Mass Network: Economic Model

September 4, 2016

Core Principle — Zero Market Interference

Mass does not sell ads. Mass does not replace filtered ads with its own ads. Mass does not manipulate any markets. Mass does not directly affect prices for ads or data sets. Rising prices may be the result of a growing overall quality of the ecosystem and its applied qualities such as targeting. Mass does not censor whitelists. Mass does not enforce whitelisting.

Estimated User Earnings

So how much can a given user earn in one year? We can start the estimation by calculating how much “harm” is done by ad-block users.

The global stats are hard to get but we can use the well-known facts: Google is nearly one-third of the market, Google gets about 70 billion in ad revenues annually, Google has 1.2 billion users. That gives us Google’s losses of $60 per person annually, the entire industry’s losses are approximate $200.

According to the Pareto rule, only one fifth of a system makes four-fifths of the business, so those people who will actually earn something noticeable in the system are five times more ”expensive”. That gives us $1,000 per person annually.

Definitions

Mass Coin is a Blockchain-based proprietary cryptocurrency. Money can be used with the help of the a Blockchain-based, Mass-enabled wallet which can send and receive Mass payments in Money including micropayments; payments are practically instant.

External currency exchange engine or entity (Exchange) is the facility where Money is freely traded against other currencies. The Exchange is a third party entity. Mass does not have any technical participation or influence on the Exchange.

Identity is a Mass-understood Blockchain address. May belong to a person or an organization.

Signed Tag is a text containing user Mass Identity that has been signed under specific conditions with any other Mass Identity. Signed tags prove that a user belongs to some group or has some quality (e.g. customers of a company, members of a club, visitors of a location, etc).

Mass-ready user software agent (a.k.a. Application) is a user’s browser, which tells a website that it follows the Mass project rules for surfing the web. Application incorporates Wallet, Identity (hidden by default), user agent policies (surfing policies), user profile (with sections and sharing conditions for each section, stored locally), specific protocol purposes text tags signed with Identity, search queries history and visited sites history (also stored locally).

Mass-ready website is a website which recognizes Mass users and treats them in a special way. The Mass-ready website incorporates Wallet, Identity (optionally tagged with Mass certified partner’s identity), website policy. Mass-ready websites should pass the following information to user agent: Identity; string with domain name and identity signed Mass certified authority, which guarantees that the domain name and the identity have the same owner; website policy; link to XML document with details.

Sources of Value and Benefits

Improved Web-browsing Experience

Filtering ads in your browser improves your attention and makes it more valuable to the industry. The phenomenon has been tested and approved by many. While you may be interested in one ad out of ten thousand shown to you during a certain time when the total quantity of ads shown in the same length of time falls to one hundred you are likely to be interested even more than in one ad.  

Mass Matters

A local critical mass makes ad placing more coherent. Advertising is still a very local business. Online shopping constitutes only about 5% of global retail, so it can still be neglected. Most of the things are bought locally from local businesses who need to advertise locally. Mass will go city by city reaching a local critical mass in smaller cities in a short period.

Mass will be very relevant even with a small total number of users because our promotion efforts will not be wastefully spread over the Globe.  We will bombard with high intensity in targeted segments. That means a lot for a local advertiser.

Mass-enabled ad platforms will probably be the only aggregated source of ad-placement operating in a small town of 15,000 or so. It is also important to keep in mind that ad filtering and data-tracker-blocking represents serious intrinsic value for consumers as it reduces distraction during web-browsing.

Ad-blocking Goes Mainstream

The considered business segment is about to turn from early advanced adopters to mainstream users. Mass will, not only work locally, it will target the population at large.

Friendly Attitude

Cross-tagging creates better targeting. Ad-blocking generally is a value re-distribution tool, not value creation. Money is taken from one party (i.e. advertisers) and handed over to privileged participants of the system. No new value is created. Mass is very different in this sense.

Mass provides better targeting—a rarity in the advertising industry. New targeting tools are very hard to invent and implement. The Mass approach is to ask users directly in an unbiased manner. It’s a complicated technology but works since users are actually the last remaining source of true data about themselves.

Advertising as an industry has finally come to the point where it has to learn to conduct a direct dialogue with consumers. The technical approach is the distribution of Tags. To reach certain minimal ability to cross-check the validity of answers will also require some critical mass of Applications installed.

Fair Game

Openness of mutual interests and transparency of transactions creates a stable ground for the marketplace. Ad-blocking is a scenario full of natural conflicts. By creating a marketplace, Mass significantly reduces the tension in the professional community.

The AdBlock Plus approach includes backstage deals and transparency of where the money goes.

The Brave browser approach to replace ads with own ads looks so bad, and may even be deemed illegal in many countries. The further re-distribution of the income among publishers and users does not help that.

Differentiated Marketing Positioning

Mass promises users some profit in real money once a critical mass of installations is achieved. The promise of real money (fiat currency or Bitcoin) is very important. Mass developers realize the controversial nature of the phenomenon. We will take into account the mistakes of the past industry’s massive attempt to pay for viewing ads about ten years ago. Having internal Coins and external Exchange helps us to achieve the balance between fraudulent and useless data and valuable consumer input. Mass will apply considerable efforts to create a healthy market making the foundation on all involved Exchanges.

Peer-to-peer In-browser Payment

Fast and handy crypto-payments are still new to the majority of the Global population. This may be an additional great selling point.

Coupons and Discounts

The Tag mechanism is a peer-to-peer solution for any type of negotiation between a user and a website. It can also be used for coupon distribution activities.

Properties of Mass Coin

Mass Coin is designed to serve the health of the economy, of course, but it also suits interests of both long-term investors and middle-term speculators.

The one-time issuance principle guarantees the growth of value as long as the ecosystem doesn’t stagnate. Unlike the most of  the “app coins”, Mass Coin has an application in its core that is in high demand.

Advertising affects everyone and involves a lot of money. Tracking is becoming a really big issue, not only in advertising but elsewhere, on different occasions.

ICO

Stage 1: Initial Coin Offering

There are two stages involved in Mass Coin’s distribution: one to be distributed immediately after the ICO period and the rest to be distributed during an indefinitely long time, with distribution tempo ever decreasing. ICO goes until December 1, whatever is accumulated until then — gets distributed among the participants. The larger part goes to immediate distribution. There are several reasons for this.

The system will need immediate liquidity (more market makers) after the product launch by the end of the year, thus many potential independent sellers of the currency are needed: someone will have to sell coins to advertisers.

Another reason is that examples of other systems indicate the opposite balance (majority to be distributed over a long time after the ICO) doesn’t lead to system stability. At least it is far from being enough to make the system any better.

Considering that in real life the majority of money is owned by the large stakeholders such as banks and states, it is going to work. When people say the current global money system is decadent, they forget to add that no other system has proven to be viable yet. The current balance of money in the world is the result of a long, evolutionary process. As any evolution, it shows results that might seem strange in design but at least they are viable by definition.

Stage 2: Continuous Distribution

The remaining 30% will go towards continuous distribution. Anyone who runs Application, as well as the webmasters of Websites will be able to receive money every day, according to the involvement measures. These measures include:

  • Visiting specific sites (growing number in the partner list);
  • Time spent online visiting many sites;
  • Completing surveys, answering questions about yourself and your preferences, helping to clarify your advertisement-oriented profile;
  • Assisting the system by discovering and reporting botnets and other abuses;
  • Referring other people, bringing them to the system.
  • Gaining Tags.

Along the way, the measures of the difficulty of distribution will increase for each parameter. However, the value of money will go up too, and also, users can customize a lot of things in Application’s UI, maximizing one type of participation in continuous distribution or another.

M_Blue_Square

Invest in the future of advertising. Buy Mass Coin

Updates and blog posts

TwitterFacebook