Today we would like to take a closer look at the Libertas ecosystem and the utility of our token within it. Initially, we created the LIBERTAS token to secure immutability of the data within our platform, however, in recent months we have been exploring additional avenues for rewarding token holders and our early supporters. Let’s start with a simple infographic of various use cases on our platform:
To put it briefly, the main priorities of our tokenomics model are:
- Reward token holders and supporters through staking
- Maintain a steady price increase through deflationary mechanics
- Enable content creators new ways of transacting funds away from established traditional systems
- Encourage holding our tokens through the Liberate functionality for content promotion
- Encourage users to burn our tokens and in return receive rewards
We have a couple of other use-cases, however, at this point in time this is what we are ready to announce and what we are currently working on.
In order to achieve sustainable growth and price increase of the token and therefore reward its long-term holders we have decided to implement a 1% token burn on every tip-transaction conducted within the ecosystem. This mechanism will ensure that the circulating supply of the tokens will decrease overtime.
Additionally, we will be offering several products where users will be able to burn a set amount of LIBERTAS tokens and in return receive a special badge and awards which can be gifted to content creators or displayed on their profile for supporting our project. Users who burn the highest amount of tokens will get a special recognition in our community and on our platform. We are also brainstorming to come up with the best way to utilise NFTs for this scenario, and allow users to gift awards and premium subscriptions between each other. This will also allow content creators to host promotions for their followers on our platform, rewarding their communities with special prizes.
Moreover, we will be introducing additional deflationary mechanics as part of our Liberate functionality. We will expand further upon this later in the article.
Incentives to Hold
Our token is not just a simple transactionary token through which to receive payments and donations. We want to actively encourage our community to hold onto their LIBERTAS tokens, to this end we will be implementing several ways to do so. First and foremost — users will be able to stake their tokens and receive a portion of the revenue our platform generates.
The next important use case for our token is the Liberate functionality. A simple way for token holders to show their appreciation to the content creator — users will be able to Liberate content with their token balance and help promote it. This token balance will not be spent, users will maintain their balance, no tokens need to be spent and no transactions will be executed.
Content creators themselves can also promote their content through the Liberate functionality. The aim is to incentivise content creators to hold onto their tokens received through donations and payments.
As well as the above, content creators will have the ability to increase their “Liberate multiplier” logarithmically by burning additional tokens. This multiplier will be increased indefinitely by up to a value of 2, so content creators who are serious about getting into the spotlight will have a reason to support our project by decreasing the circulating supply and burning our tokens.
The table below briefly demonstrates what we have in mind. Particulars are still a work in progress. Users will also be able to increase the Libertate multiplier, but by smaller increments.
In addition to deflationary mechanics, every transaction within the ecosystem directly supporting the content creator through donations, subscriptions or pay-per-view models will have its revenue (9% of the transaction amount) split equally between the development fund and staking pool (4.5% each). 1% of the transaction amount will be burnt as mentioned above. Anyone holding LIBERTAS tokens will have the opportunity to stake their tokens and receive rewards proportional to their share of the staking pool.
Our product is being developed with the community at heart and we truly mean it. For this reason we would like to extend our decision making on further development to the community (in particular our token holders, who are valued participants of the ecosystem) in order to collaborate on upcoming features and priorities.
We are currently considering several models which could help us to extend this to the wider community. We believe a strict DAO has its downfalls and would slow down the development process, however, we can enable token holders to vote on our priorities and we would then focus our development efforts accordingly. This will allow us to enable token holders to voice their opinions and give us their feedback which we will then take into consideration. We believe this relationship will be mutually beneficial for our platform as well as for token holders invested in our project.
We will be extending our products portfolio to bring even more utility into the ecosystem, once it matures. Token holders will directly and indirectly benefit from these products. Most notably, we are thinking about several ways to introduce marketplaces that would allow content creators to host their merch-shops on our platform. We may introduce premium memberships as NFTs that could be transacted between users and provide additional functionalities. We do not want to be dependent on advertising but believe there are interesting opportunities that could be explored and implemented.
Since we are powered by IPFS, we have been analysing ways that would allow anyone to host a node, and be incentivised for maintaining the decentralisation of our system. This is likely to take a while to roll out, but we believe anyone hosting the node would deserve to be rewarded. It’s hard to fully commit to this vision as of now, however, this is how we envision the future of our hardware infrastructure to be. We would much rather rely on our community than a centralized cloud based provider when it comes to censorship resistance.
Overall, our roadmap is ambitious and may take us a while to roll out all of our plans, but we wanted to share a glimpse into our strategy and thoughts on where this project is headed. Recently we have expanded our team and are sufficient to support the project for years ahead. Our deepest desire is to reward our supporters who have been with us since our early days, those who believe in our mission and ethos to bring back free speech as we believe the fight against censorship is the one worth fighting for.
Follow us on socials:
Upload your content onto Libertas VOX