What is tokenization?
Tokenization is the process of putting an entity or operation on the blockchain. Where Uber disrupted taxis, Uber on the blockchain will disrupt Uber (by tokenizing the ride share sector). Where Airbnb disrupted hotels, Airbnb on the blockchain will disrupt Airbnb (by tokenizing rentals). Financial services, insurance, college admissions and real estate are examples of sectors that are ripe for disruption through tokenization. So is Journalism.
Specifically, tokenization is the process of forming a global, borderless, permissionless, neutral, censorship resistant community of people who are devoted to a particular product, passion or idea (e.g., skateboarding, cats, coffee, ride-share, real estate rentals, #metoo, trustworthy journalism) and then creating a digital asset (i.e., a token), the possession of which permits the token holder to access the community and experience unique and privileged use cases. The token is a piece of software. A total supply of tokens is created by a software program either all at once (this is called premining) or else in incremental amounts over time (often called mining). The supply of tokens can be an inflationary, deflationary or fixed in supply. Folks who wish to experience specific use cases in the community must first come into possession of these tokens. Tokens can be acquired in one of three ways - purchase, barter for labor or winning a reward in a contest.
Is tokenization legal?
Neither regulators nor courts have ruled tokens to be illegal. Tokenization, however, might become subject to existing or new regulations. For example, certain types of tokens have already been characterized by the SEC as a security and therefore must be registered with the SEC as a security.
Another example, the IRS has declared that selling a token constitutes a taxable event. The United States, however, has yet to give clarity as to how to be in full compliance with the CFTC, FinCEN, SEC and IRS.
Jurisdictions such as Malta, Estonia and Gibraltar have created a regulatory climate that is hospitable to tokens. China has historically taken a hostile position with respect to tokens. In a startling development, however, Chinese Premiere Xi delivered a formal speech recently declaring that China intends to be a leader in blockchain.
The SEC has ruled that Ethereum is not a security, which portends a possibility that yet other tokens will not be characterized as a security.
How do we know that Congress won't outlaw tokenization?
We don’t. In such a scenario, we would either relocate and operate out of Malta or else we would remain as have our Rosa Parks moment.
How does Ovis make money from tokenization?
OVIS has identified five revenue streams for itself:
Additionally, token holders can:
Sale of tokens to journalists, curators, general public, etc.
Transaction fees for use cases.
Fund appreciation (7%)
Structure contests and charge fees to enter the contest, as well as to judge the contest.
- Structure events and charge fees to attend the event.
- Receive advertising revenue for contests and events that she structures.
- Earn micro tips from other token holders by making suggestions to the feed or else knowledge sharing to the feed.
- Sell her token, provided that she has experienced six use cases.
Why is blockchain technology perfect for journalism?
Blockchain technology creates an accurate, trustworthy and verifiable record of events that happened in the past. This record is publicly accessible, permissionless and immutable. The record of events is established through consensus of community members. Just as a record of financial transactions can be put on a blockchain (e.g., Bitcoin), a record of journalistic pieces can also be put on a blockchain. Blockchain technology is highly resistant to tampering, hacking or computational error (Bitcoin has never been hacked in its eleven year history, and Bitcoin has not made a computational error in its eleven year history).
Why wouldn't people from one political party be able to sway votes?
In most cases, it will take a supermajority of token-holders to vote up or down a particular story. Additionally, mass adoption and network effects will neutralize this. Trend analysis will disqualify insincere Curators who are seeking to game the system.
As described below, Curators/Judges must satisfy predetermined, objective criteria to earn the status of Mezo Curator or Master Curator.
How do smart contracts play a role in journalism?
All of the use cases and intersections described above are governed by smart contracts (instead of humans). All events described above are authenticated by and recorded on the blockchain.
How does a Token Currated Registry (TCR) ensure fairness and accuracy in journalism?
Step 1. A journalist creates an article, video or audio piece.
Step 2. She chooses to submit the piece to OVIS News.
Step 3. She is required to purchase a OVIS Token and then stake this token with her submission. (Think of an application fee when applying to a university.)
Step 4. Curators review her article, video or journalistic piece. They perform research to authenticate the piece and corroborate her sources.
Step 5a. If the Curators upvote the piece by a supermajority, then the piece is uploaded to the platform for the world to see. The journalist receives the majority of her stake back and can start to earn money from her piece in proportion to the attention it receives.
NOTE: Curators are required to purchase Ovis Tokens in order to be eligible to act as Curators. Curators begin as Apprentice Curators and have no vote. An Apprentice Curators can advance to become a Mezo Curator after 90 days if the associated criteria are satisfied. Failure to advance results in loss of tokens staked. A Mezo Curator has one vote. A Mezo Curator can advance to become a Master Curator after an additional 180 days if the associated criteria are satisfied. A Master Curator has three votes. Master Curators earn tokens as described above.
Step 5b. If the Curators do not upvote the piece by a supermajority, then the piece is rejected. The journalist loses her stake, which is distributed among the Master Curators (defined below). The rejected piece is uploaded to a different section of the site that displays rejected pieces and makes it clear to the world that the piece was rejected. In order for the journalist to have the piece removed, she must purchase additional tokens. These additional tokens are also distributed to the Master Curators.
Why Join Ovis?
By joining the Ovis community, you will participate with millions of people dedicated to the truth and committed to building a news service that ensures journalists and their stories are trusted, verifiable and accountable to the people they serve. Every aspect of your Ovis community is of the people, by the people and for the people.
What's in it for me if I purchase a Truth Token, and what will Ovis do with the revenues?
Your two cents matters! The initial cost of each token starts at just two cents. Your two cents helps your Ovis community in two critical ways:
1. CREATING COMMUNITY STANDARDS: By using your tokens to vote, you will give your two cents on matters as simple as what website features you what to see to more complex issues such as what stories journalists should cover, which community's standards journalists must follow or even executive and community compensation.
2. PLATFORM BUILDOUT: When you purchase tokens you will participate in the Ovis Seed Funding Round to fund the following:
a.) The design and build of an improved community-focused www.ovis.news website and Integrate the ZAPtheory technology to ensure financial transparency and accountability.
b.) Secure marketing, research and community outreach firms to help Ovis begin raising money for the next fundraising rounds and expanding the Ovis truth-seeking community.
c.).Begin the process of integrating other critical blockchains required to ensure journalists and their stories are verifiable, transparent and accountable to the Ovis truth-seeking community.
Purchase your tokens here: www.ovis.news/gift