The foundation of the entire network is the opensource dapp that stores on IPFS.
The Speak Network Incentive Layer
The Speak network is run by a Service Infrastructure Pool, or "SIP" for short.
All payments made to the Speak Network go to the SIP, where it is locked forever in a liquidity pool where it'll steadily accrue more value via Defi fee generation.
Think of things like permanent liquidity in a dex collecting trading fees, loans, the idea that money makes money, and with defi, we can do this in a decentralized way.
The principle is never touched; the SIP uses fees generated by defi to stabilize the network
To understand how the SIP generates funds, I have first to introduce the three tokens that power the speak network.
LARYNX - LARYNX is special because it's a miner token, it is fungible, and you can stake it to mine on the Speak Network; the more LARYNX tokens you have staked, the more SPEAK tokens you earn from your mining.
SPEAK - Capped Governance Token - Stake to vote in governance & proposals and earn BROCA.
BROCA - Like fungible resource credits - users need a tiny bit of BROCA to upload to the network; this prevents spam and pays miners.
Payments to The Speak Network
LARYNX Miner Tokens will be given freely to HIVE holders, one for one based on HIVE stake.
After the initial claim drop (details on that below), moving forward every year, a slightly improved version of the LARYNX Miner Token comes out. Meaning, the new LARYNX Miner Tokens will earn slightly more SPEAK than older generation miners. It will be a good idea to get a new miner at least every 2-4 years (if not every year.) After the initial free LARYNX Token distribution to HIVE hodlers, to get the new miners each of the following years, users need to send SPEAK to the SIP.
However, before the SPEAK gets into the SIP, it is chopped three ways to SPEAK, some burned to mint BROCA, and the rest sold to buy HIVE. The SPEAK/HIVE/BROCA are then sent to the SIP and locked permanently.
All payments made to the network use the same method, including the Ad System, and users who pay a small fee to upload videos/images to the network to be stored permanently.
Why, send three tokens to the SIP, including Hive?
First, you need at least two tokens to complete a trading pair. We want at least one liquid token from outside the Dex, and since HIVE is liquid, we wanted to add a bullish sink for the HIVE token. Also, we need a liquid market for miners selling BROCA and for users/platforms that wish to buy BROCA. The SPEAK/BROCA/HIVE go to the SIP, where they will act as trading pairs vs. one another, providing an ever-increasing, permanent liquidity pool for each pair.
The goal is to have the most liquid dex for SPEAK/BROCA/HIVE on the market; high liquidity means little slippage, which is the crux of what most people use Cexes.
Once the most liquid Dex for SPEAK/BROCA/HIVE trading pairs, fees generated from trading pairs should increase due to the desire for liquidity.
When the SIP can reach a critical mass of funds, the community can use the profit from those funds for other things outside of stabilizing the network (assuming the network is stable and there are excess fees.) Proposals can receive funding by the extra fees, building stuff on Hive/Speak network, and users can use their staked SPEAK to vote on what they want the SIP to budget.
The idea is to replace an inflation-based model with a SIP that uses defi fee generation to fund the network.
There is finite SPEAK, and every year people will be sending more speak to the SIP for new LARYNX Miner Tokens, which leads to less supply for SPEAK continuously.
Who Are The Miners?
Miners can be sites/platforms, users, anyone that stakes at least one LARYNX Miner Token and provides resources to the network is eligible to mine SPEAK.
Who Receives Rewards On The Speak Network?
Service infrastructure Nodes, SINS for short, are getting rewards from the Speak Network.
To start mining will be easy and all from inside the dapp itself. Stake at least one Larynx Miner Token and flip on toggle switches from within the dapp to enable mining of all kinds. Things like providing hard drive space for storage and or bandwidth for encoding and CDN can earn you speak tokens.
We want to make it as simple as possible by doing all the work on the backend; all you do is download the app and flip yes to what resources you want to provide without technical; we want grandma mining SPEAK.
Proof of Access
PoA is where miners mining videos/images into the network will need to prove they have a previous random block declared a recall block.
The trick is that the miners don't know what the recall block will be; it's randomized, so to mine new blocks, miners are incentivized to store as many blocks as possible. If the miner has the entire network downloaded, that miner will collect a share of the reward 100% of the time. When mining and the miner do not have the recall block asked for, they earn zero rewards for that block. (more details on PoA in the whitepaper.)
Smart Contract Layer (HIVE)
The Smart Contract Layer (SCL) will handle all of the payments to and from the SIP. The SCL handles paying the Miners/SINS and compensates the network when the BROCA fee is insufficient.
THE SPEAK NETWORK OVERVIEW (SIMPLIFIED)
- When a user uploads videos/images, the BROCA fee goes to the SIP in how I described above. All payments are sent to the SIP. The SIP then uses Defi fee generation to compensate the network by paying miners and nodes. And of course, the miner and nodes are sites like 3speak and others, users like you and me, and anyone else that has access to at least one Larynx Miner Token and has extra bandwidth and storage to spare.
The reason we did a claim drop and not an airdrop is because we are dropping miner tokens. We want the speak supply to start at zero and give everyone on Hive a chance to be the first to mine it. If we airdrop miners idle users, it isn't suitable for the network. We want as many active miners as possible, or we want those Hivers who wish not to mine to sell their miners to people who want to mine. Idle miners accomplish none of that.
The way we thought this would draw excitement is a year-long claim drop. There will be a one time snapshot of everyone's HIVE balance for the LARYNX Miner Token claim drop. Hive users can claim their tokens every month, and if you claim each month for the entire year, you will get 100% of your LARYNX tokens for free.
All unclaimed miners go to a pool where at the end, the Hive community will vote where they go. The idea here is to try and bring in outside platforms; instead of being divided, we can all work together; that's what web 3.0 is all about.
We will make a public announcement ahead of time, and platforms can then throw their hats in the ring for those who want to have some ownership in the Speak Network. 3speak will have no more ownership than anyone else, and we will need to be voted in just like everyone else to receive any of the unclaimed tokens.
We hope this creates a buzz over the year!
Our sales pitch to the alt space platforms is "Get paid by doing what you're already doing, plug into the Speak Network, share resources, and receive compensation all while helping decentralize web 3.0!"
If we can land a few, they might act like dominoes and create an exciting atmosphere. We believe this can make the ultimate network effect!
The SIP locks in payments & fees that will grow forever and pays out services & proposals.
Miners & nodes help with infrastructure and get rewards.
The claim drop is fair and helps the community grow a larger network effect and gives equal amounts of unclaimed tokens to other alt space platforms and or deserving Hive projects, as voted for by the Hive community. The idea is to draw in people from the outside, but deserving Hive projects that want to commit resources can always throw their hats in the rings.
All of you can earn rewards by helping to run video infrastructure!!!
All of you will be able to integrate this into your front ends!!!
A few details not in the talk will be in the whitepaper:
If the SIP collects little profit from the defi fee generation, the Miners/Ads' payments receive a haircut instead of going to the SIP; a small portion goes directly to the Miners.
SPEAK is mined until the hard cap is reached. The distribution rate of SPEAK will be on the longer side, details included in the white paper. An extended distribution initially of SPEAK allows the SIP to accumulate payments and fees over the years, so when we reach the SPEAK cap, the SIP will be adequately funded and ready to handle stabilizing the network.
The Proposal System
The proposal system will be a stake weighted similar to the HIVE DAO. The difference is, anyone, can put out a task; once voted past the return proposal, it is eligible for funding. Once qualified for funding, people can bid on the task in a reverse auction, competing. After a certain period, the community can vote up the bids to compete vs. another return proposal. Once the bid with the most votes behind it and is above the return proposal for some time will win the task. Once won, the winning bidder can now start to submit work to complete milestones. Once the bidder thinks they have finished a milestone, they will present their work to the community for inspection.
The community will vote on if the work qualifies to get the milestone payment. It will be a yes-no vote with a time window for the answer to be picked. For instance, yes would have to be higher than no for some time before the milestone's funds would be released—more info on the Speak proposal system in the whitepaper.
Whitepaper coming soon
Got questions? Please ask below!