Game Theory and Governance of Scalable Blockchains for Use in Digital Network States
Chapter 23. A New Model for Start-up Funding
- DAO / Mining token / fix Gov token supply model / self-funding with DAO's
- Purchasing from the chain
- Liquidity and value through miner token purchasing, staking, and infra operation
- Starting a new decentralised project
- Things you want to see in the funding of a project
- Team
- Go under the radar, low-value tokens at the beginning
- Easy to distribute tokens (by delegating or ISHD)
- Aligning everyone's incentives
- No initial founder tokens
- Equal opportunity mining
- Rebel against vested founders
- Who do you give the tokens to and who decides?
- Choice of community
- Token Drops vs GPU mining
- Founders don't end up with majority of supply
- Community supports founders
- Monitoring the decentralisation of the project in the early days
▶️ 3Speak
Transcript ⏬
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Chapter 23 is a new model for startup funding.
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So in this case, you have the ability to have the DAO fund a project that launches a token
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that starts off with a really, really low cap and then speeds up and then maybe later
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on in its life phases out until it doesn't reach a cap because you always need inflation
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for zero fee communities, zero fee projects, or zero fee transactions.
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But you will basically be able to distribute this token during the build, during the funding
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period to community members who take part in the project because they'll be able to
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do things like run the initial infrastructure, run the initial...
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Kind of builds of some of the projects, open source builds and things.
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And then as a result, they'll slowly mine the initial supply, but because they've provided
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something of value instead of just some massive miner that mines a ninja mine, for example,
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or had enough capital to buy into the VC ICO really, really early.
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So this is a beautiful thing because it means you can start off with a really, really low
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inflation.
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But get people interested in it.
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And then distribute rewards to them.
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Then once the project's gone through the final test net phase, you can ramp up the inflation.
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When I say you, I don't mean you as an entity, I mean the community that runs this project
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can vote to ramp up the inflation to normal levels, which means the early adopters didn't
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get rewarded anywhere near as much as they do in many other projects, but they probably
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got the voting saying who got to be elected in to run the infrastructure for those projects
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because they had the initial supply, so they voted people in.
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That's normally like a two-year build period, maybe even three years.
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And so you can't say, oh, these people mined all the tokens for themselves initially, because
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they won't, because the initial inflation over the first two or three years is really
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low compared to what's going to happen in normal operation.
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So we think that's a really interesting way to fund these projects.
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The other thing that's really cool here is that you can apply the SIP model, which we
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talked about earlier, the Service Infrastructure Pool.
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Okay.
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Where the Service Infrastructure Pool will give you miner tokens that help you mine more
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efficiently in the ecosystem, but it's an autonomous system.
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So people pay into the SIP, and they're not paying an entity, they're paying the blockchain
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basically.
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And that money goes into a liquidity pool, and then that liquidity pool is used to create
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liquidity and generate fees, but those fees don't belong to anyone because it's money
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that's been paid in to receive miner tokens.
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And that money can be used to help sustain and fund the project.
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Liquidity and value through miner token purchasing, staking, and infra operation.
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Yeah, I've kind of touched on that.
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Starting a new decentralized project, we've touched on that.
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Things you should see.
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So you should then see, from fairly early in the project, large, credible mining operators
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that aren't really going to earn much money from it initially, but those people should
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be taking interest in the project.
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You should see various nodes that are run early on.
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That allows you to have a better understanding of what's going on in the project.
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Okay.
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And that allows for you to see, oh, there's credible people in this project, and they're
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actually staking.
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They've gone in, they may have received an airdrop.
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So for example, another way to return value to these DAOs is if you've got your project
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funded and then you drop a miner token, not the governance token, a miner token to the
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community that funded you.
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So drop a miner token back to the DAO community, and now they've got the chance to claim their
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miner tokens every month for a reason.
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Okay.
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For a period of time.
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That then allows you to see a long kind of drawn out claim process until...
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So then a lot of people won't claim, and that's fine.
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Those people, you didn't want them in the project anyway, right?
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People who are interested in the project will claim every month.
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And then once the tokens are dropped, they'll stake their miner tokens to the project.
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And that allows them to bring infrastructure against those miner tokens.
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The more miner tokens they've got, the more efficiently they can mine, and the more governance
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token they'll mine during the startup period.
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So what it means is you...
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Cut out many of the early compromises that you make with ICO projects because people
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who actually wanted to be involved will have claimed their miner tokens, and then those
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people can use those miner tokens to get the governance token.
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It also clears out a lot of people that aren't interested in your projects, which is good.
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You don't want those people anyway.
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Okay.
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Yeah.
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And then it returns value to the community because you're dropping a token to the community.
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So I think that's really an interesting way to fund these projects.
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It also allows you to start to build a team because you'll start to see people popping
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up that are interested in the project because they receive some value.
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Once people receive value, most people will sell, but some people that are interested
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in your project will say, oh, that's interesting.
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The community voted for this project, so the community is funding it.
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And we're interested in it.
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Yeah.
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We're interested in going to the next phase with you.
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Can we build some stuff together?
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Right?
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And that's what you see a lot with these projects because at that point, those people realize
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that you're not the owner of the project.
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Just because you initiated the project, you didn't give yourself a fat pre-mine.
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So other people will be interested in the projects as well because they're as much an
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owner as you are based on their stake in the DAO community that funded you.
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Other things that you should see is you don't want to see only a few accounts holding the
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token and claiming the token.
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You want to see a good range.
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Five, 10, 15,000 accounts.
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Okay.
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Five, 10,000 accounts claiming.
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You want to see hundreds and hundreds of accounts being active on the token in the early phases
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so that you know there's lots of individuals there.
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If you see that, you've got a good recipe for a decentralized community to start.
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And over time, you want to see that, especially during the initial build, you want to see
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that supply more or less remaining well distributed amongst the community.
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And then when the project goes live and you really ramp into main net and you ramp up
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the inflation, then ideally you'd want to see that distribution grow.
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But if it's centralized a little bit from that point, it's okay.
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As long as it doesn't end up with five to 10% of the token in the hands of one account.
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You want to try and maintain a well decentralized model.
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And then if you do start to see centralization of the token during the early testnet period,
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then you can go back to the community and say, hey guys, we're seeing this happen.
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What do we want to do about it?
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Do we want to do anything about it?
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Or do we want to ask this person to burn some tokens or ask them to return some tokens to
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the DAO so that they're not centralizing the model too much?
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Because of course those tokens allow them to vote.
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The point is it gives you the best opportunity for success without having to be a dictatorial
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controller of the project.
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It also, because it's a very low inflation initially, allows you to go under the radar
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during the initial build, which I think is a very important thing.
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A lot of people want the most attention possible straight away, but that's more susceptible
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to pump and dumps.
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You're going to get pump and dumps over time happen where I've got all the attention straight
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away.
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You've got the roof and now people want to dump.
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You obviously can't do anything about the token price, but if you set up the conditions
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in which the initial build is sustained by the DAO and the initial build has a low token
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price, and then slowly but surely as the technology is built, you get some credible use of that
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technology and you get demand for the token because of the economic model that you've
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built.
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Now you can start to see a little bit of a spike in the use of these tokens, and that
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will create an organic demand for the token.
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That's a good thing.
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That's how you're supposed to launch these tokens.
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Everything else is susceptible to pump and dumps and scams and regulation and takeover
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by VC.
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Easy to distribute tokens by delegating.
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Yeah, so people who are a bit more passive on the project that aren't directly involved,
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they can take those minor tokens and delegate them to other people who are more involved
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and then they can earn some passive rewards in the form of the governance token as a result.
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So that's a really good thing.
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It's a really useful way, as far as I'm concerned, for your passive users to also gain some of
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the supply.
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It'd be a much lower amount, of course, because they're not running any infrastructure, but
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they would at least be able to keep up with some form of inflation of the token, the governance
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token.
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What does all this do?
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It aligns everyone's incentives.
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So everyone's incentives now align because there's no VC that bought in early.
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Everyone started mining from zero.
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Everyone who wanted to claim, claimed their miner token, and then everyone who was really
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involved.
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Everyone had that miner token and ran infrastructure and helped develop the project.
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And then over time, they've gained more stake because the more infrastructure you run, the
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more miner tokens you stake, the more rewards in the ecosystem you can gain during the early
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phase.
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And so really, the people who've got hold of the token, the people actually contributing
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to the project during the build phase, which I think is a massive deal, as opposed to some
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VC being able to get the tokens nice and early because they've got a massive pot of money,
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not contributing very much.
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And then using unsuspecting community members later on as exit liquidity, which is what
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you invariably see in the crypto world at the moment.
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The model I'm describing here aligns the incentives of everyone.
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There isn't some early VC that got hold of the token for cheap.
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There isn't some...
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And everyone that did get hold of the token, most of those people did a good amount of
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work.
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So there isn't any initial member with a load of stake that can just dump it on the community
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in a later phase.
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It also gives everyone an equal opportunity to invest.
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Yeah.
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It gives everyone an equal opportunity to mine.
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Because if the whole DAO community was dropped a miner token, they can then use that to stake
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and either delegate the miner token to earn rewards or run infrastructure and stake the
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token to earn governance tokens, to earn more governance tokens.
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If you stake the miner token, you earn a smaller amount of governance tokens, but you still
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earn them.
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And so everyone's got a chance to just come in, stake or come in and run infrastructure
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and mine the governance token.
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So there are ways that you can do that.
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But it's a bit of a privilege.
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I think that's something that you can do in a very low inflation period during the
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build phase.
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I think that's very, very important.
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The other thing that it allows you to do is rebel against vested founders.
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So like, you don't have any founders here that have given themselves an ICO.
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In this model, there's no 10% pre-mine or 20% pre-mine that's given to the founders
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to fund their project, right?
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This is an ongoing funding from a separate DAO
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and the project that's being built
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is going to benefit that DAO.
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There's no founder involved as a result.
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They're just early builders,
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people that built, people that contributed,
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people that provided value,
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people that ran infrastructure early on.
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And so really you're rebelling
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against the idea of vested founders.
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There is no one that's vested in these systems
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if you build them properly in the way I'm describing.
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And then the age-old question
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in these blockchain communities
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is who do you give the tokens to
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and who decides where these tokens go?
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Well, in typical ICO blockchains,
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some founder clicked a button
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and sent tokens to his account
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and then he distributed them to ICO investors.
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Well, the question is who ordains you?
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Just because you created the project
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doesn't mean you're ordained then
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to direct those tokens.
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That is not a fair question.
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That is not a fair launch.
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A fair launch is where the community
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can set inflation values itself
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and reward value creators in the ecosystem
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from an autonomous layer
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where the community members are not able
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to click a button and distribute 10% of the supply
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to some initial VC founder,
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initial VC funder.
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And I'm harping on about this a little bit,
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but I think it's very, very important
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in truly decentralized communities
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and truly decentralized ecosystems.
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And as people learn this technology,
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that's what I think the prevailing methodology
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is going to be.
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How do you remove pre-mines?
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How do you remove ICOs,
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the requirement for them?
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How do you remove pre-funding for them
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and get funding from decentralized DAOs
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so you can have truly neutral protocols
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at the end of the build phase?
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Choice of community as well.
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You know, you really have to make sure
237
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that the DAO that you're approaching
238
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to fund your project,
239
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A, that you're benefiting it,
240
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and B, that that DAO is actually decentralized.
241
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You really have to do your due diligence
242
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and research to work out
243
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how centralizes this DAO?
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00:12:52,820 --> 00:12:53,740
Who controls the DAO?
245
00:12:53,800 --> 00:12:54,820
Who has the final vote?
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00:12:55,260 --> 00:12:56,500
Is there one individual that votes
247
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for every project on the DAO?
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00:12:57,840 --> 00:12:58,540
And therefore, you know,
249
00:12:58,580 --> 00:12:59,400
if he removes his vote,
250
00:12:59,660 --> 00:13:00,600
all the projects get unfunded?
251
00:13:00,620 --> 00:13:01,240
Or is it possible
252
00:13:01,240 --> 00:13:03,800
for the community to fund its own projects
253
00:13:03,800 --> 00:13:05,720
without the vote of that one biggest stakeholder,
254
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for example?
255
00:13:07,200 --> 00:13:07,860
Some DAOs, yes.
256
00:13:07,900 --> 00:13:08,440
Some DAOs, no.
257
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And of course, that changes over time as well.
258
00:13:12,320 --> 00:13:13,180
But you want to just try and do
259
00:13:13,180 --> 00:13:14,660
as much as you can to make sure that,
260
00:13:14,840 --> 00:13:15,700
as much research as you can
261
00:13:15,700 --> 00:13:17,340
to make sure that those DAOs are decentralized.
262
00:13:17,640 --> 00:13:18,380
And in that way,
263
00:13:18,740 --> 00:13:20,740
when you drop the miner token to the community,
264
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you have the best chance possible.
265
00:13:22,820 --> 00:13:26,500
of it being a decentralized project at the end.
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And the thing is,
267
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decentralization is hard.
268
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You know, like it doesn't,
269
00:13:30,380 --> 00:13:32,480
even that doesn't mean that after two years,
270
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you're going to have an actually decentralized project
271
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after two years of build phase.
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It may be that at some point during that distribution,
273
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something went wrong
274
00:13:41,680 --> 00:13:43,740
or someone bought a massive amount of stake
275
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and it damaged your ability to distribute tokens.
276
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You've got to keep your eye on this stuff.
277
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But the tools that I'm describing here
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give you the best chance,
279
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in my opinion,
280
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of,
281
00:13:52,820 --> 00:13:55,200
maintaining and keeping a decentralized community
282
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after your build phase.
283
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We prefer dropping tokens to DAO communities
284
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rather than doing GPU mining phases.
285
00:14:05,000 --> 00:14:07,620
And we see so many times that GPU mining
286
00:14:07,620 --> 00:14:09,820
in proof of state leads to a ninja mine,
287
00:14:10,500 --> 00:14:13,240
or it leads to an over centralization in the supply
288
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because it's basically infrastructure voting.
289
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We believe in dropping miner tokens
290
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to existing decentralized communities.
291
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They've got a good distribution already,
292
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and then letting them choose whether they want to vote,
293
00:14:26,540 --> 00:14:28,520
whether they want to claim those tokens
294
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and get involved in the project or not.
295
00:14:31,380 --> 00:14:32,440
That, in our opinion,
296
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has the highest chance of resulting in a project
297
00:14:36,140 --> 00:14:40,100
where you have minimum centralization,
298
00:14:40,320 --> 00:14:42,120
basically minimum chance of centralization.
299
00:14:45,620 --> 00:14:46,140
And of course,
300
00:14:46,140 --> 00:14:47,900
it also means that the founders don't end up
301
00:14:47,900 --> 00:14:49,200
with the majority of supply.
302
00:14:50,760 --> 00:14:51,280
For example,
303
00:14:51,280 --> 00:14:52,160
on the SPK Network,
304
00:14:52,260 --> 00:14:52,820
the founder,
305
00:14:52,820 --> 00:14:54,440
they're not really founders at that point,
306
00:14:55,380 --> 00:14:57,920
but the guys that came up with the projects,
307
00:14:58,060 --> 00:14:59,180
I'm actually one of them.
308
00:15:01,580 --> 00:15:05,580
My stake is much lower than other people
309
00:15:05,580 --> 00:15:07,100
that haven't done a single day's work in the project,
310
00:15:07,100 --> 00:15:08,140
but they just took an interest in it
311
00:15:08,180 --> 00:15:09,800
and then maybe ran some infrastructure,
312
00:15:10,220 --> 00:15:11,600
but they certainly didn't found it.
313
00:15:11,720 --> 00:15:12,440
So as a result,
314
00:15:12,440 --> 00:15:13,460
the founders don't,
315
00:15:13,700 --> 00:15:15,560
they're not guaranteed to have the biggest supply.
316
00:15:15,580 --> 00:15:18,440
They just drop supply based on their stake in the DAO.
317
00:15:19,200 --> 00:15:20,600
And that could be whatever it ends up being.
318
00:15:20,620 --> 00:15:22,640
But it means that there's certainly people in the
319
00:15:22,640 --> 00:15:24,680
ecosystem that have got more stake than me,
320
00:15:25,040 --> 00:15:27,080
and they haven't done a single day's work on the ecosystem,
321
00:15:27,080 --> 00:15:28,160
whereas I've worked a lot on it.
322
00:15:28,700 --> 00:15:30,120
But that's the point of decentralization.
323
00:15:30,120 --> 00:15:30,800
It's not about,
324
00:15:30,800 --> 00:15:31,460
oh, I'm a founder,
325
00:15:31,460 --> 00:15:32,480
I get the most supply.
326
00:15:32,540 --> 00:15:33,080
No, no,
327
00:15:33,080 --> 00:15:33,500
I'm building,
328
00:15:33,500 --> 00:15:34,820
we're building neutral protocols here.
329
00:15:35,180 --> 00:15:37,300
We're trying to build protocols that got fair launches attached to them.
330
00:15:37,300 --> 00:15:37,600
So,
331
00:15:37,600 --> 00:15:40,860
so the founders end up with whatever the founders end up with.
332
00:15:40,860 --> 00:15:42,320
If they don't have any stake in the DAO at all,
333
00:15:42,320 --> 00:15:44,000
they won't end up with any sort of any other drop,
334
00:15:44,660 --> 00:15:47,700
which is also I would consider an even fairer launch.
335
00:15:52,640 --> 00:15:56,060
The community supports the founders.
336
00:15:56,400 --> 00:15:56,840
Of course,
337
00:15:56,840 --> 00:15:57,560
at that point,
338
00:15:58,160 --> 00:16:00,860
if the founders perform well over the first six months,
339
00:16:00,860 --> 00:16:01,260
a year,
340
00:16:01,260 --> 00:16:02,720
two years of the build phase,
341
00:16:03,140 --> 00:16:04,040
the initial build phase,
342
00:16:04,980 --> 00:16:06,680
and the project starts to take shape,
343
00:16:08,100 --> 00:16:17,360
there's a very good chance that you can then create enough liquidity to build a DAO in that same governance token of the project.
344
00:16:18,680 --> 00:16:20,420
And that DAO can be elected by the community.
345
00:16:20,420 --> 00:16:21,740
So the community can then say,
346
00:16:22,640 --> 00:16:24,380
we're going to run a fork in this chain.
347
00:16:24,380 --> 00:16:28,580
We're going to run updates to this chain that has a DAO over here in the governance token of the new project.
348
00:16:30,200 --> 00:16:32,900
And that DAO may have 5,
349
00:16:32,900 --> 00:16:33,160
10,
350
00:16:33,160 --> 00:16:38,840
15% of the supply of the tokens in the liquid tokens in the projects at that time.
351
00:16:39,740 --> 00:16:42,800
And it may grow proportionately to the inflation of the projects.
352
00:16:42,800 --> 00:16:43,920
And the more the projects inflates,
353
00:16:43,920 --> 00:16:47,760
a portion of that inflation goes to the DAO to fund the project.
354
00:16:48,160 --> 00:16:48,300
Well,
355
00:16:48,300 --> 00:16:52,200
the cool thing about that then is that the founders or the initial build team,
356
00:16:52,200 --> 00:16:58,740
of the project could make a proposal into that new projects DAO.
357
00:16:59,640 --> 00:17:01,500
And if the rest of the community votes for them,
358
00:17:01,500 --> 00:17:02,940
because they liked the job that they did,
359
00:17:03,360 --> 00:17:09,240
they will then start to receive some inflation from the DAO in the form of the governance token.
360
00:17:09,480 --> 00:17:10,860
But it's voted for by the community.
361
00:17:10,860 --> 00:17:12,700
It's a decentralized decision.
362
00:17:13,240 --> 00:17:18,840
So the community members that built the projects can also benefit and be paid and funded by the DAO.
363
00:17:18,840 --> 00:17:21,300
So it's like you start off in the original DAO,
364
00:17:22,200 --> 00:17:25,500
you get funding from that first one,
365
00:17:25,500 --> 00:17:25,740
two,
366
00:17:25,740 --> 00:17:27,200
three years of the initial build.
367
00:17:27,300 --> 00:17:28,080
And during that build,
368
00:17:28,080 --> 00:17:30,780
you build your own DAO and your own projects and your own token.
369
00:17:32,540 --> 00:17:34,280
So that after two or three years,
370
00:17:34,280 --> 00:17:37,400
as you start to get utility of the project that you're building and the tokens that you're building,
371
00:17:37,400 --> 00:17:38,620
you start to get liquidity coming in.
372
00:17:39,080 --> 00:17:43,260
You can have your own DAO and then your own community can vote for you to be funded.
373
00:17:43,760 --> 00:17:46,260
That is not decentralized in any way,
374
00:17:46,380 --> 00:17:48,180
because as long as the community is voting for you,
375
00:17:48,540 --> 00:17:49,980
and it's after a period of time,
376
00:17:50,100 --> 00:17:52,180
as long as you've demonstrated that you've done a good job,
377
00:17:52,200 --> 00:17:53,220
the community will vote you in.
378
00:17:53,220 --> 00:17:57,960
So there's a good chance that the initial build team will be able to get funding going forwards.
379
00:17:59,400 --> 00:18:03,480
And this is a great way to do it because at no point did the initial build team ever have to say,
380
00:18:03,480 --> 00:18:03,660
right,
381
00:18:03,660 --> 00:18:04,440
we're taking these tokens,
382
00:18:04,440 --> 00:18:06,020
we're putting them to our own pocket,
383
00:18:06,440 --> 00:18:09,980
and we're going to have a pre-mine and we're going to control this chain until we're ready.
384
00:18:10,800 --> 00:18:19,260
Because of course human behavior invariably shows that if there's any point at which some founder says,
385
00:18:19,260 --> 00:18:22,060
we're going to centralize this project initially so we can make sure it builds,
386
00:18:22,060 --> 00:18:22,560
and it grows right,
387
00:18:22,560 --> 00:18:24,340
and then at a certain point we'll decentralize later.
388
00:18:25,060 --> 00:18:27,640
You show me the percentage of decentralization rates.
389
00:18:27,640 --> 00:18:28,060
They don't.
390
00:18:28,060 --> 00:18:29,340
They don't give up their supplies.
391
00:18:29,340 --> 00:18:30,300
They don't give up their stakes.
392
00:18:30,300 --> 00:18:31,380
They line their pockets,
393
00:18:31,380 --> 00:18:32,080
they make themselves rich,
394
00:18:32,080 --> 00:18:34,900
and then they leave at the best of cases.
395
00:18:36,280 --> 00:18:37,180
Invariably,
396
00:18:37,180 --> 00:18:37,980
it's very,
397
00:18:37,980 --> 00:18:39,840
very rare that they actually say,
398
00:18:39,840 --> 00:18:39,980
oh,
399
00:18:39,980 --> 00:18:40,880
we're going to decentralize later,
400
00:18:40,880 --> 00:18:42,280
and then they actually decentralize later.
401
00:18:43,460 --> 00:18:44,920
And why would you trust the founders to do that?
402
00:18:44,920 --> 00:18:46,660
Why should you do that when you could do it this way,
403
00:18:46,860 --> 00:18:51,520
where the founders can build their own DAOs later and then apply for funding from the community,
404
00:18:51,520 --> 00:18:52,060
and let the community vote for you?
405
00:18:52,060 --> 00:18:53,320
If they're doing a good job,
406
00:18:53,320 --> 00:18:54,060
they'll get funded,
407
00:18:54,760 --> 00:19:00,960
and that allows them then to continuously add to the project and maintain the project and everything like that going forwards.
408
00:19:00,960 --> 00:19:11,440
We think that is the fairest method to fund a project and will leave a project with the highest chance of being decentralized at the end of the initial build.
409
00:19:13,440 --> 00:19:14,080
Okay,
410
00:19:14,080 --> 00:19:17,460
let's talk about a new model for startup funding.
411
00:19:18,860 --> 00:19:21,860
So this came about with our work on the SPK Network project,
412
00:19:21,860 --> 00:19:22,060
which is,
413
00:19:22,060 --> 00:19:25,660
which is a decentralized file storage system and infrastructure operation system,
414
00:19:25,660 --> 00:19:27,960
and it incentivizes the people that do those actions.
415
00:19:29,160 --> 00:19:31,260
And it came about because on Hive,
416
00:19:31,260 --> 00:19:31,960
you can store text,
417
00:19:31,960 --> 00:19:34,360
but you can't store video and other types of files.
418
00:19:35,960 --> 00:19:37,460
And on the same on all blockchains.
419
00:19:38,360 --> 00:19:44,460
So you need an off-chain storage system to build the ability to store videos,
420
00:19:44,660 --> 00:19:45,360
images,
421
00:19:45,660 --> 00:19:46,460
software,
422
00:19:46,660 --> 00:19:48,660
all that type of stuff that you can't store on chain.
423
00:19:49,160 --> 00:19:51,660
And then you need to incentivize people for storing it to keep it online.
424
00:19:52,060 --> 00:19:53,760
That's the side on the SPK Network,
425
00:19:53,760 --> 00:19:57,860
but it inherently benefits Hive because Hive can't do that on its base layer.
426
00:19:58,860 --> 00:20:03,660
So it's in Hive's interest to elect to fund a project through its DAO,
427
00:20:03,660 --> 00:20:07,460
such as that that benefits Hive once it's built.
428
00:20:09,460 --> 00:20:13,160
And SPK Network benefits from it because there's obviously it's no strings attached funding,
429
00:20:13,160 --> 00:20:15,660
but it's based on the reputation that Dan and I built.
430
00:20:16,160 --> 00:20:17,360
And this is this goes for anyone.
431
00:20:17,360 --> 00:20:18,360
It's not just Dan and I that can do this.
432
00:20:18,360 --> 00:20:20,960
Anyone, anyone that's built reputation on these chains can do this.
433
00:20:22,060 --> 00:20:26,460
And the DAO is decentralized because Hive doesn't have a CEO or a pre-miner or anything like that.
434
00:20:26,460 --> 00:20:27,960
So there's no company behind it,
435
00:20:27,960 --> 00:20:31,660
which means that anything that it funds is also decentralized.
436
00:20:33,060 --> 00:20:34,660
As long as it maintains,
437
00:20:34,760 --> 00:20:34,960
you know,
438
00:20:34,960 --> 00:20:36,360
it also has the chance to be decentralized.
439
00:20:36,360 --> 00:20:37,960
It maximizes the chance to be decentralized.
440
00:20:38,460 --> 00:20:40,360
So we think the SPK Network is done that way.
441
00:20:40,360 --> 00:20:49,160
And we there was a very interesting model that we deliberated on long and hard over many months before we finally got funding.
442
00:20:49,160 --> 00:20:51,160
And then we executed the project.
443
00:20:51,160 --> 00:20:51,960
And now we feel that.
444
00:20:51,960 --> 00:20:55,960
We've got a pretty well decentralized SPK Network.
445
00:20:56,260 --> 00:21:06,360
And we want to discuss how we did that in this section so that other people can take the same model and apply it to funding of their own projects without having to use an ICO or a pre-mine.
446
00:21:07,160 --> 00:21:09,660
And the ICO and pre-mines are bad because they,
447
00:21:11,560 --> 00:21:12,460
as Dan was just saying,
448
00:21:12,460 --> 00:21:15,460
they misalign the incentives of the community.
449
00:21:16,560 --> 00:21:17,260
You end up,
450
00:21:17,260 --> 00:21:17,560
you know,
451
00:21:17,560 --> 00:21:21,060
who are you to ordain yourself with the ability to move 10% of the tokens into your own account?
452
00:21:21,060 --> 00:21:22,360
At the start of the project,
453
00:21:22,360 --> 00:21:23,960
just so you can fund your project.
454
00:21:24,660 --> 00:21:25,860
But in reality,
455
00:21:25,860 --> 00:21:28,960
there's another way to do this by using actually decentralized DAOs,
456
00:21:29,660 --> 00:21:30,960
drop in a minor token,
457
00:21:33,060 --> 00:21:41,660
having a gas token in the ecosystem and having a governance token that you can earn from staking the minor tokens and running infrastructure.
458
00:21:42,660 --> 00:21:44,560
And then over the build period of the project,
459
00:21:44,560 --> 00:21:48,860
you can slowly but surely distribute the governance tokens to the value creators in the ecosystem.
460
00:21:49,960 --> 00:21:50,860
And then the model goes,
461
00:21:50,860 --> 00:21:52,360
you keep the inflation really,
462
00:21:52,360 --> 00:21:55,560
really low initially for the first build period.
463
00:21:56,660 --> 00:22:03,260
So that you don't end up with accusations of early adopters got all the tokens,
464
00:22:03,660 --> 00:22:04,060
right?
465
00:22:04,260 --> 00:22:05,460
You have a really low inflation.
466
00:22:05,460 --> 00:22:07,160
So early adopters don't get many tokens,
467
00:22:07,160 --> 00:22:08,660
but they get the right to govern,
468
00:22:09,560 --> 00:22:09,760
right?
469
00:22:09,760 --> 00:22:11,860
So that's you kind of exchanging that you like.
470
00:22:11,860 --> 00:22:11,960
Well,
471
00:22:11,960 --> 00:22:12,760
you okay.
472
00:22:12,760 --> 00:22:13,760
We didn't give him any tokens,
473
00:22:13,760 --> 00:22:16,460
but they got the right to govern and choose once the thing went live.
474
00:22:17,460 --> 00:22:20,260
He fell into the main operation of the infrastructure positions.
475
00:22:21,460 --> 00:22:22,760
And then once the project goes live,
476
00:22:22,760 --> 00:22:33,460
then you can as a community vote to ramp up the inflation to bring it to normal levels so that anyone coming late to the project can actually have a chance of mining some of the governance tokens their own
477
00:22:36,660 --> 00:22:40,160
accounts for running infrastructure and doing other valuable things in the ecosystem.
478
00:22:40,560 --> 00:22:42,060
And then towards the end of the project,
479
00:22:42,060 --> 00:22:42,860
have to say 10,
480
00:22:42,860 --> 00:22:43,160
15,
481
00:22:43,160 --> 00:22:43,460
20,
482
00:22:43,460 --> 00:22:43,660
30,
483
00:22:43,660 --> 00:22:43,860
40,
484
00:22:43,860 --> 00:22:44,460
50 years.
485
00:22:44,460 --> 00:22:45,860
Who knows what you end up choosing?
486
00:22:46,960 --> 00:22:47,660
You cut,
487
00:22:47,660 --> 00:22:48,560
you don't cut the token,
488
00:22:48,560 --> 00:22:49,860
but you ramp off the inflation.
489
00:22:49,860 --> 00:22:50,660
So it stops.
490
00:22:50,660 --> 00:22:53,660
Inflating rapidly similar to Bitcoin,
491
00:22:53,660 --> 00:22:54,760
except it doesn't have a cap.
492
00:22:54,760 --> 00:22:56,260
It reaches a capped area,
493
00:22:56,260 --> 00:22:58,760
but then it kind of inflates very slowly for the rest of time.
494
00:22:59,260 --> 00:23:02,360
And that allows you to keep your transactions either free or very,
495
00:23:02,360 --> 00:23:02,560
very,
496
00:23:02,560 --> 00:23:02,860
very,
497
00:23:02,860 --> 00:23:03,860
very low cost.
498
00:23:05,960 --> 00:23:08,760
That's the model that we use to fund and we didn't use an ICO.
499
00:23:08,760 --> 00:23:14,760
We just dropped minor tokens to the community of Hive of the down and they managed to,
500
00:23:16,060 --> 00:23:17,260
if they're interested in the project,
501
00:23:17,260 --> 00:23:19,660
claim their tokens over a period of time.
502
00:23:19,660 --> 00:23:20,260
Ideally,
503
00:23:20,660 --> 00:23:23,160
and the people that weren't interested in the project,
504
00:23:23,460 --> 00:23:24,660
they didn't claim any tokens.
505
00:23:24,660 --> 00:23:26,760
So then you end up with a project of interested people.
506
00:23:29,260 --> 00:23:30,460
And then you start the build phase.
507
00:23:30,660 --> 00:23:32,860
So you don't need an ICO and you know,
508
00:23:32,860 --> 00:23:37,160
alongside that we got elected by the community of Hive to get funded.
509
00:23:38,360 --> 00:23:40,260
And they funded us for about two and a half years.
510
00:23:42,260 --> 00:23:42,460
Well,
511
00:23:42,460 --> 00:23:44,460
the funding to SPK Network project for about two and a half years.
512
00:23:45,060 --> 00:23:46,360
And now at the end of the build,
513
00:23:46,360 --> 00:23:48,260
we're coming towards the end of the build phase at this time.
514
00:23:48,260 --> 00:23:50,560
June,
515
00:23:50,560 --> 00:23:57,460
2024 and it seems that we have an active community of people that have a well-distributed
516
00:23:57,460 --> 00:24:01,160
governance token holding people using the minor token.
517
00:24:02,360 --> 00:24:03,960
If you don't want to run infrastructure,
518
00:24:04,360 --> 00:24:07,960
you can stake the minor token and then delegate it to other people who are running
519
00:24:07,960 --> 00:24:10,460
infrastructure and you receive some governance token for that.
520
00:24:11,760 --> 00:24:16,460
So that's how we recommend to do a start of a project and uses technology.
521
00:24:18,260 --> 00:24:18,760
Well,
522
00:24:18,760 --> 00:24:20,560
how do you want to approach this done?
523
00:24:22,260 --> 00:24:22,560
You know,
524
00:24:22,560 --> 00:24:26,060
we discussed a lot of this in the previous,
525
00:24:26,060 --> 00:24:27,960
but if you're talking,
526
00:24:29,960 --> 00:24:32,060
so you have to layer one fund.
527
00:24:33,260 --> 00:24:36,060
So to get from a Dow is like the domino effect.
528
00:24:36,060 --> 00:24:38,960
I don't know if you've seen that meme where you flick one small domino and it gets
529
00:24:38,960 --> 00:24:40,060
into like a big domino,
530
00:24:40,560 --> 00:24:43,760
something that's seemingly small and then it ends up with something big.
531
00:24:43,760 --> 00:24:46,060
So in order to have a Dow,
532
00:24:46,060 --> 00:24:46,560
first of all,
533
00:24:46,560 --> 00:24:48,060
you need to create censorship resistance.
534
00:24:48,260 --> 00:24:53,360
One way to do that is the text based distribution.
535
00:24:53,760 --> 00:24:56,060
So you have censorship resistance,
536
00:24:56,060 --> 00:24:58,760
immutability of text that's inherently value.
537
00:24:58,760 --> 00:24:59,160
Now,
538
00:24:59,160 --> 00:25:03,960
a community can create something of inherent value in this world together without
539
00:25:03,960 --> 00:25:09,960
meeting a VC without needing a centralized just by working together and storing
540
00:25:09,960 --> 00:25:10,560
text.
541
00:25:10,560 --> 00:25:15,960
We have created value something very valuable tokenize that now you can be get
542
00:25:15,960 --> 00:25:17,960
stake in that and now you can create.
543
00:25:18,660 --> 00:25:22,960
A neutral base way to distribute value to people,
544
00:25:22,960 --> 00:25:23,360
right?
545
00:25:23,360 --> 00:25:25,760
You encapsulate that into a stable coin.
546
00:25:26,160 --> 00:25:30,060
Now you can create what you would call a decentralized autonomous organization,
547
00:25:30,060 --> 00:25:33,360
but I would that's just what the industry calls it.
548
00:25:34,260 --> 00:25:39,260
It's basically a pool of funds because it's like look we as a people are storing
549
00:25:39,260 --> 00:25:41,860
this text base all over the world.
550
00:25:41,860 --> 00:25:45,360
We're running it and putting the text on this database.
551
00:25:45,760 --> 00:25:46,960
So pay us.
552
00:25:46,960 --> 00:25:48,160
We want a portion.
553
00:25:48,260 --> 00:25:49,660
Of the inflation.
554
00:25:49,960 --> 00:25:51,360
You add a small inflation,
555
00:25:51,360 --> 00:25:54,260
whatever that may be game theory in there.
556
00:25:54,260 --> 00:25:55,260
You want to be too high.
557
00:25:55,260 --> 00:25:56,560
You don't want to be too low.
558
00:25:57,560 --> 00:25:58,960
It's kind of like the three bears,
559
00:25:58,960 --> 00:25:59,260
right?
560
00:25:59,260 --> 00:26:01,060
The porridge you want it to be just right.
561
00:26:01,260 --> 00:26:03,460
What just right is you'll get in the ballpark.
562
00:26:04,660 --> 00:26:07,060
Hive seems to have gotten in the perfect ballpark.
563
00:26:07,060 --> 00:26:08,160
I wouldn't change a thing.
564
00:26:08,160 --> 00:26:09,760
I think that it's doing,
565
00:26:09,760 --> 00:26:10,060
you know,
566
00:26:10,060 --> 00:26:12,660
distributing well enough and it's not too high.
567
00:26:13,060 --> 00:26:18,160
So you have to outlive your distribution meaning you have.
568
00:26:18,660 --> 00:26:23,560
It's only valuable if it's distributed in order to distribute it.
569
00:26:23,560 --> 00:26:25,460
It's going to come with some kind of cell pressure.
570
00:26:25,660 --> 00:26:30,260
So you have to survive the distribution if you can get a large enough distribution
571
00:26:30,260 --> 00:26:32,960
and you can survive the initial cell pressure.
572
00:26:32,960 --> 00:26:36,060
And now you have something of Immortal value.
573
00:26:36,160 --> 00:26:38,860
It is it is it is now distributed.
574
00:26:38,960 --> 00:26:46,860
So it is valuable and now it can outpace the the sale of it because ultimately comes smaller and smaller,
575
00:26:46,860 --> 00:26:47,060
right?
576
00:26:47,060 --> 00:26:48,060
You hit a critical mass.
577
00:26:48,060 --> 00:26:50,460
Of people and that's what you need to survive.
578
00:26:50,460 --> 00:26:51,560
And then from there,
579
00:26:51,560 --> 00:26:53,060
it's sort of smaller.
580
00:26:53,060 --> 00:26:56,260
It's like I've already handled much more than I've handled before.
581
00:26:56,260 --> 00:27:00,160
So now the initial inflation going forward is going to be much easier to handle.
582
00:27:01,260 --> 00:27:02,260
So once you have all this,
583
00:27:02,260 --> 00:27:03,960
now you have a neutral way.
584
00:27:04,660 --> 00:27:06,860
Now you can create little civilizations.
585
00:27:06,860 --> 00:27:08,260
What we'll call layer twos.
586
00:27:08,260 --> 00:27:09,960
Although I don't like calling them layer twos.
587
00:27:09,960 --> 00:27:17,160
If you think of just a base neutral protocol that isn't a government that is in a Fiat currency that isn't a military.
588
00:27:17,160 --> 00:27:17,760
It is a community.
589
00:27:18,060 --> 00:27:28,760
It's a community of people storing text and they tokenize that text and they all agreed to have a pool of the funds that they all have to agree on go to a certain place,
590
00:27:29,360 --> 00:27:29,660
right?
591
00:27:29,660 --> 00:27:40,760
So that's the basis of a Dow now from there as a community as a civilization as a smaller faction of this overall text-based text-based storage community.
592
00:27:40,760 --> 00:27:41,160
You can say,
593
00:27:41,160 --> 00:27:41,760
hey,
594
00:27:41,760 --> 00:27:42,960
we want some funding.
595
00:27:43,360 --> 00:27:45,360
We want to build this protocol.
596
00:27:45,360 --> 00:27:46,760
We want to build this protocol.
597
00:27:46,760 --> 00:27:47,660
We don't want to have to ask.
598
00:27:47,660 --> 00:27:52,360
VCs because VCs are going to want to centralize it because they're going to want to have a business model.
599
00:27:52,360 --> 00:27:55,460
We want to create it because we think it's valuable for the community.
600
00:27:55,460 --> 00:27:58,260
And thus it doesn't it can't have a business model.
601
00:27:58,260 --> 00:28:01,960
It has to be funded by us and by funding it.
602
00:28:01,960 --> 00:28:06,460
It's going to make our neutral protocol better and stronger.
603
00:28:06,460 --> 00:28:09,260
Thus our value higher,
604
00:28:09,260 --> 00:28:09,760
right?
605
00:28:09,760 --> 00:28:12,160
So incentives run the world.
606
00:28:12,160 --> 00:28:15,160
No one's going to do anything for free and there's nothing wrong with incentives.
607
00:28:15,160 --> 00:28:16,560
As long as they're aligned,
608
00:28:16,560 --> 00:28:17,460
you have aligned.
609
00:28:17,460 --> 00:28:20,660
Incentives where people can put food on the table yet do with something morally,
610
00:28:20,660 --> 00:28:21,260
right?
611
00:28:21,260 --> 00:28:24,360
You have something that can really change really really change the world.
612
00:28:24,760 --> 00:28:34,960
So now you have a way to come to a neutral based community that votes on the merit on on what's going to be best for that community.
613
00:28:34,960 --> 00:28:38,260
And he's some more supportive proposal and then you can get funded.
614
00:28:38,760 --> 00:28:40,060
Now that's revolutionary.
615
00:28:40,060 --> 00:28:42,960
You don't need to pitch to what they call them whale sharks.
616
00:28:42,960 --> 00:28:44,660
Where the fuck that shark tank,
617
00:28:44,660 --> 00:28:44,860
you know,
618
00:28:44,860 --> 00:28:47,460
it's kind of these fucking they're not all douchebags,
619
00:28:47,460 --> 00:28:54,260
but a bit large majority of them are these people begging for fucking money trying to get something done.
620
00:28:54,260 --> 00:28:54,560
No,
621
00:28:54,560 --> 00:28:56,360
you can go to community with dignity and say,
622
00:28:56,360 --> 00:28:56,560
hey,
623
00:28:56,560 --> 00:28:56,760
look,
624
00:28:56,760 --> 00:28:59,560
this is what we're building be transparent about it.
625
00:28:59,560 --> 00:29:00,660
And if it's worth it,
626
00:29:00,660 --> 00:29:04,160
it gets funded and that's how you get public funded funds.
627
00:29:04,160 --> 00:29:07,260
Good Vitalik talks a lot about all we need public funding.
628
00:29:07,260 --> 00:29:13,260
We need we need to he says a lot of what is right but doesn't do it in practice.
629
00:29:13,260 --> 00:29:16,160
I disagree with the like the person voting that's getting on something else.
630
00:29:16,160 --> 00:29:17,260
But when we're talking about public,
631
00:29:17,260 --> 00:29:21,360
good funding that can only come from a neutral Dow,
632
00:29:21,360 --> 00:29:26,960
and then you also have basic like marketing or project based or initiative based.
633
00:29:26,960 --> 00:29:32,060
Maybe it's a pool of funds that go to a trusted people that can start hosting events.
634
00:29:32,060 --> 00:29:34,860
There's a lot that you can do with this,
635
00:29:34,860 --> 00:29:44,460
but it does start with the base protocol from their little civilizations little layers little applications people that want to come
636
00:29:44,460 --> 00:29:47,060
and ask for money can do it without having to ask for a
637
00:29:47,060 --> 00:29:49,260
VC at the end of the day.
638
00:29:49,260 --> 00:29:53,960
You also created a way to once you have all that built,
639
00:29:53,960 --> 00:29:57,060
you can now create a way to protect yourself from being regulated.
640
00:29:57,060 --> 00:30:07,960
Say you want a community and you want to organize it in such a way that you want to distribute value without being attacked.
641
00:30:07,960 --> 00:30:09,060
Now you can,
642
00:30:09,060 --> 00:30:09,360
you know,
643
00:30:09,360 --> 00:30:11,860
start and it's called value for value.
644
00:30:11,860 --> 00:30:14,460
You come to the community and you earn the token.
645
00:30:14,460 --> 00:30:15,560
And so Matt and I,
646
00:30:15,560 --> 00:30:15,760
you know,
647
00:30:15,760 --> 00:30:16,960
large credit to Matt,
648
00:30:16,960 --> 00:30:22,760
talking about earning the token without being having a centralized distributor.
649
00:30:22,760 --> 00:30:33,760
So it's like you live on top of this base layers neutral and now you're this community on top and it starts at zero tokens and then people start contributing and mining the tokens.
650
00:30:33,760 --> 00:30:40,160
Maybe I build a community around a creator or around an idea around a persona,
651
00:30:40,160 --> 00:30:41,560
whatever you want.
652
00:30:41,560 --> 00:30:43,660
You don't have to ask for permission now,
653
00:30:43,660 --> 00:30:44,060
right?
654
00:30:44,060 --> 00:30:46,160
You can just do it and you can buy.
655
00:30:46,160 --> 00:30:46,860
This is my favorite.
656
00:30:46,860 --> 00:31:00,960
Content creator and we decided to build a community around it and like it's it's making noise and now we give a lot of the token to the creator or the creator starts joining and he starts earning it by posting.
657
00:31:00,960 --> 00:31:12,060
Now you have a way where creators have a community that can't be targeted by regulators and they can rise in power really become small nation states with the amount of followers and amount of support.
658
00:31:12,060 --> 00:31:16,660
They garner this becomes a very powerful untackable route.
659
00:31:16,860 --> 00:31:19,160
Where people can rise.
660
00:31:19,160 --> 00:31:26,560
So there's all kinds of ways to create a decentralized autonomous distribution of value.
661
00:31:26,560 --> 00:31:32,560
If you're talking super macro neutral base layer view all the way from,
662
00:31:32,560 --> 00:31:33,160
you know,
663
00:31:33,160 --> 00:31:36,760
let's create a token on our favorite content creator view.
664
00:31:36,760 --> 00:31:41,760
It all can become neutral and community oriented and censorship is.
665
00:31:41,760 --> 00:31:45,560
Yep.
666
00:31:46,860 --> 00:31:48,260
Do it.
667
00:31:48,260 --> 00:31:54,760
Did you talk about dropping the minor token and then mining efficiency?
668
00:31:54,760 --> 00:31:58,560
Because the key is the key is to have a minor token in there,
669
00:31:58,560 --> 00:31:58,860
right?
670
00:31:58,860 --> 00:32:04,460
The reason this works is because if you drop to governance token to everyone,
671
00:32:04,460 --> 00:32:06,060
you could end up with unfair distribution.
672
00:32:06,060 --> 00:32:08,860
You could end up with a lot of people the governance token that don't want it.
673
00:32:08,860 --> 00:32:13,360
You can end up with a lot of people with the governance token that are hostile to the project.
674
00:32:13,360 --> 00:32:15,460
So what you really want to do is drop a minor token to everyone.
675
00:32:15,460 --> 00:32:18,160
Let people claim that minor token.
676
00:32:18,160 --> 00:32:20,060
And then from that minor token,
677
00:32:20,060 --> 00:32:21,060
they attach infrastructure.
678
00:32:21,060 --> 00:32:24,460
They run infrastructure to help the project and then they earn the governance token.
679
00:32:24,460 --> 00:32:28,860
So it means the people who don't like the project or the people who are passive towards the projects.
680
00:32:28,860 --> 00:32:29,760
They aren't really involved.
681
00:32:29,760 --> 00:32:30,460
They don't claim.
682
00:32:30,460 --> 00:32:33,060
They don't claim the minor tokens.
683
00:32:33,060 --> 00:32:42,460
And it means that your governance tokens tokens are issued to the people that are actually either running infrastructure or creating value in the build of the initial project.
684
00:32:42,460 --> 00:32:45,260
And that's that can only be good for the projects as far as I can tell.
685
00:32:45,260 --> 00:32:45,760
Yeah.
686
00:32:45,760 --> 00:32:47,560
So that's another thing.
687
00:32:47,560 --> 00:32:48,160
So I mean,
688
00:32:48,160 --> 00:32:49,660
this is there's so many angles to this.
689
00:32:49,660 --> 00:32:53,260
So once you have a community that's distributed,
690
00:32:53,260 --> 00:32:56,160
you can now airdrop claim drop,
691
00:32:56,160 --> 00:32:58,960
whatever a token to them now,
692
00:32:58,960 --> 00:33:01,160
depending on what it is,
693
00:33:01,160 --> 00:33:04,360
if you're talking a public good such as the speak Network,
694
00:33:04,360 --> 00:33:06,260
which is an incentive layer,
695
00:33:06,260 --> 00:33:10,560
or if you're talking a smart contract layer,
696
00:33:10,560 --> 00:33:15,260
any kind of validation layer where things need to be validated.
697
00:33:15,260 --> 00:33:19,960
And agreed upon and it needs to be censorship resistant.
698
00:33:19,960 --> 00:33:21,460
That's when you need distribution.
699
00:33:21,460 --> 00:33:24,560
That's why you need to rely on the base layer protocol.
700
00:33:24,560 --> 00:33:28,460
So you can airdrop without keeping anything to yourself.
701
00:33:28,460 --> 00:33:34,260
The network effect of the neutral protocol and in the speed networks case,
702
00:33:34,260 --> 00:33:35,460
it's multifaceted.
703
00:33:35,460 --> 00:33:40,160
There's a there's a minor token that you get and the reason you get the minor token is multifaceted.
704
00:33:40,160 --> 00:33:43,260
The first reason is for protection.
705
00:33:43,260 --> 00:33:44,960
You don't want a centralized,
706
00:33:44,960 --> 00:33:47,260
organization like Google to come in and say,
707
00:33:47,260 --> 00:33:48,660
hey, we have all the hard drive.
708
00:33:48,660 --> 00:33:56,660
We dominate the network with having a minor token specifically drop to the neutral base later community.
709
00:33:56,660 --> 00:33:59,960
The and it's in limited form.
710
00:33:59,960 --> 00:34:03,360
Google has to buy they have to buy that minor token.
711
00:34:03,360 --> 00:34:03,960
If they don't,
712
00:34:03,960 --> 00:34:05,060
they can't get in.
713
00:34:05,060 --> 00:34:05,760
Therefore,
714
00:34:05,760 --> 00:34:08,160
if a centralized organization wanted to get in,
715
00:34:08,160 --> 00:34:09,860
they would have to enrich the community.
716
00:34:09,860 --> 00:34:11,360
They'd have to be balanced.
717
00:34:11,360 --> 00:34:14,360
They have to empower the community and the community can choose.
718
00:34:14,360 --> 00:34:18,760
What price they want to choose to sell to such a centralized organization.
719
00:34:18,760 --> 00:34:20,960
And there's only so much they can get,
720
00:34:20,960 --> 00:34:21,360
right?
721
00:34:21,360 --> 00:34:27,460
So it's a primarily a defense mechanism versus a giant infrastructure coming in.
722
00:34:27,460 --> 00:34:27,960
Second,
723
00:34:27,960 --> 00:34:31,960
it's a way to create a sustainable model,
724
00:34:31,960 --> 00:34:32,260
right?
725
00:34:32,260 --> 00:34:35,160
Because in order to mine the governance token,
726
00:34:35,160 --> 00:34:36,660
which starts at zero,
727
00:34:36,660 --> 00:34:41,360
you have to use this token that you were this minor token that you were airdropped.
728
00:34:41,360 --> 00:34:42,660
Since you were airdropped it,
729
00:34:42,660 --> 00:34:43,860
you can choose to sell it.
730
00:34:43,860 --> 00:34:45,460
Or if you want to participate,
731
00:34:45,460 --> 00:34:46,560
you could participate.
732
00:34:46,560 --> 00:34:50,160
So now it shows you who's serious in a network and who isn't.
733
00:34:50,160 --> 00:34:52,460
Now that you have the serious group,
734
00:34:52,460 --> 00:34:54,560
they're the ones mining the governance token.
735
00:34:54,560 --> 00:34:55,260
That's who you want.
736
00:34:55,260 --> 00:34:56,960
Mining the governance token.
737
00:34:56,960 --> 00:34:57,260
Now,
738
00:34:57,260 --> 00:35:04,560
if people find censorship resistant storage of large data important,
739
00:35:04,560 --> 00:35:07,960
anything from contracts to video to,
740
00:35:07,960 --> 00:35:08,460
you know,
741
00:35:08,460 --> 00:35:12,660
images and everything in between things that don't go on a chain,
742
00:35:12,660 --> 00:35:13,460
which means anything.
743
00:35:13,460 --> 00:35:15,760
That literally isn't text-based.
744
00:35:15,760 --> 00:35:17,660
Anything that is not text-based,
745
00:35:17,660 --> 00:35:19,360
even if it is text-based,
746
00:35:19,360 --> 00:35:24,060
but specifically anything that is not text-based,
747
00:35:24,060 --> 00:35:25,960
that isn't super important,
748
00:35:25,960 --> 00:35:27,460
like your LOL comments,
749
00:35:27,460 --> 00:35:27,760
you know,
750
00:35:27,760 --> 00:35:32,360
like Hive is an immutable data record that we're keeping forever.
751
00:35:32,360 --> 00:35:34,860
Everything that goes on there lasts forever.
752
00:35:34,860 --> 00:35:36,860
We want it to be important shit.
753
00:35:36,860 --> 00:35:38,760
We don't want it to be stupid things.
754
00:35:38,760 --> 00:35:40,860
We don't want to store your fucking LOL comment forever.
755
00:35:40,860 --> 00:35:42,160
There's no reason for that.
756
00:35:42,160 --> 00:35:43,060
That can go on.
757
00:35:43,060 --> 00:35:45,460
There's another layer that is censorship resistant,
758
00:35:45,460 --> 00:35:46,260
I.e.
759
00:35:46,260 --> 00:35:48,060
You can delete it if you want to.
760
00:35:48,060 --> 00:35:48,760
If you don't,
761
00:35:48,760 --> 00:35:49,860
you can keep it up.
762
00:35:49,860 --> 00:35:50,660
That's the future.
763
00:35:50,660 --> 00:35:52,760
That's what everyone wants right now.
764
00:35:52,760 --> 00:36:00,160
We're bastardizing what this beautiful immutable truth table is by just filling it with a bunch of shit.
765
00:36:00,160 --> 00:36:01,560
That's what happens in the early days,
766
00:36:01,560 --> 00:36:02,960
though. Years from now,
767
00:36:02,960 --> 00:36:04,660
we'll look back on this and it'll be cool.
768
00:36:04,660 --> 00:36:05,160
And it'll be like,
769
00:36:05,160 --> 00:36:05,660
oh, look,
770
00:36:05,660 --> 00:36:08,260
these idiots didn't know what they had,
771
00:36:08,260 --> 00:36:09,360
but it's going to be fun.
772
00:36:09,360 --> 00:36:09,760
You know,
773
00:36:09,760 --> 00:36:10,760
it'll be artifacts,
774
00:36:10,760 --> 00:36:12,960
but eventually we'll realize what Hive is.
775
00:36:13,060 --> 00:36:18,060
Eventually for use it as such and then use the layer and incentive layer.
776
00:36:18,060 --> 00:36:20,860
It's all SPK Network is it's a multifaceted.
777
00:36:20,860 --> 00:36:21,560
It's just a tool.
778
00:36:21,560 --> 00:36:24,260
It's adding a tool that you didn't have,
779
00:36:24,260 --> 00:36:25,860
right? If you don't have a certain tool,
780
00:36:25,860 --> 00:36:28,360
you can't do a certain job.
781
00:36:28,360 --> 00:36:32,560
It gives Hive a tool that can do a job that it couldn't do before.
782
00:36:32,560 --> 00:36:34,460
And that job is it's like a wrench.
783
00:36:34,460 --> 00:36:36,260
You can do a lot of shit with a wrench.
784
00:36:36,260 --> 00:36:36,660
You know,
785
00:36:36,660 --> 00:36:37,760
it's not just one job.
786
00:36:37,760 --> 00:36:39,960
You do all kinds of different jobs of the wrench.
787
00:36:39,960 --> 00:36:41,960
So we've given Hive another tool,
788
00:36:41,960 --> 00:36:42,960
an incentive layer,
789
00:36:43,060 --> 00:36:46,260
to now have communities of whoever store,
790
00:36:46,260 --> 00:36:49,960
whatever they want and prove their storing it and earn for that.
791
00:36:49,960 --> 00:36:53,760
That's the ability of having a minor token,
792
00:36:53,760 --> 00:36:55,460
the SPK Network in general.
793
00:36:55,460 --> 00:36:56,560
And then from there,
794
00:36:56,560 --> 00:37:01,760
you have the ability to earn store to earn.
795
00:37:01,760 --> 00:37:03,860
Yeah, there's some else I was going to say,
796
00:37:03,860 --> 00:37:07,960
but it left my mind.
797
00:37:07,960 --> 00:37:08,260
Yeah, I mean,
798
00:37:08,260 --> 00:37:09,860
that's the description of the SPK Network really,
799
00:37:09,860 --> 00:37:12,960
but this is to do with using this mechanism.
800
00:37:12,960 --> 00:37:14,260
To fund projects,
801
00:37:14,260 --> 00:37:15,960
such as SPK Network,
802
00:37:15,960 --> 00:37:16,360
right?
803
00:37:16,360 --> 00:37:16,660
Yeah.
804
00:37:16,660 --> 00:37:20,260
So you've gone from the minor tokens.
805
00:37:20,260 --> 00:37:26,360
To the the gas token to the governance token,
806
00:37:26,360 --> 00:37:27,660
and the money tokens are dropped to the community.
807
00:37:27,660 --> 00:37:28,960
The gas tokens dropped separately,
808
00:37:28,960 --> 00:37:31,760
but also the ability to incentivize,
809
00:37:31,760 --> 00:37:40,960
which is also a way to fund because before you weren't able to have a startup model for storage and our card storage of large content and a decentralized way.
810
00:37:40,960 --> 00:37:41,260
Yeah.
811
00:37:41,260 --> 00:37:41,560
Now,
812
00:37:41,560 --> 00:37:42,660
if that's a business model,
813
00:37:42,660 --> 00:37:47,960
you want Hive is a literal incentive mechanism that it wasn't before before it wasn't,
814
00:37:47,960 --> 00:37:53,260
but now you can point it and literally create any kind of business model that has to do with storage.
815
00:37:53,260 --> 00:37:54,860
It doesn't have to be a SPK Network.
816
00:37:54,860 --> 00:37:56,160
It's all open source.
817
00:37:56,160 --> 00:38:01,260
The ability to recognize something and store it and prove that you stored.
818
00:38:01,260 --> 00:38:03,560
It is an amazing thing.
819
00:38:03,560 --> 00:38:06,060
That's only available on Hive.
820
00:38:06,060 --> 00:38:09,060
So the SPK Network is the first iteration of that.
821
00:38:09,060 --> 00:38:12,360
You really only need one iteration of it multiple iterations.
822
00:38:12,360 --> 00:38:15,560
Just kind of fraction it and really they all just kind of mold together.
823
00:38:15,560 --> 00:38:15,860
Anyway,
824
00:38:15,860 --> 00:38:17,260
because there's only one way to do it.
825
00:38:17,260 --> 00:38:21,760
You prove that you're earning something and then you store it on chain and then you get paid to do it.
826
00:38:21,760 --> 00:38:23,660
The applications of this for example are that you know,
827
00:38:23,660 --> 00:38:27,160
you could have a front-end website where you're you're a storage provider,
828
00:38:27,160 --> 00:38:33,160
but on the back end of that you you're working with the community individual community members of providing their storage to your company.
829
00:38:33,160 --> 00:38:36,960
And then you're going out and finding clients that need things stored like media.
830
00:38:36,960 --> 00:38:38,260
People have got a lot of media.
831
00:38:38,260 --> 00:38:42,160
They need backing up game companies that need to back up a lot of their things and do.
832
00:38:42,360 --> 00:38:44,760
Now have two three four backups across the internet.
833
00:38:44,760 --> 00:38:45,860
They're independent from themselves.
834
00:38:45,860 --> 00:38:48,960
So that is there if the games go down the game stay online,
835
00:38:48,960 --> 00:39:01,560
right that the content stays online just storage image image hosting service services could transfer their systems across to this and companies could be set up to allow that,
836
00:39:01,560 --> 00:39:10,860
you know, make that mechanism sounds they can go make these relationships and then bring that business across and put them use the community to back it up and then everyone gets paid.
837
00:39:10,860 --> 00:39:11,760
So it's almost like
838
00:39:12,360 --> 00:39:17,460
a cooperative where you're instead of you having your own centralized structures.
839
00:39:17,460 --> 00:39:20,360
You you're maybe your funnel in is centralized as the business,
840
00:39:20,360 --> 00:39:30,660
but the back end is completely centralized because those servers those storage drives are among unique individual community members all across the world.
841
00:39:30,660 --> 00:39:40,360
Another business would be having an NFT moment capture thing where you take a photo and then you store the NFTs on the SPK Network.
842
00:39:40,360 --> 00:39:42,060
And then maybe you get so many.
843
00:39:42,060 --> 00:39:49,460
Tokens a month to create NFTs with and then those NFTs can be used as moments and sold on an open market.
844
00:39:49,460 --> 00:39:54,860
You know, there's so many different ideas like that could be built another one that's already in production is speak drive.
845
00:39:54,860 --> 00:39:57,960
So it's a replacement for Google Drive where you can go and store your files.
846
00:39:57,960 --> 00:40:02,160
You can encrypt your files so people can store files that they don't know what they are.
847
00:40:02,160 --> 00:40:06,860
And then if they have the encryption key ie a subscription model a paywall,
848
00:40:06,860 --> 00:40:12,060
they can get access to the key and then they can see what files they're storing or the people can see the files that have been stored for them.
849
00:40:12,060 --> 00:40:15,360
This is akin to what Google Drive already has.
850
00:40:15,360 --> 00:40:24,060
It's just this completely centralized in the backup storage is across the internet all over the world instead of it being in the hands of Google servers or some other centralized company servers.
851
00:40:24,060 --> 00:40:33,060
Another iteration of this is on deluxe currently and it's a contract setup mechanism where you can set up contracts to store files.
852
00:40:33,060 --> 00:40:41,860
So you can store files of any type that are proposed by the community and then you can even write your own contracts to get those files stored on your behalf.
853
00:40:42,060 --> 00:40:46,360
So if you have a platform like three speaker video platform would be able to go in say hey,
854
00:40:46,360 --> 00:40:54,160
we're going to put three four five hundred dollars a month into this system to pay the community out for storing our videos instead of a storing our videos in an S3 storage,
855
00:40:54,160 --> 00:41:02,860
which is centralized so so many applications of this and this all and this all comes about it's built in a decentralized way in the with the funding that it all comes from the funding.
856
00:41:02,860 --> 00:41:08,860
How is the project funded if it's funded using the mechanism that we described in this in this part of the book?
857
00:41:08,860 --> 00:41:11,860
It's it means that you have a neutral layer.
858
00:41:12,060 --> 00:41:15,560
Upon which you can operate these ecosystems instead of a VC backed layer,
859
00:41:15,560 --> 00:41:17,260
which is compromised.
860
00:41:17,260 --> 00:41:21,560
It's always going to end up being compromised was going to end up with some sort of free speech issue.
861
00:41:21,560 --> 00:41:24,760
This is purely community regulator because there was no VC,
862
00:41:24,760 --> 00:41:25,360
no ICO,
863
00:41:25,360 --> 00:41:37,560
no pre-mine because it uses funding mechanism to go through a Dow and receive funding from a Dow drop a minor token and then use that minor token to provide infrastructure and the infrastructure operators the people storing the content.
864
00:41:37,560 --> 00:41:38,160
All right,
865
00:41:38,160 --> 00:41:39,360
they then earn the governance token.
866
00:41:39,360 --> 00:41:41,760
So it's the it's the people that run the ecosystem.
867
00:41:41,760 --> 00:41:48,860
That govern the system instead of it being some centralized VC backer and that is the beauty of this system of this funding mechanism.
868
00:41:48,860 --> 00:41:51,560
We hope to see more projects using it in the future.
869
00:41:51,560 --> 00:41:56,060
The other thing is that team members come out of the woodwork because people are vested in the project.
870
00:41:56,060 --> 00:41:59,660
If it was like you kind of touched on this before with steam steam Inc.
871
00:41:59,660 --> 00:42:10,760
But when it's essentially function funded team or when that team has a massive pre-mine everyone feels like they're working for them so that you get everyone's not as motivated because I feel like 30% of the works going to make the team rich.
872
00:42:10,760 --> 00:42:11,460
Whereas,
873
00:42:11,460 --> 00:42:15,660
doing it this way in a truly decentralized model with no centralized funding.
874
00:42:15,660 --> 00:42:20,560
People who are interested who have managed to get state because they were part of the original Dow.
875
00:42:20,560 --> 00:42:24,260
They'll pop up out of nowhere and volunteer their time often volunteers.
876
00:42:24,260 --> 00:42:33,560
I'm also have to figure out a way to pay them sometimes but people will pop up because primarily because they've got they've got their own visions for how to use the technology that you're building.
877
00:42:33,560 --> 00:42:35,560
So this technology looks like it could benefit me.
878
00:42:35,560 --> 00:42:40,160
Can I help build this so that we can build it into my platform or into my system?
879
00:42:40,160 --> 00:42:41,360
And so those people pop up all over.
880
00:42:41,360 --> 00:42:46,860
The place you have all these passionate people that kind of come up voluntarily to build this stuff.
881
00:42:46,860 --> 00:42:55,060
And that's incredibly important when you have that you are in a grassroots community movement instead of some corporate corporate system corporate model.
882
00:42:55,060 --> 00:42:55,560
And it's all about,
883
00:42:55,560 --> 00:42:55,760
you know,
884
00:42:55,760 --> 00:43:05,560
it's under the radar low-value because you have low inflation on tokens initially that allows you to build out without having too much pressure from external forces.