Overview of Loud: An experiment in a Decentralization attention market, rewarding speakers with transaction fees.

Written by: @0x_ultra

Compiled by: Zen, PANews

TL;DR

Loud is an experiment about the relationship between attention and value. The $LOUD token itself has no intrinsic value, and every transaction incurs a fee, which is used weekly as a marketing budget to reward the top 25 users who can best enhance Loud's mindshare. Distribution is done using @KaitoAI's mindshare data, which is currently one of the most efficient incentive mechanisms.

This is not a revolutionary paper on the attention mechanism in neural networks; rather, it is an experiment on the purest attention market. This experiment will run indefinitely and will not be subject to human intervention.

Source of inspiration

We often talk about the attention economy in Web3, and the platform built by Kaito AI is essentially a system that allows everyone to participate in attention trading, thereby accelerating the development of the entire industry. In this process, it has also created one of the most optimal proof-of-work incentive mechanisms in history: a reward mechanism based on "mindshare." This Web3 primitive allows project parties to achieve the highest possible output for every dollar invested: creating a reward pool that can be contested by those willing to contribute labor. This is the first piece of the puzzle.

The second part is inspired by the successful practice of the Web3 launch platform Believe: establishing a long-term model that binds the interests of speculators and creators through trading volume and fees, thereby supporting the continuous creation of the creators. In fact, the attention of the project completely relies on the output and maintenance of the creators, which is why the creators are the key driving force in maintaining attention.

So what would happen if we could merge the advantages of these two models and create a new incentive mechanism that aligns the motivations of all participants towards the goal of "maximizing mental ownership"?

What is Loud?

Loud is an experiment that refines the purest form of cryptographic primitives, removing the intermediate product forms.

It's time for the "3,3 Game Theory" to make a comeback.

(3,3) Game Theory is a concept proposed by Olympus DAO, which originates from the collaborative thinking in game theory. It expresses the situation where a "win-win" outcome can be achieved when participants cooperate with each other. Its essence is an optimized version of the Prisoner's Dilemma, combining the token economic model of Web3 to convey the idea of "we win together" to the community in an easy-to-understand way.

In the game matrix, "3" represents that the operation has a positive effect on both the protocol and the participants; "-3" represents that it is harmful. Therefore:

(3,3): You stake, I stake, everyone supports the protocol, the protocol grows, and we all maximize our profits → win-win

(-3,-3): You sell, I sell, the agreement collapses, we both lose → mutual loss

(, -1): You stake, I sell, you bear the risk, I profit → Unilateral game

Experimental Setup

We combine the best "Attention Work Proof" model with a mechanism that allows creators to earn long-term commission sharing. What would happen if we provide continuous rewards to those who spread a certain topic?

We will achieve the purest "3,3": a direct link between a speculator and a Key Opinion Leader (KOL) - no longer requiring intermediary products at all. A sustainable attention engine driven by KOLs and subsidized by speculators.

The fees paid by traders will be directly deposited into a bonus pool, which is shared by those who rank high on the attention leaderboard, incentivizing them to continuously create greater dissemination and trading volume. You should have already seen the prototype of this flywheel mechanism.

The goal of topic creators: to stimulate higher trading volume

Trader's goal: To buy attention through fee subsidies

This is an experiment about "whether attention is sufficient to confer value." If something receives enough attention, does its price rise accordingly? And vice versa?

Actual operational mechanism

$LOUD token will be traded on the Solana chain through the liquidity pool of the liquidity platform Meteora, with a transaction fee charged for each swap, priced in SOL.

Users can gain "mind share" by posting content about Loud.

The mindshare ranking mechanism provided by Kaito AI will objectively quantify contributions.

Users can visit stayloud.io to check the leaderboard and register their wallets to receive rewards.

Once a week, the trading fees (in SOL) will be distributed to the top 25 users on the leaderboard based on their mindshare contribution ratio.

20% of the transaction fees will be rewarded to $KAITO stakers to promote the ecological flywheel and achieve benefit binding.

The flywheel mechanism will continue indefinitely without intervention.

Loud is the purest symbiotic model for speculators to subsidize KOLs.

About the Top 25 Ranking Mechanism

Why set a limit of the top 25? Because, as mentioned earlier, every fee paid by traders is essentially to "purchase attention". Setting a smaller reward pool can motivate participants to work harder to compete for attention on behalf of token holders and traders. Even if one enters the top 25, there can be no complacency – the reward distribution will be entirely based on the proportion of mindshare contribution, and participants must continuously maximize their dissemination efficiency and influence.

Note: Loud is an experimental project, and its mechanism will be continuously optimized and adjusted based on community feedback, while adhering to the principle of minimal intervention. It aims to conduct the first large-scale experiment of a "decentralized attention-value system."

What will happen next?

The $LOUD token is about to be launched, and the specific release time and distribution method will be announced in a subsequent notice. The experiment is about to begin, supported by technology from Holoworld AI.

This is a community-owned experimental project: no tokens reserved for the team, no hidden interests, completely fair launch, 100% transparent. How it will develop next is entirely up to the community.