Burn Credits V2

_{This image is actually a part of a different post I'm working on, but I need a thumbnail so here's a preview}

About a week ago I came up with an idea I coined "Burn Credits" that is essentially a mechanism to incentivise the average user to burn tokens.

After some feedback, I came up with something I think would work a bit better. You can read about the original idea here but the gist was that when you burn tokens you'd be issued a secondary token, a "Burn Credit" that would earn twice as much inflation as the regular powered up token.

So I think the problem with this is that the reward it too permanent. Thinking more big picture someone might be an early adopter of your token when it's worthless, burn a million tokens, then things take off and they could just sit and earn into infinity without contributing anything else to the system.

Rethinking this I think a better model would start the same but the benefit of the burn tokens is that they give you access to an ad revenue buyback program.

Currently on the SCOT tribes, the ad revenue that is earned from the tribe sites is used to buy the token back off the market, creating an opposing deflationary force to the inflation. The thing is, applying this globally may be a missed opportunity to align incentives more accurately with different types of users. I'm thinking about this as a three way spectrum of user types.

_{The dots are your users, they're a diverse bunch}

• The worker/seller
  This is a user that earns your token primarily as a content creator then sells it.

• The influencer/HODL'er
  This is a user that powers up most of their earnings and in a much larger part earns via curation.

• The investor
  This user is looking primarily to passively invest and have their money earn more money.

I call this a three way spectrum because every user will more than likely be some percentage of all of these, just more weighted towards one or the other.

My thinking is, here's what you, the token creator, wants.

• Workers to be able to earn with stability.
• HODL'rs to be able to grow their influence and earn via curation with stability.
• Investors to be able to earn with stability and minimal active participation.
• Growth

As I mentioned in this post, in order for you to grow you need your green dots to outpace your red dots.

The best communities will attack from the green side on multiple fronts, but the one with the most potential is (sort of unfortunately) ads, and I think sharing ad revenue with users might work better as a sort of "premium" feature for those truly committed.

So I'm thinking the buyback would be on a schedule, say every week or every two weeks and you could take the total revenue earned divided by the total supply of burn credits and put out a buy order on the market at that price. The owners of the burn credits(again issued for burning the main token) would have the choice of either selling or holding for the next payout. If there are unsold tokens the next time the ad revenue pays out, you cancel the previous order and start the process over again with the updated supply numbers. So even in this there would be some HODLing and some can HODL for the future and others can cash out immediately.

So the track for the investor is...

buy a bunch of tokens, burn them, and wait for the community to grow (ie draw more traffic, earn more ad rev) then sell your burn credits eventually for an ROI. This way when you sell, it doesn't negatively affect the main token price as well.

If the community is growing, and ad rev is going up, that will incentivise burning to get into that action, which will increase the price of the base token, which will incentivise further community growth, in a positive feedback loop.

The idea is still a tiny bit jumbled in my brain so feel free to poke holes in it if you find them. Let me know what you all think in the comments!