Block.one is getting worse.
When the company announced its Facebook alternative, a social media platform called Voice, it said it would create a second-level cryptocurrency, Voice, which runs on the EOS main web. But it is reported that the company with billions of dollars in assets will spend $150 million to create the platform. The company said it will not sell tokens in view of the recent crackdown by the US Securities and Exchange Commission (SEC), and the service itself will be free.
- Tens of millions of EOS have been unlocked, and the price of the currency has not fallen, but what is it?
- Block.one announces another $ 150 million for Voice to operate independently, with a total investment of $ 300 million
- What happened to Babbitt’s short EOS conference? EOSIO2.0+YubiKey+Voice
- 66 times the income! Block.one is not afraid of huge amounts of money to buy back shares, is the SEC going to shoot?
- Twitter featured: Block.One founder said not to expect too much EOS
- Will the EOS nodes be infighting, which will affect their future development? See what the super nodes say
So how do they make a profit?
There are two main aspects. First, this social network will use the EOS blockchain, which may uplift the value of EOS, and Block.one just holds a lot of EOS.
Second, Block.one is considering recouping its investment by imposing an inflation tax on Voice. In fact, this explains why Block.one creates a controllable Voice token instead of using EOS directly.
Block.one CEO Brendan Blumer wrote on Telegram on June 4th:
“If you don’t use this model, Block.one will take a small portion of the current inflation or take another way to guarantee the utility status of the token.”
The specific way of operation is as follows: Like most cryptocurrencies, Voice is an inflation-based token, which means that over time, a certain amount of new tokens will be produced, gradually increasing the total supply of money. Each time a new batch of SGD is issued, Block.one will reserve a portion for itself and will be able to sell it on the open market. Although many economic issues, including the percentage of Block.one holdings and the maximum amount of Voice, have not been answered, they hope that this program will bring enough funds to support the development and operation of the network.
Of course, the premise is that the price of the Voice is high enough, which is difficult to guarantee.
Blumer said, however, that if this model is successful, some inflation taxes may flow to content creators. He believes that inflation taxes of up to $50 million to $100 million may eventually be allocated to the most popular users of this social network.
Voice hopes to avoid repeating Steemit's mistakes by taking a share of the funding supply, the last social networking project of Block.one CTO BM (Dan Larimer). Steemit Inc., which runs the platform, recently cut about 70% of its workforce because the cost of running this decentralized platform is too high. Steemit won't get Steem, the cryptocurrency of the network.
Block.one has not yet announced the release date of its "Facebook Terminator".