What are Pledge Coins (PLG), Camp Shares (CS), and why are they good for everybody?
It may look complicated but the goal is quite simple: to promote cooperation and share the success.
Read on for more!
Pledgecamp’s innovative Two-Token Economy
The Pledgecamp Ecosystem relies on a utility token called Pledge Coin to operate (abbreviated: PLG). PLG is used to back campaigns and is essential for allowing a decentralized escrow system. There is no third party (like us or say, Kickstarter) that holds centralized power as a custodian of funds or arbitrator of disputes. For the first time, backers are empowered to monitor and protect the use of their funds by their own hands.
Creators also need the token as a way to pay users for bounties to help their projects, hire vendors and services in our marketplaces, and to place security deposits to show they are serious about listing. All of this creates cyclical demand of tokens in the economy, and opens the ecosystem to users all over the world in a transparent and accessible way.
It is worth noting that Pledge Coins have been deemed a utility token by both a law firm in Singapore and a law firm in the United States that we have employed to perform professional legal reviews.
The second token, Camp Share, introduces an interesting feature that is key to the decentralized governance of the platform. Eligible users who pass KYC may “stake” their PLG to a non-trading contract, which will then “mint” CS tokens at a 1:1 ratio. This CS represents the size of their stake and allows them to gain status as Moderators.
User Moderators allow decentralized curation and governance on the platform
Moderators are called upon when governance is required on the platform, such as when campaigns are flagged by users for being harmful violations of the terms of service. Borrowing from the concept of Schelling Points (see in further detail in our White Paper) these Moderators will achieve consensus via blind votes and reach fair verdicts without the chance of collusion or centralized abuse of power.
Why would users stake their PLG to non-trading and perform this duty as Moderators?
Besides the hope that users with tokens at stake would act to benefit the platform, Pledgecamp incentivizes participation with compensation.
The listing fees (PLG) generated by the platform are not kept and used by the company, rather, they are used 100% as compensation for Moderators. It is only fair when Moderators are doing the governance work!
Formula for Moderator compensation.
The sum of listing fees generated by the platform in a period are distributed to the active Moderators who maintained their duties in that period. Thus, Moderators are strongly incentivized to perform their duties and keep the platform healthy, because a growing platform means growing compensation.
In order to stimulate early Moderator activity on the platform when listing fees may be insufficient at first, 5% of the initial token allocation (50 billion PLG) will be dedicated to reward Moderators for continuing to perform their duty and maintaining their Moderator status.
Thus, early Moderators will be sure to receive adequate compensation in the early days of the platform.
The 50 billion PLG will be equally split and added to the “F” term in the above formula over a period of 36 months.
Camp Shares will not be offered as part of the Pledgecamp Token Sale in February 2019. CS will not be available to users until the platform is fully operational and user moderation required. CS can be reverted back to PLG by “burning” CS over a period of 30 days. It is not guaranteed that all holders of PLG will be eligible to obtain CS, depending on regional regulations.
In this unique Token Economy, the value of a user’s token stake is connected to the growth of real-world economic value — by real listing fees generated by real campaigns raising capital for real products being made.
We encourage you to read the full White Paper and the Risk Factors contained within to fully understand the Pledgecamp Ecosystem and Token Economy, especially if you decide you would like to acquire Pledge Coins for your own use.
Thank you for reading along, and check out the links below for additional information!
It’s time to unite parties and incentives in crowdfunding once and for all.
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