Incentives for social economy growth, or how to give away free lunches

4 min readOct 11, 2017


Flixxo is a video distribution network but, most interestingly, it’s a nascent social economy. There is a big challenge we are facing here: how to bootstrap a social economy?

Making a crowd-sale of virtual tokens gives us the chance to have a working economy already built with a base of token-holding fans by the time that the video and social platform is launched. However since we want the user base to reach explosive growth we also need the circulating tokens to grow accordingly. New users have to feel that they can make an impact and that their tokens are not worthless compared to first comers’, but also early adopters’ holdings should not be devalued but increased — otherwise they would feel cheated. That’s the line that we have to walk, and in order to maintain value the quantity of tokens in circulation should grow at most by the same rate as the growth of the combined value of the network. Since the value of the network can grow exponentially thanks to the network effect and by having more users holding and spending a few tokens, that shouldn’t be a problem.

In order to build up an economy we need to encourage users to become active members of our platform. And users will demand content. So we need to bring up incentives for users that will turn into incentives for producers of content.

We are assigning 50% of the tokens ever be created to an incentives program that will benefit all participants of the economy: a mix of airdrops, bounty programs and gamification-style rewards for consumers and influencers that will help authors to monetize. These tokens will be locked in a smart contract waiting for a trigger to set them free. The trigger is the only external input to the contract and will be activated — by a multisig contract held by trusted parties — once the platform is functional and launched. At this point, the contract will allow the extraction of tokens in daily batches following a predefined schedule spanning 10 years. A stronger incentive program is required immediately after launching in order to reach more people and more content, and it will be decreasing until it gets to zero after 3650 days. The schedule releases a bit less than 275000 tokens on the first day, with every following day allowing for 75 tokens less than the day before it. This creates a linearly decreasing (opposed to bitcoin’s exponential halving which releases coins in a faster way) token emission, allowing for 20% inflation during the first year, and about 13% the following year.

Flixx are stored and released by a verifiable smart contract and Flixxo will have the task to transparently distribute the withdrawn tokens. Of course the limits set in the contract are just an upper bound.

As tokens wont be distributed in their totality unless we reach a certain benchmark on user´s growth, even though we are releasing a previously determined amount of Flixx, some of those tokens would be burned. E.g. if we expected 10,000 users on day one and we have reached only 5,000, then 50% of 275,000 tokens would be burned.

After burning, we will distribute the remaining tokens as prizes for reaching social goals — for having shared 5 videos, you would earn 5 tokens; after having sent a received one Flixx from friends, you would earn another token. Remaining tokens will be distributed between users actively sharing content, in addition to the percentage of earnings that authors are giving away.

Users won´t get rich just because we are setting this program. We aim on reaching 50 million users in ten years and giving away an average of 10 tokens to each one.

An economy of 50 millions is like the economy of an entire nation, and a bunch of early adopters may reach 30% of that economy. Who is winning here? Just picture that.




Watch, share. Earn! Mixing Bittorrent+Blockchain to develop a social economy based on video sharing. Follow the conversation on Telegram