Digital contents have no marginal costs, so their price is determined by the purchasing power of the consumers. Unliked offline distributions that require a logistics system, digital content supplies can be adjusted immediately according to market conditions as they are serviced online.
KOK is designed as an optimized token economy tailored to the characteristics of digital content to solve the problems caused by centralized platforms (curation monopoly, high fees, etc.).
KOK Token is the key currency of the KOK ecosystem that can be used for payment, ownership, distribution, and compensation of content.
There are a total of four token constituents. First, 'content providers' that supply content to the platform. Second, 'service providers' that provide computing (hardware) powers to the platform. Third, 'service facilitators' that indirectly participate in platform services by staking on the network. Fourth, 'users and creators' that use tokens to consume platform content and services. All four parties exist within an equitable system that voluntarily provides individual resources and accordingly receive compensation or pay usage fees.
Content providers provide the content shown on the platform. Any content producer who legitimately holds copyright and usage rights licenses can become a content provider. Content providers may publish all or part of their content as NFT.
When a user consumes the content released by the provider, the provider will receive adequate compensation and a portion of it will be paid to the platform as a storage space and user data fee. The fee is set differently depending on the traffic and payment rates and ranges from 3~5%. This is considerably less than the 30% that centralized platforms charge, and improves the profitability of content providers.
Service providers and service facilitators are the same in that they provide resources to the platform and receive compensation, but are classified according to the type of resources they provide.
Service providers provide computing power and hardware resources in exchange for fees. The fees vary depending on the magnitude of the computing power supplied by the service provider. Content providers may also act as service providers, in which case, the total fees can be reduced.
However, this role requires specialized knowledge and skill. On the other hand, anyone may participate in the platform as a service facilitator.
Service facilitators indirectly participate in the provision of platform services by staking tokens in the provider's network. Any and all people have the option of contributing to the network and receiving rewards by joining the network, buying and depositing tokens.
Voting rights are granted according to the tokens staked that allows them to participate in platform operations.
Users spend tokens on activities such as viewing content, utilizing platform services, and purchasing NFTs. Users may also become curators by reviewing, recommending, and sharing content, and by providing personal activity data to the platform. Curators receive rewards depending on the amount of activity they engage in on the platform.
The information obtained through user's curation activities is used for algorithms that help recommend personalized content to other users. The user's voluntary curation participation helps them receive a truly ‘transparent compensation’ and guarantees an open mutually beneficial dynamic instead of covertly acquiring user data as done by prevailing platforms.
KOK release new tokens once a day to supply liquidity and provides new tokens to service providers and service facilitators at the rate they are holding in the entire staking pool.
Some of the tokens issued to mobilize the ecosystem are paid as compensations to both the issuers and buyers of the NFT.
The payout rate is automatically calculated based on the total staking pie, transaction demand, and market distribution. It is adjusted so that the total distribution volume can always converge in a certain number to stabilize the value of the token.