Tokenomics at Only1
🔥 In preparation of our exciting launch on June 16 — featuring our launch partner Angelina, we will do a deepdive today on the updated tokenomics of LIKE, the platform utility token.
Summary
- Platform after launch will begin revenue generation. 20% of quarterly profits will be used to buyback and burn LIKE until 50% of total supply is burnt.
- LIKE use cases in the platform include fee discount, launching creator staking pool, user rewards, and decentralized content moderation.
- In 2022, we suffered substantial loss of treasury funds due to the bankrupcy of FTX and Alameda Research as our market maker. The team has since raised sufficient capital from venture funds who believe in our vision.
- 88% of tokens allocated to all venture funds have already released. Current monthly token release has significantly reduced by ~50% compared to beginning of 2023, and will continue to decrease another ~50% in the coming year. (Details)
- LIKE is currently listed on Huobi, Kucoin, Gate, MEXC, Ascendex, and Raydium (DEX).
Introduction
In the rapidly evolving digital landscape, content creators have long relied on paywalls to monetize their work. But now, a groundbreaking shift is underway that has the potential to revolutionize this domain: the advent of Web3. This new ecosystem enables innovative content monetization models that foster direct and trustless relationships between creators and consumers.
Only1 is a membership based social platform where creators earn with fans, backed by Animoca Brands and more. Imagine a world where both consumers and creators earn on the social platform they use. Similar blockchain-based economic model where users earn by engaging on the platform usually take the form of P2E (Play to Earn). These platforms reward users by minting native utility tokens to distribute to active users. However, without sufficient buyback, the value of the token will appreciate only when there is a continuous stream of new buyers, and once the hype dies out, the token will merely become hyperinflated over time and lose its value.
We realize that in order to sustain the value of the platform’s native token, the platform must have more deflationary factors in place than inflationary factors. The platform must also provide value to users more than just reward token incentives. In other words, the inflow of native token via buybacks using platform revenue must be larger than the outflow of the native token to reward users. Let’s do a deepdive into the tokenomics of LIKE, the native token of the Only1 platform.
Tokenomics
Tokenomics is the economics of how a utility token function within the platform. The value of any digital assets is closely tied to its supply and demand, simply put — when there are more demand than supply, price appreciates. Below are the use cases for LIKE:
Buyback and Burn
The aim of the platform is to help content creators monetise while rewarding users with tokens that have a sustainable value appreciation mechanism. A key component to achieve this is to incorporate a robust buyback and burn mechanic using platform revenue. Only1 has generated over $4 million in sales using the NFT launchpad in 2022. Collectively, Patreon and OnlyFans generated over $3 billion in revenue in 2022. With our upcoming web3 infrastructure enabled features, Only1 can give creators a huge earning advantage over our competitors such as Patreon or OnlyFans.
Every quarter, Only1 will use 20% of platform profits to buyback $LIKE. Part of the bought back $LIKE will be used as community reward emission depending on the projected reward token required. The remainder will be burnt by sending to a Solana burn wallet. Token burn will continue until 50% of the token supply is permenantly destroyed. All buyback and burn transactions will be publicly announced and logged in the whitepaper.
Example:
If the platform quarterly spending is $100,000 and revenue is $400,000, then 20% of the $300,000 profit will be spent to buyback $LIKE. Assuming a $0.005 average $LIKE price, and a 6,000,000 $LIKE quarterly projected reward token emission, platform will buyback 12,000,000 $LIKE and burn 6,000,000.
LIKE use cases
- Platform fee discount. Users will be able to purchase Passes (digital collectibles launched by creators such as Angelina to gate content access) on the platform with a 10% discount. Similar to using BNB on Binance exchange for trading fee discount. For example, if a creator is selling Passes at $100, buying their Passes with USDC will cost buyer $100, buying with LIKE will cost buyer $90. In both cases the creator would earn $80.
- Launching Creator Staking Pool. Creators can launch a creator staking pool by paying LIKE, each launch is tentatively priced at $100 in LIKE. The staking pool APY will increase corresponding to the creator’s platform activity, encouraging fans to stake more LIKE, creator is rewarded with LIKE depending on the TVL (total value locked). The more creators there are, the most LIKE paid to launch staking pools, and more platform wide TVL from fans.
- Community reward. Users are rewarded on the platform through creator staking pools and other event-based airdrops to incentivise platform activity and adoption. The reward token will initially come from the community token pool (see token metrics below). As platform develops and starts generating quarterly profit, the reward emission will come from quarterly buyback.
- Decentralized platform moderation. Content moderation has long plagued user-generated content platforms like Facebook and YouTube, who struggles with the inefficient removal of defamatory, violent, or illegal material. At Facebook for example, traditional moderation methods burden thousands of employees, some requiring therapy after prolonged exposure to such content. Only1 adopts a consensus-based moderation system similar to Proof-of-Stake blockchain validation. LIKE token stakers can participate in voting on flagged content, shaping a platform that is truly built and governed by its community.
Token Metrics
The Only1 team values total transparency with the community. During 2022, there was a substantial loss of treasury funds due to the bankrupcy of FTX and Alameda Research as our market maker. However, the team has since raised sufficient capital from venture funds who believe in our vision to continue to build and grow the project. We have also secured another top market maker to facilitate healthy trading activities on listed exchanges such as Huobi and Kucoin. 88% of tokens allocated to all venture funds have already released. Current monthly token release has significant reduced by ~50% compared to beginning of 2023, and will continue to decrease by another ~50% in the coming year. With the significant reduction of monthly token release, upcoming platform launch, and continued growth of endorsement from creators like Angelina, we are poised for strong growth and adoption going forward to disrupt the creator monetisation space.
LIKE Token Details
Detailed month by month token release table can be found here.
- Venture Funding. Tokens were allocated to venture funds through SAFT agreements to fund project development, marketing, listing activities and other operations. 21.8% total supply, 36 months vesting period, 1.18% initial unlock.
- IDO. Public sale of LIKE was done on Raydium launchpad. 0.33% total supply, 100% initial unlock.
- Team and Advisory. Tokens allocated to incentivise core team members. 12.9% total supply, 72 months vesting period.
- Liquidity. Tokens allocated to exchange listings, market makers, and liquidity pools. 15% total supply, 32 months vesting period. 10% initial unlock.
- Ecosystem. Tokens allocated to ecosystem development, marketing activities and partnerships. 15% total supply, 72 months vesting period. 5% initial unlock.
- Community. Tokens allocated to rewarding users through staking pools, governance, and more. 35% total supply, 60 months vesting period. 5% initial unlock.
Conclusion
Web3 is poised to disrupt traditional content monetization methods by offering content creators the tools and freedom to regain control over their work and its value. As the world embraces this new paradigm, the age of centralized paywalls may soon become a relic of the past.
Only1 intends to become the best platform for creators to monetise their content with an attractive incentive for its users to be active. The team has endured different challenges and obstacles. In the future of creator monetisation space, where creators and consumers are rewarded fairly, there can be Only1.
