Let the old rating systems BURN
I finally reserved some of my time for ICOs. My thorough searches are yielding interesting discoveries. Ignite is one of them. My followers probably know by now that I’m pure Blockchain/decentralization advocate. When the system is set up correctly, decentralization has close to no negatives compared to the old ways (read centralization). Rating systems are one of those domains that succumb to the subjectivity quite a lot, which hinders its overall credence. As I tend to say quite a lot lately (which might be a signal to start a new Steemit’s series I guess:P), “Decentralization to the rescue!”
Join the HIVE
In order to create functioning decentralized (not only) rating system, its essential to create a win/win situation for the platform and its users. The system has to incentivize its users so that they act in the best interest of the platform. If such a state is achieved, an ecosystem where the platform along with all the contributors thrive is created. This sounds quite familiar for all the Steemizens right? Steem has achieved pretty much that, although there are still quite a few glitches that enable bitches to steal whole percentages of our reward pool (if you do not know what I’m talking about, check @berniesanders. He has the ability to transfer the information to you in a very exotic way…). The Ignite HIVE will work in similar way, but they will not redistribute the reward pool to other users, instead it will be used to buy the tokens that will be held by the HIVE. This effectively disrupts individuals trying to game the system for their own gain, for there is gain only when the whole HIVE realizes a gain.
What does Ignite aim to do
Ignite aims to rate (crypto) assets. All the participants will have an opportunity to share their knowledge, which will be rated by the rest of the community. The outcome of that will be hive, where all the contributors are sharing their opinions and have their own reputation (based on the quality and the quantity of their contributions – measured by the rest of the hive), which will create a collective consciousness. If I understood the whitepaper correctly, Ignite will have its MASTER INDEX (something like our reward pool) which will be used for trading. If the trade realizes gain, 50% of it will be shared with all the ACTIVE contributors of the hive that have helped with the realization of the gain. The amount of IGNT reward will be based on the quality and quantity of the contribution, the PERFORMANCE of the contribution and the stake.
The value of the token will therefore be backed by the diversified portfolio of the strongest crypto assets from the point of view of the hive itself. Part of the gain will be reinvested, part of it will be rewarded to the hive and part of it will be kept for future deployment wherever is need. This illustration explains it completely.
That is not it yet! Crypto assets are only going to be the start. As soon as the hive and its wealth (MASTER INDEX) grows, the investments are not going to be executed only in crypto world. Ignite Real Estates Indexes, Ignite Stocks and Shares, Ignite FX index and so on will be the future. There are no limits for the hive if it’s going to be successful. That is a supreme win/win situation in my eyes.
Additions and removals from the MASTER INDEX
There will be a permanent voting open for all the IGNT holders. As long as the rating (from 1 to 5 stars) is 3 or more, the token will be bought. Maximum amount will be equal to 1% of the whole MASTER INDEX as long as the token scores 5 stars and the minimum is around 0,6% when the token scored 3 stars.
If the token falls below 3 stars (and is currently in profit from the initial position) it is sold. There will also be some “eligible members” (whatever that means) that can vote in between themselves whether any given token will be removed or not. “The eligible” members are probably going to be either big stake holders, or members with excellent reputation. All ignite holders can also agree upon selling a high rated token to realise gain immediately.
Summary
Not only people will be able to gain a lot along with the platform, but it will also provide awesome opinions about possible investments. This is an offer that is hard to turn down…and I do not intend to do so. I LOVE the project. Participation in the ICO is a must for me. Do you feel the same way? Is there anything you do not like about the project? I frankly couldn’t find anything. Time to end this article and by my IGNT I guess:).
