This is article #7 of “180 Days to Startup” series documenting my entrepreneur journey. In case you want to start from the beginning, please click
HERE to the first article.
Purpose of Token
To identify the tokenomic of a blockchain-based project, we need to first figure out how blockchain plays a part in it. Ultimately, tokens are bi-products served as reward for those that contribute to the ecosystem.
In our co-founder’s article, he talked about blockchain’s ability to eliminate the middleman. Applications that are decentralized doesn’t need a facilitator in between multiple parties to process transactions. Depending on the application and how that benefit is utilized, it can have have significant user-benefit.
Key word here is decentralization. In our opinion, it is blockchain’s BIGGEST selling point. Everything else (cryptocurrency, smart contract, tokenomics, etc) are all meant to support the decentralization aspect of the application. We believe that a blockchain-based product should have a decentralization aspect in it that’s actually beneficial for the users.
Nodis.io’s Use Case for the Blockchain
To avoid cheating, we need a gate keeping process to validate all the Challenge submissions. In our use case, blockchain plays a critical part in decentralizing the voting function of our platform. It effectively eliminates the need for an overseer of the Challenge submission approval process. If we were to do it the traditional way, we may have to ask the business owner themselves to be approving all submissions. This can potentially be problematic because:
- They may lack the time to review hundreds of submissions after working 12+ hours a day for 7 days in a week.
- Individual decision making is often clouded by bias or personal drives.
- Challenge participant may not trust business owners’ decision upon rejection.
By decentralizing the voting mechanism and allowing the whole network to help validate, we can transparently automate the process and minimize the time commitment from business users. It can also help businesses to avoid dealing directly with angry Challenge participants that got their submissions rejected.
As for the role of NODIS token itself, it is the reward system for those that contributed to giving businesses more online exposure. Both Challenges and submission voting are all a part of the cycle of getting businesses noticed online. On top of that, the ability to exchange for vouchers using their NODIS tokens will motivate the users to shop in-store, which means more traffic.