Payouts & Workdrops
This page will explain you about workdrops and payments on Social mining
Last updated
This page will explain you about workdrops and payments on Social mining
Last updated
Workdrops serve as a mechanism, that allows projects to reward token holders that are actively adding value to the ecosystem, in order to boost the value of their own stake. However such people do not have any additional incentive to add value. Workdrops are payments for token holders that add either monetary value such as holding tokens for extended periods of time, or add fundamental value to the ecosystem.
In order to be eligible for claiming rewards, users need to make sure that they fulfill requirements in order to claim work drops. Workdrops are for token holders only, and therefore users need to hold the minimum required tokens in their dedicated staking wallet. To learn more about how to add a staking wallet check out First time setup.
Each Platform has different requirement for the amount of staked tokens. New users can see the current required amount of tokens in the "My Reward Section"
If you hold the required amount of tokens you will see the box turn green as shown below.
Each project dedicates a certain budget of tokens, that will be distributed through workdrops on Social mining. The total budget is decided by the project running social mining, however the exact distribution of tokens is being decided by active users and big stakeholders on the platform.
Workdrops are the first implementation of decentralized validation of work. The distribution of tokens is completely decided by the community of token holders. Large stakerholder and active users have more decision making power in this process to learn more about this check out User Influence page.
All users that stake tokens in social mining have the ability to upvote submitted work that they think adds value to the ecosystem and can also downvote work, that they believe does not add value. Naturally, posts with more upvotes will also receive more payouts.
Users that hold the required level of influence are able to start submitting work to the community board.
Once an activity is submitted it will be shown on the Community board. Users have the ability to now up - or downvote this activity. Users that aim to earn points through validation rewards are incentivized to upvote work, that they think will be upvoted by larger stakeholders in the ecosystem.
Large stakeholders will vote for content that adds real value to the ecosystem and therefore also to their own value. In essence they vote for their own best interest.
All participants of social mining should try to focus all their energy on single posts and make sure they can reach the top most upvoted spots on the community board. If a activity reaches the Top 10 most upvoted posts it will also be awarded with additional reputation for high quality work.
(disclaimer: This can vary from project to project, some have top 10 others top 30 and so on)
Participants should aim to generate content of the highest added value in order to reach the top spots. Social mining allows all token holders to have a voting right in the validation process. If one person thinks that his best adds high value, it does not mean that another person also agrees thinks that.
Therefore, users should aim for content that clearly presents higher value adds than other peoples activities in order to reach full consensus with all participants.
Steem is an example of a famous decentralized platform that failed because several larger token holders colluded and extracted all the value from the Network. Participants did not have the necessary tools to fight off such whale collusion. In social mining, we give users the ability to stop collusion to extract value from the platform through the downvote system.
If a activity reached the top most upvoted spot on the platform, but the value this activity provides does not match the reached upvotes, it indicates that several whales colluded and pumped a post up. Smaller users and meritocratic users can now now downvote a post until the value that it provides, matches the total upvotes it has reached.
Users can do this in safety, knowing, that down votes are anonymous without fearing being pushed down by whales.
All working users should aim to earn more reputation and try to distribute it to other users that add high value to the ecosystem.
Reputation can be earned by reaching the top most upvoted activities and staying there until final consensus was reached or reputation can be leased from one user to another one.
Reputation is given to high quality high value work. The reputation system was designed to make sure that SM pays quality over quantity.
User A can spends 10 min per post and generate 10 low value submissions and each one will receive 100 points/ the users total points will be 1000 and spent time 100 min.
User B spent all his time on 1 quality submission that also reached 1000 points, but also scored in the top most upvoted activities and reached social consensus. As a reward for high quality work user B is also rewarded with a reputation drop.
User A will receive much less in the next workdrop than User B because this user also earned a lot of reputation for high value content.
Social mining is a social group tool, designed to build strong communities of token holders around a project. The main aim is to produce strong bonded token holders and not a army of high quality workers.
Meritocratic users that have continuously add high value, will earn a lot of reputation in the system. Their responsibility is to push the community and build a stronger network.
New users that join the ecosystem might be discouraged because the algorithms are making it harder for them to onboard as the reward loyalty is low. New users that join the ecosystem often join, not to further the ecosystem, but mostly to extract value from it. Just like in any social settings these people first have to prove themselves to the community.
However, we do not want to discourage high value individuals as they can bring lots of benefits to the ecosystem. Therefore, meritocratic users that have earned a lot of reputation can lease reputation to such users to motivate them through the initial on-boarding time.
Leased reputation is the best mechanism to distribute reputation to new value adding users. The generosity index is a easy way to make sure this distribution happens.
User that lease reputation to others will gain more followers and fans and naturally receive more payouts, however they will also increase their generosity index. Users should make sure that they lease at least the same amount of reputation to others as the average user.
Usually this is between 20 to 35% of their total reputation. Leasing more than others will make you a generous individual and the power of your existing reputation will be increased. While greedy users will see the value of their existing reputation slowly decreasing.
The workdrop is a complex formula which is constantly improved and updated. The weighting on some factors in the formula can also differ from platform to platform.
In order to maximize individual workdrops, a user needs to score well in all factors, as the final index is a average of all the following factors explained below. Most workdrops will be going to users that prove that they are long term believers in the ecosystem that accumulate more tokens over time and are able to add high value to the ecosystem.
Workdrops are thereby designed in a highly selective process. Social mining is a screening process to find the best people within a community and to push them to become very active and essential contributors to the ecosystem
The biggest factor the defines a user workdrop is the amount of reputation that he holds, factored in his generosity index. Reputation counts for over 55% of the total workdrop, that a user will receive. Reputation represents the value that a user has produced and therefore should also be the biggest aspect in the payout. Social mining pays value not effort.
Points represent the quantity of work that users have produced on social mining and their general level of education and activity on the platform. Workdrops are designed to reward users that are more active and aims to bond token holders to the project.
Social mining aims to generate a high value long term bonded community around a project. Making token holders less likely to dump their tokens and instead hold them for the long term is one of the primary goals of Social mining. Social mining is programmed to push people to stake token in nodes or to offload them in cold storage and to accumulate more.
Social mining aims to distribute tokens to users that are long term believers and are also actively adding value to the ecosystem. If enough people have a large enough stake in the system and are willing and able to add value to the network, a DAO will naturally occur.
Social mining pays for users that add value to the ecosystem. Holding a lot of tokens over longer periods of time is a lot of work and adds monetary value to the network. All participants benefits from large stakerholders. As mentioned above, social mining aims to generate a group of users that hold enough tokens to become independent and add benefits to the ecosystem in order to increase the value of their own stake.
In order for social mining to work, it requires to on-board large token holders which can then be become active members of the ecosystem. Its important to point out again that a prime function of social mining is to decease the dumping pressure for projects and to stop people from flipping coins.
Therefore total tokens held by users is an important aspect of social mining. It rewards them for being loyal and incentives them to join the platform and become socially bonded. To learn more about this process check out the FAQ.
Social mining aims to provide more value than it costs. Each month projects inflate a certain amount of tokens into the ecosystem. In order to not affect the network in a negative manner, more value, than the cost of inflation, needs to be generated.
This means, if a project distributes $10.000 USD worth of tokens and all those are being dumped on the ecosystem, then. depending on the liquidity of the asset, the network can lose a lot of value.
Therefore, the system needs to make sure that as much tokens are being held by users as possible. On average we see that about 15% of tokens distributed on HSM are being dumped within 3 months after their workdrop.
So therefore the platform needs to generate more economic and fundamental value than $1500 USD per month.
To mitigate this, social mining over time distributes more rewards to users that accumulate tokens, while distributing less to people that dump them.
