Social mining is becoming more and more popular among new platforms that want to reward their community properly, based on their value added to their ecosystem.
In this article we will look deeper into the social mining platform, but in the beginning I would like emphasize that it’s still in alpha phase. Stuff is getting done, fixed and improved on daily basis. Now you will be able to read about some core mechanism and general idea of how the social mining is working.
3 supervision groups
Every community member will be in one of those group depend on how is he contributing, how many tokens is he holding etc. He can be even in 2 groups at once, we will dive into it later.
a) Meritocrats
b) Oligarchs
c) Democrats (This group is not implemented yet)
I want to make it clear right away the groups are non-hierarchic. Think of it this way: car needs multiple different components in order to work. The car is only working if all components are working together for the common goal. If the one component is missing the car is not working and whole ecosystem is losing momentum.
Meritocrats
Group made of active community members, people that are actively contributing and adding value to the ecosystem. Most of the time they are holding as much tokens as average community member or less same with duration of holding. Thanks to their contribution they have a more power to upvote to legitimize others work. Since they are know what will benefit ecosystem thanks to their activity. You don’t need to be a big holder to receive good payout if you are adding a lot of value to the ecosystem and community is up voting your stuff. This way the system ensures that even new community members are motivated enough to actively contribute.
Oligarchs
People that are adding value to the ecosystem simply by their wealth and providing stimulus the the token token economy. They are putting much bigger capital into the project than we are, it’s in their best interest to promote the project. Thanks to this they can offer greater incentive to add value.This is why the big Stake Holders that are holding more tokens than average community member for a longer period of time are given very big upvote power and reputation. As I said before they will look for the best work among meritocrats and new community members to add the most value to the ecosystem since they are directly benefiting from value that other community members are adding.They are getting more reputation as well they can use it to motivate new upcoming community starts to work harder and so everybody can benefit from it. Of course down voting is as important as up voting. Down voting the spammer, moon boys posts or just copied stuff they is damaging the ecosystem.
Democrats (Not invented yet, just an overview how they will work, not 100% sure ofc)
There are be some people there that won’t qualify as oligarch due to their smaller bag or as a merchant since they are not as active, but they can contribute as well.They will be as a sort of democratic police taking care that not a single oligarch is doing a shady stuff up voting only his buddy etc… Same with meritocrats while they have a bigger voting power than democrats as an individual, together democrats can overthrow any kind of a bad decision or shadiness.EXAMPLE: Post “X” is clearly just average looking post with decent value added, but 2 or 3 oligarchs will decide to boost it since post is made by their friend. Obviously all the other members will spot it and they will act as a balance to downvote this post. Democrats are strong together and they are acting like one body. There will be also a special members elected as “Validators” and they will be given bigger power to validate others work to keep the ecosystem growing.
Q: But wait, Benji you told us that if one part of a ecosystem is missing it’s not healthy and as you said the democrats are not invented yet! We remember this weird car comparison.
A:I am glad you’ve remembered it. As for now the platform is used only by core community members and mostly they have no interest in harming the ecosystem and they are very responsible so for now the ecosystem is working even with one part missing. However as the time moves on and more people will discover that they can earn good money contributing to the ecosystem they will try to hack thy system or harm it than the democratic part will be necessary.
Social mining is solving one huge problem not only in crypto space, but world wide. THE FREE-RIDERS.
Free-riding is basically doing nothing. When in current system one individual will improve the system everyone will benefit without contributing or not even paying. So basically we have a problem when community members aren’t contributing their share to the costs of shared resource.
How is Social Mining fixing that?
In this social mining community is choosing where the money would go. If someone contributes to the system he will get rewarded + all stake holders will get rewarded including him. So he will get more reward as he added some value + all the stake holders that were actively supporting him will get rewarded for their validation and of course + the value added. Being a free rider in this case is not beneficial at all as you are not expanding your influence nor capital.
How are the groups assigned? The mathematics behind it.
1. Work Index
This index main goal is to recognize the value that user is adding as a community member to the ecosystem.
Work index = Reputation + experience
a) Reputation
There are several ways how to acquire reputation. The main is way is to is acquire Reputation over time as you are dedicated to the project and you are constantly working to make ecosystem better. If you are new user don’t be sad if you are contributing with outstanding value you will gain reputation faster. Reputation is also given to most upvoted posts, team can give reputation as well mainly to key members after they complete various task or for competition. Of course if you are recognized by someone who is having a lot of influence in the community he can give you reputation as well they key is value that you are adding.
Leasing rep: Right now you might think why would I lease rep to someone, when can I lease rep to benefit from it?
I have an example: You are active community builder, but you will be out for a week with your wife on a vacations so you won’t contribute to the ecosystem = no reward you can always lease your rep to someone if you are away to motivate him to work twice as hard this way you will not directly benefit from it as he will add more value and he will get more payout, as soon as you come back home you can always cancel your lease.
b) Experience
Same as with reputation if you are contributing with average value nothing outstanding you will get rewarded anyway over-time and of course new users can shoot up quickly if they will contribute with something big and key. The value added + dedication is aggregated over time! Since experience on the platform is also important. All work is eligible for experience earning it’s on community to decide if they will give you some or take if the post is low quality.
2. Investor Index
Rewarding users, that are willing to offer a monetary stimulus to the token economy, by giving them more influence if they hold above avarage bag, however is not that simple you can abuse that system so more complex metric is calculated: token index, hold index, and accumulation index
a) Token Index
Basically is calculating if you have more tokens right now that the average community member. Dao is scanning your wallet every few hours. You will receive more power as grow of a project is in their interest.
b) Hodl Index
While new token owners are important of course the long big token holders are more important as they are helping the economy of the project simply by holding. This index check the time that individual is holding his/her tokens and comparing it to average community member hold time. This is very important + you don’t need above average token size to grow your hodl index. The dao is scanning the wallets to check if the user is actually dumping his tokens or buying more this has a big impact on hodl index as well.
Example:
For sake of this article let’s say the average holding period is for community member is 17 days and all users below are holding 100 tokens.
User A is having hodl score close to average but he is still under so the hodl score is lower
User B has high index score because he is holding for 40 days now (way above average)
User C bought the tokens recently and his hodl score is close to none, however as the time goes on he is receiving more hodl point over time. he will never be able to outrun user B or A if they won’t dump their tokens, but he will be closing gap and get very close this mechanism is ensuring new users that buying and holding new tokens is still worth it.
c) Accumulation Index
It’s a measure to reward oligarch status.It’s rewarding people and pushing them towards heavy accumulation and also not benefiting much from dumping their tokens that they got from Token Index.
Accumulation Index is measuring the percentage of tokens that user is holding and compering them to the circulation supply + to the percent of circulating supply held by other users. Thanks to this mechanism, the people that are locking up their tokens voluntarily are rewarded on top of hodl index. This way we are also ensuring that people who are trying to get advantage of token index before the payout are getting kicked down by accumulation index and hodl index. The accumulation index is discouraging people from dumping their tokens and breaking hodl and accumulation index at once.
Follows
Are they even worth? YES! If you click on the community board it will instantly open the Newsfeed section first. Not the most upvoted or trending the newsfeed and in newsfeed section you have a latest updates from people that you are following. The more people is following you the biggest chance you have that they will spot your post!
ENDING
Project can modify some stuff like: When payout, how much rep users will receive, but the core idea stays.
That’s all from what I know. In reality there are many oligarchs that are meristocrats at the same time contributing as human capital and wealth at the same time, but of course some pure meristocrats and oligarchs are out there.
I will say it one more time. We are still in VERY early stages we are moving forward, but not super fast because people that are doing this stuff needs to collect data improve their Indexes or add some.
Social mining is used by projects like: Ferrum network, LTO.Netowork, 2 key Harmony and Elrond.
That’s all from me today!
That’s all from what I know. In reality there are many oligarchs that are meristocrats at the same time contributing as human capital and wealth at the same time, but of course some pure meristocrats and oligarchs are out there.
I will say it one more time. We are still in VERY early stages we are moving forward, but not super fast because people that are doing this stuff needs to collect data improve their Indexes or add some.
Social mining is used by projects like: Ferrum network, LTO.Netowork, 2 key Harmony and Elrond.
That’s all from me today!
Bless you
Benji