2key network is building a token economy based on reputation-social capital as the underlying asset. Your actions matter and are an integral part of continuously building your reputation and the 2KEY token economy.
Reputation score is counted in points based on your recent and lifetime activity. Every month, it translates into 2KEY tokens distributed to all network participants propositionally to their monthly activity, global reputation score, and token staking.
An integral part of the revolution 2key plans to create in the information distribution and online advertising fields, is creating an accurate incentive system that transparently rewards actions yielding positive value, and penalizes counterproductive actions.
Today we launch 2key’s reputation system V1; below, you will find a detailed explanation of the reputation scoring method as it will work from the start of August 2020 (with the release of 2key v0.5).
2key monthly mining rewards system is built on three layers:
A. Monthly Activity Score (MAS): Users’ activity, reputation and feedback scores accumulated over three latest months
B. Global Reputation Score (GRS): Users’ lifetime reputation score
C. Monthly Staking (MS): Users’ token staking in the previous month
(Future versions will have more layers: User ‘s contribution to the growth of the network, token burn mechanism, token freeze mechanism and more).
The amount of 2KEY tokens distributed monthly to individual users is calculated by combining these three layers.
In this article, you will find a detailed explanation of V1 of 2key’s reputation system, its scoring method, and its financing structure.
2key Reputation Mining Pool 💰
The 2KEY tokenomics structure dedicates 20% of 2key network’s total token supply to Reputation Mining Pool.
Over the coming decade, up to 120 million 2KEY tokens are set to be distributed to 2key network users based on their accumulated reputation. These token earnings incentivize quality sharing, early adoption, engagement, network awareness, token staking, and network growth.
From August 1st, 2020, up to 10% of this amount will be distributed yearly, with a monthly budget fluctuating proportionally to the activity on the network.
During the launch period, 2key caps the number of tokens distributed according to the following method:
Monthly Total 2KEY Reward Amount = MAU (# of Monthly Active Users) * 10 2KEY Tokens
Assuming that, in August 2020, 2key network had 11,000 unique active users, 111,000 2KEY Tokens will be distributed by September 10th, 2020.
Once the network reaches 100,000 monthly active users for at least three months in a row, the distribution around 1,000,000 2KEY tokens a month, with adjustments within the year as needed.
How to Earn Reputation Points 💹
Now that you know what funds the reputation rewards, it is time to look at how you can grow your reputation and earn them.
As a newcomer to 2key, you receive 10 reputation points. From that moment on, every action you take on 2key network enables you to earn or lose points. Your reputation score reflects the quality of these actions.
There are three ways to earn (or lose) reputation point on 2key:
Earnings Reputation as a Referrer
By sharing SmartLinks. The people who receive a SmartLink from you can:
- Convert: by performing the desired action (Click, buy, donate). When a conversion is approved, you earn reputation points. When a conversion is rejected (outside of the targeted audience, detected fraudulent behavior) — you lose reputation points.
- Share further: when a conversion occurs downstream from your sharing activity, you earn or lose reputation points proportionally to the distance between you and the converter.
- Get feedback: depending on the feedback you received, you earn or lose points.
Each time you refer a 2key campaign and your referral leads to a conversion down the line, you either EARN OR LOSE reputation points. Conversions can be approved or unapproved (if identified as fraudulent or if the converter is outside the targeted audience when the contractor has defined a target audience).
Earning Reputation as a Contractor
Once you publish a SmartLink and share it, the results achieved and the feedback given by those interacting with your SmartLink will earn or lose your page points as follows:
- Convert: that is performing the desired action (Click, buy, donate …). When a conversion is approved, you earn reputation points. When a conversion is rejected (outside of the targeted audience, detected fraudulent behavior, rejected KYC) — your page loses reputation points.
- Get Feedback: depending on the feedback received on your campaigns, your page earns or loses points.
Please note that contractors’ reputation points are applied to the page issuing the SmartLink, not to the personal user account. A page admin different from the page owner managing multiple pages is responsible for as many reputation scores as there are pages in addition to his/her separate personal reputation score. However, as a page owner, if your page receives feedback on your campaigns, it will also affect your personal score.
Earnings Reputation as a Converter
Any approved conversion earns you points, whereas any rejected conversion loses you points.
Reputation Points Value per Activity 📊
There are currently two main types of campaigns:
- SmartLinks, for which the conversion is a click
- Monetary Campaigns, for which the conversion involves sending a payment — (Token purchase, Donation, Zoom SmartSession)
The points earned or lost vary according to your status and the type of campaign.
As a 2key user, you can have more than one status, but every action you take is linked with only one of these statuses:
- Contractor: a page creating a SmartLink
- Referrer: a user who shares the SmartLink
- Converter: a user who clicks on a PPC/Hosted SmartLink or send a payment for a Monetary Campaign
On-Chain Automated Scoring in Points
It is important to keep in mind that reputation points are earned or lost, but never bought. Whether you are a user or a contractor, your reputation is entirely in your hands.
Feedback Reputation 💬
In addition to the reputation points described above, that are recorded on-chain, distributed automatically, and immutable, 2key offers users the option to give manual feedback.
Each 2key SmartLink offers the option to give feedback on its content or the referrer. When you receive a SmartLink, pressing these three dots opens the feedback interface.
Users’ feedback helps the network remain informative, respectful, and socially secure. Feedback can earn or lose points for the referrer or the contractor, depending on the type of feedback entered.
Manual scoring in points
Feedback points are added or deducted manually and counted as follows:
The feedback mechanism is a trusted system via our app, and is not validated on-chain, nor is it result-driven per se. For this reason, we may incorporate after-the-fact analysis to prevent fraudulent feedback from negatively affecting users.
Global Reputation Score — GRS 😎
Every user and page on the network has a Global Reputation Score (GRS) calculated by adding or subtracting earned or lost points in real-time and represents the user or page lifetime Reputation Score. The GRS is translated into a rank that is displayed next to the user or page name. In the future, it will also be displayed transparently to the network users.
2KEY Tokens Monthly Staking — MS 🏦
2key is a token-based economy and we encourage its users and token holders to help build and strengthen its tokenomics by actively staking tokens for the long term. Staking is counted as the minimum amount of 2KEY you actively staked for the entire previous month in a wallet connected to your user or page 2key.io account, and is part of the monthly mining earnings.
Note- Tokens must be held in a 2key.io connected wallet (2key wallet, Metamask, Ledger, and soon more). Tokens held outside a connected wallet (exchange, liquidity pool, or another wallet) cannot be counted as staked tokens.
Calculating Participants’ Monthly Rewards 💸
2key network’s users and pages earnings for the previous month are distributed monthly to their respective network wallet by the 10th of the month.
Monthly Reputation Mining Pool allocation is divided into three pools:
- Monthly Activity Pool: 50%
- Global Reputation Pool: 25%
- Monthly Staking Pool: 25%
Pages and users can earn from each of these three pools. Each participant’s score is calculated based on the following scores:
Monthly Activity Score (MAS)
- A score based on the reputation gained this month + (0.5 x Reputation gained last month) + (0.25 x Reputation gained the month before the previous) = MAS.
- Your take from the Monthly Activity Pool is equal to your relative MAS — which is equal to your personal MAS divided by the Total Network MAS (the sum of all participants’ MAS for this cycle).
Global Reputation Score (GRS)
- Your take from the Global Reputation Pool is equal to your relative Global Reputation Stake — your global reputation score divided by the Network Global Reputation (the sum of the global reputation of all network participants) — all per the snapshot of the last day of the month.
Monthly Staking (MS)
- The minimum amount of 2KEY you actively staked for the entire previous month is your MS.
- Your take from the Monthly Staking Pool is equal to your relative Monthly Stake — your MS divided by the Total Network Staking (the sum of MS for everyone on the network this previous month).
(The numbers and dates below are for demonstration purposes only.)
If on September 1st, the Reputation Mining Pool calculated for August contains 100K 2KEY tokens, it will be divided between the three sub-pools as follows:
- 50% to Monthly Activity Pool: 50K 2KEY
- 25% to Global Reputation Pool: 25K 2KEY
- 25% to Monthly Staking Pool: 25K 2KEY
- Assuming you earned a net worth of 50 reputation points in August.
30 reputation points in July, and 80 reputation points in June.
Your Monthly Activity Score (MAS) = 50 + 0.5x30 + 0.25x80 = 85
- Your Global Reputation Score (GRS) snapshot on August 31st is 150
- You have staked a minimum of 5000 2KEY in your 2key.io-connected wallet for all of August→ your Monthly Staking (MS) is 5000
- The sum of each 2key network users MAS is 50 000 ⇒ Total Network MAS = 50,000
- The sum of each 2key network users GRS is 150 000 ⇒ Total Network GRS = 150,000
- The sum of each 2key network users lowest stake during August is 7,000,000 2KEY
⇒ Total Network MS = 7,000,000 2KEY
Your Final Scores:
- Your relative MAS = 5000 / 7,000,000 = 0.0714%
- Your relative GRS = 150 / 150,000 = 0.1%
- Your relative MS = 85 / 50,000 = 0.17%
Your Monthly Reputation Mining:
- Participation (MAS): 50,000 x 0.17% = 85 2KEY
- Reputation (GRS): 25,000 x 0.1% = 25 2KEY
- Staking (MS): 25,000 x 0.0714% = 17.85 2 KEY
Your Total Earnings for August 2020 — 127.85 2KEY Tokens
Build Up Your 2key Reputation Score! 🏆
We will update the Reputation Mining model as the system is modified but we encourage you to get well versed in this first version, it’s going live, and it’s your way to earn 2KEY at the network level. EVEN ON SMARTLINK CAMPAIGNS WITH NO REWARDS — you still earn reputation, which can earn you 2KEY tokens!
We will announce additional reputation mining mechanisms as we progress.
Happy Reputation Mining!
2key will modify the token distribution rules according to product and market fit, changing needs, and requirements. Any modification to the token distribution rule will be announced shortly before or at the time they are implemented.