How The 1UP Smart Media Token Economy Will Work And Be Profitable

in 1up •  4 months ago

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Introduction

1UP is an automated decentralized hivemind curation system for communities where all votes are equal. It maximizes rewards for the highest voted posts and creates an extra income for all users and supporters of the platform. In this article I explain the economic model of the 1UP system.

Repository

https://github.com/therealFlauwy/1UP

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The Economic Model Of 1UP

1UP is using a smart curation system for better upvote distribution and higher curation rewards to make it more profitable than any regular upvoting or trailing. Combined with the massive benefits for authors and communities as well as the 1UP users who create the hivemind effect this project is all about making the Steem experience more valuable for everyone.

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In the Pre-SMT phase 1UP will run a very attractive bounty program for delegators and 1UP-voters to create the initial incentivization to participate in the new system and make it powerful enough for interesting upvotes. This will enable 1UP to give extra value to those posts collectively voted the highest. As potentially all posts from the Steem blockchain are valid 1UP can support all communities and platforms that exist and help to increase the value of Steem in general.

With the start of the 1UP Smart Media Token we will run a double system based on Steem Power and 1UP Power and automatically distribute upvotes and liquid tokens from both economies to give extra value to all parties.

Trailing For High Curation Rewards

The easiest and most efficient way to give value where it belongs is by incorporating a smart curation system for trailers. Steem splits the post rewards on all Steem platforms in 75% for the author and 25% for the curator. However, if an upvote is done before the 30 minute mark the percentage for the curator will be lower. The factor time is also relevant by taking the order of incoming upvotes and rewarding the earlier ones with a higher percentage of the total curation rewards. For more infos about the curation system read How The 1UP Curation System Creates Higher Curation Rewards.

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A post that wins a 1UP-vote will trigger the curation trail of that community which will be ordered from small to big. This will help to grow smaller accounts and creates a high incentive for the majority of users to follow 1UP-Communities with a part of their daily available voting power. 1UP will always vote last and hence make it more interesting for all trailers, even the bigger ones, assuming 1UP is reaching a critical mass through delegations from investors. 1UP will therefor always get the smallest percentage of the curation rewards in favor of the trailers.

1UP Trails

With the 1UP SMT this system will work even better as the community will control the entire upvote process and reward pool of the ecosystem as a collective which maximizes the effeciency of the trailing process. 1UP holders can assign their 1UP Power to different communties or 1UP in general for automatic trailing. This will make 1UP a passive income stream that constantly creates a revenue of new 1UP Power which will be vested in the users account but can always be powered down for liquidation as well.

Delegating For Liquid Payments

In order for the 1UP account to give meaningful upvotes it must aquire Steem Power through investor delegations. During the Pre-SMT phase this will be incentivized via a handsome bounty for 1UP tokens. All delegators will receive a certain amount of daily 1UPs out of the according bounty pool from the overall 1UP distribution. This has proven to be a very attractive model with other SMT projects like @actifit and @steemhunt.

As the 1UP concept has such a high benefit for quality content on the entire Steem blockchain it is a valid speculation to hope for an official Steemit delegation to further increase the impact of 1UP.

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With the launch of the 1UP token there will still be an ongoing incentive for Steem Power delegations in order to keep up the double upvote in Steem and 1UP. This will keep up a high interest for Steem Power holders to support the 1UP platform and continues to give tremendous value to the entire 1UP ecosystem. This can be achieved in form of liquid Steem and 1UP payments which is being accumulated on the official 1UP account and can be constantly powered down for liquefaction.

1UP-Voters Earn Daily 1UP-Votes

A very powerful system to incentivize user activity is demonstrated on @utopian-io and @steemhunt where moderators and users are paid in upvotes for their contribution to the ecosystem. This is free for the platforms and even generates curation rewards for them. A similar system will be incorporated with 1UP where all users who give 1UP-votes to community posts will earn points which lead to different daily upvotes.

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These upvotes will be reasonable and depend on the benefit each user brought to the 1UP platform. It will be based on a sophisticated gaming mechanism which is not part of this article and consume a small daily amount of the total available voting power of the platform. These upvotes will be done on auto-generated comments from the users which enabled 1UP with their privating posting keys to create comments for them in the first place. The upvotes for these comments will come from the 1UP account alone while the trailers will ignore them.

Conclusion

The economic model of 1UP is creating a massive value for all parties. It serves to automize the voting process for accounts and maximize their compounding interest. At the same time it rewards the best content with extra upvotes and creates a race to the top for authors who will deliver better and better quality in order to catch a 1UP-vote. It supports communities who can gamify the size of 1UP-votes through their own level system and create a greater value for their members. And it also helps to create value for the 1UP users with the daily upvotes for their activity to find the best content which will take its part in the redistribution of Steem into more hands.

All-in-all a huge benefit for the Steem blockchain.

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Resources

Old Utopian-1UP Homepage (currently inactive due to Utopian changes)

Series Backlinks

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Interesting. You are talking about delegators and delegations. Yet, I don't see it explained. Can you please tell me more about this aspect of the system? Thanks.

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Sure: Delegating is the process of lending your Steem Power to another account. This happens on blockchain level and can be done with Vessel, Steem-Plus and eSteem Surfer. Steemit does not have that function integrated. The process assigns the right to use someone elses SP for them including all its benefits. But the SP cannot be powered down or delegated to a third acoount. The owner still has full control over it and can withdraw it at any time after which it takes seven days to return to the owners account.

I see in your wallet that you have actually delegated a substantial amount of SP away so you should be familiar with that process. Did you mean something else?

The incentives come via the liquid payout of Steem and 1UP paid out to the delegators.

Very good presentation! I have two questions.

  1. You mention above an Old Utopian-1UP Homepage? Is it or will it be an updated link or this is it?
  2. If one would want to delegate to this project, @utopian-1up would be the right account for it, right?

Thanks.

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  1. No, I don't think we will ever touch the old code again. Utopian will get its own community via the new 1UP system. We will build upon what we have learned there.

  2. Please wait with your delegation until we can make good use of it. Right now it would be wasted as the system is not ready yet. And we will not use the old account either. I will create a new account for that without the Utopian name in it.

You explained in very great details seems like this is going to be a game changer :)

Well as for Actifit and Steemhunt it sure is running successfully till now !

All the very best for your project and hope it sure will be a a great project :)

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Thank you. I hope 1UP can join the ranks of the other SMTs. :)

great information about 1up @flauwy, at times I did find it difficult to fully comprehend but this post explains the whole system really well, it is going to do great things for the steemit community and I look forward to getting involved once it is up and running.

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Fantastic that is help to make the system clearer. :)

cool! just re-read it to try to understand it more. you can count on some delegation from us and i will spread the word in various channels as the time for delegations comes. i am curious- how will 1UP decide which posts to vote? great work @flauwy!

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i am curious- how will 1UP decide which posts to vote?

That's the whole beauty about 1UP: YOU will decide that, not 1UP. You give a 1UP to a post within a community on 1UP and those posts with the most 1UPs will get upvoted.

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ok so completely democratic voting. 1=1. i understand with SMTs (which i am getting that this wants to eventually evolve into and is preparing for/mirroring?) that there will be an oracle, like a gatekeeper. will 1UP have such a role (or multiple?)?

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I hope not as I am very much against the idea of centralized oracles. 1UP is exactly the opposite: A decentralized voting system where the opinion of the many counts rather than the opinion of a few.

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awesome to hear! are SMT oracles centralized by their very nature? i too am completely turned off by the idea of various oracles deeming what content gets to be seen.

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I don't know if all would be like that but the proposed oracles (which are all just theoretical in nature) were centralized.

I will have to read this a few times to really get it but will certainly support as it seems like a great idea. Well done for yiur hard work..