# Perch Tokenomics Raid Design Scope

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## Executive Summary
Perch and the GIG Network has undertaken substantial quantitative and conceptual work on the supply side of the GIG token. Although the demand side tokenomics draw from well known projects, such as Helium, adding utility to the token design has been identified as good first step for preparing the CRM-launch of Perch.

Perch is currently live in private beta, which gives the RaidGuild tokenomics team the opportunity to potentially speak directly to participants for verifying the conceptual work it undertakes. A main outcome of the tokenomics design sprint are measures to counteract potential selling pressure for GIG after launch and actively create features bolstering the utility of the token. Overall RaidGuild aims at creating a sound foundation for enhancing the usefulness of the perch platform.

## Overview

Perch would like a complete demand side tokenomic design sprint. This is to complement their new CRM system designed specifically for consumers and creators in the audio and video industry. The gamification and tokenization of free-lance market places is a huge unlock.

We need a tokenomic model and smart contract protocol that enables:

- Users to produce and consume useful data about other market place participants.
- Curation and reputation for consumers, products, creators and service providers.
- Platform incentives to nudge people towards increased platform value creation.
- Economic and social utilities.

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## List of Deliverables
1. A design sprint of one (1) week, according to the Google [Design Sprint methodology](https://www.thesprintbook.com/the-design-sprint)
2. A tokenomics whitepaper
3. A user study that includes:
- Interviews with three (3) individual users
- Collected raw data
- Aggregated data
- User study report
4. Preliminary market analysis of
- Open-source software (OSS) code
- available mechanisms for optimal mechanisms design
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## Design Exploration Spaces

There's a number of specific places to explore and apply token mechanism design methodogies; especially game theory.

- Token demand modeling
- Reputation
- Curation
- Incentives
- Utility
- Social
- Economic
- Mechanism Design

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### Token Modeling

Token modeling is a top down view of the token. It looks a bit like designing an in-game economy. We look at the token in a broad context and design a model which produces desirable outcomes. Good tokenomic models require a deep understanding of goals, value creation, incentivized behavior, anti-fragility and capture resistance.

- Who are the users?
- Who holds the tokens?
- Why do users and other stakeholders hold the token?
- How many tokens are there?
- What are the token taps ? (Taps are how new tokens are minted.)
- What are the token sinks? (Sinks are how tokens are burned.)
- What are the token lock-ups?
- Voting escrow tokens
- Reputation staking
- Token curated registry staking
- Commitment contracts
- What behaviors should result in minting tokens?
- What behaviors should result in burning tokens?
- How many market participants will be speculators?

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### Reputation

In order to craft an effective reputation system in decentralized systems; you want a few different components. Another consideration is that you want your DID (decentralized identity) to be highly composable with other systems.

Remember in Web2; isolating your users from the external world is business-as-usual. In Web3 we want to make user freedom a priority. Ideally creators, curators and consumers can enter into Perch; and carry along their existing reputations - and vice versa.

- What are the existing dominant DID technologies?
- What are the potential attack vectors for gaming the reputation system?
- How can reputation systems create adversarial relationships among peers?
- What are the costs of attacking or gaming the reputation system?
- How are the rewards for creating value within the reputation system; and how is value ascribed?

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### Curation

Reputation is effectively at a lower level simply a way for people to curate other people. So on a granular level, we also want to look specifically at curation.

- How does curation function mechanically?
- Quadratic curation?
- Linear curation?
- How does existing reputation affect curation?
- Specific tokenized curation methods:
- [Token Curated Registry (TCR)](https://education.district0x.io/general-topics/understanding-ethereum/token-curated-registry/)
- [Persuasive Commitments](https://medium.com/commitpool/a-taxonomy-of-commitments-aa02fd901911)
- [Emily](https://github.com/0xfuturistic/emily)
- Dispute resolution systems and the oracle problem:
- [Celeste](https://celeste.1hive.org/#/)
- [Aragon Court](https://court.aragon.org/)
- [LexDAO Arbitration](https://github.com/lexDAO/Arbitration/blob/master/rules/ToU.md)

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### Incentives

Well designed incentive mechanics can lead to extremely positive value creating behaviors from participants. Poorly designed incentive mechanics can be an attack vector; which ultimately leads to a downward spiral and eventual platform death or re-construction.

It's common for tokenomic designers to assess financial capital as an incentive. It's less common to examine all different forms of capital:

- Financial
- Human
- Social
- Cultural
- Intellectual
- Experiential

We can't provide all of the forms of capital directly as incentives - but we can encourage participants to act in ways that create more capital and thus more value.

There's five clear incentive types to examine for Perch:

- Governance token rewards
- Reputation
- Profit sharing
- Platform earnings for creators
- Procurement of content from creators

The token and revenue sharing element of the platform are only one layer to the incentive structure:

- How can we incentivize honest participation in the Perch market?
- How can the token help facilitate buyers of AV services?
- How can the token help facilitate creators or AV service providers?
- How can the token effectuate the creation of other forms of capital and value in the community?

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### Utility

Token utility can come in a few different formats which are going to largely depend on the participants wants and needs. Participants can be broken into a few separate categories:

- Creators
- AV Consumers
- Community Curators
- Rent-Seekers

Platform tokenomics should be consistently designed to provide maximum utility and value. But it must favor participants and stakeholders that themselves produce maximum value for the platform and community.

Utilities are also extremely important for creating marketplaces which are anti-fragile, capture resistant and fair. They also can help to align communitites and enable cooperation in an environment that requires high-trust or is even adversarial.

The most effective and proven models of token utilities are:

- Token curated registries; for reputation and other forms of curation.
- Commitment contracts; for creating financial incentives towards honest participation.
- Token gating; for creating a social and cultural incentive for earning or holding certain tokens or tokenized achievements.
- Voting escrow models; which aligns the relationship of a user's financial stake and their voting power.

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## Team

- benedictvs - Cleric
- Stargarden - Wizard
- Mr_Bluesky - Rogue
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## Cost

| | Estimate | Time Estimate |
| ------------- | -------- | -------------
| Design Sprint | $ 2,760 wxDAI | 1 week |
| User Interviews + Survey | $ 1,000 wxDAI | 2 days |
| Mechanism Design | $ 3,900 wxDAI | 2-3 weeks |
| OS Code Hunt | $ 2,600 wxDAI | 1 week |
| Whitepaper Writeup | $2,000 wxDAI | 1 week |
| Admin | $3,065 wxDAI | X |
| **Total Estimate** | **$ 15,325 wxDAI**| **4-6 weeks** |

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## Payment Instructions

### Smart Escrow

Payment is in wxDAI on the Gnosis Chain network. The Raid Party’s multi-signature safe is available upon request and available on the Gnosis Chain network.

**Please reach out if you have any questions about this process.**

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### Dispute Resolution

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**We look forward to Raiding. Please reach out with any questions or concerns!**