What is Proof-of-Brain (PoB)?
Proof-of-Brain is a coin and token distribution mechanism on the Hive blockchain. This is an approach to reach consensus regarding the distribution of the reward pools. For the native coins, this operates at the base layer. We also see the same mechanism being employed by Layer 2 solutions.
PoB is a way to reward the efforts of both content creators and curators. When content is posted, the community votes upon it. The mechanism employs both up and down votes as a means of arriving at consensus.
The weight of each vote is based upon the amount of coins or tokens staked. On Hive, it is called "powering up". Those who stake more are granted greater influence over the reward pool.
This mechanism employs a 7-day voting window. After that time, the content is removed from the active voting pool and the rewards are paid out. At the base layer, the payout is split 50/50 between the content creator and the curators. On the second layer, there is the flexibility to alter that although most projects do seem to follow that same model.
Proof-of-Brain is a way to distribute the new cryptocurrency that is created. With the native token, this applies to a portion of the inflation pool. On the second layer, many of the new tokens are fully distributed according to this mechanism.
Acting a curation service, the goal is to find the content the community values the most. There can be some disagreement since the results are based upon the stake of each voting. Hence, those with more powered up have a larger say.
On the base layer of Hive, rewards are paid out as follows:
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The Layer 2 applications tend to pay out in liquid tokens.