U Network

U Network follows two critical principles in building an efficient content-value pre- diction market

Principle 1 There Ain’t No Such Thing As A Free Lunch

In a regular efficient market, there ain’t no such thing as a free lunch. One has topayto gain. In U Community, to incentivize users to discover good-quality content, upvoterswill be rewarded with Sugar at the early stage. This is a game in which a return is expected, thus it has to come with an initial cost tobalance the expected return. Therefore, each upvote would cost a given amount of Sugar, to prevent BOT cheating or spamming. Principle 2 Be Fair Inspired by Steem, it’s imperative to treat everyone just and fair to build a free andordered market. Each user of the community should be able to get proportional rewardsaccording to their contributions. The same way as a start-up assign its stocks to its em- ployees with major contributions. Every form of “labor” should be valued equally. Contributing time and attentionstocreate, discover and distribute content should be valued equally as if one is contributingmoney. Based on the principle of fairness, we need a consistent mechanismto rewardthosewho are creating quality content. High-quality content tends to inspire others and resultsin further generation of more high-quality contents. Therefore, when users spend Sugarto upvote, the community needs to assign a reasonable portion of Sugar to content creator to reward their contributions. Similarly, content discoverer (Upvoter) should also be rewarded for accuracy inpre- dicting the value of a content. The community implements a mechanismthat redistributeSugar from late upvoters to early upvoters. In this way early stage upvoter have a higher expected return of Sugar. What’s more, U Community should be easily accessible to every user. Would the cost of upvote discourage users without spare Sugar from being part of content discovering?The answer is no, users without Sugar can contribute time and attention insteadof U Network: A Decentralized Protocol for Publishing and Valuing Online Content paying Sugar. Based on Principle No.1 (There Ain’t No Such Thing As AFree Lunch), users can receive points by spending time and energy in completing meaningful tasks for the community. For example, referring a friend or distributing the content to other social media channels. These points can be used in voting. We can consider content-discovery as traditional crypto-mining. Mining requires‘electricity’, and the ‘electricity bill’ in this case can be paid either by Sugar or labor for the betterment of the community. We can call the process of content-evaluation and prediction model ‘Proof of Fore- sight’. The basic principle behind is that user assign Sugar to content author accordingtothe judgment of the content, and assign Sugar to content explorer base on the foresight of

each upvoter.