Bitcoin Side Chain Deflation On Steem
Proposal
Introduction
The objective of this proposal is to seek the implementation of over 1% of the bitcoin market share onto the steem blockchain. At the time of this proposal representing about $1.7 billion. The focus is to bring over 50 million wallets to the steem blockchain.
Benefits To the Steem Blockchain
The benefits to the steem blockchain and bitcoin holders are numerous. The steem blockchain working alongside bitcoin solves many issues for bitcoin holders. This provides a great value to the steem blockchain as it now would facilitate a large portion of bitcoin transactions to the end users seemingly free. Thus transferring much of this value to the steem blockchain.
Bitcoin Pegged Assets On Blockchains
Our research shows bitcoin pegged assets on other blockchains don't work. This speaks to the issue of trading value into altcoins. The dynamics of trading cryptocurrency assets into altcoins specifies the greater value ratio to the underlying altcoin to bitcoin. This project solves that problem by allowing bitcoin holders to claim their bitcoin value free thus retaining their bitcoin in their wallets. A very simple yet effective and non intrusive means of unique account identification allows this to be possible.
Social Media
Social Media does not equal the steem blockchain. The confusion has long been that Steemit.com is the steem blockchain. This means that the use and full potential of the steem blockchain goes far beyond just use of social media platforms. Social Media may however equal a great amount of value. The libracoin project underway would potentially at some stage reach 2.2 billion users. This shows the power of what social media could do over the blockchain. Understanding the reasons why social media grows such value and reaches such heights helps to move to a successful direction. The true value of projects lies in actual use and application. The large use that has been shown on the steem blockchain theoretically, relating to social media should translate into a highly ranked coin.
The project uses a democratic voting system on posts from members and incorporates a familiar like simple approach so end users adoption of the platform is not overwhelming. The benefits of social media into a bitcoin like coin on the steem blockchain we believe presents many advantages as far as expansion and use of the network. Democratic voting also removes many stigmas in association with the balance of value on the network. Our research shows although these models short term prove economically sound. Longterm they may be quite the contrary. This project has built a social media platform integrated into it's bitcoin sidechain feature.
Music Artist
Social Media has been joined at the hip with the music industry. Many are now exploring ways to create a better industry through use of blockchain technology. The industry of old relied on shady record labels and bad deals to promote up and coming new artist. Social media has now made it possible to create superstars overnite.
Unfortunately not all situations for musical artist are equal. Steemit has provided an opportunity for musical artist to monetize their intellectual property through a voting system. In keeping with the idea our platform has a feature which allows artist to receive value per play and vote. This concept is a bit different than the proof of brain algorithim stakeweighted voting. This allows artist to monetize their music more similar to a pay per play stream with all vote value being equal.
This gives power back to musicians and allows them to promote their brand independent. So far the idea is well received from speaking with some musicians. We feel this feature on our platform can itself create a tremendous amount of value. We believe the demand for use of this feature will be great.
Onboarding New Users
New account creation has long been an issue on the steem blockchain. Some users may have the knowledge and desire to purchase an account. The patience to await an account. However the problem of the " convenient society" doesn't work well in those cases. In a world where we receive now. Things at the touch of a button now. This can greatly lower the appeal to the network.
Our platform allows for new users not only to create accounts same day. It allows them to earn our SCOT tokens and trade them on the Freedomex. This segregates an account for them until they can either create a steem account. Receive one or learn how to purchase one. At the same time as they earn our tokens for their participation. They can trade them for steem and use steem to obtain their steem accounts.
We find this to be an effective method. It doesn't alienate the end user or make their experience bad. They are able to still participate in the network.
**Store of Value**The unfortunate myth of cryptocurrency so far has been a technology we use with many applications end users will find some use of. The statistical reality. The majority of of cryptocurrency users only utilize cryptocurrency as a store of value. Assets pose many issues as they generally don't lead to trading and commerce and transfer of value.
Financial Products as follow:
Gold as a store of value $7.7 Trillion USD
Offshore banking $15 Trillion USD
Credit cards/payments $770 Billion in Visa, MasterCard, and PayPal
In comparison to payment systems you can cleary see the above data indicates store of value dwarfs any payment system use of cryptocurrency. Our bitcoin product would ideally create a significant amount of value to the steem blockchain as users will see it as a valuable product. The altcoin markets underperform significantly against bitcoin based we believe on this same information. The cryptocurrency markets value a bitcoin as a store of value much greater than any other product. Based on that information bitcoin will continue to be the premier product provided something comes along better and more efficient.
Our version of bitcoin on the steem blockchain would deflate against trade volume on a 1 to 1 ratio from 100 million tokens to 21 million tokens on par with bitcoin. It would then deflate down to 5 million tokens. The tokenomics against growth suggest the deflationary model value wise should act as an appealing store of value for token holders. This would create a bitcoin product on steem that acts more to promote it as a store of value than bitcoin itself.
Deflation
The deflation of our product works as follows. Every month the trade volume is calculated for example: 1 million tokens are traded equals 1 million tokens burned off. Token holders will also be able to take part in a token forward split process. This means based on the tokens they buy they may claim the same amount of tokens. To illustrate as the token splits users who purchase tokens on third party exchanges may be able to claim those tokens on our platform. For example: 1000 tokens are purchased. They may claim the 1000 tokens purchased. The network burns 2000 tokens. The tokens purchased and the tokens the purchaser on third party exchanges received. This velocity of deflation against network growth should theorectically create a more valuable product. Although we'd be unable to collect this data until after significant progress in the project. It would seem in comparison to other deflationary projects the data suggested results would be more favorable.
Projects like Bomb Token and Ethplode.. etc., who have attempted this have seen some considerable results. Although these projects seemingly lacked any use case outside of a methodology of deflating tokens. As well as perhaps creating unpredictable future results. Our project direction , growing through the bitcoin network we believe makes the success rate much greater.
Content Influencers
Marketing and outreach is essential to the survival of this project. It is also going to determine the value of the steem blockchain to a great degree. The problem with marketing is that it may become quite expensive. Estimates of over half the revenue of some businesses go to marketing. The key is allowing every dollar to create a great deal more value for your product. So part of our plan is to broker deals with content influencers and create an outreach team that can get results yet are cost effective.
The dlive project once part of the steem blockchain brokered a deal with Pewdie Pie. A content creator with nearly 100 million loyal subscribers. These are very effective methods. However our approach finds that spending in projected areas of about $20 million to team up with Pewdie Pie won't be necessary. A similar feat could be accomplished in a well gathered portfolio of content creators promoting the product with reasonable value spent out to secure similar outreach and numbers.
Affiliate marketing through the masses of users is as well greatly underestimated. The community participation and ability to earn through affiliate program marketing allows for a viral growth rate. Under our project we believe we could accomplish such a network and build up a great portfolio of content influencers to assist us.
The Bitcoin Effect
The true value of bitcoin has been questioned over the years. However whether the technology and features and usability of bitcoin can be agreed upon as justification of the value or not. What is clear is the branding of bitcoin has held it in place as the most traded cryptocurrency and highest valued. A similar proposition could be raised about Facebook or Nike. We could determine perhaps there are a number of greater projects in their industries. There may be greater technology. However despite those details certain products remain in place and at high value due to the network effect.
Our research has shown the bitcoin network effect transfers over to other altcoins. The majority of bitcoin coins and or products. Have performed quite well over the years. Bitcoin Cash despite community outcry managed at one point to gather about 6% of bitcoin value. The infamous Craig Wright forked bitcoin cash ranking high in cryptocurrency and maintaing a billion dollar valuation.
Doge Coin, Litecoin.. Bitcoin Gold.. these bitcoin products have all gained incredibly high value based on their association with bitcoin. This product aims to do the same. Bitcoin forks.and products may on average bring in about 3 million users alone. As well as knowledgeable cryptocurrency users who move real value.
Purchase Simulated Mining Rig
Simulated Mining Rigs use a random reward generator based on your activated rig. They come in 2 series. Series M1 may be purchased with 10,000 btcmyk tokens or about 5000 steem. It mines an average of 100 btcmyk tokens per day.
Series M2 or the full data center may be purchased for 100,000 btcmyk or 50,000 steem. Mining an average of 1,000 btcmyk tokens per day.
The random reward generator links to your mining rig and pays tokens to your account daily. The winning daily reward goes to the mining rig that is selected. Half of all purchased mining rigs revenue goes back into the token price and to the mining rig selected every 24 hours.
https://www.bitcoinmyk.com/purchase-simulated-mining-rig/
Delegation
Our delegation agreements offer the most competitive rates. You earn btcmyk tokens based on your delegation amount. Find out more details here: https://www.bitcoinmyk.com/earn-bitcoin-myk-tokens/
Transfer of Value
The project integrates a system to transfer and receive your bitcoin value on the steem blockchain. The process of stopping double spending has long been an issue in cryptocurrency. What sets us apart and makes us unique from most projects. The ability to move your bitcoin value at anytime. Most projects coordinate a specific time to snapshot the bitcoin ledger. Once this is included there is a one time transfer of bitcoin value to another project or bitcoin like product.
We allow claiming at anytime with no coordinated snapshot. This is a very simple process as discovered during certain coin and token airdrops. To claim tokens and have bitcoin value on the steem blockchain without moving bitcoin or creating a double spend situation. This process only requires the claimer to connect their account and bitcoin account to our project. Under limited to no kyc. Users only would need to verify they hold the bitcoin account either through a wallet signature of small test deposit at the lowest satoshi holdings. Followed by a photograph of themselves holding a note of the date and their drivers license.
This is not kyc. The driver license information would all be blotted out except the first intial or name.. So no data connecting the photographed to that person and or account would be identifying information. This would allow any suspicious bitcoin claims to be quickly matched to accounts and photo id without connecting them to an identifiable account but only a unique person.
Mass Adoption
This project as part of it's phase 2 mass adoption intiative plans to give out universal basic income. So generally the idea of Universal Basic Income up until recent times have not been well received. The idea of giving away free money is often unsustainable and results generally in failure. However a few corrections should be included about the concept of ubi. First being that it's free money not so free yet sustainable.
So to understand this. Projects like EOS had considered creating an offshoot of ubi called URI, or the universal resource inheritance. This in idea would give ubi based on the annual inflation of EOS. Projects considered like this have never come to fruition. However it does suggest the concept of a sustainable ubi. In our version the average claiming done on Bitcoin Holders on average tops out at around 3 million claims.
The tokens not claimed as part of the bitcoin network on steem. This would allow ubi to be paid from the unclaimed value and tokens along with other platform projects and intiatives that add value to the network. The biggest question of course would be why would this project need ubi in the first place.
The answer is where it is true that the bitcoin network could possibly adopt the steem blockchain to a great degree to faciliate the movement of bitcoin. The reality is there will probably be somewhere around 3 million claims based on research we've gathered so far. If all bitcoin holders claimed that would still only account for about 50 million accounts. This is a great deal shy of mass adoption.
We have discovered that not only do most account holders accept ideas like universal basic income. We have found that most would open an account to have access to it. The statistics suggest about 80% of the globe now require something like universal basic income. In addition to that, it has become one major policy driving the 2020 elections. Candidates like Andrew Yang and the infamous online sensation the "Yang Gang" have pushed the platform forward. Tech experts like Elon Musk have made alarming claims to the necessity of ubi and the 4th Industrial Revolution. A nation like America which has frowned on such ideas now are considering it a necessary major policy change. This speaks a great deal to the demand ubi is creating.
The fallacy of UBI, is that it can only take money from an economy. This is an economic fallacy and often cited based on limited information about ubi and economies. Through money changing hands and velocity of money first this could signify and ever expanding economy in our example against a deflationary token. In addition to that ubi registrants would also have ways to earn on the site and perform gigs through our work posting site for services and related tasks that now transfer their value into the token. So along with the bitcoin network and a demand greater than 80% around the globe we find this to be a viable approach.
The unfortunate lack of demand for bitcoin. Although bitcoin has risen to be the dominate cryptocurrency compared to other markets bitcoin doen't even rank as a top business in America size wise. Several companies some even private dwarf bitcoin in size as far as it's market capitalization. So in terms like this makes bitcoin not seem so impressive. The issue is the demand for bitcoin isn't there as much as we'd like to believe.
Some economist and crypto enthusiast place value on bitcoin at around $800 - $3000. These numbers are comparably smaller than the value it trades in our markets. Of course much of this is due to price manipulation as conducted and handed over by results found through several studies and audits and presented to the SEC. Major demand uses for bitcoin still rank around moving money out of nations with regimes that put citizens in danger of losing their money.
In tact and full serviced banking systems also stop the demand of bitcoin. Lack of knowledge and education about cryptocurrency also keep down demand. However as 80% of the globe would have a demand for ubi. This would not affect the demand and need for the product nor would it cost the product any new money or value not already existing and lying within it.
Funds
The Bitcoin MYK project on the steem blockchain is now operational. It's value is dispersed through Scot tokens traded on the Steem-Engine exchange. The project would seek $100k. At daily payable rate of $273.
Use of Funds
The project would use the funds to give value to our bitcoin network in an effort to attract bitcoin holders and content influencers. The network would grow against accounts, content influencers and an ever deflating token.
Approximately $273 per day would be used to go on the open market and purchase bitcoin myk tokens. 10% of the total daily trade volume may be sold and traded from the bitcoin myk treasury to allow operational cost to be met and paid for. That would be no less than $273 per day. At a maximum rate of whatever the height of the daily trade volume is. Any amount exceeded for that day or under would be deducted or carried over to the next day.
Content influencers amount of tokens received will depend on the amount of followers they have. So the money distributed to content influencers willl vary. However we expect to spend around about $50k sbd on creating a diverse content influencer portfolio. The funds they receive will be distributed in increments based on the content and representation we receive from them. They'd be more connected and treated with the upmost respect as part of our marketing teams. So they have a shared interest in the success of the product.
We'd expect to spend about 50k sbd going towards daily operations. That may include everything from the payment of salaries to platform upgrades. The proof of participation model which gives tokens on the site for completing tasks and generating ad revenue and money for the website. This would also create opportunities for the steem community to earn on affiliate marketing and referral linking to use our network.
Security of Funds
Security of funds is important to all parties. The agreement made with a community and their giving over value to grow that community needs to be protected. The reality is the steem community has given over a tremendous amount of value to projects that have taken this value and not given anything in return. These type situations can easily be avoided.
We propose several measures. First we'd suggest holding a joint account with either Steemit Inc or a highly trusted community liason. We'd prefer some connection to Steemit.Inc someone in a high managerial position. However if one can not be appointed then perhaps the community could elect a trusted person who would be. We would hand over private keys to this entity, group or person in the event the account is not exercised in a way seen to be properly fit and outside the agreement made in this proposal. At which point they could enter the account and attempt to cease any operations outside the agreement.
The next measure would be tokens we have in our account. The liason would also have access to the scot tokens that represent all the value of the project. So the value of those tokens and use of those accounts could easily be frozen if necessary by Steem Engine market place where they were created. So we believe these to be some of the best methods to secure funds against improper use.
Conclusion
We'd like to take a moment and thank the Steem community and this service for consideration of our proposal. We appreciate the steps taken to provide value to this network. When we first joined this community. The expectations were astounding. We predicted it would replace facebook. We predicted it would trade at $100. These things unfortunately didn't occur. We hit alot of bumps and we blamed alot of people.
The reality is i wanna tell you all something different today. I wanna tell you a different story. That is there was nothing we could do. This would have happen in any event. That is because certain economic as well as social dynamics have caused great issues in the cryptocurrency space. No matter how you try to approach them often times their results will be the same. The good news is i'm here to tell you all that now that can all change. This project can meet the demand factors that are necessary for many of the things we do in this space to work. We have the power now and opportunity to make those needed changes. Of course we can't do it by ourselves. However with you all we can achieve alot. So let's turn this around now. I'll see you all on the new network!
**For even more in depth features and information
**
visit us at
https://www.bitcoinmyk.com/white-paper/
Youtube channel: