EPISODE 5: NANO and AUDIUS

EPISODE 5: NANO and AUDIUS

By SirGerardThe1st | Tokenomics | 6 Nov 2020


Did you ever think that you didn't interact with more than 500 people in your entire life?

I am referring to the direct (or more or less direct) contact you have with people for the transfer of value.

You spend your life in a certain way within a "cluster" that makes up your world and that rarely opens to admit new income.

I explain.

To show what I mean, I present to you my cluster. A small community in which I am the fisherman of the tribe.

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Around me there are a series of miniclusters orbiting, and the number inside each circle identifies the number of people who, at most, have direct or semi-direct contact with me. Banks are explicitly excluded, since banks have not been in my cluster for a long time. I don't know in your case.

My number is 380 people. Search through your clusters, and you will arrive at a similar figure.

In a bar or restaurant, there can be many more than 50 people at any one time. But I am referring to the owners, who, although I do not know them, are the subjects with whom I have to exchange value. I don't think that in the time of my life I will go to more than 50 different bars, although I accept that this may be very different for others.

The issue at stake here is that I only have to worry about transferring some kind of value between 380 people throughout my life.

The question then is: ¿Why do I have to use a promissory note issued by an obscure entity called Central Bank?

¿Why does this promissory note have to be the same as the one used in a very large geographic region? ¿What do I have to do, in terms of transferring value, with a person who lives 5,000 km from home, and anyway, be obliged to use the same promissory note issued by a Central Bank, run by "non-existent" people for me and however, being them the ones that give value to my work?

Don't talk to me about efficiency! Does anyone want to tell me that banks and their debt issuance systems make economies efficient?

Tokenomics means coordination. Coordination between the different miniclusters that make up the cluster of any person.

In my community, I get value from the fish I catch every day. Any of the 380 people could buy it for me.

What happens if I mint my own money, my own token? SirGerardtoken. To make my token known, I advertise in all miniclusters and set up a faucet, so that people interested in my fish can hodle my token, to pay me with it when they buy fish from me. To receive my token, people must fulfill certain tasks, in my case, they must read the posts that I upload about the benefits of consuming fresh fish, plus a lot of recipes that my grandmother taught me to cook fish. If my product is good, my token can be highly respected, although in this context the concept of pricing is worthless. I see no need for big exchanges. I can swap my token for other tokens issued by other people in my cluster at a certain rate set inside the smart contract, and provide liquidity to a certain pool inside the cluster. All 380 people can do this. For example, one of the professionals who treats me, the dentist, can mint his/her own token, and advertise it along with his/her faucet. People can hodle it for when they need to fix their teeth.

Apply the same reasoning for the plumber and the barber.

The result of this coordination process would surely be that each one would collect the tokens of the things that they like the most or that they plan to buy in the near future. Because that's what making money is all about, not for the money itself, but for the things we can do with it, right?

Even the cluster could consider having its own token, the communitytoken, a stablecoin backed by a basket made up of all the coins minted by each member of the community, which could be mined with a consensus protocol called PoC or proof of community. That is, just by belonging to the community, you could access to mine the community token and use it, for example, to pay for energy, streets cleaning or real estate taxes, (all utilities provided by foreign community entities), in addition to meeting the network transaction fees. A network of smart contracts would ensure the stability of the communitytoken, based on the actions of each member of the community. The famous Frederick Hayek’s “spontaneous order”. Does anyone imagine better self-control?

This is anarchy, the cypherpunk ethos, the perfect coordination between the members of a community who keep their privacy intact.

Now, how do I pay for advertising my fish? With communitytokens, mined or requested from a liquidity pool against a collateral of my SirGerardtoken. When I receive enough of my own tokens obtained from the sale of my excellent quality fish, I recover my collateral and the communitokens minted for my loan are burned so as not to generate inflation.

Whom do I pay for my advertising and for my faucet dApp? To one of the professionals of the minicluster of professionals, who can also choose to charge his/her work in my own token.

And so on.

My vision is of a world in which each person can mint his/her own money and use it to exchange value within his/her community, which is never more than 500 people. The famous “be your own bank”.

Of course, there will continue to be currencies such as BTC, ETH, LTC, DAI, ADA, BAT, and all the dApps that support them, and all the currencies that you want to add. What will cease to exist are the IOUs from central banks and governments, but those who remain eager to accumulate and feed their greed will be able to do so. Why not?

There will be no more nations, nations are now cryptocurrencies, as our friends at Bankless say. Therefore, there will be no more need to fight to enlarge territories or to collect minerals or fossil fuels. Things of the past. Communities will produce their own energy and materials. I already talked about this when I referred to CLA in episode 2.

And who governs this model? Yup, you guessed it, the communitytoken is a governance token, and the community decides its fate.

And each community will slowly and inexorably tokenize, directing the world towards a network of small self-sustaining communities, with a circular economy, and making the globalization model obsolete, touted by corporations for its exquisite asymmetric method that favors only the most powerful.

That is tokenomics.

To some it may seem like Alice in Wonderland, but, even so, this dream is preferable to falling into the hands of Libra, JPMorgan or central banks issuing their own cryptocurrencies, authorized by the BIS.

If you have time, take a look at the IDENA project and see for yourself how far we are from building communities like the one I described.

With that said, let's move on to today's two tokens.

 

NANO

The NANO cryptocurrency model is ideal for the community model I just described.

Development of Nano began in 2014 by Colin LeMahieu, under its original name of RaiBlocks.

The original NANO paper was published in December 2014, being one of the first cryptocurrencies based on DAG (Directed Acyclic Graph) technology. I described DAG technology as an alternative to blockchain in episode 2 of this blog.

NANO has a block-lattice architecture in which each account has its own blockchain, which is a great differentiation. This provides near-instant throughput speed and infinite scalability. Each user has their own blockchain, allowing them to update it asynchronously with the rest of the network, achieving very fast transactions.

NANO achieves consensus through weighted balance vote on conflicting transactions. This consensus system makes transactions faster and more deterministic, while maintaining a strongly decentralized system.

NANO is a typical everyday currency, since in addition to its speed advantages, the system can run on low-power hardware, which makes the ecosystem very pragmatic.

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As indicated in the White Paper, NANO uses a consensus protocol called delegated Proof of Stake, and since each account has an individual blockchain to achieve the objectives of transaction speed and low power consumption, eliminating access problems and inefficiencies typical of a global data structure, the possible vectors of attack to the system are explained in detail, presenting the arguments of why NANO is resistant to these attacks.

Nano is one of those coins notable for its speed of operation and its low fees. I see it as a hidden gem.

The most visible heads of NANO are Colin LeMahieu, its founder and CEO, and Deepa Mardolkar.

Colin Mahieu is a recognized engineer with a lot of experience in the industry, having worked for large companies as an executive and a software designer.

Deepa Mardolkar, recently joined by the company, is an executive expert on issues of revenue management, consumer insight and product & service innovation, tasks that she carried out for American Express, GE Money and Amazon.

The WeNano wallet is very useful and intuitive, and it allows almost instant micropayments. It connects with nearby NANO users to make transfers. Many merchants accept NANO in various parts of the world.

I have been using TipNano for a long time. It is a faucet that allows you to receive free NANO after completing various tasks. It is very useful and the payments are instantaneous. This is my referral link.

Conclusion. NANO represents a democratic ecosystem of digital money. All crypto ecosystems are supposed to have this characteristic, but unfortunately, many represent a privilege of a few, either because of the necessary amount of energy needed to mine new currencies, or because the narrative to reach all people has not yet been found and there only seems to be a speech made for more or less sophisticated investors. The growth of NANO is permanent and his team put a lot of energy into the next generation of crypto.

 

AUDIUS

AUDIUS is a decentralized protocol for audio content.

Take a look at the "Art" minicluster of my cluster shown above. My artistic inclinations are on the music side, and after many years of consuming a lot of music, only now I do realize the way in which I was mistreated by the industry, let alone the authors, the real artists, who usually die in absolute poverty, being that they make millions of people happy with their art.

According to the AUDIUS White Paper, only 12% of the revenues from the music industry go to artists. Everything else is left to the intermediaries. Musicians do not have the slightest control over their works and their distribution.

AUDIUS is a fully decentralized music streaming protocol, built on a public blockchain, which allows artists to distribute their work and receive direct payments from their fans.

The AUDIUS tokenomics is supported by the AUDIUS token, third-party stablecoins, and artist tokens, and features a decentralized storage solution for sharing audio and metadata. The governance protocol involves artists, node operators, and fans in making decisions about changes and upgrades.

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The AUDIUS token is staked as collateral to receive value-added services. Every AUDIO staked in the protocol by artists, node operators and curators receives governance weight.

Fans can delegate tokens to specific artists and curators to contribute to the platform and the issuance of future tokens. Node operators must stake tokens to operate a content node. The more tokens they stake, the greater the probability of being found and chosen by fans.

The AUDIUS community can choose to leverage known stablecoins to release paid content. In this way they become independent from the typical volatility of other tokens. Stablecoins are special for micropayments.

The vision of the AUDIUS team is to provide mechanisms for artists to create and distribute their own tokens on the Ethereum blockchain, giving their fans the possibility that they can access exclusive or unpublished material through these tokens. This would give an extraordinary boost to the DeFi and Ethereum ecosystem, by entering players who had never thought to do so. Fortunately, there are many artists in the world.

According to the AUDIUS road map, having completed the Genesis, private alpha, and testnet stages, the platform is entering the mainnet launch, waiting for concrete results for the beginning of 2021.

Since its launch in September 2019, AUDIUS has already attracted more than 750,000 monthly active users, generating more than one million monthly streams.

The AUDIUS team is heterogeneous, predominantly, serial entrepreneurs. Leadership is led by Roneil Rumburg, CEO and founder and Forrest Browning, Cofounder and Chief Product Officer, both entrepreneurs with extensive experience in the technology sector.

With each piece of music being an NFT, by combining the technologies of NFT (for me, the next “big thing” in the crypto-sphere) with AUDIUS, it is possible to definitely change the history of artists in relation to art and their own work. Notably, the Charged Particles project is working in this direction, allowing a unique piece such as an NFT to be "charged" with a cryptocurrency, in order to achieve a nuclear explosion in an object that is appreciated for its unique value and for the value of its charge, that is, its cryptocurrency.

Conclusion.  Will the artists ever be paid accordingly? Can we imagine for example a song like “A Day in the Life” by the Beatles loaded with AUDIUS? Or "Dust in the Wind" by Kansas, loaded with BTC? Or with the currency that you choose. What would be the price of NFTs like those in marketplaces like OpenSea?

 

As usual, none of the things written in this post are financial advisoring and are not intended to replace personal research.

 

 

Thank you for reading!

 

 

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SirGerardThe1st
SirGerardThe1st

Franchise veteran, Dapps developer, DeFi evangelizer, Bitcoin and Ether since a long time


Tokenomics
Tokenomics

Why do we talk about tokenomics? Why did tokens suddenly become so important? Tokens are the best coordination tool that the crypto-sphere has created. The tokenization of the economy allows us to forecast where future generations will allocate investments. Any real asset can be tokenized and brought into the digital world to be traded by brilliant minds in creative and innovative ways. It is a turning point, the birth of a new economic model that is absolutely inclusive and permissionless.

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