Leveraging economic, technical and governance-based incentives to perform actions that benefit the network while discouraging unethical behaviours with a voluntary and privacy-first approach.
Economic Sybil Resistance to mitigate SPAM
For an account to be minted on the Newcoin network, a username must be purchased, within the UNS, from an account issuer. The minimum price per account disincentivises spam due to the cost of creating thousands of low-quality name accounts and an investor would rather purchase one rare and qualitative name than thousands of low-quality usernames.
The network will provide a reputation score for each name extension, based on the ratio of abuse reports and arbitration related to each name extension, incentivising account issuers to apply their own methodologies for selecting their clients.
App developers will have access to reputation scores and data that can be analysed by algorithms that could identify spammy accounts and protect their communities at the UI level.
Since the Newcoin network is decentralised, the DAO will be in charge of reviewing extreme cases of abuses and illegal activities (copyright violations, criminal activities...) and penalise accounts by either flagging them or potentially deleting them from the RAM layer.
The data might persist on other layers of the blockchain such as data storage, but will not be available on the APIs used by the applications.
One of the biggest challenges for networked economies is the unstoppable power law, that drives more support towards the most successful agents in an exponential manner.
e.g. The top 1% music artists receive more of the pie than the 99% others, while 1% of their tracks account for the majority of their success.
This effect also known as Pareto distribution has been observed throughout history and can be traced back to the Bible:
Matthew 25:29 For everyone who has will be given more, and he will have an abundance. But the one who does not have, even what he has will be taken away from him.
Mark 4:25 For whoever has will be given more. But whoever does not have, even what he has will be taken away from him."
Luke 8:18 Pay attention, therefore, to how you listen. Whoever has will be given more, but whoever does not have, even what he thinks he has will be taken away from him."
Luke 12:48 But the one who unknowingly does things worthy of punishment will be beaten with few blows. From everyone who has been given much, much will be required; and from him who has been entrusted with much, even more will be demanded.
Luke 19:26 He replied, 'I tell you that everyone who has will be given more; but the one who does not have, even what he has will be taken away from him.
James 4:6 But He gives us more grace. This is why it says: "God opposes the proud, but gives grace to the humble."
The very same problem is commonly described by artists, politicians and thinkers
"We will not accept a society in which the very rich get richer, while almost everyone else becomes poorer." ~ Sen. Bernie Sanders
The rich will get richer and the poor will get poorer ~ KRS One
While this law is ingrained in our DNA and has some virtues, it is undeniable that it also presents downsides such as preventing newcomers to emerge, which is an obstacle to innovation and the advancement of a creative economy based on a continuous influx of newcomers.
The Newcoin protocol has been designed with a voluntary approach to mitigating the absurd concentration of wealth and attention within those who have been successful one, by forming a more dynamic and volatile free market of ideas, while enhancing exponentially the chances of emerging agents within the ecosystem.
This is achieved by providing an incentive to purchase newly minted DAO Tokens, or Newcoins from new creative DAOs through a bonding curve. This approach has three major benefits:
It encourages the discovery of new, emerging creators and ideas by providing more yield, leverage and rewards to the agents who participate in social vesting
It makes the network more decentralised and diverse as the stake is spread across the network more evenly, making the governance and participation more robust
It increases the quality of curation by pushing $NCO holders to think and appreciate the qualitative value of content, profiles and apps instead of joining "bandwagons"
The bonding curve contains three main phases:
The pre-launch where the DAO Token price is stable
The activation phase where the DAO Tokens price increases fast, producing an incentive for the early believers
The scaling phase where the returns are diminishing
Since Social vesting and vested communities threshold are expressed in $NCO which is a volatile currency, the price threshold can be optionally and relatively pegged to the USD Coin currency value via an oracle and a bonding curve similar to the way the Ethereum gas fee is calculated.
This prevents a situation where it has become unaffordable for new users to join communities due to the brutal value increase of $NCO on secondary market due to high demand for the apps, profiles and communities.