Tokenomics
More information about VERIFIED's economics, or should we say "tokenomics", can be found in the following page.
What is the name of the CrowdSafe token?
VERIFIED is the name of the token minted when a user submits a safe/scam report.
How many tokens will be issued?
VERIFIED has no max supply. As every time a new report is submitted more tokens are minted in proportion to the amount the user backed their report with.
Yet to help facilitate the roll-out and adoption of the VERIFIED token, a pre-mined amount of VERIFIED tokens have been minted. This amount is of the order of 48,690,474,535 tokens.
How do new tokens get minted?
New VERIFIED tokens are minted with each submission of a report. In CrowdSafe V2, there are three ways to submit a report:
ReportSafe - A user reports a wallet/token/contract as being trustworthy, increasing that addresses credit score and providing that user an amount of VERIFIED tokens
ReportScam - A user reports a wallet/token/contract as being not trustworthy, damaging that addresses credit score and providing that user an amount of VERIFIED tokens
ReportSafeAndShare - A user or contract to report a wallet/token/contract as being trustworthy, increasing that addresses credit score and splitting the share VERIFIED tokens between the user/contract with the wallet/token/contract that they have deemed trustworthy
How many tokens get minted when submitting a report?
The number of tokens minted for a report depend on three variables:
minimumCompensation - The valuation of the VERIFIED token is indirectly pegged to the gas cost of committing a transaction on the native blockchain. To moderate the fluctuation of gas fees across multiple chains and over time, the minimumCompensation variable is added to zero out the impact gas fees during the report submission process. This means that one report submission (a.k.a one VERIFIED token) is worth one VERIFIED token, independent of when or where the submission was conducted.
msgvalue (Optional) - Submitting a report should be free for all, yet to use a figure of speech, if a user or contract wants to put their money where their mouth is; they can put forth any additional native tokens to be locked into the contract. This function as a gauge of confidence that the user submitting their report stand by their claim. Native tokens locked into the contract are essentially burned, as they cannot be retrieved. This is essential as it means that those who put their claim forward can't retract it later.
portionToThem - In the ReportSafeAndShare function of CrowdSafe V2, reporters can partition an amount of their VERIFIED tokens to be shared with the address they are reporting. This works effectively as a means of charity, similar to how applications such as Patreon would allow for members to support content creators. The following code snippet depicts how many tokens would be minted for the ReportSafeAndShare function deployed in CrowdSafe V2:
confidenceMine = ((msgvalue + minimumCompensation) *
portionToMe) / (minimumCompensation * 100);
confidenceTheirs = ((msgvalue + minimumCompensation) *
portionToThem) / (minimumCompensation * 100);How to evaluate the worthiness of the VERIFIED tokens
To evaluate the VERIFIED token, there are several factors to account for:
What is the demand for contract creators to grow clout and awareness?
Of the wallets/tokens/contracts that have been deemed to be scammed and banned by the community, what amount of demand is there for them to redeem their credit?
But most importantly, What are the transaction based fees occupying the chains?
The valuation of VERIFIED will be directly correlated to the price of the transaction cost of the network. This relationship will naturally tend to a 1:1 ratio, given the scenario that the last bullet point is the dominate factor. The rational will be illustrated as follows:
Assuming the number of "gas" required to submit a report is: 23000
Assume the price of "gas" is: 0.00000303 $USD
Then, the transaction cost for submitting a report to be:
23000 * 0.00000303 = 0.06969 $USD
This effectively means that the cost to mint a VERIFIED token is 0.06969 $USD.
This exchange VERIFIED/USD would therefore be that same 0.06969 $USD
These numbers are for demonstration purposes only and should not be used for financial advice.
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