A Stablecoin Pegged to Social Media Advertising–Minds Gets Creative
November 20, 2018 by Paul de Havilland
Minds has created a stablecoin pegged to social media advertising. Stablecoins are usually pegged to a fiat currency (mainly USD), with a handful pegged to gold or commodities like barrels of crude oil. Minds, Inc., the company behind leading crypto-social network, Minds.com, has taken a novel approach–in recognition of the value of social media advertising.
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Smart Contract Upgrades to Peg MINDS Tokens
Minds has announced they have made recent changes to their smart contracts that will effectively peg the ERC20 MINDS token to its value on the site. While MINDS has always been a stablecoin insofar as one token was pegged to 0.0005 ether, ether’s price fluctuations meant MINDS tokens endured the same volatility as its host platform.
With the recent changes to the smart contract, one MINDS token will be worth 1,000 advertising views on the new social network. The Minds social network is a token-driven social network, with its utility token powering its Boost (advertising), Plus (premium accounts), and Wire (peer-to-peer subscriptions) functionalities.
Minds’ social network has goals that are as ambitious as they are laudable. According to their website, the platform’s aims are to create:
“Nonpartisan (r)evolution of ideas and global consciousness… Real world solutions with free speech, co-ownership and open discourse… Privacy and transparency with encryption and open source software.”
Such ambitions make it the anti-Facebook, rather than a direct competitor.
A Stablecoin Pegged to Social Media Advertising Not As Crazy As it Sounds
Minds prices 1,000 views on its network at 15 cents USD, meaning the MINDS tokens are ultimately pegged to an established fiat currency. With fluctuations in ETH/USD, the company will periodically adjust the price of a MINDS token in ETH. The platform’s users can also earn tokens for contributions to its network and referrals.
Minds is backed by Medici Ventures, a blockchain subsidiary of Overstock.com. A social network leveraging blockchain technology, Minds wants to shift the centralized social media paradigm that exists today. Co-founder and CEO Bill Ottman believes social networks in their present form fail to offer users sufficient transparency, privacy, and freedom:
“Minds is a crypto social network where users earn or purchase tokens and can use them for advertising, digital content subscriptions and other premium services. We invert the model of traditional social platforms by focusing on transparency, privacy, decentralization and Internet freedom.”
In that spirit, it makes sense for Minds to be creating a stablecoin pegged to social media advertising.
Have your say. A stablecoin pegged to social media advertising is a novel approach. What do you make of it?
Images via Pixabay