Blockchain has been receiving a lot of attention these days thanks to Bitcoin and its parabolic growth. I have been doing a fair amount of research in this space and there is no doubt in my mind that blockchain technology is the future.
One of the ideas that I have been brainstorming with the CoFoundersLab team is the possibility of introducing tokens within the CoFoundersLab community with the idea of rewarding good behavior and good content with a token. Lets call for now this token LabCoins.
To provide more context around LabCoins, users providing good content could be receiving LabCoins. Good content could be in the form of good answers to questions within the CoFoundersLab Discuss section. On the other hand, good behavior could be rewarded with LabCoins as a result of positive interactions between members that are seeking cofounders, early team members, or advisors.
LabCoins that CoFoundersLab members receive from those interactions may have dollar value due to the market price discovery and liquidity of those LabCoins. In essence, the idea is that ultimately these LabCoins would qualify as cryptocurrency that could be exchanged on a crypto exchange such as Binance for other digital currency (e.g. Bitcoin, Ethereum, Litecoin, etc) or perhaps for actual USD$.
Do you think it makes sense to explore this idea further? If so, how do you envision this initiative providing value and being executed? Any roadblocks or challenges that come to mind and any idea on how to address them? Thanks for the time and very much look forward to your responses!
I am considered an expert by some in the crpto-currency area because I spend a lot of time discouraging companies from issuing it. If you intend to issue coins that will be liquid and trade-able, they will most probably be considered to securities in the US. That will make them costly to issue and if you issue them to enough people costly to file the required annual reports with the SEC. Paying people for content is a taxable event, meaning that you are going to be collecting W-9s and issuing 1099s every year. Personally I answer questions as an accommodation to forum because I have been advising start-ups for along time. Being paid for answer would be nice, and it is a business decision for you to make, but personally I don't think that you need it. .
1. What would the benefit of the LabCoins be over something more standard like a PayPal payment?
2. Offering payment will actually decrease motivation.
Here's why:There are two types of rewards: Intrinsic and Extrinsic. Intrinsic (or internal) rewards are directly valuable (Self Esteem, social validation, etc.). Extrinsic (External) rewards (like $) are not directly motivating and must be traded in the get an Intrinsic Reward.
If you offer someone Extrinsic (External) rewards it will squash their internal motivation.
So paying them will actually reduce motivation to to this. And/or they'll realize they are making $1/hr contributing and compare it to their day job and stop contributing.
Reward based society or entity always thrive more than the non rewarding one. We cannot talk of cryptocurrency without mentioning Blockchain technology. It is the technology of the now and future. If we embrace Labcoins as rewards, it bring more quality and traffic here. I support the idea and we can commence the project earnestly.
The idea of rewarding people with cryptocurrencies, coins or tokens really has no value unless there is a real value architecture associated with the initiative. Most of the existing coin offerings from Bitcoin on down are missing a real value architecture and could easily become valued at zero. However, the underlying blockchain idea and technology has the potential to be used in a variety of ways to enable a real value architecture. In the version that I have been thinking about, I want to see tokens issued that will fund potential ... whether that is social potential or environmental potential. The banks do this ... issue credit ... when a customer is able to show profit potential. An architecture of this type could help to fund the massive social and humanitarian issues that exist using a SocialCoin and the environmental issues using an EnvironmentalCoin. The limit to these coins would be the potential value associated with getting these things fixed.
Peter Burgess ... http://truevaluemetrics.org
No. It does not make any sense, IMHO.
Perhaps you should consult the "customer" (contributors): would they be more motivated to contribute if they were paid? Paid in BitCoin? (or LabCoin)?
It'll take an unknown amount of work for a very unclear benefit. And, in fact, It'll probably demotivate users if they care about it at all (see my other answer).
We would recommend that instead of every domain issuing it's own cryptocurrency, that there should instead be consolidation around a single two-way micropay currency that allows users to share income across multiple sites and to make micropayments across multiple sites. That's what our patented micropay currency offers.
Alejandro — I am new to CoFoundersLab, but I see few reasons why we wouldn’t want to push this idea forward. I’ve already invested in a Blockchain startup, Adjoint, and I agree with you that this is a technology of the future. Bob Stringer
Thank you so much everyone for the thoughtful responses!! Very much appreciate it.
This idea sounds a lot like Sweatcoin (exercise app that issues coin for exercise) I think it's a great idea and could be very useful. In the case of Sweatcoin, the coin doesn't have any "monetary" value per se, but users can use the coin to get account upgrades and other goodies including fitbits, giftcards etc.
In wall street Language. It's the story of The Dog, watching The Bull, Fighting with a Bear, and The Wolf Comes and There is no more Sheep. Who can you Blame for that?
Call it a glitch or anything but it has started, The Wall Street is actually saying that it is out of our control now. It simply got promoted on such a Scale that there is no one who can trace the money that where it goes and who has it. Can you accept that risk of being so anonymous that you don't know what is going to happen tomorrow. You don't know if your name is somewhere used for some purpose, and someone used it for another and took your money. Who will you sue now?