The Cryptonite PRO token (CPRO) economy
A professional network reward token redeemable in the CPROShop for discounts on high-end goods and services, or to reward peers, or sell on crypto exchanges.
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Around the shop, we jokingly say that Cryptonite seeks to be the OnlyFans for the innovation set ;) OnlyFans posted $400 million in revenue in 2020 — representing a 540 percent increase from the previous year. Today, they have 100 million registered users, and more than one million creators, up from 7 million users and 60,000 content creators in 2019 — all with only 36 employees.
The Cryptonite PRO’s mission is to create a Binance blockchain-based reward token to benefit global innovation entrepreneurs, investors, and service professionals worldwide. Modeled, in part, on the successful airline ‘frequent flyer’ reward programs, patrons awarded CPRO enjoy discounts on a network of third-party products and services offered in the CPROShop online store, including peer-to-peer access to industry experts. Holders may also store or trade their CPRO on qualified altcoin market exchanges.
CPRO Network Partners
Over a seven-year horizon, 21 billion CPRO altcoins will be distributed to highly-vetted professional-oriented online communities referred to as CPRO Network Partners. Our Network Partners must agree to adopt the CPRO as their reward token and promote and distribute the CPRO within their communities. Network Partners also agree to market their version of the CPROShop online store and cross-promote other Network Partner communities. Network Partners can personalize the CPROShop homepage for their target audiences, and receive a 10 percent commission on all sales they originate, paid automatically in CPRO at the moment of the transaction.
CPRO Ventures
CPRO Ventures is the investment partnership responsible for identifying, vetting, and structuring CPRO investments in online communities with the highest CPRO distribution potential. The CPRO Ventures team actively helps Network Partners optimize their CPRO reward programs and CPROShop commission income. This support includes providing access to publishing, social networking, encrypted data wallets, and crypto-friendly e-commerce and ad network platform solutions offered by the CPRO Technology Partner members.
Cryptonite — The first CPRO market-maker
The Cryptonite network is the initial CPRO market-maker and will serve as a model for the power and benefits of a reward token-driven online community. The Cryptonite community represents the top entrepreneurs, risk investors, and early adopters within the world’s billion professionals. Throughout its network, Crypronite makes it easy for members to reward each other CPRO to thank people for live appearances, clever comments, sharing valuable content, answering questions, and other contributions to the community. Cryptonite members also use CPRO as a fun way to gain each other's attention and reward and subscribe to industry experts for their advice insider knowledge.
Cryptonite offers its members a permanent 30 percent discount off its premium memberships, and also for all products and services offered in the CPROShop or on the Innovation Influencer Network. The CPROShop uses the GoCrypto, a global payment system provider that connects all the stakeholders in crypto — users, wallets, exchanges, cashier system providers, payment solution providers, and merchants. GoCrypto allows our members to automatically buy enough CPRO in the open market to complete the 30 percent discount transaction with ease. On all levels, we want to emphasize the frequent-flyer-like discount value the CPRO represents.
Cryptonite members are also constantly earning reputation ‘PowerPoints’ and corresponding CPRO rewards for a wide variety of network connections, interactions, and content contributions and commentary. Cryptonite’s pioneering reputation and reward system build member brand value and loyalty as it is a form of revenue-sharing with members who create the most value for all.
Whether Cryptonite or a fellow member rewards a member, they earn reputation points, and a brighter light is shined on their comments and profile. The Cryptonite member equation: Positive contributions to the community = Status + Cash (CPRO) + Discount Power.
The CPROShop
The CPROShop matches members with a highly-vetted and growing selection of third-party research, data and communication apps, live and virtual event tickets, continuing education programs, webinars, and access to leading experts. While Cryptonte is the creator and operator of the CPROShop, the online store will also be linked to and promoted by a growing number of other professional-oriented online communities referred to as CPRO Network Partners. CPRO Network Partners are incentivized with a 15 percent commission on all sourced sales, paid automatically in CPRO at the moment of the transaction. As membership grows, high-end consumer products and travel and leisure services will be offered in the CPROShop as well.
Creating a new ‘social currency’ for professionals
The CPRO is one of the first social currencies leveraging the laws of network effects. CPRO’s distribution plan follows network principles first presented by MIT-bred Robert Metcalfe and David Reed, which helped quantify the Internet and social networking phenomenons.
Metcalfe’s Law was conceived by the renowned futurist George Gilder, who attributed it to a presentation ethernet co-inventor, and technology entrepreneur Robert Metcalfe made on the value of networks in 1980. Metcalfe’s Law states that any given network's impact is the square of the number of nodes (people or devices) in the network. For example, if a network has 10 nodes, its inherent value is 100 (10 * 10). Metcalfe’s Law is related because the number of unique possible connections in a network of n nodes can be expressed mathematically as the triangular number n(n-1)/2, asymptotically proportional to n2.
At the time, Mr. Metcalfe referred to the multiplying utility value of the number of ‘compatible communicating devices’ connected to an ethernet network. By 1993, when Mr. Gilder first referred to Metcalfe’s Law, he applied it to the number of connected users on a telecommunications network. In the later 1990s, Internet investors and entrepreneurs started linking Metcalfe’s Law to the potential growth and value of the Internet's globalization and how it works in-line with Moore’s Law
In 1999, MIT-educated computer scientist David Reed expanded on Metcalfe’s Law by formulating Reed’s Law. Reed’s Law asserts that the utility of large networks, particularly social networks, can scale exponentially with the size of the network. Reed states that the number of possible sub-groups of network participants is 2N − N − 1, where N is the number of participants. Therefore, the utility of a network grows much more rapidly than either the number of participants, N, or the number of possible pair connections, N(N − 1)/2. In other words, the network effect of group membership can dominate the overall economics of the system.
We can see a scale-driven value shift in the history of the Internet. As the Internet started to take off in the early ’90s, traffic was dominated by ‘newsgroups,’ user-created mailing lists, special-interest websites, and other sub-groups. Thus many of the transactions and collaborations previously conducted outside the Internet started to became absorbed online, and the size value of this vast new playing field grew exponentially. —David P. Reed
Reed’s Law sheds light on why things can ‘go viral’ on social media. It also quantifies the general value and popularity of social networking services. As more people join, the more members can connect and form sub-groups with others who share their interests and gain more value from the network.
Business analysts and economists now refer to the power illustrated by the Metcalfe and Reed Laws as the ‘network effects.’ A network effect (also called ‘network externality’ or ‘demand-side economies of scale’) is the additional value and competitive advantage a company gains for each user of goods or services it attracts to its network. When a network effect is present, the value of a product or service increases according to others' numbers. For example, in the early days of the Internet's commercialization, eBay may or may not have had the best auction website, but it successfully attracted the most users. In the end, the power of eBay’s network effect drove out their competitors.
Both the CPRO distribution and Cryptonite’s membership strategies deploy both the Metcalfe and Reed Laws' wisdom. Using a ‘network of networks’ model, the distribution and liquidity of the CPRO can scale dramatically and solidify its position as the global reward altcoin for professional goods and services.
Leveraging the same network effects principal, Cryptonite offers qualified and motivated members the opportunity to create verified ‘tribes’ within the membership to add value and meaning to the community. Much of the member value derived from Facebook happens in conversations within their 10 million groups. Facebook says there are more than 450 million people in groups that they find meaningful as of April 2020, up from 100 million in February 2017.
‘There is a real opportunity to connect more of us with Facebook groups that will be meaningful social infrastructure in our lives. If we can improve our suggestions engine and help connect one billion people with meaningful communities, that can strengthen our social fabric.’ —Mark Zuckerberg in his annual post to members in February 2017.
Reddit, the hugely popular social sharing website for the hipster generation, leveraged the principle of network effects to achieve exponential growth. Reddit evolved into smaller communities called subreddits. A subreddit is a board dedicated to a specific topic. Reddit now boasts 853,824 subreddits and 130,000 dedicated communities.
Why the CPRO is on the Binance blockchain
Binance Smart Chain (BSC) went live on mainnet on September 1st, 2020, and will enable the creation of the CPRO token smart contract and its staking mechanism. BSC is a blockchain protocol from Binance that runs in parallel with Binance Chain. Unlike Binance Chain, however, Binance Smart Chain powers smart contract functionality and boasts compatibility with Ethereum Virtual Machine (EVM).
BSC is an Ethereum Virtual Machine-compatible blockchain that activated the parallel blockchain to Binance Chain to enable the creation of smart contracts and the staking mechanism for BNB. BSC uses a consensus algorithm known as Proof of Staked Authority (PoSA) where 21 validators stake BNB, the native token for the Binance ecosystem, to secure the network. BSC has created a growing ecosystem where validators, token holders, developers, and users all benefit from a rewarding blockchain that offers high performance and ample space for further innovations. With BSC’s launch, DeFi projects and the bigger blockchain community can leverage the best that Binance Chain has to offer, fortified by smart contract support, cross-chain interoperability, and more advantages that BSC brings.
BSC offers the CPRO project a new decentralized machine with many valuable assets brought in by Binance Chain and Binance.com which includes the following benefits:
- A rich and growing digital asset ecosystem powered by Binance DEX, the leading decentralized exchange.
- The BEP-20 token uses essentially the same format as the Ethereum protocol’s popular ERC-20 tokens.
- When it comes to transaction fees — also known as blockchain fees — , BSC is substantially more cost-effective than Ethereum. This fee is collected by miners or validators who ensure that the blockchain only records and processes valid transactions. Most DeFi applications involve myriads of transactions, which incur transaction fees at every step. Recently, Ethereum has recorded fees over $100 for a single transaction, while BSC charges between $0.01 — $0.05 for the same services
- One of the highest performing and low-latency blockchains with a network capable of producing a block every 3 seconds which makes building the CPRP on the protocol very appealing to our developers. Ethereum has been handicapped by scalability challenges, which have resulted in congestions and longer waiting times for transactions to complete.
- BSC, which is compatible with smart contracts for decentralized applications, is connected with the high throughput Binance Chain to achieve shorter confirmation times and higher transaction processing speeds while being programmable.
- Interoperability is one of the key features held in high esteem by DeFi proponents. BSC is built with a dual chain architecture, which provides the flexibility of transferring assets from one blockchain to another. This interoperability allows for the opportunity to access a vast ecosystem with a myriad of use cases.
- A supportive Binance ecosystem that funds and bootstraps many other DeFi projects.
- A growing ecosystem of millions of users across Binance.com and Binance DEX
- A network of major crypto projects already collaborating with BSC
- Binance Smart Chain communities continue to release many handy tools for functions such as token issuance and transfer, BNB staking, and dApp creation and usage.
- As of April 2021, there are already 60+ DApps operating on Binance Smart Chain, with the majority focusing on decentralized finance solutions.
- Binance is actively encouraging the development of new DeFi apps on BSC by funding promising projects through a $100 million developer fund.
The CPRO mint and distribution
The total CPRO mint is 21 billion CPRO. Initially, the Cryptonite network will receive 14 percent of the mint, with the remaining altcoins invested at no cost to dozens of other Network Partners, as noted above. The governance language (still under development) will only allow Network Partners to distribute the tokens directly to their members as rewards according to a mutually agreed-upon plan. Furthermore, any person awarded a CPRO will be required to hold the coin for six months before being traded over a crypto exchange in the open market. However, CPRO holders will still trade CPRO for discounts on goods and services in the CPROShop. After Network Partners receive CPRO back in a direct sale or sales commission, they may trade those altcoins in the open market for other fiat currency or other altcoins if they wish.
The CPRO stated distribution, and liquidity goals include:
- Build the breadth and depth of CPRO’s distribution to sophisticated holders via investing CPRO in Cryptonte and other CPRO Network Partners.
- Build CPRO buying power through discount offerings in the CPROShop and on Influencer Sponsor Network.
- Build the perceived value of CPRO in the open altcoin markets.
To achieve CPRO’s goals will include executing the following initiatives:
- Recruit the most influential professional online communities to adopt CPRO as their reward token.
- Build the volume of quality goods and services in the CPROShop.
- Expand the distribution power of the Innovation Influencer Sponsor Network by connecting with a growing number of global innovation professionals.
- Establish CPRO listings on the top altcoin exchanges.
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