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Crypto tokens inherently offer a near-ideal solution for creators to directly reward their community.
It should be easy to simply deploy your own token and start monetising your scene. However, this has not been the case in practice. Reality has shown it to be highly difficult to find the optimal mechanism for personal tokens.
Should it be ERC-20? NFTs? Subscription-based tokens? Or all of the above? There may not be a ‘one size fits all’ solution, but the current parity is more of a ‘no size fits anyone’ situation.
The reason this has occurred is due to the phenomenon I'm dubbing the Personal Token Ouroboros (a snake eating its own tail).
The original idea of simply creating an ERC-20 personal token was suboptimal, so people came up with other solutions. These solutions introduced new issues, so people came up with other solutions. These introduced new issues — which could only be solved by returning to an ERC-20 model (snake eating its own tale).
The personal token meta has now fallen into a cycle where each ‘new’ solution is recycling the same issues. We are currently back to the NFT/Bonding curve section of the snake — mostly thanks to Moxie (which has actually managed to break the cycle slightly).
Moxie solves the ‘no external benefits’ problems faced by the NFT/Bonding Curve solution by monetising social engagement.
However, it still has its weaknesses. It remains non-dynamic as with previous iterations, and it is weighted towards bigger accounts - people with dedicated niche followings receive little rewards under the Moxie system.
Scenecoin aims to solve the Personal Token Ouroboros problem by addressing the issues associated with the ERC-20 model directly.
The first step in accomplishing this is finding a way to reduce volatility:
The most exciting anti-volatility measure comes through the Scenecoin Generator Frame.
The frame allows anyone to auto-generate a token based on their Warpcast profile and deploy it into the Scenecoin ecosystem.
The generator frame itself is meant to be fun and not taken too seriously (its outputs are designed to roast the user).
However, it creates an easy, ‘one-click’ access point to create a personal token — when everyone is able to create their own token, they become less attractive to speculative investors riding the hype train.
For example, $AM and $PURP saw massive initial pumps followed by large price dumps after the initial hype wore off — Scenecoin normalizes such tokens; reducing pump-dump activity from buyers.
The next, more technical solution Scenecoin adopts is one borrowed from another member of the ouroboros — bonding curves.
Each token within the Scenecoin ecosystem must be deployed on a Mint.Club bonding curve using $SCENE as the base pair.
The Curve must adhere to the following bond rules to be considered part of the ecosystem:
Curve type: Linear
Price variation intervals: 100
Initial minting price: 0.001 $SCENE
Final minting price: 0.1 $SCENE
Creator free minting: 5% or less
These curve settings are automatically in place when deploying through the Scenecoin Generator Frame.
The final, and likely most important, aspect to prevent volatility is the relative scarcity and fair distribution of the $SCENE token.
$SCENE will act as the ultimate balancing mechanism for tokens launched within the ecosystem (full details Tokenomics section below).
The second step to perfecting the ERC-20 model is finding a way to reward usage:
Scenecoin is designed to benefit those who utilize their token to directly grow and reward their community.
Small accounts can quickly become big on Scenecoin by offering exclusive benefits to their holders.
The more your token is utilized, the more $SCENE will be distributed to you and your token holders (see distribution breakdown below).
We have already seen glimpses of this mechanism on AlfaFrens, with certain artists gifting their work to their subs. However, the AlfaFrens subscription method is limited (see ouroboros above).
Scenecoin allows for fully dynamic functionality.
For example, you could decide to distribute rewards to:
Only the Top 50 holders of your Scenecoin.
All holders of your Scenecoin.
Only holders with > 10000 tokens.
Only long-term holders.
Only holders who also hold the Scenecoin of a friend.
You can even distribute your Scenecoin itself as a reward to members within your community.
The $SCENE token is specifically designed to be scarce, with an emission rate of just 0.5% of the max supply per month.
Max Supply: 1 Billion
Starting Supply: 70 Million (50M team lock-ups, 20M locked in LP)
Emission rate: 5 million per month
This scarcity is key in preventing whales and malicious actors from manipulating the tokens created by smaller accounts.
Each month, 5 million new $SCENE tokens will be minted and distributed to ecosystem participants — this will be the main way of acquiring $SCENE.
1.5M: Distributed to the creators of Scenecoin ecosystem tokens — any token with a TVL of over 50k $SCENE qualifies.
1.5M: Distributed to holders of Scenecoin ecosystem tokens — any token with a TVL of over 50k $SCENE qualifies. (Creators are excluded from this)
250k: Distributed to the creators of the top 100 Scenecoin ecosystem tokens by TVL (all time).
250k: Distributed to the creators of the top 100 Scenecoin ecosystem tokens by TVL (monthly increase).
250k: Distributed to DAO NFT holders (WIP).
1.25M: Added to treasury, to be utilized based on future DAO proposals.
The above is the maximum distribution. Any unused or unclaimed $SCENE will be burned.
Distribution mechanics:
$SCENE distribution mechanics: - 2k to owners of deployed tokens with >10k $SCENE in TVL. - 1k to owners for each additional 10k $SCENE in TVL. - 5k to holders of tokens with >50k $SCENE in TVL. - 5k to holders of tokens for each additional 50k $SCENE in TVL. There is a maximum of 3 million $SCENE allocated to this distribution per month. Any unused $SCENE is burned. First distribution is set for October 10th! https://personal-token-generator.vercel.app/frames
Flyy (Adrian)
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