The runaway international trend of ethereum-based token sales has come to New Zealand, with Circles Project’s token offering going live earlier this week. A token sale involves a startup offering digital assets or ‘tokens’ that have a utility application as a voucher within a decentralized, blockchain-based application. Token sales have become popular within the crypto industry because they allow startups to raise development capital, and acquire a user base before their product's launch.
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Sean Au, the President of the Blockchain Association of New Zealand said that “It's always great to see activity in the blockchain space. There are more and more projects in the pipeline surfacing which is exciting to see. NZ has a lot to offer, and understanding this new technology will be incredibly beneficial in the future.”
Circles is born in response to public discontent at the direction social media platforms like YouTube and Patreon have taken to unfairly censoring and demonetizing the videos by its content creators.
Felix Watkins, the project leader of circles said that: “YouTube’s demonetization policy has broadly affected content creators with no notification or appeal: from video game streamers like PewDiePie, comedic vloggers like Jenna Marbles, news shows like David Pakman and Philip De Franco, and any channel risking political divergence with the views of YouTube and its parent Google’s hierarchy.”
Circles wants to create a new economic model where content creators on social media platforms can receive payment directly from their supporters, making their income immune from demonetization policy by third parties. The system functions as a browser extension for both Chrome and Firefox, that allows viewers to ‘circulate’ content to all of their social media pages. Circulation involves a small payment of ‘circles’ tokens from the viewers wallet to the content creator, with 10% of the payment held in reserve in a ‘payout pool’—a fund that pays out previous circulators a fraction of newer circulation fees until the user has earned a 10% gain, whereupon they leave the payout queue.
Watkins, a developer specializing in Ethereum smart contracts said he believes Circles’ browser plugin creates the incentive for content creators and users to collaborate.
“Circulating means media consumers can directly support their favorite content creators with direct payments and increased exposure, while the consumer can make a return from their payment where they correctly predict and circulate videos that the community most want to view. Circles aligns the monetary interests of the consumer with that of the content creator.”
New Zealand has been experiencing a growing interest in blockchain products, with several more token launches and ICOs due to launch in the nation before the end of this year. The Blockchain Association of New Zealand was recently formed to turn the southern hemisphere country into an internationally recognized hub for blockchain innovation. Recent startup Blockchain Labs have been taking the leadership role as a regional development outfit, and have collaborated with heavy-hitting international projects like Status.im and MobileGO.
At the time of this release, the Circles Project has raised 24.1 Ether. Website: https://circlesproject.io/