Test Lauch of On-chain Advertisment Protocol, with 80% Revenue Back to Creators

Test Lauch of On-chain Advertisment Protocol, with 80% Revenue Back to Creators

Mar 22, 2024
Matters Lab

Test Lauch of On-chain Advertisment Protocol, with 80% Revenue Back to Creators

Matters Lab has launched a new on-chain advertising protocol and matching fund mechanism called Billboard. Starting today, users can see the “Billboard” section on the homepage of Matters.town, where advertisements are displayed. 80% of the USDT revenue generated from the advertisements will be distributed to Matters.town’s creators who meet the criteria.

The core idea of the mechanism is to harness the power of the community to discover and support quality content. When someone tips an article with USDT, it signifies that the community recognizes it as high-quality, and then the creator can share the advertising revenue through fund matching.

Why is Matters Lab introducing this on-chain advertising mechanism?

Matters Lab aims to use decentralized technology and matching fund mechanisms to help creators earn more income. We transform the traditional logic of advertising traffic into NFTs. Through the auction system of NFTs, advertising revenue, transactions, and bidding all take place on the blockchain, ensuring transparency and fairness and allowing creators to earn more. A portion of the revenue is distributed to Matters users, creating a win-win situation for the community.

Billboard is a decentralized on-chain advertising mechanism running on Optimism. The auction price for each advertising space is determined by Harberger Tax, and the tax paid by the purchaser of the ad space serves as the source for community sharing. Harberger Tax ensures efficient utilization of resources and reduces speculative bidding behavior.

What are the criteria for receiving the USDT matching funds?

The specific criteria for users to receive the funds are: (1) your Matters.town account is linked to an Ethereum wallet (here is the wallet operation guide), and (2) your article receives valid USDT rewards from others. If you meet the above criteria, you will receive matching funds from the current round’s advertising revenue.

This mechanism aims to highlight collective decision-making within the community. We utilize the popular Quadratic Funding mechansim to reduce the effect of donation amount and increase the effect of number of supporters. The more people vote (tip) for an author, the higher the author’s allocated matching fund.

Quadratic Funding offers the advantage of amplifying the impact of small donations and promoting fairness in revenue sharing. Additionally, we have implemented a trust system to prevent unfair distribution resulting from fake accounts or spamming.

How does Billboard operate?

The transaction currency for Billboard is USDT, which is a stablecoin and can be considered as the “USD” of the cryptocurrency world. It has a stable value and can be directly converted into other cryptocurrencies or easily exchanged for various fiat currencies such as USD, EUR, HKD, or TWD. It has high versatility and liquidity.

Each advertisement cycle on Billboard lasts for 14 days, starting from 12:30 AM UTC+8 on March 22nd, 2024. After the 14-day cycle ends, Matters will calculate the revenue sharing each user receives and provide details on how to claim the funds within a few days. The entire distribution process takes place on the blockchain and is transparent. After each advertising round, you can view the distribution details on the Billboard website. We will also release further explanations according to feedbacks from communty members.

Billboard is still in the experimental stage, and the community will receive the matching funds, but the advertising spaces are not open for bidding yet. The Billboard website and Green Paper provide detailed explanations of the design, mechanisms, and roadmap. We highly encourage interested users to read them and provide any feedback or suggestions to help us build a healthy community together. If you have any questions or if you’re interested in participating in future bidding, please contact the Matters Lab team.