[Idea] Cryptocurrency that rewards users for transacting - thoughts?

[sbuslovsky]

Dear community,

I have an idea for a cryptocurrency that I was hoping to get feedback/thoughts from you folks.
Idea's very simple: cryptocurrency that rewards users for transacting in it (and thus incentivizes use/adoption of itself).

Similar concept in traditional finance - cashback and rewards on credit cards - has been widely adopted by most, if not all, card brands.
We have made a Proof of Concept - it's functional, here's a diagram that summarizes idea and adds some details on how it works.
https://vincentiv.net/images/Vincentiv_Summary_v8.png

More details are available on website - there's a working testnet and blockchain explorer that you can use to see it in action.
Questions for the community:
- Thoughts / feedback on the idea?
- Would you consider using such crypto should it become available on exchanges?
- If you'd like to participate as a developer or investor - please reach out directly.

[Kavelj22]

I think before to prove how it works, the important question is why it should work at first place? What problems this project should solve and what would be the utility of the token within the concept?

More details are available on website - there's a working testnet and blockchain explorer that you can use to see it in action.

Link for the website is either missing or broken.

[sheenshane]

Sounds very technical discussion for me.

But this idea will kill the supply and demand but if your project isn't based on this then, there should be an unlimited supply.

- Would you consider using such crypto should it become available on exchanges?

If it incentivizes through transactions it could be abuse if this is on the exchange. 

- If you'd like to participate as a developer or investor - please reach out directly.

State your project and explain how it works and create a thread on this board Project Development, maybe there are investors and developers willing to help you.

[cryptoaddictchie]

In order to have a successful project you must have attained at least many preparations and back up plab with the idea.

Also I am interested to have some more details and sheenshane is right. You should explain all variables and data of this suggested project on how it will work and what is ir for.

Im sure many will feedback if there are some interesting concept with that.

[coin-investor]

I have an idea for a cryptocurrency that I was hoping to get feedback/thoughts from you folks.
Idea's very simple: cryptocurrency that rewards users for transacting in it (and thus incentivizes use/adoption of itself).

Similar concept in traditional finance - cashback and rewards on credit cards - has been widely adopted by most, if not all, card brands.
We have made a Proof of Concept - it's functional, here's a diagram that summarizes idea and adds some details on how it works.

If the rewards are much higher than the transaction fees it will be abuse, we see holders doing 100 or more transactions in a day because they will accumulate rewards if they keep transacting, it's like they are mining this coin by doing a lot of transaction they will create wallets and will transact on those wallets which are owned by one user and this is not good, if you can address the abuse then this could become a good project in the making

[sbuslovsky]

I think before to prove how it works, the important question is why it should work at first place? What problems this project should solve and what would be the utility of the token within the concept?

It adds the rewards for users for transacting in the system.
Rewards incentivize users to transact more, just like in the time-proven traditional finance - credit cards with better cashback/reward terms will gain more adoption.

More details are available on website - there's a working testnet and blockchain explorer that you can use to see it in action.

Thanks, fixed the link.

[sbuslovsky]

But this idea will kill the supply and demand but if your project isn't based on this then, there should be an unlimited supply.

Not really, this is just rebalancing of the rewards that miners get in all other cryptos; no additional deflationary forces are introduced.

- Would you consider using such crypto should it become available on exchanges?
If it incentivizes through transactions it could be abuse if this is on the exchange. 

Can you elaborate one exact concern with exchanges?

State your project and explain how it works and create a thread on this board Project Development, maybe there are investors and developers willing to help you.

Thanks for the pointer, will do.

[lumierre]

If this cryptocurrency will work on Ethereum so it will be ERC-20, I think that the idea of such a coin is very interesting and will be popular as people suffer from huge transaction fees, so they will be glad to have smaller commissions because of having a part of money back after every transaction. But I don't really understand how to create it technically as when someone gets money, another must lose it.

[noorman0]

-snip-
just like in the time-proven traditional finance - credit cards with better cashback/reward terms will gain more adoption.

It is just a reward with a measurable portion and is not sustainable, users are more concerned with the benefits of bank cards in their finances. Even if there is no reward, they will still transact because it is a necessity.

In addition, this kind of concept is prone to manipulation of transactions to get as much reward as possible (it can be started by the top holder). Even though it was no bigger than the mining reward, more people thought that transacting was certainly easier than mining to earn.

I agree more with some of the opinions above that creating a new coin should be accompanied by benefits rather than overdistributing just to speed up adoption.

[sbuslovsky]

In addition, this kind of concept is prone to manipulation of transactions to get as much reward as possible (it can be started by the top holder). Even though it was no bigger than the mining reward, more people thought that transacting was certainly easier than mining to earn.

I agree more with some of the opinions above that creating a new coin should be accompanied by benefits rather than overdistributing just to speed up adoption.

There's no overdistribution - the distribution of the coins follows the exact same rules as bitcoin or other cryptos.
New coins generated through mining are shared between miners and random users of the system.

[RussianEnglishTranslation]

Dear community,

I have an idea for a cryptocurrency that I was hoping to get feedback/thoughts from you folks.
Idea's very simple: cryptocurrency that rewards users for transacting in it (and thus incentivizes use/adoption of itself).

Similar concept in traditional finance - cashback and rewards on credit cards - has been widely adopted by most, if not all, card brands.
We have made a Proof of Concept - it's functional, here's a diagram that summarizes idea and adds some details on how it works.


More details are available on website - there's a working testnet and blockchain explorer that you can use to see it in action.
Questions for the community:
- Thoughts / feedback on the idea?
- Would you consider using such crypto should it become available on exchanges?
- If you'd like to participate as a developer or investor - please reach out directly.

Transaction fees are to prevent blockchain spam attacks. Any rewards would have to be time locked for staking.

[sbuslovsky]

Transaction fees are to prevent blockchain spam attacks. Any rewards would have to be time locked for staking.

They are time locked effectively.
Rewards are generated 5 blocks after the transactions considered for them have been submitted - https://vincentiv.net/rewards-generation/ .

[amishmanish]

How is it chosen that which transaction will get the reward?

What prevents someone from spamming lot of dust value transactions to increase their chances of being picked up randomly. In the calculation, the fee is mulitplied by number of transactions considered (34).

Whose transactions are these. Alice's??

That incentivizes the spammer to spam more transactions and pay a nominal fee to the miners. Even one hit can give him good return.

[vv181]

@OP regarding the "Reward amount proportional to commitment value", so the mitigation way to prevent the users cheating is only based on the transaction fees that the tx used right? and the winner is based only on the randomness/probability of 1/N? Am I understand it correctly?

I wonder with such value of winner and your motive to reward users with incentives does it plausible, and will get the attention of others? I mean isn't it too small.

In the calculation, the fee is mulitplied by number of transactions considered (34).

Whose transactions are these. Alice's??

As on their website:

Amount of the reward is determined by the fee paid by user for original transaction (0.053VNO in example) and number of transactions in the block (34 in example).

[sbuslovsky]

How is it chosen that which transaction will get the reward?

Transactions are chosen at random - https://vincentiv.net/rewards-generation/ has the details + a visualization how exactly that happens.
In short - transactions are chosen 5 blocks ahead (future commitment), they are hashed with the hash of (future) block, and afterwards number of zero-bits in the resulting hash is checked against target for that process.

In the calculation, the fee is mulitplied by number of transactions considered (34).

That's the total number of transactions in block that's considered for rewards - not just Alice's, any transactions in that block.

What prevents someone from spamming lot of dust value transactions to increase their chances of being picked up randomly.
... That incentivizes the spammer to spam more transactions and pay a nominal fee to the miners. Even one hit can give him good return.

Spam is prevented by having transactions fees in the network (just like with any other crypto).
The amount of rewards is balanced in such a way that it will keep the spam-protection feature of fees.

[Kavelj22]

I think before to prove how it works, the important question is why it should work at first place? What problems this project should solve and what would be the utility of the token within the concept?

It adds the rewards for users for transacting in the system.
Rewards incentivize users to transact more, just like in the time-proven traditional finance - credit cards with better cashback/reward terms will gain more adoption.

I still can't see the problem you aim to solve by creating this project. Generating incomes from transacting doesn't look as a logic process for me, either for many others. What do you think? How you see things in deep? Does the market or our lives need such a similar system? then what's the system at first place that will enforce users to transact and who will mine those transactions and does miners get rewards as well?

[Mauser]

This sounds like a good idea. Giving away perks and bonuses for consumers and users of your coin sounds like the next big step in the evolution of crypto currencies. We already have so many different alt coins out there that having a new format to distinguish yourself from the competition is needed. In traditional finance such cash back reward system have been in place for a very long time. Accumulating points and using vouchers for more points which eventually can be exchanged for prices are very popular. Banks, casinos, airlines, super markets, gas stations, restaurants, almost every sector is using it, so why not the crypto sector? Its a new form of marketing strategy than should attract many new users.

[sbuslovsky]

I still can't see the problem you aim to solve by creating this project. Generating incomes from transacting doesn't look as a logic process for me, either for many others. What do you think? How you see things in deep? Does the market or our lives need such a similar system? then what's the system at first place that will enforce users to transact and who will mine those transactions and does miners get rewards as well?

I believe that various cashback, rewards, perks are things that people care about when choosing a certain payment method.
When you choose between Amex, Chase, BofA etc. creditcards - won't you look for the best terms? I'd bet cashback and other rewards would be one of the main factors to consider.
Same here - if you're choosing between crypto that does or doesn't reward you as a user in any way - why not choose the ones with perks?

Miners reward - yes, still kept in this model, so they are incentivized to mine transactions and keep the network up & decentralized.

[Kavelj22]

I believe that various cashback, rewards, perks are things that people care about when choosing a certain payment method.
When you choose between Amex, Chase, BofA etc. creditcards - won't you look for the best terms? I'd bet cashback and other rewards would be one of the main factors to consider.
Same here - if you're choosing between crypto that does or doesn't reward you as a user in any way - why not choose the ones with perks?

Well! Just now that i can figure out that the whole project is about creating a payment system where its users will be rewarded by broadcasting transactions into the network. And like this it becomes the first kinda project, or you have potential competitors elsewhere?

Miners reward - yes, still kept in this model, so they are incentivized to mine transactions and keep the network up & decentralized.

Just make sure that rewards for miners will be extra than for the users. Otherwise, people will just start broadcasting transactions better than proceed with mining complications.

I will add this topic to my watchlist to follow updates.
Good Luck

[sbuslovsky]

Well! Just now that i can figure out that the whole project is about creating a payment system where its users will be rewarded by broadcasting transactions into the network. And like this it becomes the first kinda project, or you have potential competitors elsewhere?
I will add this topic to my watchlist to follow updates.
Good Luck

Thanks, doesn't look like there's any real competition - I went through all cryptos on coinmarketcap with >=1M valuation - no one is doing this yet.