07. NUM Token - numbersprotocol/community-support Wiki

Overview

NUM is the native protocol token for the Numbers Protocol Decentralized Photo Network. As a utility token, NUM holders can utilize the token to pay for services within the network. These services, which we refer to as Network Actions, include asset registration, listing onto network marketplaces, and storage onto more robust forms of decentralized storage. As the Numbers ecosystem develops, the number of Network Actions will increase and stretch into other areas such as social media, news, gaming, and entertainment.

As a community-driven photo network, Numbers Protocol will also leverage NUM rewards to incentivize adoption and contributions to the network. This is done in 4 ways: Staking, Integrity Reward, Verification Reward, and Governance. The rest of this wiki will cover the 4 NUM reward mechanisms in detail.

Utility, Staking and Governance

Staking

Staking in its most traditional form is tied to a blockchain consensus mechanism called “Proof of Stake” which ensures all transactions are verified and secure. Since Numbers Protocol does not have a native blockchain, staking NUM refers simply to the act of locking up token holdings in order to earn rewards similar to placing funds in an interest account. The amount of interest earned will depend on the amount holders decide to lock up. To incentivize early stakers, Numbers Protocol will employ diminishing staking rewards which refers to the decrease of rewards earned from staking as the network matures. This means holders who stake their NUM in the early stages of the Numbers Protocol network will earn greater staking rewards than those who stake at later stages. The projected staking schedule is still in discussion and will be made available to the community when it is available.

In addition to receiving “interest” on staked NUM, holders who stake their holdings can unlock additional earning opportunities and community privileges. These include CAPTCH-A (the exclusive Number Network NFT), participation in Verification events to earn additional NUM token rewards, and participation in driving the direction of the network via Governance. More details on each of these categories in the proceeding sections.

Integrity Reward

As a decentralized photo network, Numbers Protocol will need to have a plethora of authentic content, referred to in the Numbers network as “Captures”, in order to create value. Unlike normal media, Captures are multilayered information containers that contain context, provenance, creator signature and sealed blockchain records. In order to populate the network with Captures, the Numbers network will leverage the community to create and register Captures in exchange for NUM tokens. Rewards earned in this manner will be referred to as Integrity Rewards.

Social media plays an important role in our society. Its evolution over the years has made it possible for everyone with a recording device and an internet connection to easily record events and distribute it to the masses. In some respects, social media has made ALL of us recorders of human history. The problem with social media lies in the difficulty in verifying creations resulting in infringement, misuse, and misinformation. The overemphasis and monetization of reactions instead of integrity further exacerbates the problem.

How to contribute Captures to the network with High Integrity?

The Numbers photo network will leverage the existing “capture & share” construct established by social media platforms as its main contribution mechanism. As an authentic media network, the network will prioritize accepting content with high integrity. High integrity content refers to digital media that are unique (Content Identifier not previously registered), have immutable blockchain record, and have content provenance.

To contribute a Capture to the network, users can utilize a network tool such as Capture APP, to record a photo or video. Users can subsequently register the photo or video into the network to earn an amount of NUM token.

The network will ask for community contributions through “GoCapture Events” initiated by the Numbers Protocol team, community, media partners or third parties. “GoCapture Events” are theme or event based call-to-actions. They will function in the following way:

[Scenario 1] “GoCapture Event”: New Years Fireworks

Numbers Protocol community will get notification of New Years Fireworks “GoCapture Event” via Capture APP and Numbers social media. Integrity Rewards set to 10 NUM per Capture up to 5 submissions (max 50 NUM). Participants will take photos of Fireworks on New Years and register them to the network. Rewards will be sent to the account pending verification (New Years time & presence of fireworks).

[Scenario 2] “GoCapture Event”: California WildFire

Local news channels want authentic images of California WildFire and the effects it has on the air quality and local community. Numbers Protocol community will get notification of California WildFire “Go Capture Event” via Capture APP and Numbers social media. Integrity Rewards set to 30 NUM per Capture for just 1 submission. Participants located in California will take photos with Capture APP (GPS setting on) of WildFire effects and register them to the network. Rewards will be sent to the account pending verification (time, GPS location).

Integrity Rewards are open to everyone with Capture APP and will not require any prior staking of NUM tokens.

Verification Reward

Creating photos with good integrity with Capture APP does not equate to being trustworthy content. It is still possible to register a photo to the network with high integrity (containing context, content provenance, digital signature) but still have misleading captions and descriptions. We know from past experiences that any misleading information can cause damage to trust and fact checking and verification afterwards is already too late.

How does Verification Work?

To ensure that content in the Numbers network is trustworthy, all registered photos and videos will undergo verification carried out by the community. To verify assets in the Numbers network, participants will be asked to check the “contents” of the Capture and cross check them with any asset descriptions and captions. Unlike with normal digital assets, verification can be done easily because of Capture’s multi-layered container design, associated certificate of authenticity and Numbers network tools such as NFT Search Engine. See the below community verification scenarios:

[Scenario 1]

User participates in Capture Verification. The photo is a picture of Fireworks with a caption that reads “New Years in El Salvador”. User reads the injected metadata using the Numbers Trace tool and sees that the recorded GPS location is in Taipei and also that the time is actually October 30, 2021 (not New Years). Users will flag this photo as having a misleading message and indicate the reason as location and time mismatch.

[Scenario 2]

User participates in Capture Verification. The photo is a picture of Fireworks with a caption that reads “New Years in Taipei”. User reads the injected metadata using the Numbers Trace tool and sees that the recorded GPS location is in Taipei and also that the time is January 1, 2021 12:01 am. User confirms that the photos contents match up with messaging and photo passes verification.

[Scenario 3]

User participates in Capture Verification. The user is asked to verify the authenticity of an NFT minted on Binance NFT marketplace. User utilizes Numbers Protocol Search Engine network tool to check for any identical CID minted by different wallet addresses. There are no abnormalities so the user confirms that NFT is not in violation.

[Scenario 4]

User participates in Capture Verification. The user is asked to verify the authenticity of an NFT minted on Binance NFT marketplace. User utilizes Numbers Protocol Search Engine network tool to check for any identical CID minted by different wallet addresses. There are multiple entries with different wallet addresses showing up in the NFT Search Engine. User wil flag NFT and cite potential violations.

All assets in the Numbers Protocol network verified by the community falls under the category of social trust. Social trust refers to the majority sentiment. If the majority of the community seems a photo trustworthy then it is trustworthy. To reflect social trust, the Numbers network will assign each individual asset a “Trust Score” which fluctuates depending on the communities verification feedback. Confirmations will result in an increase in “Trust Score” while flags will result in a score decrease. All trust scores will be made transparent to prospective users and clients of the network.

How does Numbers Network prevent verification abuse?

Social Trust, as outlined in the previous section, leverages the masses to determine if something is trustworthy. Though effective in many respects, verification of content done in this manner is subject to abuse if performed with poor intentions (ie: maximizing rewards over preserving the authenticity of assets, flagging trustworthy content intentionally to prevent exposure / cause damages to reputation). To prevent abuse, the Numbers network will leverage the following:

  1. Unknown & Known Verification: The Numbers network will send users a mix of assets for verification (some already verified, some unknown). By conducting verification in this manner, the network can identify whether or not verifiers are performing verification properly.
  2. Individual Reputation Score: The Numbers network will also assign verifiers individual reputation scores similar to credit scores. Those who perform verification properly, as indicated from Unknown & Known Verification, will see an increase in their Reputation Score, more weight to their responses and also accrue Verification Rewards.

Rewards & Reputation System

What we are doing with Verification Rewards is creating a form of liquid value (dividend) attached to reputation (Reputation Score), where each reputation holder is awarded NUM based on their score.

Verification reward distribution will follow a convex dividend rate which incentivizes long term engagement with the network. To ensure verifiers and their respective scores are a reflection of the contributions to the network, we will also implement a system where reputation scores decline as a function of users engagement level relative to others. This is to avoid scenarios where the earliest adopters have the highest scores as a result of being aware of the project in the early stages rather than actually creating value to the ecosystem.

Similar to staking rewards, the average total Verification Rewards will also decrease as the network matures to preserve the value of NUM as there is just a certain number allocated to rewards.

Professional Trust

Another way to bypass the issues surrounding social trust is leveraging the opinions of trusted experts or sources as a means of Profession Trust. For example we can invite professional photojournalists to contribute their works to the network and participate in verification events. These individuals, if approved by the network and deemed an “expert” may come into the network with elevated Reputation Scores and subsequently higher verification weight. Specific details of professional trust such as how the approval process works is still up for discussion.

How to Participate in Verification?

Similar to “GoCapture Events”, the Numbers network will similarly hold “Verification Events”, however verification is locked behind staking. This means that only those who stake their NUM token for a period of time leading up to the verification can participate and potentially earn Verification Rewards. To better illustrate this process, please refer to the following scenarios:

[Scenario 1]

Numbers Network announces an upcoming “Verification Event” via Capture APP and social media and reminds the community that if they wish to participate in the event they will need to stake 2000 NUM for 10 days before the event. Holder does not satisfy the staking requirement and cannot participate in the “Verification Event”.

[Scenario 2]

Numbers Network announces an upcoming “Verification Event” via Capture APP and social media and reminds the community that if they wish to participate in the event they will need to stake 2000 NUM for 10 days before the event. Holder satisfies the staking requirement and is allowed to participate in the “Verification Event”.

[Scenario 3]

Numbers Network announces an upcoming “Verification Event” via Capture APP and social media and reminds the community that if they wish to participate in the event they will need to stake 2000 NUM for 10 days before the event. User does not have NUM tokens and cannot participate in the “Verification Event” unless he/she acquires the necessary NUM and stake for the designated time period.

How often will Verification Rewards be paid out?

Since verification actions are a regular occurrence in the Numbers network, Verification Rewards will be paid out in monthly intervals. This is subject to change.

Governance

Many blockchain projects understand that the success of their projects often depends on the community. Numbers Protocol recognizes this fact and will leverage the communities input in the form of governance to drive the future direction of the network. Governance Calls will occur on a monthly basis and be conducted in 4 phases:

[Phase 1] Discussion Topic

The Numbers Protocol team will select key topics related to the network and pose them to the community via community communication channels such as Discord.

[Phase 2] Community Feedback

The community will have a period of time to discuss the question amongst themselves and pose potential solutions to the topics.

[Phase 3] AMA & Numbers Tech Solution

Following community feedback, the Numbers team will select interesting solutions posed by the community to have further discussion as well as provide a few potential tech solutions. Expanded discussion will take place in person via voice AMA on a community communication channel (ie: Discord). At the conclusion of the AMA, we will decide on which solutions will undergo governance vote.

[Phase 4] Governance Vote

The final stage is the governance vote. The community will vote on the community and potential tech solutions.

How to participate in Governance?

Phase 1, 2, 3 are open to all community members to participate. This means that everyone can offer up their opinions and join the discussion. Phase 4 will be locked behind staking and possession of an “active” CAPTCH-A. This means only those who have acquired a CAPTCH-A NFT and stake NUM tokens for a period of time leading up to the governance vote can participate in Phase 4 (the actual vote).

This governance format can be interpreted in the following ways:

  1. CAPTCH-A: Official Membership to the Numbers Protocol Network

  2. Staking to Activate CAPTCH-A: Demonstrating you are an active member in order to receive a ticket for a specific governance call.

CAPTCH-A NFT can be acquired in two ways. The first is through the pre-listing campaign that took place in early November 2020 (Note: CAPTCH-A burned as a part of this event no longer exists in the Numbers network and will have to be reacquired in the second way). The second way to acquire CAPTCH-A is through staking. Holders of NUM can stake 2000 tokens for a period of at least 14 days to acquire a CAPTCH-A. Those who stake NUM continuously for longer periods can upgrade their CAPTCH-A (to visually represent network loyalty) to BLACK and WHITE forms and likewise increase their voting power. See the following chart for CAPTCH-A staking breakdown:

Staking Period CAPTCH-A Reward Privileges
14 days Gray CAPTCH-A Official member of Numbers Network, Can participate in Governance if CAPTCH-A is activated (stake NUM for designated period leading up to vote)
30 days White CAPTCH-A Governance Weight: 2, Terms: Need to continuously stake to maintain WHITE form. If unstaked at any point it will downgrade to Gray CAPTCH-A.
60 days Black CAPTCH-A Governance Weight: 3, Terms: Terms: Need to continuously stake to maintain BLACK form. If unstaked at any point it will downgrade to Gray CAPTCH-A.

Metaverse Governance Voting

In the future CAPTCH-A will be the primary avatar of the Numbers Metaverse. We may develop internally, leverage the community, or work with a game company to create a software to allow community members to join governance calls with CAPTCH-A as their avatar. Stay tuned for more details.

If you have any comments/suggestions to this the token reward and utilities review, please leave them here

Distribution Updates

After NUM went live, Numbers team will keep sharing how the supply of NUM tokens is allocated.

2022-01-17

2021-11-18

Token Contracts

Token Bridges

Active bridges between networks are listed below. As we believe different blockchains have their own pros and cons; holders should not be limited by the blockchain network. Therefore, the team does our best efforts to evaluate the technologies and make sure NUM tokens can be ported between different networks. Please subscribe to the official announcement Telegram group for receiving the news of supporting new blockchains.

LP Tokens

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