask for money. You never had to ask for external money to to to put you into debt effectively. You know, if you talk about seed round funding, these are all effectively debts that you have to, you know, the initial investors will want to cash out to the community that's buying the token at a later phase. Well, that's this idea allows you to start thinking about avoiding that completely as a startup, and we hope it will be a kind of new way that startups will look at funding themselves in the future with cap governance tokens combined with a DeFi pool that distributes payments out to the service infrastructure providers of the network, basically.