If you have watched the last Crypto Mondays show by @jongolson and @blainjones, you know that I've been working on a super secret project for the CTP tribe...
Why this project?
I know that for a certain time @jongolson was looking for a way to build a big account to support the ctp community with powerful upvotes.
There are two way to build such a big curation account:
One solution is to buy a lot of Hive and then power it up. Of course the problem is that you need this money first and you need quite a lot of money to have an account that makes a difference.
The second solution is to lease delegations on dlease. You can build a huge account by getting delegations. The problem here is that you have to pay for these delegations and the interest rates that you have to pay is very close to what you can generate with curation. If you do it well you earn a little bit. If you don't do it well, then you might loose money in the process. The person who builds such an account takes all the risks.
Both of these solutions are not really satisfactory I believe.
A couple of days ago, Jon was speaking about setting other people as beneficiaries in his posts. Then it kind of hit me. What if we did it the other way around? What if we create an account and we set this account as beneficiary?
Imagine if everybody from the tribe was giving 10% of their posts into a pot. This pot would be actually an account and this account would use its earnings to grow in power and upvote the community.
But of course there is the question of who would own such an account. Would people want to give something away like that to this person?
But wait, if this account didn't belong to a person but to the whole community?
Let me present the CTP Swarm Booster
In a nutshell the idea is to have an account that belongs to the community. The account is powered by the community and owned by the community.
Not only would this account upvote posts within the community. By doing this the account would also earn curation rewards. This means that this account will grow and this means that the owners of the account, the community, will earn money with it.
To sum up, with this account we could give powerful upvotes within the community and help the swarm develop faster. At the same time the community would earn money simply by owning this account.
This sounds nice in theory but how would it work?
The launch would last a whole month. During the month of September 2020 people of the CTP tribe can deposit Hive into the account @ctpsb (CTP Swarm Booster). It can be done by wallet transfer or by setting the account @ctpsb as beneficiary of your posts. It's up to you how much you want to contribute.
During the month there will be several reports on how we are doing. We will be actually able to unlock some features by making this account grow. These targets will be set as a motivation for people to contribute.
As soon as the account has some HP it will start voting on the members of the CTP tribe. We will try to vote on everybody but we will try to spread the votes so that everybody can profit from it.
During this period, I will keep track of the contributions that everybody has given. HBD's will be transformed into hive and the according amount will be credited to the people who sent it.
At the end of the month, I will calculate all the contributions for each user.
At the beginning of October, we will create a new hive-engine token. We will emit 1 new token for every Hive that has been contributed. These tokens will then be distributed to the people who made the contribution. For each Hive they sent to the @ctpsb account, they will get 1 token.
Each owner of the token is part owner of the underyling @ctpsb account and of the Hive Power in it!
After that the token will be traded on Hive-Engine.
How does this token gain value?
When this token is upvoting posts from the community, not only will the author earn bigger rewards. The @ctpsb account will also earn curation rewards by doing so. These curation rewards will increase the Hive Power of the account.
More Hive Power = increase value of the token
The value of the token is calculated in a very simple way:
Value of the token = Total Hive Power on @ctpsb / number of tokens in circulation
Let's say that the launch phase allowed us to collect 3000 Hive. We then emit 3000 Token. So each token is worth 1 Hive.
Now this account starts to upvote and generates 30 Hive curation rewards. However there is still the same amount of tokens in circulation. We have now 3030 Hive for 3000 Token. Now the token value is worth 1.01 Hive!
Whatever the account earns will have a direct repercussion on the price of the token.
The market maker reproduces the value of the token
There will be a market maker on Hive-Engine that will reproduce the value of the token on the market by setting buy and sell orders. This market maker will be a kind of buffer that will allow the whole concept to work.
It can buy and sell tokens from the @ctpsb account which is the creator of the token. Every transaction will be done at the exact value of the token at that moment. So the emission or buy back of the token will have no influence on the value of the token.
Why is this project a unique opportunity for you?
If you contribute to the @ctpsb account with wallet transfers or by setting the account as beneficiary of your account, you help to build this account. For every Hive that you contribute until the end of September, you will receive 1 Token that you can trade on Hive-Engine starting from October.
Because of the way that it is constructed, this token can only gain in value expressed in Hive. So it will probably never be possible again to buy it for this price.
A tool that fulfils a lot of objectives
With this project, there are a lot of things that we can gain:
- We get a big account to upvote the ctp posts and make the community interesting for others
- We get more value to our posts
- The swarm develops even faster
- By holding the token we can actually earn money passively
- By holding the token we are part owner of the account
- Everything is visible on the blockchain. Who holds the tokens, how much hive power is on the account
We provide an investment form for people who don't want to power up their hive!
Let's start today!
I'm aware that this project is quite difficult to understand and I hope it makes sense to you. Feel free to ask your questions in a comment. I will try to answer them as well as I can.
From today on it is possible to send Hive to the @ctpsb account and I hope that everybody will join this project. It's something totally new that I haven't seen anywhere else. This project can be considered to be DeFi (decentralised finance) and it shows what is possible on this blockchain.
We are pioneers in Hive DEFI