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Mindplex Token Logic

Mindplex is built on a carefully thought-out tokenomic system that uses a liquid cryptographic token (MPX) to reward good content and good behavior and a non-liquid token (MPXR) to give influence to users who have earned it.

  • The liquid MPX token can be purchased with other currencies on the open market. It is used in membership and governance of the Mindplex Network.
  • The non-liquid MPXR token is a soulbound token and it can be obtained by interacting with the platform. It is a reward for helping the network.

The MPX token is the foundation of Mindplex’s incentive system. If a member of the community wants to pay for certain content, they need MPX tokens. They can buy them or earn them by doing things on the platform. MPX tokens can also be used in the governance of the Mindplex Network. This lets users have a say in how the network is run. In addition, advertisers can pay for sponsored content on the platform with MPX, and users can buy AI services with MPX (from Mindplex and from SingularityNET).

The MPXR token serves a different purpose. It represents a Mindplex community member’s reputation in the ecosystem. To improve one’s reputation in the community, one must do things that are valued by the community. MPXR is an illiquid token that can only be generated by interacting with content. A good reputation cannot be purchased.

Mindplex recognizes interaction by awarding MPXR. Each interaction has a positive or negative value and results in MPXR reputation tokens being awarded or deducted. We use tokens based on the blockchain to encourage users to play fair on the network in two ways:

  1. Awards for Content
  2. Awards for Voting (Content Requests, and Governance).

MPXR reputation tokens can be used to request new content as well as upvote or downvote existing content or comments. Members of the community can use their MPXR to delegate their votes during governance voting procedures.

The two-token system is key to the operation of the Mindplex site. It creates a place where people are encouraged to make the best content they can, creators are paid fairly, and the platform grows.

The conceptual logic of this tokenomic ecosystem is relatively straightforward but worth elaborating on briefly.

For the platform to be an enjoyable place for users, we must achieve two goals:

  1. Put great content on the platform.
  2. Put the best content front-and-center using some sort of ranking/rating/recommendation system.

The tokenomic system is intended to attract users to the platform in order for them to perform these two tasks. Content Creators’ job is to create good content, and reviewers’ job is to move the best content to the top.

The supply and demand dynamics of these tokens are worth commenting on:

  • The MPX token supply is limited.
  • The MPX token demand correlates with the number of requests for content. Therefore, as the demand for content on the platform grows, the demand for MPX will grow.
  • Therefore, if the demand for content on the platform increases, the demand
    ratio of MPX should increase. If this happens, one would expect the fiat value of an MPX token to increase. This is independent of any influence of speculative trading on price. The token holders are therefore incentivized to bring other users to the platform.

The MPXR token supply generated by the “Content Creator” and “high-reputation reviewer” populations is expected to grow at a slower rate than the reader population.

The value dynamics of the MPX token depend to an extent on the parameters of the reputation system underlying the MPXR token. If there are only a few high-reputation individuals, the supply of authoritative reviews is small, making such reviews scarce and valuable. Thus, all else being equal, the scarcity of reputable reviewers will drive the value of an MPX token up. However, if there are not enough quality media items on the site, there will not be enough eyeballs on the site, so the value of the MPX token will go down.

For any particular level of the other economic variables—population of creators, reviewers, and consumers—there will be an optimal level of peakedness in the MPXR reputation-point distribution.