PALcoin whitepaper by the Minnow Support Project

in minnowsupport •  last month  (edited)

By a unanimous vote of the Moderators last night the Minnow Support Project has approved the following white paper to be published to the Steem Blockchain describing PALcoin, which is a Steem-Engine token to be powered by scotbot and seen in a Nitrous instance through https://www.palnet.io.


Steem is a blockchain. On that blockchain lives an app called steemit.com, which is a blogging platform, and the most widely used social media application in all of crypto. It attracted artists, devs, musicians, bloggers, business leaders, photographers, and people of all walks of life because what you produce on the platform can earn crypto.

Earning crypto and getting started was hard so a group of people got together and formed a Discord group called the Peace, Abundance, and Liberty Network to help new users (often called minnows) get a strong start on the platform. Within that group a team of leaders emerged who called themselves the Minnow Support Project (MSP) and helped the Discord group grow to 20,000 users and helped the Steem ecosystem grow to over 1M accounts.

The next step for the Minnow Support Project is to launch a community token. This is in line with the mission to spread the values of Peace, Abundance, and Liberty, grow the Steem ecosystem, and train and retain new members on ths platform. Specifically, launching a token will enable users to earn PALcoin, gain status within the largest Steem community, and stay engaged on the platform.

Executive Summary

MSP is launching a token called PALcoin. It's a token launched on the Steem-Engine.com smart contract platform. It will feature:

  • an airdrop,
  • an ICO on steem-engine.com
  • on-going distribution to active participants in the PALnet Discord,
  • ongoing proof-of-brain distribution powered by Scotbot (a python based voting bot that distributes rewards based on PALcoin stake)
  • a custom website similar to steemit.com where post rewards are displayed in palcoin as opposed to steem
  • it is redeemable for upvotes from @minnowsupport
  • it returns value to delegators to @minnowsupport based on their percent of delegation
  • it is redeemable for various roles, activities, and customizations in the PALnet Discord

Initial Distribution of PALcoin

There will be 21M tokens initially minted and launched
10% is planned to stay on a Minnowsupport account which won't be used to vote on posts, but exists as an emergency fund.
10% will go to moderators/team members
20% will go out in an airdrop to a white list of 7000 people
the remaining 60% will be sold on the market for Steem and used to powerup the @minnowsupport account and pay for expenses

ICO

Of the 60% (12.6M) PALcoin to be sold they will be made available at a string of prices

0-1,000,000 at 0.01 Steem
1,000,000-2,000,000 at 0.02 Steem
2,000,000-5,000,000 at 0.05 Steem
5,000,000-10,000,000 at 0.10 Steem
10,000,000-12,000,000 at 0.25 Steem
12,000,000-12,600,000 at 0.50 Steem

Team Rewards

There are 2.1M Palcoin that will go to moderators (140,000 each, ~$420 at a price of 0.01 Steem/PALcoin)

@victoriabsb
@swelker101
@r0nd0n
@juliakponsford
@ma1neevent
@kubbyelizabeth
@isaria
@followbtcnews
@discordiant
@crimsonclad
@clayboyn
@aggroed
@ausbitbank
@danielsaori
@drakos

Primary Account

2.1M PALCoin will go to the Minnow Support Project. These tokens will be staked on a Minnow Support account that isn't @minnowsupport. It will not be used for upvoting posts, and will be there for long term and emergency funding. We reserve the right to downvote posts to counter abuse in accordance with guidelines that will be published and updated on the minnowsupport account.

Claimdrop

The Minnow Support Project keeps a dynamic whitelist of 3k accounts that moderators have personally verified. We'll be claimdropping the 4.2M tokens to the whitelisted accounts. This is around 1200 tokens per account in the white list.

A claimdrop is like an airdrop, but the mechanism involves having to claim tokens rather than just being sent it. If it isn't claimed it'll remain on the issuing account. Those on the list will have 1 month to claim the tokens or forfeit them.

MSP-Active

People who have already been active in the PAL discord and interacting have already been receiving msp-active tokens. These are currently redeemable for votes from msp-active as a trail. The msp-active voting mechanism will be eliminated, the steem power will be moved to manual curation on msp-curation. Msp-active tokens will be redeemable for palcoin after the claimdrop is over.

On Going Distribution

Faucets

All financial systems relying on currency requires faucets for the currency as well as sinks. A faucet is how the curreny enters the system. A sink is how it is removed from the system. PALcoin will have 2 primary faucets that stem from token inflation: Proof of Brain and Proof of Interaction.

Overall Inflation PALcoin will have an initial target inflation of 10% and decline every year by 1% until it reaches 4% and it will stay at 4% inflation.

Proof of Interaction Every day Minnowsupport will supply 1000 tokens (365,000 tokens anually) to users interacting in the PALnet Discord.

Proof of Brain The remaining inflation will occur through Proof of Brain and rewards voting (author and curator rewards) on chain.

PALcoin Issued  annual inflation    PoI PoB PoM

Initial 21,000,000 na na na 0.05
year 1 21,000,000 2100000 365000 1630000 105000
year 2 23,100,000 1890000 365000 1430500 94500
year 3 24,990,000 1680000 365000 1231000 84000
year 4 26,670,000 1470000 365000 1031500 73500
year 5 28,140,000 1260000 365000 832000 63000
year 6 29,400,000 1050000 365000 632500 52500
year 7 30,450,000 840000 365000 433000 42000
year 8 31,290,000 840000 365000 433000 42000
year 9 32,130,000 840000 365000 433000 42000
year 10 32,970,000 840000 365000 433000 42000
year 11 33,810,000 840000 365000 433000 42000
year 12 34,650,000 840000 365000 433000 42000
year 13 35,490,000 840000 365000 433000 42000
year 14 36,330,000 840000 365000 433000 42000
year 15 37,170,000 840000 365000 475000 42000
year 16 38,010,000 840000 365000 475000 42000
year 17 38,850,000 840000 365000 475000 42000
year 18 39,690,000 840000 365000 475000 42000
year 19 40,530,000 840000 365000 475000 42000
year 20 41,370,000 840000 365000 475000 42000

Proof of Moderation

Similar to how the Steem blockchain provides 10% of the inflation to witnesses; 5% of annual inflation goes to @msp-finance for project management including expenses.

Token Redemption (sinks)

Tokens can initially be redeemed for 1 of three things: upvotes, advertisement, and status.

Upvotes - The main account, @minnowsupport, currently allows anyone in the Discord community to use a command $upvote, and receive a low percentage vote on a post. After a year of trying to manage this we're still concerned that it leads to low quality posting. We'd like to continue to encourage posting, but we're attempting through this process to increase the quality.

Going forward users can exchange palcoin they receive for upvotes from @minnowsupport. The ability to store and use PALcoin later decreases the need to burn votes on a timer, which puts pressure to put out content on a schedule rather than when quality content is written. The goal remains the same of getting new users and active discord community members to post, but this approach we think will incentivize higher quality content.

A portion of the tokens received by the voting bot will be burned. A portion of the tokens will be distributed to delegators. Any Sp owned by minnowsupport will have the percentage of tokens simply burned/used instead of issuing new tokens. Any SP delegated to the bot will receive a portion of the daily earnings relative to it's amount.

Ex. Minnowsupport has 100,000 SP on it. 10,000 is organic to the account and 90,000 is from delegation. When PALcoin is sent to the account 10% of what's collected will be burned (or used instead of new issuance), and 90% will be returned to delegators to the @minnowsupport account.

Ads Banner advertisement opportunies exist to bring in revenue. The Minnow Support Project will run a modified instance of condenser (the software that runs steemit.com) called Nitrous, but it will be tailored to PALcoin and managed by this community. Ads will be displayed on the site, and money that's earned through advertising will be used to purchase PALcoin and burn it.

Post Promotion Users will be able to promote posts on the site using PALcoin, which will be burned.

Discord Status A large part of the Steem experience is interacting with a social group. There are a variety of roles that are available for fine tuning within Discord. After the initial token offering, we'll organize a variety of roles to be applied onto users depending on the amount of PALcoin they have staked, steem they have delegated, interaction they've gained, and other ways as makes sense.

In the future

The value of a currency is typically determined by two things: the ways the currency can be used that are exclusive to a given ecosystem, and the number of people that want to hold the currency and use the currency to receive those benefits. As time moves on focus will be on finding new sinks and utilities for the token while attracting new users to it as well.

Palcoin Settings

7 day payout windows
unstaking occurs in 28 days in 4 installments

Scotbot Settings

Here's the list of initial settings.
"author_curve_exponent":1.05,
"author_reward_percentage":50.0,
"cashout_window_days":7.0,
"curation_curve_exponent":0.5,
"downvote_power_consumption":20,
"downvote_regeneration_seconds":432000,
"issue_token":true,
"json_metadata_key":"tags",
"json_metadata_value":"minnowsupport",
"reduction_every_n_block":10512000,
"reduction_percentage":1,
"rewards_token":15.5,
"rewards_token_every_n_block":100,
"token":"PALcoin",
"token_account":"pal",
"vote_power_consumption":2,
"vote_regeneration_seconds":432000

Reward curve is just slightly superlinerar to encourage keepign PalPower on one account rather than spread out.
Author reward is 50:50.
Cashout window is a 7 day payout like steemit.com.
Curation is like steemit.com.
There is a downvote pool. Here you get 5 free downvotes a day.
Downvoting power goes from 0-100 in 5 days like upvote power refills on Steemit.com.
To get a vote which receives palcoin the post has to include palnet as a tag
The inflation rewards shrink every year by 1% (faster than steemit, but will change to 0% by the time it hits 4% annual inflation).
Voting calculation works like steemit.com.
You get 10 votes a day similiar to steemit.com.
Your voting power recharges completely from zero over 5 days (20% per day).

Next steps

Publish the white paper
Receive public commentary

Allow users to exchange MSP-Active to palcoin
Remove the msp-active delegation, move to msp-curation
Stop the discord voting bot
Initiate the new @minnowsupport community rewards mechanism
Initiate an instance of Nitrous

List the palcoin for sale on steem-engine.com
Setup Scotbot
Setup nitrous on www.palnet.io

Change the minnowsupport comment to reflect the palcoin approach


This is an experiment we think is worthy to take on. We look forward to constructive commentary and getting palnet.io up and running soon.

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Very impressive! It will be big improvement to have the upvote bot using a token rather than on a timer. A great example of what to do with SCOT and Nitrous. This will be an inspiration for other communities. Check it out @tommyrobinson

Posted using Partiko iOS

  ·  24 days ago (edited)

That's super cool: I'll support your effort increasing my delegation and trying interacting more on your Discord.

When will be available the new condenser, @minnowsupport?
The URL will be https://www.palnet.io , right?

Full upvoted and resteemed. ;)

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I really feel it some sort of a cool upgrade... but I am not wise in this sort of things. I really have no idea how I am supposed to act.. besides that, english isnt my native. I will appreciate a little guidance very much. @amico

This is a great leap forward. Engagement matters and this change incentivises engagement.

Posted using Partiko Android

Epic!

Posted using Partiko iOS

We experience the real drama on STEEM.
!dramatoken

With all of the work being done on Steem-Engine, I have been anticipating a post like this. Taking the potential represented and "bring it to life" ...

My only real question:

"The Minnow Support Project keeps a dynamic whitelist of 3k accounts that moderators have personally verified."

I did not see any reference to where one would find this list. I have been a delegator to MSP from my early days "in here," but I have never had the time to invest too much into Discord. Choosing instead to invest it in posting and engaging directly on the Steem blockchain. So ... Don't know if I am "in" or I am "out" ...

Beyond that, I will come back and read through this again, as time and opportunity permit. A lot to digest, if I am going to truly get all of the details clear ...

That said, for all of us on the Steem blockchain, I wish you every success in "proving out" this lead demonstration of what is possible!

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I agree, this is almost all Greek to me & I'm sure you know a lot more than I do LOL

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Yes, well @ourfreesociety ...

"... I'm sure you know a lot more than I do LOL"

... not really. And they have elected not to respond to my message here, so ... Apparently, it is not deemed to be important enough to warrant their time and attention ...

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@roleerob - if you go into the Discord to their channel, they respond very quickly.

You are a member there, right?

Oops, I see they responded after you wrote your message to me.

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Sorry about the late reply. At the time we were still receiving feedback from the community and tweaking the whitepaper. We will be releasing a second version shortly, if you are in good standing with us and not blacklisted you should be on the whitelist. An other questions you can come chat with us in discord as it can be easy to miss questions on Steemit :)

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Thank you for investing your time into this reply @juliakponsford.

"... if you are in good standing with us and not blacklisted you should be on the whitelist."

As far as I am aware, I am in good standing. I thought perhaps there was a whitelist published somewhere unbeknownst to me, e.g. like the list OCDB maintains on their website.

Rather than trouble someone on Discord, I will assume I am "good to go," until your initiative launches. As I assume then, I will know one way or the other, based on what happens to my account.

Thanks again!

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I'm not official PAL, but I thought you might like this link to the claim drop spreadsheet for PALCoin. Your entry is on line 1152.
I read somewhere that delegators might get paid in PALCoin too, shrugs I'll wait and see. For now, the claimdrop allocations are mostly based on SP.

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Very good @eturnerx. I appreciate you investing your time into letting me know!

Wow what an update and love the minnowsupport project! Thanks for all the hard work you guys do and having me on the shows from time to time!

Posted using Partiko Android

Looking good! stop into Token Townsometime :)
Bunch of token holders there.

I read all the information you sent me months have passed and even my account is still mutated fix me that. @juliakponsford

This will be a great development.
Kudos to the team!

After a long time That's a great update 👍

Posted using Partiko Android

Congratulations @minnowsupport! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You made more than 510000 comments. Your next target is to reach 520000 comments.

You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Do not miss the last post from @steemitboard:

New japanese speaking community Steem Meetup badge
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
  ·  last month (edited)

A long time ago I was blacklisted by minnowsupport. I can somehow get out of there and get on the white list? I am sure that this project is waiting for prosperity and success. with such a team can not be otherwise.

Очень давно я попал в черный список minnowsupport. Я могу как-то выбраться от туда и попасть в белый список? Уверен, что этот проект ждет процветание и успех. с такой командой по другому быть не может.

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Thanks

I had not heard any of the prior rumblings of this, but I am also not surprised that something this great is being announced! 🙌


You have DRAMA!

To view or trade DRAMA go to steem-engine.com.

Goodluck!

Good to know about PalCoin project. Thanks for bringing into here..

Pretty cool guys, good job and good luck!

May I ask why the ICO is built that way? Usually a huge red flag in the crypto community to buy into ICO's sold in that scheme.

Kewl!

Posted using Partiko Android

interesting times ahead for sure. Looking forward to seeing this.
Time to throw some shady shade around :)
!SHADE 5



Hi minnowsupport the SHADE tokens are on the way.
Thanks for sharing SHADE
To view or Trade SHADE visit steem-engine.com

How do we know if we're on the whitelist and how do we find out if we're on the white list?

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Firstly make sure you are registered on the server
, if you were muted you should have received a direct message saying so. I just checked your name and you are not in the blacklist :)

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So am I on the whitelist since I used the minnow upvote service before your re-brand? If not then can you direct me to a tutorial to get on the whitelist?

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If you are able to use the upvote you should be on the whitelist, if you do not receive the claimdrop come chat with us in discord and we will see what we can do okay?

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Oh, well I can use the upvote service every 30 hours. Claimdrop? What is that?

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It's like an airdrop but users will be sent instructions on how to claim it, like how you claim your steem rewards

Hi, do you have Telegram channel as well? I do not have discord and i would like to buy your coins....

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We don't currently have a telegram no, but we are releasing a new whitepaper shortly, you will be able to buy the coins on steem-engine.com, no need for discord :)

This is impressive! Well done.

I read everything and it sounds very interesting, however, I did not understand how I will enjoy the service now? What should I do to accumulate the coins ... I really have so many questions hahaha.

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We will be replacing the $upvote with a faucet where you can come and claim coins, feel free to visit us in discord if you have further questions. We will be making more posts about this to explain it.

Thanks for your work

Felicitaciones

Wow 😯 that’s wonderful getting tokens from PAL. 👍♨️

Posted using Partiko iOS

SOLID!

Aw can I get a the palcoin airdrop

Posted using Partiko Android

It's great to see ideas like this coming to life.
I take my hat off for YOU.

This is great news! Good job guys!

Very interesting information!
Estaré pendiente de los cambios.

@aggamun This post is a reason why i was muted by minnowsupport.

Good initiative. Way to go. 👍

Posted using Partiko Android

The savior developing more wings to fly along with its subject, awesome.

Wow, this is a big step for the community and it is so important because the largest and most active population of Steem is concentrated in PAL.

When does the ICO start?

Cant open the website palnet.io

Posted using Partiko Android

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It's not online yet, follow @minnowsupport for news and announcements, and we'll let you know as soon as it's up.

Creo que es guay 😎

WOW!

This is really exciting! I look forward to seeing all these changes in Steemit!

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Brought to you by @tts. If you find it useful please consider upvoting this reply.

wow excellent

That's awesome news! Keep me posted!

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