We recently introduced you to VID – a new cryptocurrency project that is aiming to change the way value is distributed.
Their mantra is that users should be rewarded for the value they provide to businesses. Which is why they built a video sharing social media application that rewards its users in a whole new way.
Value Income (VI) is the crypto created by VID. Every day users of VID receive a payment of VI just for being active. This is known as Universal VI. There are also Impact payments each day, which reward users for how active they have been on the platform, as well as their contributions towards growing the platform. VID is the first company to use the Value Income model to reward their users just for being there.
This concept is very interesting, but to properly understand it you have to take a look at the tokenomics to truly see how it all works. This first thing to note about VI is that it is a deflationary asset. The total supply will not increase, but in fact decrease each day. There is a token burn event every day that can be tracked on the VI Updates Twitter.
Next we’ll break down how Universal VI works.
Daily payments for everyone – Universal VI
Universal VI operates on the premise that everyone deserves a daily income. It’s a cryptocurrency alternative to a government led Global Basic Income. Qualifying for Universal VI is simple. You just have to open the VID app every day and hit a button to qualify yourself as active.
What’s interesting about Universal VI is it scales based on your location, to take into account the average living wage of each country. This is designed to distribute the value more fairly. The amount of VI paid for Universal VI each day is constant, so it changes based on the number of active users on each day.
This is the amount of VI a user receives a day, determined by their impact bonus score which evaluates their contribution to the growth of the VI ecosystem. It takes into account user activity and invite activity.
User activity is straightforward. If the user is posting consistent content and getting lots of video views and engagement, they’ll be well rewarded. Users are also rewarded based on the content they consume. It’s simply a metric that evaluates user activity, with a slight bias towards creation rather than consumption.
However, invite score is where it gets more interesting. This score rewards you for how active the people you invite to the platform are. So it’s not just about inviting people, it’s about inviting the right people that bring value to the ecosystem. As part of this you also get rewarded based on the users your referees invite too.
The tokenomics behind it all
The total supply of VI is 888,888,888, and the initial supply circulating supply was 31,388,888. Value income has a budget of 777,777,777, part of which is released daily. This budget is stored in the source contract.
The token release schedule is simple – 7,000 tokens are released per day. ~20% of this budget is used to pay Universal VI, which comes to 1,386 tokens per day distributed to active users just for being there. A small 1% of the tokens is distributed to the Vid foundation daily.
The remaining ~80%, 5,544 tokens, is used to proportionally reward users based on the impact they have brought to the ecosystem over the last 24 hours.
At this rate of distribution the source contract will last 312 years. However, the VID team expects it to last much longer because companies that are involved in the ecosystem will be encouraged to give back to the users. To do so they will be able to deposit VI tokens back into the source contact, which is almost akin to burning the tokens.
Keep in mind that businesses that buy adverts on the platform are required to pay with VI tokens and 90% of the ad payment is returned straight back to the source contact, effectively decreasing the circulating supply.
The Daily Chain
*This article has been sponsored. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space.