Summary
Lock your NBATopshot NFT to earn NBA players/team tokens. The longer you lock, the more you earn.
Target users
- The social media team of NBA teams and players who want to engage with their fans through NBATopshot.
- NBA fans who have never bought crypto currencies.
What problem are you solving?
Blockchain and crypto currencies are powerful tool to provide digital ownership which allows users to transfer the asset freely. Even though the purchase of non fungible tokens (aka NFT) is relatively easy using credit card, transferring/exchanging these within blockchain using smart contract is limiting without the use of its native currency on the blockchain (aka fungible tokens). However, buying fungible tokens may not be easy for everyone as certain jurisdictions may prohibit the sales of cryptocurrencies (especially in certain Asian countries).
Our service allows anyone to mint their community/social tokens by locking NFT so that people can use the currency for various activities within a blockchain. Since NBATopshot Tokens will be the fist digital asset NBA fans will acquire on the Flow blockchain, minting social currency based on the holding of NFTs should be the easiest experience for crypto/blockchain noobs to acquire digital currency without regulatory burden.
If NBA players and teams use these social currency, it will bring new ways of engaging with their fans without fans being accredited investors or crypto savvy.
How does it work?
Example
Letâs say Spencer Dinwiddie (or his social media person) wants to create $SPENCER token
Monetary policy example
When a fan locks NFT which contains Spencer Dinwiddie, it mints the following $SPENCER tokens per day depending on the category of the moment.
- Dunk = 5 tokens to Spencer, 5 tokens to the fan
- 3 pointer = 3 tokens to Spencer, 3 tokens to the fan
- Others = 1 token to Spencer, 1 token to the fan
Minting example
Letâs say on day X, the following users lock their NFT tokens which have Spencer in their moments.
- user A locks 2 x Dunk
- user B locks 1 x Dunk, and 1 x Other
- user C locks 2 x 3 pointers
Then, everyone earns the following.
- user A = 10 tokens
- user B = 6 tokens
- user C = 6 tokens
- Spencer = 22 tokens
Reward example
The strength of $SPENCER token depends on what kind of fan service Spencer can provide.
Here are some of the examples.
- 1 $SPENCER token per 1 vote when you want to engage fan for fan voting
- 100 $SPENCER / month = Invite to fan only chat channel
- 500 $SPENCER = Early invite for special pack sale
- 1000 $SPENCER = an invite to Zoom AMA session
Because Spencer himself earns 50% of tokens minted, he can further give away these tokens to fans for rewarding the following activities.
- 10 $SPENCER for posting Spencerâs photo into Instagram with #SPENCER hashtag
- 100 $SPENCER for creating Youtube video talking about his play.
- Give some to accredited investors as investor rewards
Once $SPENCER token start having some sort of values, fans could use $SPENCER token to exchange cards, goods, or services related to Spencer Dinwiddie.
Inspiration
Personal Token
https://tryroll.com/ is a big inspiration and I love what they do. Their tokens are mainly focusing on upcoming influencers and artists to provide financial value on their social currency. Speculators buy their tokens through the exchange (Uniswap) for potential capital gains, and the issuer (influencers) can sell their products (often art) or services (time). Some people pre-sell their token as Human IPO.
The biggest difference of our service and theirs to Roll is its token supply policy. At Roll, all issuers have a fixed supply (2M) over 3 years. On the other hand, our social token minting(supply) depends on their fans to lock NFTS to $SPENCER instead of other player tokens using a technique called Yield farming.
Yield farming
Yield farming is a popular term in Ethereum Defi (Decentralised Finance) space where a project issue their product tokens in proportion to using their services. Just like yield farming incentivize users to use their services, yield farming gives incentives for fans to buy & trade NFTs to be able to earn $SPENCER tokens.
The fact that the player/team alone cannot control the token supply incentives them to work with their fans hoping to be used as a fan engagement tool.
FAQ
Is social token only for players?
No, the monetary policy can be defined based on any metadata associated with Moment NFT. Brooklyn Nets can create $NETS tokens by locking moments for all Nets players. 3 points enthusiasts could create $3POINTS token locking any tokens which contain 3 points shot though no one will lock their tokens unless you suggest promising rewards to the users.
Does social tokens have any financial values?
Not at this moment as there are no marketplace or exchanges, but we assume they will eventually emerge in Flow blockchain.
How do I get my NFT back?
You just redeem from our platform. No need to pay $SPENCER to get your NFT back.
Can people just use FlowToken or some sort of Stable Token as a medium of exchange rather than using community token?
It looks like the distribution of flowtoken or stable token is not set in stone due to regulatory hurdle, where as minting fungible token from existing non fungible tokens within the same blockchain (not ETH/BTC/ other currencies) should be done permission free.
Open questions
- The current monetary policy does not incentivize early adopters as everyone gets the same portion of tokens depending on the time-locked. We could change the rule to have fixed daily supply which gets shared among people who locked so that people earn more tokens when fewer people are staking.
- Business model = The easiest is for us (tech provider) to get some allocation of $SPENCER tokens as a fee but are there any better ways to monetize?
