(Token # 1)
(The Valorize product is still in alpha version, and as such the mechanics described in this paper are subject to change until the first stable release)
Valorize.app is an interface for deploying tokens to the Ethereum Blockchain.
As it currently stands, when a person discovers a new content creator and becomes a 'fan', they get little to no value for being a part of the early discovery process of that creator. Valorize allows and encourages early fans to become investors in creators, getting them to the goal of becoming self6 sufficient full time content generators. Valorize also permits creators to capture value for their content earlier in the lifecycle of the creator economy.
As a creator, you are an economic force. You are a corporation. You can provide value to people directly without middlemen. We are moving from the individual as a media distribution enterprise to the individual as a publicly traded enterprise.
Creators are valuable because they have a fanbase which trusts, interacts with, and supports their efforts. Valorize is a mechanisms that allows creators to unlock the potential directly from their fans instead of relying on advertisers to sustain the process. The early fans that give people the early traction needed to succeed in the creator economy, now can benefit from that relationship by investing into early creators.
Creator Tokens are ERC20 compliant tokens on the Ethereum Blockchain.
Creator Tokens are ERC20 tokens which allow creator's fans to invest into the future value generated by that creator. They provide access to special benefits as defined by the creator. They allow fans to vote, to receive investor's only content, and speculate on the future value of a particular individual.
Creator tokens do not have a fixed supply, rather they get generated as people deposit ETH into the contract. There is an initial supply which is given to the token creator when launching the contract. Each time someone deposits more ETH into the contract, the total number of coins generated are are there q square root of t he total Ether locked in the contract divided by the current circulating supply of tokens
The supply curve for a given token therefore is:
<aside> 💡 $\sqrt{T/K}$
Where $K = \text{Amount of Coins Previously minted}$ And $T = \text{Total Wei Locked in the Contract}$ (As per the Ethereum Yellow Paper, $1\text{Eth} = 10^{18} \text{Wei}$)
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The supply curve therefore looks like this:
The distribution curve follows a logarithmic scale which makes it more difficult to mint new tokens as the value accumulated in the contract grows. This is a technique to incentivize the early adoption individual creators.
Locking up coins in the contract itself is a technique common to several Decentralized Exchanges (DEXs)and provides liquidity and a guarantee of being able to cash out, without middlemen. There technique is called automated market making and is used by protocols like uniswap. The money is secured by the Ethereum blockchain, the largest and most secure network that allows for this type of interaction. Valorize provides an interface to cash out the coins, but it is only the interface. Other interfaces can be built around this open decentralized CreatorToken logic. The valorize contract is simply serving as an automated market maker.t
Essentially, an automated market maker (AMM) is just a market participant that locks liquidity away guaranteeing that there is always some amount of value that can be redeemed for the tokens that exist currently in circulation. There will always be the ability to cash out, because tokens are only generated when more money is put into the system.