# notes: [Tokenomics] Adaptive Sharing with Arweave's Sam Williams

**Published by:** [rw](https://paragraph.com/@rw-2/)
**Published on:** 2022-02-25
**URL:** https://paragraph.com/@rw-2/notes-tokenomics-adaptive-sharing-with-arweave-s-sam-williams

## Content

notes on [Tokenomics] Adaptive Sharing with Arweave's Sam Williams arweave is based on bittorrent arwave as an evergrowing bittorrent swarm w incentives to pay for ppl to seed profit sharing tokens, profit sharing communities trade proportions of future assets by trading proportions of the tokens what happens to bitcoin if block award no longer rewarded? or reward is less than the fees? becomes unstable, can lose consensus token design — profit sharing tokens many streams of revenue happening web2 economy - creator economy platform has some monetization, like ads or like bandcamp, ppl pay a tip creates a revenue stream but inefficient — not financializable if you’re a farmer, sowing seeds, you don’t just wait for crop to grow and sell you sell a future on that founder, you’re selling a %, use money to grow faster creators — have to create for crops to reach maturity and harvest in order to get value new artist … i’m going to publish an album a few ppl download, but to get enough to get a new studio or synth, takes months and months why? doesn’t have to be the case generalized principle in web3, profit sharing token revenue stream of any kind print a token token dictates future profit , where it goes to an artist — you get a profit sharing token for each album i can be an investor this album is selling well, i’ll buy 20% now artist has money now, can buy synth to make more another album, etc. why isn’t this the case on youtube, apple store, etc. large proportion of web is, creators create something, revenue slowly accrues, platform takes a huge chunk can be more efficient governance notion of profit sharing community you can have a profit sharing token w/o community for an application, can have a dao tokens in dao can be profit sharing tokens decentralized medium … user pays small tip every time you publish a page owners of the profit sharing tokens in community can be distributed reward based own % ownership profit sharing communities contractual constructions, smartweave microdividends capabilities of smartweave? permissionlessly and ownerlessly , permanent app trustlessless — important dao isn’t necessarily that much better than a company don’t have to trust that the service will change the future — a lot of the utility if bitcoin run by dao, we can’t always trust 21 million tokens but we know this will stay true e.g. content moderation smart contracts in js run locally governance mechanism of profit sharing community mechanism design — in normal daos, this is poorly handled, good governance incentives vote weighting — # tokens * the time you’re willing to stake them- -> voting power e.g. small time holder but die hard attached, bigger say than large holder but flip tokens in month interacts w profit sharing elements e.g. if you stake tokens for 4 years, governance decisions directly affect profit accrue in microdividends over 4 years incentivized to perform good governance daos — programmable so quickly iteratable current crop, not super well formulated, direct democracy orgs you can buy a bunch of tokens, vote on issue, immediately sell tokens only use of token is governance dangerous bc not incentivized to govern protocol in a way that is good for protocol, but incentive to extract value from protocol defi protocols — vote to mint more tokens to reward owners for staking a specific token defi summer to winter period, happened a lot buy a lot of shitcoin and governance token, vote to mint new tokens, reward owners of shitcoin for staking now price of shitcoin increases a lot, then dump those tokens + governance tokens , attack over in a community where have vote weight by amount of time ppl are willing to stake (incentive for long termism) what is a community? graeber: ppl slightly in debt to another e.g. indigenous communities, you would never give a gift w exactly same amt continued relationship “karma” how to incentivized prosocial behavior? future, excited? non skeuomorphic of web2 archives — e.g. huge archive of artifacts from 2019 hong kong protests ownerlessness decent.land kind of like reddit, each subreddit its own profit sharing community buy and stake tokens to take part of the community mods can be de-elected anytime when you ban someone, you slash their stake incentivized to not have your stake slashed — so don’t troll incentive to make community more desirable for others to be a part of it value goes up if more ppl want to be a part of the community founder — give tokens to ppl who are “useful” in early days desirability rises, tokens rise being a good community is incentivized there’s no “reddit company”, is autonomous

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