Ecosystem Overview

This section of the social mining wiki will provide the reader with an overview of the social mining ecosystem.

Introduction to the Social Mining Ecosystem

DAO MAKER aims to build a Network of strong and high quality cryptocurrency projects, that are all supported by Social mining and it's network of high value human capital.

The Altcoin market is very unstable and plagued by common problems such as short term token holders and coin flipping. New innovation in crypto has a hard time to grow in value because many of the existing Altcoin token holders jump from coin to coin.

The incentive structure moved towards quick flips, pump and dumps and thousands of dead coins. Projects need a stable base of strong token holders in order to grow in value and gain more attraction. However most coins lack that fundamental base of community.

Social mining gives projects the tools to build a loyal and bonded community of token holders, that they can build upon.

The Problem with ICOs

Many projects that come raise funds through ICOs do not deliver or are just straight scams. The vast majority are not viable on the long run. In an industry that cannot be regulated, only social consensus can determine which projects should be supported and which should not. More than 60% of all ICOs stop working after only 4 months and more than 90% during the first two years after their token sale. Less than 0.5% of all ICOs actually manage to build a viable product that attracts enough users to justify their raised capital valuation.

Social mining aims to build a network of high quality projects that will be around for the long term and gives people the opportunity and incentive to stay with these few high potential token based startups.

Importance of having the right ecosystem partners

Social mining incentives large and small token holders to stay with a project for the long term and also to hold token, ideally in a cold storage wallet. In a market in which less than 0.5% of all tokenized startups become successful, the selection of the right ecosystem partners is essential.

Long term partnership between holder and project

Users that join social mining stake more than $2000 USD on average and spend around 5 users per week building and helping the ecosystem. Therefore they opened themselves to big risk. People need to be sure, that the company they are helping will be around, so that their capital and time investment will not be wasted.

If social miners holds a token for 6 months, that then stops working will demotivate them to continue social mining on other projects. It also reduces their total available capital.

If projects effectively work and achieve their set millstones in tech and bizz dev, it will signal to users that this is a safer investment for them and they will be more open to utilize their skills and time to help the ecosystem grow. People are much more careful about investing time than money.

High value individuals come to high quality projects

The network value of the social mining ecosystem is directly proportional to the sum of value that all participants in the Network provide. High value individuals can asses the quality of projects and their likelihood of success and will only decide to join and invest their time, if they believe that the project will succeed in the long term. This mass decentralized assessment by high value individuals is one of the best ways to qualify projects.

In order to have a healthy valuable network of human capital, its important to work with high quality projects.

DAO MAKER's Thesis

We believe that the tokenized startup space is still very young but has tremendous potential. Currently most if not all altcoins lack basic token cash-flow. Token cash-flow is defined as the revenue, that is captured by the token through the utility of the service that the project provides.

Since token cash-flow is basically non existent in most projects with a few exceptions. Most of the money flows to large caps like Ethereum or Bitcoin or to the few projects that have token cashflow such as exchange tokens like BNB.

DAO MAKER works with projects that have a clear plan on how to achieve cash-flow though utility and a capable team that is able to implement it. Over time tokens, that lack the ability to capture value of their utility or do not have any usage, will die. The money that is stored within them will either leave the cryptocurrency market or flow into coins that can capture and store value.

DAO Maker offers projects support that have a token economic model, capturing value and a capable team that is willing and able to work to drive usage into their token. On top of that we offer their token holders an incentive to add value to the ecosystem and also earn additional token in other great projects in the process.

We believe, that over time the social mining network will grow into a large ecosystem of educated, wealthy and valuable members that can push all projects within the ecosystem forward and help the decentralized movement to succeed.