On social networks, such as Facebook, Instagram or Twitter, there is a value that is transferred between users called “Like”. Whether it is a picture of your dog wearing a Jedi disguise, a haiku poem about autumn or a short video of a teenager Rihannawannabe singing in front of her cell phone; for every contribution to the community Likes are expected as a recognition for a good job. And they become an incentive for creating new content. But as there is an unlimited supply of Likes — no one ever ran out of them — Likes have no actual value.
What if we could create scarcity value on Likes by turning them into a freely transferable, tradable token with a limited issuance? What would happen if, to set a hypothetical scenario, we transformed Likes into Likecoins?
A token such as Likecoin changes the game of social interactions, turning social networks into social economies.
On one hand, you would have to think twice before handing out your tokens in exchange for low-quality contributions, because your stock of Likecoins is limited. On the other hand, you would be able to give away as many Likecoins as you wish to a certain content that you have really enjoyed. You could earn your Likecoins back, but this would mean that you should have actually contributed to the social network.
Get involved, participate, be active. There would be no more passive witnesses. A secondary market of Likecoins would be probably built up, and users who wanted to get Flixxo, Community based video distribution. 2
tokens without participating would need to buy them, giving a monetary value to Likecoins. Anyone could send and receive Likecoins from friends, making a good present out of it – a treasurable gift.
Today, all social networks are turning to video as the dominant tool to create engagement with users on their platforms. Facebook is about to spend $300M to produce their own content, while Warner is planning a $100M budget for creating original content on Instagram. Around 70% of internet traffic is video, and this number is increasing to reach more than 80% in 2020. This business currently belongs to only a few big players, as traditional video platforms rely upon huge costs on storage and bandwidth.
These companies have monopolized the market, creating an advertising-centric ecosystem in which authors don ́t monetize, users can only reach the content that leaves the biggest revenues for the platforms and, ironically, advertisers cannot effectively showcase their content to their audiences. No one ever dared on confronting this model, because there is no way of competing in the infrastructure battle which such giant companies.
Instead of Likecoins, we have our token, Flixx. By implementing Flixx on top of a social video distribution platform we can engage users in helping us improve the network by lending their storage and their bandwidth in exchange for tokens. Users will spend Flixx for consuming the content they really want to watch, and will earn Flixx back for participating, for being social.
Whether it is on a smartphone, a tablet, a computer or even on a smart tv, a video distribution community could smartly use a decentralized, incentivized peer-topeer network, having no structural costs and unlimited scaling possibilities.
On top of that, users can earn more Flixx if they choose to watch advertisement. This disrupting revenues-flow model creates a new ecosystem in which users decide how to monetize their attention and personal information, and then transfer those earnings to the authors of the content they really enjoy. Within this model, consumers reach the content they want to watch, authors monetize and deliver better quality content and advertisers find a way of effectively showcasing their content to their audiencesWhitepaper_0.6