“Social media is not about exploitation of technology but service to community”
INFORMATION + RESOURCES
Reddcoin is a low-energy “Proof of Stake Velocity” algorithm-based coin (originally Proof of Work as a Bitcoin 0.9 port) meant to be a “social currency.” This is to compete with groups like Patreon and introduce more people to cryptocurrency by making a currency around a culture of internet content sharing. Its algorithm is unique for blockchain in that the velocity of the token, as in what rate the currency is moving, is accounted for, on top of the age of each token. Each token comes with an exponential aging function, where new coins “age” at a higher rate than older coins, up to 2 “coin months.” This is an added function as a metric to impose monetary policy on top of and reduce hoarding. The consensus algorithm also gives preference to stakeholders who move more of older tokens in a given day.
Reddcoin’s motivation, going by the whitepaper, is to highlight the shortcomings of using Bitcoin as a unit of account – with its high power consumption and relatively little utility (unless you use APIs like CounterParty or Factom). It’s aiming to prove this argument by becoming a currency for social media and internet content sharing, and without the fees of a centralized platform like Patreon, which lets you pay content creators directly – while the company scrapes off the top and makes bundles (still better than Youtube’s monetization policies). However, Reddcoin as a token is currently only settling as a “decentralized” tipping platform, basically what Dogecoin gets used for, but with a repurposed share button to add to share bars on sites. Kinda lame, but it’s still early. The developers also launched Reddcoin.online, a Steemit-like social media site with quite a bit more functionality, including a marketplace. Of course, with cryptocurrency, the value added to the system gets distributed across all the tokens, so you risk, say, the creators liquidating massive reserves and draining the value.
Those are called “scamcoins”, but Reddcoin has proven fairly legitimate and doesn’t support hoarding. 40% of Bitcoins are held by a small handful of people in contrast, making for a massive bubble. Bitcoin Cash also seems like this, providing fairly petty upgrades in my opinion – especially since anyone can fork Bitcoin and make a derivative with slightly different parameters then hype it. The code is not that sophisticated once you understand an old idea called distributed cryptography. That’s not to say the evolution of blockchain was trivial. Like all technologies you have to start somewhere, and Bitcoin was that somewhere. You see this even in the way people are investing, where 99% of the people I meet have only heard of it and think there’s nothing more to cryptocurrencies, even today with the 1300+ registered tokens.
The Reddcoin token has seen recent renewed interest, recently crossing $100 million in total value, and at $181 million at the time of writing (up 90% in 24 hrs). It’s easy to stake and mine with if you just follow the guides, and since it’s targeting the social media landscape this early they have a great shot at establishing themselves as a major player. I’m still very suspicious of all these groups touting revolution via monetary policy merged with computing power, especially when this one quotes Adam Smith in the whitepaper, because the ability to take advantage of that by stakeholder networks is insanely high. However, the optimism and outlook is infectious as always, and I look forward to more technical discussion and iterations like Reddcoin, especially as our global economy tanks toward populism and gulag infrastructure under a trend of mass centralization via exploitative monetary theory. A viable digital currency will address and seek to cultivate the compassionate and creative information economy that exists on the open internet and has always existed between people in general, something Reddcoin gets right.
Additionally, labor power and efficiency make value, not the representative numbers and inflation. Cryptocurrency might be able to break the current psychosis of privileged uselessness sought by money-makers, especially as the crypto markets make regular stocks looks like a joke and a heavily-controlled scam favoring bigger pocketbooks. That shock upon discovery teases out awareness and exploration in people who often simply start on Coinbase and are utterly ignorant of alternatives or even the possible uses for cryptocurrency, or ignorant of global financial systems in general. And that’s where this site becomes relevant.
To quote Mark Blyth quoting Robert Solow, “Here’s what’s wrong the way that we model the world. We assume the economy is a person, and it runs through life optimizing. And we throw shocks at it and we see how it does. And because of that, we decide on policies. It’s really clever. But there’s one problem, the economy isn’t a person. And everything we know about persons tells us that people don’t optimize. So here we have a model that is functionally useless, heuristically useless, and predictively useless. Everybody’s still using them. Why? Because there’s nothing else to use, a very human way to hold onto things. It’s called the first law of Wind Walking – don’t let go of something till you got something else to hold onto. But intellectually this is complete crap because until we had the rise of molecular biology, the number one theory linking genes and behavior was eugenics. Should we have stuck with eugenics simply because there was nothing else to hold onto? Probably not, but we don’t like to let go. It’s preferential attraction, but also the reality of too much information we need to process.”
Blyth goes on to make the point that economics are simply coordination devices, layers added on to create new self-stabilizing systems. He uses a brilliant example of desynchronized metronomes on a board on a couple rolling cans self-synchronizing under their own force in relation to the rolling board, as a metaphor for how economic systems really act on second-degree forces in “loosely coupled” global systems, essentially the microscopic natural forces under us that we don’t understand (including all the billions of other lifeforms affected by our actions while we share this space). Everybody wanting to multiply their money should understand this, or basically that the fruits of their wealth generally come from laborers or out of the ground with potentially immeasurable real cost associated with it. They should also understand it with enough humility not to get a macro-minded Kissinger-esque god complex, to say the least.
Written Dec 20, ’17. Price at the time: $0.0063 / RDD