Below is a short outline of an idea I’ve had to use Anchor to build a more sustainable exchange framework between long-term value creators and their consumers.
Consider the prevalent value transfer model: the producer offers some good or service, and the user pays for it with money or barter.
While the above works well for simple one-off transactions, it serves poorly in long-term transactions involving recurring consumption or delivery of future value.
- Sellers of future value (Kickstarter, startups, ICOs) may not be incentivised to deliver on future value if they receive all funds upfront
- Sellers of recurring value (content IP, SaaS software) have to rely on discounts to fair value to reduce churn
Long term incentive alignment can be achieved by switching out payments-in-principal with payments-in-cashflow with Anchor.
- Fundraising: Instead of buying tokens in an ICO, investors can deposit UST into the project’s account so they can purchase tokens with cashflow over the course of the project’s development. They can exercise control over development by deciding to add / remove deposits.
- Serial IP / Recurring consumption: Users can influence the direction of content production in episodic content (e.g. Netflix show) or serialized fiction by voting on story direction. Users can also influence the evolution of products with feature requests via governance.
- Participatory content: Instead of randomly tipping creators to get participatory rights (e.g. live streaming, onlyfans, afreecaTV), participatory rights can be clearly quantified by size of deposits.
An architecture to achieve the above is trivial:
- Any creator can create a
deposit_contractwith specified deposit lockup terms. The deposit_contract can direct the cashflow from aUST to addresses of the creator’s choosing.
- Users can deposit UST to the
deposit_contractand receive ownership tokens analogous to the LP token.
- The LP token can later be used to redeem for project tokens, or to grant participatory rights to a project.
- The Anchor yield being directed to the
deposit_contractcan share cash flows with a governance token to align incentives over the entire project.
I’m building this if noone else is.