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Hello Hacker Noon writers! Today we’re going to talk about Den.Social’s token economy. There are indeed four separate tokens that can be used in Den each with its own purpose. We know it seems like a lot and it can be a bit overwhelming. But, we really think you will have a lot of fun here so stand firm fellow writers and we’ll help you out.
If you are just joining us and have no idea what a Den is check this out and make sure to read the blue paper. Wondering what is in it for you? Find out here. Now back to our regularly scheduled blog post.
The cool thing about Den is that you don’t have to know everything to get started. You can join and interact without any knowledge of the tokens. But it does help so let’s get to it.
The one paragraph in a nutshell explainer is really simple. Come. Read. Sign up. Subscribe to Lairs. Engage using NRG. Get rewarded with MTR to increase your NRG.
If you find the content valuable for the Lair it’s posted in, vote it up. If not vote it down. Want to add to the conversation? Make a reply. Want to share it with other social media sites? Share it. Want to own a piece of a Lair? Commit LOR. Want to be a part of managing the Den platform? Grab a Den Governance LOT.
Got it? Great! Thanks for stopping by.
Just kidding, let’s break it down a bit.
Think of the Den and its tokens as various levels in gaming. Mastering each allows you to level up and build off the last.
Stop in and look around. You can discover Lairs and read posts within the Lairs. There is no need to sign up and log in. If something strikes your fancy and you want to join in on the conversation you will have to sign up and log in. Now you get to level up.
Sign up with an email and log in. Upon sign up, you will receive 24 Energy (NRG). Every upvote, downvote, post, and reply will cost NRG. It’s kinda like if Jack made you spend something to tweet or like a tweet. NRG is internal to Den and it has no monetary value.
When you spend your NRG it replenishes at a rate of 1 NRG per hour. So after 24 hours, you will have 24 NRG. It’s important to note that it is not cumulative. Meaning, if you have 24 NRG today and don’t spend it, then tomorrow you will still have 24 NRG, not 48 NRG. Think of NRG as a points system. The cost of each action is as follows:
- Votes- 1 NRG *see note below
- Reply- 2 NRG
- Reply with an image- 3 NRG
- Post- 5 NRG
- Post with an image- 8 NRG
Just by understanding and completing Level 2, you can have a nice experience in Den. But, you may have noticed three letters under your NRG total. That’s Matter (MTR) and that’s where you get to level up.
*Vote as much as you want. Each up or down vote is counted by Fibonacci numbers. For example 1,2,3,5,8,13, etc
This is where the tokenomics start to get interesting. You could hang out in Den with 24 NRG but maybe you are having so much fun you want to keep the conversation going. To get more NRG you will have to earn some MTR. Think of MTR as a reward for posting, evaluating, or replying to the best content, quickly. When that happens you receive a proportional share of a reward pool of 1000 MTR for that day.
When you start getting MTR you will notice that your NRG starts to climb above 24 NRG. There is a reason for that. In addition to the 24 NRG that replenishes every 24 hours, you will now get more NRG in the amount of your MTR. For example, if you have 48 MTR then every 24 hours your NRG total will be 72 NRG. (48 MTR+24 NRG=72 NRG per 24 hours)
Something to keep in mind. This total is spread out over 24 hours soooo every hour you will increase your NRG total by 3 NRG. For example 48 MTR+24 NRG=72 NRG. 72 NRG/24 hours= 3 NRG. MTR is an ERC-20 token and as such has value. The value of each MTR fluctuates like any other traded ERC-20 token. You can buy and sell MTR here.
We know, we know. It’s all necessary though. All this is done on the back end so you really don’t have to worry about it. The system keeps track of your NRG and MTR so just have fun and it will be all good. But, if you really want to know how the algorithms works, check out the white paper here.
Now that you are posting, replying, and evaluating you are ready to level up!
Den’s engagement pool rewards Denizen’s for spreading the word. We want to bring new people into Den so they can have as much fun as you! Those who share posts, either their own or from another Denizen will be included in the daily MTR engagement pool and earn more MTR. So after you post it, share it. Once you do you can level up.
Now that you are really diggin’ Den – maybe have a few extra dollars in your pocket – you may be ready to propose a Lair or bid on a proposal you find interesting. Not everyone will want to have ownership in a Lair but if you do here is the gist of Lair ownership.
Every month people will propose and bid on new Lairs. To bid they will use their Lair Ownership Right (LOR) tokens. LOR is an ERC-20 token and like MTR has value. You can purchase LOR here.
Den will be rolling out LOR farming to give Denizens additional ways to earn LOR to participate in Lair ownership. Stay tuned for more information coming soon!
If the Lair you proposed or committed LOR to wins, then the amount of LOR you committed will be moved to a smart contract and “exchanged” for an equal amount of Lair Ownership Token (LOT). For example, if you bid 500 LOR then you will get 500 LOT in return. Every LOT is an NFT and represents a proportional share of ownership of a Lair and provides you with a bit of passive income.
It is important to note that in the community Lair creation process you won’t be the sole owner of the Lair. Anyone who bids on a winning Lair will have proportional ownership. This dynamic creates a community that has “skin in the game” and is invested in the Lair’s success.
As a Lair owner, you will have shared admin, moderation, and governance rights to assist in creating the desired culture within the Lair. You will also receive a proportional share of the Matter (MTR) mined by that Lair based on activity. You can learn more about it here.
We know there are some very unique aspects to Den that may take some getting used to. Den’s goal is to provide the best content to the consumer earlier than any other platform. We take control out of the hands of a single entity and put it in the hands of the community. The longer you are here you will see how Den gives you the power to decide for yourself what is valuable. Don’t get bogged down with knowing every aspect immediately. Just have fun.
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