FAQ
Frequently asked questions by community members about social mining.
What is Social Mining?
Social Mining is a SAAS tool for high quality decentralized tokenized startups to help them manage and incentive their community of token holders. Social Mining is currently running on 3 different projects: Harmony ONE, Ferrum Network, LTO Network.
What value does social mining bring to projects and token holders?
Social mining is designed to turn passive token holders into active participants of the network and the ecosystem. Every month a specific amount of tokens is given to all participants of either monetary or fundamental value to the ecosystem and pays them accordingly for their work. A network that has a more valuable token holders, that work towards the long term best interest of the economy perform better over time.
Social mining gives users the ability to vote on other people's work and collectively dedicate who should receive a larger amount of the payment. Social mining engages and bonds token holders through this process and over time builds a strong community of well organized and skillful community members, that can work collaboratively but in a decentralized manner. Through this process, social mining turns any blockchain ecosystem into a DAO over time.
What is a DAO?
DAO (decentralized autonomous organization) - It was popularized some may argue, even coined—by the Ethereum blockchain-enabled stateless fund called "The DAO", which held an initial coin offering in 2016. While many assume this fund was the first-ever large-scale attempt at creating a decentralized company, the true potential wasn't discovered.
How does Social Mining help to build DAOs:
Social Mining is designed to distribute more tokens to users that are both willing and able to provide value to the ecosystem. Once enough users work independently for a growing ecosystem it becomes a Decentralized Autonomous Organisation.
Social mining turns existing community members that were not active and uneducated and turning them into bonded and educated members that want to work and provide long term value
Characteristics of Influence
Your influence index presents your position in the DAO compared to the average user. Influence therefore not only takes your numbers into consideration but everybody else's work as well. To increase your influence and also retain your user status, you need to provide above average value to the ecosystem.
Having an influence of 1 means that the user is exactly average compared to everybody else. Influence of 3 means, that user is a 75th percentile times better than the average user and influence of 0.5 means that the user is in the lower 25% percentile.
Therefore if your influence fell, it means that the average value that users bring into the ecosystem has increased. In order to receive outstanding work and power in the system users need to continuously outperform other users.
Why did my influence decrease?
Influence represents power in the DAO. Two major factors that determine a user's influence level is the amount of tokens they hold and the duration how long tokens have been held already. During the early stage of the DAO when token holders still connect their wallets to the platform, influence will act volatile as the total amount of tokens staked on the DAO is still growing.
What is the difference between bounty & Social Mining from a project perspective?
Bounties are often simple tasks that are paid in tokens or future tokens. These tasks are generally done by a community of bounty hunters. Since there is no quality control over bounty tasks there are often low quality or the task isn't completed at all.
Another difference is found in social mining being a mechanism of paying for decentralized work, however part of the payment also goes to user that are incentivized to quality check said work.
Another core difference is that social mining only pays for token holders and is designed to be primarily a mechanism to bond existing token holders and indoctrinate them into becoming active long term participants in the ecosystem.
What is the difference between a Bounty & Social Mining from a user perspective?
Bounty hunters are unfortunately labeled as “dumpers”, but they are not to blame! It’s the system that is giving them a no better choice than providing their skillets for every project possible in order to earn some tokens. The struggle that they have to go through when a project that they worked for turns out to be a scam or the endless waiting for tokens. On top of it, most of them are not able to fully display their skill sets. With social mining, users know when the payout will be and it’s on a regular basis. Do you have a special talent? Go ahead social mining is not putting you into the box, social mining is setting you free. You can provide value and only other users will validate your work. Most importantly you will get the respect that you deserve.
Why do I need to hold a minimum amount of tokens to join Social Mining?
Social Mining is primarily a tool that helps projects engage their existing token holders and bonds them to the ecosystem. The main focus of social mining is to minimize the likelihood of existing token holder to dump their holdings. Social mining is not intended or designed to be a decentralized work platform like Fiverr or Upwork. Therefore to join social mining, users need to be existing token holders or stake a required amount of tokens in the project.
I am a large token holder, why should I stake token in social mining
Social mining is a non custodial platform, therefore token holders always have full access to their tokens. The payouts that are given to active participants on social mining often exceed $500 USD a month. Large stakeholders in the DAO are given more influence as they usually act according to their best interest, which is to benefit their own holding by growing the fundamental value of the ecosystem. Large token holder are given the power to dedicate financial decisions over the ecosystem together, reaching general consensus. No other staking option can offer users the ability to join the decision making process in an ecosystem.
(Disclaimer: Individual payouts can vary a lot depending on each platform, depending on personal effort, total users, total tokens which are distributed per month).
What ROI can users expect by joining Social Mining?
The rate on investment that token holder can expect on social mining varies a lot on many different aspects. The ROI for small token holders, that actively work on a daily to weekly basis and provide high value, can often exceed 50% a month.
Payouts on the platform are designed to be more interesting for smaller token holders that spend their time and skill sets to further the ecosystem.
My post got downvoted, why?
Social Mining is a decentralized platform that gives token holders the ability to like or dislike content. Generally content that adds little value or is even perceived as damage to the ecosystem will be downvoted. Other common reason why users downvote content are:
Spammy content, low effort work, low value work, stolen work, irrelevant work.
How do I get reputation?
Reputation is given to users that produce high value or high quality content through a biweekly reputation drop or from one user to another. Reputation counts for a large portion in the payouts and is also hard to get. In order to receive reputation from the reputation drop a user's post needs to be one of the top most upvoted posts. Another way users can earn reputation is if it is given from one user to another via the reputation lease.
What is leased reputation?
Leased reputation is a mechanism that allows top users to incentivize new and upcoming users to work harder. Reputation can be leased from one person to another for high quality work or to motivate the user to work harder. However leased reputation can also be taken away in case a user stops work or their quality or value of work decreases.
What is the Greed Index?
Users that generate high content over and over again often quickly accumulate a large amount of reputation. In order to distribute reputation to users that add the most value, users have to distribute some of the earned reputation to others, otherwise the effective value of their owned reputation falls. Users should lease more or equal then the average user in order for their reputation not to fall in value.
Why should I vote for good content on Social Mining?
To earn validation points:
Social mining rewards users in validation points that can find positive value adding content. To maximize validation points users should try to upvote content that they think other people will upvote as well.
To benefit the network:
Large stakeholders on social mining are given more voting power as they care more for their total stake than the single workdrops. Large stakeholder vote for content that generates value as it benefits their own holdings. Upvoting users that add value incentivizes them to add more value. This creates a community of value adding individuals.
What should I post on Social Mining?
Since social mining is a decentralized system, you can post anything, but beware, other community members will validate your work. Stakeholders are putting no pressure on you content-wise, you can submit anything from an article to dancing with your favorite project on your t-shirt. The only thing you need to provide is value. Before publishing a post as yourself "is this post bringing any value to the ecosystem?" If the answer is yes, you should publish it.
What should I downvote on Social Mining?
Down-voting is important. It can be used as punishment for bad posts or as a balance if you see a “voting cartel”. There is no simple formula on what to downvote, but try to ask yourself the simple question if this post deserve so many upvotes. Or if this post is bringing value to the ecosystem.
How does Social Mining prevent people from upvoting each other?
In social mining, when someone is thinking irrational (upvoting pointlessly) the other users that are thinking rational are downvoting the post not because it's super bad but because they want a balanced upvote - downvote ratio.
I am top of the leader-board do I have the highest payout?
The leader-board doesn't reflect payout. If you are on top of the ranking it means you have the highest voting power (influence).
How can I increase my voting power?
The two most important factors of influence are the stake that you hold and the holding period. If you will increase your stake and holding period over time you will gain more voting power. Voting power can be increased by working hard, engaging and getting more reputation points.
Why do large token holders have more voting power?
Large stakeholders that are hodling tokens for longer time prove that they have a vested interest in the long term success of the ecosystem. They therefore are given the power to incentivize certain users more than others. Users that provide the most value for the ecosystem should receive the most upvotes as large stakeholders benefit from their work indirectly. If enough users provide valuable work the value of the ecosystem will grow and so will the value of their stake.
Why do users earn tokens through staking on social mining
Social mining pays for users that add value. Holding a substantial amount of tokens for longer periods of time provides monetary value to the whole ecosystem. If a user dumps their tokens once, their staking rewards will be substantially less. For social mining to generate the most value, it requires large stakeholders to join the ecosystem. Another reason why social mining pays staking rewards is to incentivize token holder to join the DAO and become more active and bonded.
What happens to those who did not receive rewards because of no KYC?
Users that are eligible for work drops but did not pass or complete the KYC process have the opportunity to receive their payout in the following distribution, if they successfully completed their required KYC level.
When is a new KYC level upgrade required?
KYC level depends on your payout. If you will need a higher KYC level thanks to your bigger payout the system will let you know a few days before the workdrop.
When is the snapshot taken?
Snapshot is taken every 24 hours
Where to find more information about the platform?
You can find us and our awesome community members in our telegram group.
Where I can dive deeper into the platform algorithm and idea?
Visit our gitbook
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