Gamifying Universal Token (UCO) Distribution: Reaching the Masses
Cryptocurrency is global and accessible to all. Cryptocurrencies rely on network-effect business models where the effect of cryptocurrency is only as good as those who use and accept it. That said, it has not yet reached the mass adoption as expected and the network effect has not really kicked in. You want to know why?
Continue reading this article where we discuss about the most important property of cryptocurrency or money, which is highly neglected, and many have forgotten or missed it. (even Satoshi Nakamoto missed this!)
What is that they neglected/missed?
The fiat money (US dollar, EUR, Pound, etc.) and cryptomoney (Bitcoin, Ether, Ripple, etc.) distribution is like 'Pyramid Scheme' where the money is generated at the top and trickles down to the bottom.
The 'Pyramid Scheme' is shown by levels (1 - 13) and their corresponding populations, where 99% of the world population falls in levels >10. The only problem with this is that the money does not trickle down, it stays at the top (either trickles down very less or trickles down slowly).
This in turn creates a lot of unused potential within the system. The money stays right there at the top, as frozen potential that is never realized. There is little to no incentive for the money to move. Since money is power, having it is literally having more power and nobody would willingly give up that power. In other words, the game is rigged.
Hence, the solution to this is to distribute the money far and wide so that maximum number of people/users have access to the money and thereby join the network. This is even shown by Metcalfe's law, where the value of a network is proportional to the square of the number of connected users of the system (n2). i.e more users = better network. (Note: In reality Metcalfe’s Law (Network Value ~ n²) probably overestimates the network value, which is why it’s logical to tune it and use Generalized Metcalfe’s Law where Network Value ~ n^1.5)
Let us further study the effect of better distribution and the value added to the network by considering 2 cases for Bitcoin,
Case 1: Network value of Bitcoin without proper distribution (Today)
Number of Bitcoin wallets (2020) ≅ 32 million
Applying Generalized Metcalfe's Law,
Bitcoin Network Value ≅ (32M^1.5)) = 181B Euros
Bitcoin Price = 181B / 18M = 10056 Euros (18M= existing no of bitcoins in 2020)
A Bitcoin whale who holds 50,000 bitcoins from the time of its creation has 502.8M Euros now. (50,000 * 10056)
Case 2: Network value of Bitcoin with better distribution (Today')
Due to better distribution of Bitcoin from the beginning of its creation, there would be a lot more users (easily 500 Million to 1 Billion users).
No of Bitcoin wallets ≅ 500 million,
Applying Generalized Metcalfe's Law,
Bitcoin Network Value ≅ (500M^1.5)) = 1118B Euros
Bitcoin Price = 1118B / 18M = 621,129 Euros (18M= existing no of bitcoins in 2020)
The same Bitcoin whale due to better distribution of Bitcoin, holds 1/5th of Bitcoins (10,000 Bitcoins). Hence, the Bitcoin whale has 6.2B Euros. (10,000 * 621,129)
From both the cases, you can see the real impact/effect/value of the network (like Bitcoin) increases with better distribution.
"Focus on making the entire system richer and you will get rich right along with it."
Hence, what we really need is to completely distribute it far and wide, as fast as possible by gamifying the delivery of money.
Why gamification, why not just simply distribute the money? why create the fuss? This could be your question now. Distributing the money for free has proven to be a very bad strategy to increase the value of network and indeed gamification helps in amplifying this distribution. There are many reasons why gamification works and is beyond the scope of this article, if you are interested to know more, (here is the article)
How does Archethic tap this opportunity?
First, let us understand what is gamification?
Gamification is the application of game techniques in existing processes, with the aim of promoting strategic objectives. It does not mean simply “play a game”, it is about the integration of the game mechanics to a task to increase the participation and motivation of certain target audience.
Gamifying Storage and Network Pool:
Archethic builds a killer app where a smart phone or a laptop or any smart device can easily join the network and be a storage node to start earning. (The app is simple and user friendly). Gamifying this, easily targets the 99% of the population i.e. levels 9-13 in the pyramid scheme.
A Universal Basic Income (UBI) for a node/device can be a part of this gamification scheme. UBI itself has a lot of economics to it and will be described in a detailed article soon.
Gamifying Miner Pool:
In simple words, Archethic uses geolocation area based sharding called Patches (checkout on my article about Archethic Patches) which are designed for promoting global mass adoption. Archethic incentivizes miners to join from areas that have less nodes per geographical area/patch. Thereby creating an overall balance of nodes throughout the globe. Unlike Bitcoin, there is no need of huge mining equipment. This further helps in gamification and hence having mass adoption. Gamifying this, targets the population in levels 6-8 in the pyramid scheme.
Gamifying Deliverables & Enhancements:
The Deliverables are already gamified, and the UCO is released at 20-33% per year over a period of 2 to 5 years. The Enhancements are gamified to develop new use-cases, but the UCO can only be sold when the value of the UCO is greater than 100x the initial value. Gamifying this, targets population in level 1-5 in the pyramid scheme.
Targets level 1-13 (Pyramid Scheme)
(To be discussed in detail in the next article)
'True Distribution' and 'Exponential Growth' of UCO
- From all the above, UCO will be with the masses (+1B).
- The development of numerous use-cases is done in parallel to gamification.
- Use-cases and gamification work hand-in-hand for true distribution of UCO (like never before, touching every part of the world) and leading to exponential growth in the value of UCO.
Archethic blockchain and biometric solution has been awarded the label for the management of secure access for the Paris 2024 Olympic Games. Based on the current trend, a minimum of 8 million people are expected to attend the Olympics.
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Would like to thank Daniel Jeffries for inspiring to write this article!
Archethic Public Blockchain
Archethic is a Layer 1 aiming to create a new Decentralized Internet.
Its blockchain infrastructure is the most scalable, secure & energy-efficient solution on the market thanks to the implementation of a new consensus: "ARCH".
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Through native integration for DeFi, NFTs & decentralized identity; Archethic offers an inclusive and interoperable ecosystem for all blockchains.
In order to achieve the long-term vision of an autonomous network in the hands of the world population, we developed a biometric device respecting personal data privacy (GDPR compliant).
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