I like the idea... I like the project but where's the value in the coin? someone else said it, too, seems like something you can do for free on google. I'm not trying to be negative. I do see potential..
Hi Ankara,
We spent a considerable amount of time constructing the token economics of Anacoin to be a unique membership/sponsorship asset that increases in demand as the price increases and is driven by increasing demand and decreasing available supply as more communities join the platform.
Anacoins are given to contributors by the Foundation or communities who purchase them, eg to sponsor prizes for resource creation or to reward active community members. As ERC-20 tokens they will be exchangeable for any currency with ease once they are hopefully trading regularly next year.
Now we can look at the other side: why would anyone buy Anacoin? What's the demand?
The primary use of Anacoin is to sponsor resources.
Practically, this means you can sponsor a verse of the Bible, Qu'ran or even constitution, with the top three sponsors receiving special status (auction style) for a year on the platform and those who do a minimum sponsorship also get status.
Sponsorships are per language so, for example, there are 6,236 verses available for sponsorship in Turkish. There are additional bonuses for sponsoring entire chapters or every verse.
Sponsoring a verse doesn't 'cost' Anacoins, but instead locks them up for 1-3 years, with rewards for higher holding periods.
Amounts of Anacoins locked up are also aggregated on a community basis, so you can see, for example, that Catholics are supporting the Living Bible with 5 million Anacoins whereas the Mormons have 6 million of sponsorship.
This does not inform strict governance, but it does guide the Foundation as to where we should focus.
There is a second form of sponsorship, which are auctions for chapters, eg surah of the Quran. These are lifetime donations in exchange for huge status as, for example, the Living Quran will include every other digital resource that can be found.
We anticipate governments, institutions and high net worth individuals will be involved in these auctions, where bidding in Anacoins gives a hefty discount for the winning bid. Half of the proceeds from these auctions go toward buying Anacoins in the open market.
Sponsorships are unique digital assets backed with a hardware key that can be resold with the permission of the Foundation, who receive half the profits. Given the most expensive rare pepe is a few million dollars now this could be huge.
Anacoins are also used in the data construction platform, where communities, liberal to conservative, pick and choose resources and views that represent them in increasing complexity (which is why we are using hyper-relational databases & AI). You need to stake yourself up with Anacoins to enter this area and submit resources, providing a level of troll protection as Anacoins are lost if you break the rules.
When a community has packaged all these up, they can submit a curated data set for our custom consumer apps (Living Qu'ran, Bible, Constitution etc), for which they need to stake further Anacoins as a "proof of stake", potentially being able to draw from the pool of staked coins in the verse/community level.
This also makes sense in regards to the "price" of staking for content, as the basics of every community are simple, but as time goes by and more is mapped, it becomes increasingly complex, requiring higher and higher rewards. Curated content resources also become more verified as leaders of each respective real life community get a chance to sign off on them, becoming a community resource.
The concept of all of this is incentive alignment.
Clearly a lot of people would like to have a comprehensive, dynamic, end platform where they can reliably access digital and real life resources of their own community and others if they like.
Standardising the support element and having people see the value of hodling aligns all sorts of different groups to build a platform for everyone, even if they primarily use it and the tools they provide for their own community.
Locking up increasing amounts of Anacoins as more and more communities join the platform means that there is huge incentive to join it early and strong competition between groups in a "tech arms race" while creating a free to use community resource for the world.
As the price moves up, the incentive to hodl increases further, much as Ethereum and Bitcoin engender pseudo-religious fervour (this is known as the endowment effect).
There is more explanation on our blog, whitepaper and video on
www.anacoin.ioIf this works it provides a model that allows projects like ours to create commons while rewarding all participants and steering clear of the strings that often come with funding.
