Tuan Pham Anh, Forrest Alcamo, Brenn Hill,
Jan Schets, Paul Valencourt
The following is subject to revision and refinement based on the evaluation of professional cryptographers and economists as well as tweaking based on post-alpha testing. This is not a complete document, but rather a work-in-progress while we finish the development of the Peerity platform.
The Peerity website is a gathering place for communities looking for members, individuals looking for human connection, and groups looking for tools. We feel there is a distinct lack of useful and efficient community-building websites. Peerity.io aims to be the all-in-one platform for communities to grow and foster.
Peerity employs a hybrid technical model that combines blockchain and traditional technology to create a fast and scalable platform. Operations that require trusted consensus (such as token movements, payments, etc) take place on the blockchain. For other operations (rendering web pages and other business logic), Peerity runs more like a traditional web application.
In other blockchain-based applications, there are “miners” for Proof of Work (PoW) blockchains or “witnesses” for Proof of Stake (PoS) blockchains that handle updates to the blockchain. Proof of Work has been heavily criticized as being wasteful and hard to scale. Millions of CPU and GPU cycles are being dedicated to the creation and maintaining of these chains. By using Tendermint, we can drastically reduce our computing requirements. The Peerity consensus engine is based on the sound principles of Tendermint, with an added layer of PoS to allow for the minting of the Peerity token. The Tendermint consensus algorithm has shown to be robust even under extreme conditions with an extremely high transaction throughput.
The Tendermint and Peerity consensus engine consist of a network of connected nodes. All of these nodes work together to validate the integrity of the Peerity blockchain. Nodes that own a registered private key are called peer servers and are tasked with signing votes. All nodes (not just registered peer servers) carry an associated state (current height, round, and step) and contribute to the committing of new blocks on the Peerity chain.
Peer Servers/Validators are secure, dedicated machines that are responsible for committing blocks. Peer token holders can delegate their staking tokens (called “peerity”) to any validator to earn a portion of block fees and Peerity rewards, but they incur the risk of getting punished (slashed) if the delegate validator gets hacked or violates the protocol. The proven safety guarantees of the Tendermint BFT consensus, and the collateral investment of peer server operators/validators and delegators–provide precise, quantifiable security for nodes and light clients.
Picture courtesy of Tendermint. For more information on the Tendermint consensus, engine see the
One of the biggest issues halting the widespread adoption of cryptocurrencies is the hurdles users have to take to be able to obtain the coins. This is a limiting factor on the usability of cryptocurrencies in general. By distributing Peer tokens to the active users of the Peerity platform, we lower the barrier for the average person to obtain crypto tokens. When it comes to new users entering the cryptocurrency world, there is a mental barrier to entry where people assume they don't have the required knowledge to effectively and efficiently use crypto tokens. For this reason, we aim to provide an intuitive user interface and tutorials and guides for our users on how to use our tokens. We have seen in other projects that once tokens are obtained by users, they educate themselves on how to use them. We expect to see the same with Peerity.
When users generate social activity on the platform, they are rewarded with Peerity tokens based on the quality and value of that action. Different activities will be scored differently as online and real-life behaviors have different ways of being measured.
With Peerity we hope to bridge the gap between mainstream social media users and cryptocurrency users. We will do this a few different ways. First, we give the token intrinsic value because the Peerity token will be able to be used to purchase site features (such as a custom domain or form private groups) as well as for use in e-commerce and crowdfunding projects.
Every block, a certain amount of Peerity tokens get created, based on the activity level on Peerity.io. These coins will get distributed as followed:
5% of the created tokens will go towards the upkeep and maintenance of the chain and website. This includes, but is not limited to, staff wages, server costs, advertising costs, and general expenses of running the platform and blockchain. This will NOT be used to pay a salary to the founding members. The tokens reserved for the chain upkeep will be kept in an entirely transparent wallet, and details of all the transactions will be made available on request. We aim for full transparency in this area.
Peer server operators are nodes on the Peerity network that have a legitimate private peer server key. These nodes are responsible for validating and committing the blocks on the Peerity blockchain. Since these peer server operators play such a hugely important role in the Peerity network, a strong incentive is needed for these operators to maintain the highest level of service towards the Peerity network. Therefore, 35% of the daily created tokens are distributed among all the non-penalized peer server operators.
Unlike Bitcoin or other proof-of-work blockchains, a Tendermint blockchain gets slower with more validators due to the increased communication complexity. Fortunately, the team at Tendermint made it so we can support enough validators to make for a robust globally distributed blockchain with fast transaction confirmation times. As resources increase, we will be able to accommodate more peer server operators to strengthen the network.
The majority of the daily created Peer tokens will be distributed among the communities, based on the sitewide activity level. This is where the hierarchical model comes into full swing. At first, the token rewards will be split among all the different system communities using our planned payout system based on activity level. To counter the possibility that individual system communities take all the rewards, minimum and maximum percentages are used. A community can only receive a maximum of 5% of the total token reward supply. If there's no activity in a particular system community, no payouts to that community will be made. The payout system is subject to change based on technical implementation and user feedback.
Our planned payout system is based on activity levels both on and offline and follows the following rules:
The overall goal of the online token reward system is to reward helpful, high-value content while diminishing spam and hostile behavior. Users who post helpful, courteous, friendly content will be rewarded. Users of hostile content will find their content payout reduced, and the visibility of their content hindered. Combined with the reputation system, continual offenders (trolls, provocateurs, etc) will find that their content is neither seen nor rewarded.
That said, personal blogs/content spaces will not have their visibility affected. Someone using Peerity for their own personal speech outside of a community will not have that content impacted by the rating system provided it does not contravene Peerity's content standards (e.g. no child porn, incitements to violence, or other content generally against the law). Because laws vary, Peerity will only be hosting servers in areas of the world we feel have appropriate online free speech safeguards.
Offline activities are less easy to measure than online actions. Still, some measurement is possible.
The total online and offline activity will be available in a data stream. The Peerity application will produce this data stream and make it accessible to all nodes. This data stream will include the user/wallet and the set of values (positive and negative) that come from their activity on Peerity.
To battle the issue of having to payout newly created tokens to an unusually low level of activity on the site and chain, a minimum activity-stream threshold has to be reached for the full 60% of the token rewards to be paid out to the communities. If this threshold is not reached, a portion of the token reward pool is used to level the average payout for the peer server operators, chain upkeep, and stake pool. This ensures a minimum degree of payout towards the maintenance, peer servers, and stake pool while making sure we don't have to payout a substantial amount of tokens when only a small amount of activity is being generated on the peerity platform.
The creation of the Peer token is based on different variables. Blocktime, site-wide activity stream, and the amount of volume on the transaction ledger play a huge role in the variable creation rate of the Peer token. Every time a block is created new coins are minted onto the chain based on an open source algorithm. We aim to achieve a variable token creation rate between 0.5 and 1.5 peer tokens per second, based on site-wide and transaction ledger activity. This results in a yearly supply rate that can vary between 15,768,000 and 47,304,000 tokens.
Peerity.io tries to solve the price stability issues that are plaguing a lot of today's cryptocurrencies in a variety of ways.
Peerity Partner Locations (PPL) will be any venue that hosts Peerity user groups. We want to reward not only the users but also any PPL that welcomes Peerity groups. The venue will receive a portion of the token distribution awarded to the event. PPL's may or may not accept Peerity tokens in return for goods or services. PPL's may or may not offer discounts e.g. “$1 beers if you pay in Peerity token.”
To become a PPL all that needs to be done is to create an account and register your geolocation and/or business as a PPL. You will then be listed on our site as a PPL host, which can benefit your business in many ways other than the free ad that comes with being a listed PPL. We encourage PPL's to come up with new ways to use Peerity that will augment flow their business and enhance their customer's experience.
For a project such as Peerity to succeed, clear and direct leadership has to be present at the start. While we are completely in favor of a decentralized governance structure, our developers need complete freedom during the alpha and beta versions of Peerity.io, and a centralized decision-making structure is necessary to achieve the fast growth we are aiming for.
During the Peerity.io alpha and beta, Peerity Inc will have full control over all the decisions made on the Peerity website and blockchain. No decentralized governance is in play at this time.
The governance system for peerity.io will be decided at a later date. Development is focusing heavily on our core features and the security of the peerity network. We will announce our governance plans after we release the beta. We aim to have a decentralized decision-making process in place where staked users can vote on changes and proposals by the time Peerity launches officially.
The current scene for fundraisers in the crypto world is under heavy scrutiny from both professionals and pundits alike. One of the main grievances with token crowdsales is that tokens are only created for the sole purpose of being able to launch an initial crowdsale of the tokens.
Peerity wants to break with this trend. Our token will be heavily integrated into our platform, providing a real-world use for the token from the day we launch the Peerity platform.
Another common consequence of the traditional coin offering model is that it is not a sustainable model. Companies and organizations gather a substantial amount of funding from a single investment round and have limited potential to find follow-up funding. Peerity does not need follow-up investment rounds, as we aim to use the initial funding from the crowdfunding round to build the platform. Once the platform has been constructed, the Peerity development team will be funded by the continued payout of a maximum of 5% of the total daily created Peer tokens. This eliminates the need for additional funding rounds and ensures the indefinite continuation of the Peerity platform.
More details on our fundraiser events will follow soon.
80% of the tokens will be made available in our public fundraiser event. Everyone will be able to purchase our tokens at that time. We will be creating a fundraiser platform where everyone can buy the Peer tokens with a multitude of different cryptocurrencies. We will be providing more information about this public fundraiser soon.
Please note that our token is not a security, is not listed, authorized, issued, or traded on any regulated market. We do not guarantee that the value of tokens will increase.