What Is Blockchain And What Can BunnyPub Businesses Benefit From It?
Breaking out from confines and surviving is something that every exchange center is striving to work towards. With the fall in price of major tokens, there are two roads that spot trades can take: one is locking and waiting for profit or minimize losses; second is to cut losses and withdraw. We can see from these two choices that without a suitable ecosystem in place an exchange can only wait for a sudden surge in prices to change market value.
There are two classic examples in the cryptocurrency community: ETH and transaction fee mining. ETH supports the platform by attracting developers with its technology and listing tokens. As a main currency of the market, its value comes from the support of the market, and a change in the support would also impact the value of ETH. An ICO that suddenly increases supply led to a demand in ETH. This increase in supply is only superficial and the real consequence is a fall in prices.
This fall led to the leaving of many ETH fans and users, and those that remained were mostly the project party of the ICO. No matter if it was for survival or to sustain the ecosystem, they were trapped within the confines of the ETH cage. The second example is transaction fee mining with FCOIN as the most memorable example, but countless followers emulating the model.
The main concept behind transaction fee mining is to return trading transaction fees to the users, this is something that I have always asked (why don’t we give back transaction fees to users?). The system behind transaction fee mining is to stimulate users to participate in trading. Transaction bots trade on the main market, which is like trading from your left hand to your right hand, to increase the liveliness of the market. As soon as there is an increase in the platform token price of FCOIN, we won’t be looking at the users that are making value investments, but at the users that are taking advantage of mining. Users that are taking advantage of the increase in token price will choose national currency transactions.
By using transaction bots that they developed themselves, they will open multiple accounts and take advantage of transaction fee mining to make a profit. This method will spread like wildfire and create a short surge in transaction volumes, bringing short-term prosperity. When the token price is changed due to the interference of transaction fee miners, there will be problems in supporting the platform due to a lack of resources. This failed example can be seen in FCOIN and later ABCC and CoinSuper. Changing transaction rules or changing mining systems will not be able to change the most important problem.
These two projects are classic examples of a failed ecosystem. The most important issues of an ecosystem are the open source model and interception of traffic.
Systems often turn into short term money burners to attract users and change demand in the market. The traffic and volume brought on by this method only attracts users that aren’t really here to support the project. Hopping from project to project, users don’t have the same passion they first had and platforms can only use their own capital to stop losses.
The two previous examples talks about the usage of capital and how the problem isn’t with the system, but with both sides. Using one’s own revenue to support the platform can only lead to failure as soon as the platform is unable to be sustained. How to solve the problem of volume and reaching users are two problems that exchanges and projects are taking seriously.
From a current development standpoint, a forum could be able to solve that problem.
An exchange center is the best interaction point for blockchain users, and is also one of the first successful blockchain projects. One problem is that no matter how much capital you are willing to spend, it can still be hard to reach your goal, which means that something is wrong in the middle. Users expend the tokens they have on hand in the middle. Project landing is something that seems to be far in the future for projects, constant updates and listening to user feedback are also part of the problem. Promotion fees, maintenance fees, and cost of capital are all major problems. You could burn through capital before landing, and end up with nothing.
Forums can be seen as something that has it all. Tianya is considered as one of the biggest forums in China, and was one of the active forums during the early stages of the cryptocurrency community. The merging of Huobi and Tianya is the next step towards building a better ecosystem. 8BTC derived from the 8BTC forum is also a successful example. Being a first mover is important, BunnyPub is also currently gearing itself as a forum that has it all. Let’s talk about the advantages of our forum. BunnyPub has a 7 month old exchange as its support.
This has led to receiving some basic users and projects, but how to reach users is still the main issue. Maintaining a community that isn’t affiliated with major players can be hard to get good basic users. Opening a forum would be a way to bridge that gap between users and projects, and allow projects to maintain their own users through the forum. This lowers the threshold for projects to contact customers. Projects will be able to find their customers out of all the possible people.
With the addition of other subforums, many more people that aren’t part of the cryptocurrency community can still participate in other forums such as novels, gaming, gossip, health and lifestyle, and many more. Users can participate in what they like, and with the increase in users, people will have more choices.
To entice traditional cryptocurrency content creators and other subforums alike, a tipping system is in place. Tipping allows users to choose the content that they like and reward the authors, the tipped tokens can also be used or traded on BitRabbit Exchange.
CARROT is a free candy given to users. Before trading pairs were opened, users were able to obtain different tokens through a wheel of fortune game and then traded for currency on the exchange. The consumption method was too monotonous and not transparent enough was often something users complained about. Users that obtained CARROT weren’t satisfied. Yet, the opening of CARROT trading pairs allowed users to have a better choice to spend their CARROT. The wheel of fortune was now a chance for users to use smaller sums to win bigger rewards, and trading pairs is a relatively more stable alternative. CARROT is supported by projects joining the forum, listing fees, and hiring forum admins.
1、Users not being able to know the content of the prize pool when spinning the wheel of fortune has always been something that we are trying to fix. Currently the prize pool only includes project party tokens and major tokens, in the future it is possible to add project party peripherals. This not only increases the transparency of project parties, but can also incentivize project parties to invest more in prizes for the prize pool to expend CARROT. The more successful instances that happen only increases the motivation for more project parties to sign up.
2、CARROT can be bought back from project parties joining the forum or from listing fees.
3、CARROT can be expended through tipping in the forum, a greater number of users would mean an increase in tipping and the amount of transaction fees.
4、Buying back CARROT to burn with revenue made from the exchange.
These four methods uses minigames to expend tokens, user demand to expend CARROT, project parties joining fees to expend CARROT, and burning CARROT with revenue made. Traditional exchanges use short term profit to gain a financial lead in the early stages, only with proper management will exchanges still be here in the long term. The blockchain industry should also beware of this, looking at short term profit will not enable the industry to survive until the future. The arrival of the forum is a way to let everyone search for new methods to survive the harsh economical winter. Only through cooperation will the blockchain technology be able to turn a new chapter and be used far into the future.
