Read2N AMA 2023.8.2 Transcript

Q&A Section

1. After the launch of the $MET functionality, the number of registered users increased from 50,000 to 150,000. Assuming that out of the additional 100,000 users, 10,000 are genuine, converting 1,000 or 2,000 of them would be very meaningful.

2. Why hasn't the RCM (Read Create Metaverse) grown in value?

The general perception is that with RCM halving, if the price doesn't increase, the earnings will be halved as well. Logically, after the halving, the price should rise. However, why hasn't this happened? In each Bitcoin halving cycle, it leads to a substantial increase in Bitcoin's value. However, this increase doesn't occur exactly at the time of halving; it happens in the subsequent stages of the process. Within the Bitcoin ecosystem, the release of blocks involves taking money entirely from the Bitcoin ecosystem. If, for instance, 100 tokens are mined today at $30,000 each, $3 million is taken from the ecosystem to cover electricity costs. However, in the context of the Read Create Metaverse (RCM) ecosystem, the majority of electricity costs, represented by BNB, are retained within the RCM ecosystem. This portion is used for RCM buybacks, and a small portion goes towards fees to support the team and authors. Therefore, from an economic perspective, this approach fosters the development of the ecosystem in a healthier direction. What does a healthier direction mean? It implies an increasing number of authors and more funds entering the ecosystem, which leads to an overall increase in its value. Many users might suggest not using BNB for rent payments. Can RCM or WCM be used instead? This is a short-term and long-term issue. I believe it's easy to understand that if the ecosystem doesn't attract money, it won't have room for significant growth. Real money and assets must enter the ecosystem for it to expand. I've observed that many products are learning from our economic model and strategies. While they can attract money into their ecosystems, our difference lies in our ability to attract content into ours. Therefore, as a flywheel forms between INFT, BNFT, and RCM, with RCM's price increasing, more people will be incentivized to upgrade. More INFT holders will choose to rent books, leading to increased demand for RCM. Simultaneously, more and more works will be attracted, further driving the demand for RCM. We are planning to release version 3 (V3), which is a Creator Center version. In this version, creators can submit their work for significant support. This will attract a growing number of works into the ecosystem. The increased consumption of RCM resulting from this will contribute to its continuous price rise. As RCM's price continues to rise, it will further drive the flywheel, attracting more works and funds into the ecosystem. Those who enter the ecosystem earlier will benefit from this, as their assets will appreciate. Thus, the rise in RCM's price can address the issues caused by the recent halving. Whether it's Bitcoin miners or our INFT holders, the viewpoint is similar – no one likes halving. However, everyone understands that without halving, there is no future. Our task is to establish consensus around RCM and BNFT – this is the only future for all of us.

3. Recently, the number of users has decreased and it seems that it is becoming less and less profitable to open Loot Boxes. Are you planning to make adjustments in response to this?

Indeed, the principle remains the same. Our ecosystem has always been very transparent; the project team never sells items, right?

All items come from treasure chests, so whether the prices of these items rise or fall is entirely determined by the market. If we artificially adjust the probabilities and magnify these aspects, it could lead to reduced earnings for those who previously owned these items, potentially resulting in losses, correct?

Adjustments to any economic model are made very carefully and are not done frequently.

Of course, adjustments to the rental fees for books based on the coin price are already in progress. We are studying the appropriate measures to adjust the balance between rental fees and prices to attract more people to rent books and open treasure chests.

4. Author revenues have declined significantly, resulting in the postponement of many serials. The decline in income may affect the co-operation of authors. How do you plan to retain authors and what steps will be taken?

As mentioned earlier, V3 will enhance support for creators, making it easier for them to upload their works and communicate better with the community. This platform will allow authors to nurture their works attentively and continue writing on this platform.

Authors who produce high-quality works will have more NFTs minted, more transactions, and higher income.

To create income benefits in the author community, the platform initially didn't introduce a large number of books. The number of books introduced was controlled. The platform currently has several hundred books in reserve, and they haven't all been released at once, as it would result in too many NFTs.

In the past, authors could earn money passively, but I believe in the future authors won't be able to earn money while just lying down! Authors need to treat their works seriously and engage with their readers. Authors willing to embrace decentralized distribution rules will earn more money, and their works will reach a wider audience.

5. While the R0 function is innovative, it has not made a difference in the NFT market. What value does it represent?

The value of R0 will be more apparent after the release of V3.

When new books are launched, many R0 books are minted. The individuals who mint these books must have confidence in the book's potential. They are willing to help distribute the book and potentially gain from its future copyright value, or they simply genuinely like the book. There are reasons for this.

From the perspective of bNFT holders and RCM distribution, users can also choose to upgrade their R0.

6. What is planned to be done with WCM? Currently there are limited opportunities to use it.

In our operational priorities, RCM takes the first place, BNFT comes second, and WCM comes third.

RCM serves all our users as it is not pre-mined, reserved by the team, or held by investors. It's a completely decentralized token mined by all users. Therefore, in my view, RCM represents all users.

We prioritize RCM to establish its price and consensus, as without RCM, there's no foundation for everything else.

BNFT revolves around authors, helping their works gain better exposure. So, the activity in the BNFT market, trading volume, and discovered prices are what we strive for, ranking it second.

The third priority is for the team and investors.

Regarding the conversion of GST to GMT by the StepN team, I must admit I don't entirely agree. GMT is held by a significant number of investors and the team. Redirecting all consumption to GMT, what value does it bring?

Similarly, if I were to adjust all RCM to WCM today, besides making it easier for the team and investors to sell, what real value would it have? We are in no rush to sell coins, neither the team nor our investors. WCM's launch won't be immediate.

Some exchanges have approached us for listing; we are in discussions about listing RCM, not WCM. We have great confidence in the long-term potential of this product. We're willing to invest time into getting RCM and BNFT right first.

7. Is there a burning plan for WCM?

Since WCM represents both the interests of investors and the team, and the token allocation is predetermined, it's not an easy decision to burn a significant portion of tokens. Such an action could potentially harm the community. We won't make this decision lightly; it will be considered carefully. Currently, we don't have a plan to burn WCM.

WCM represents the community as well as the interests of the team and investors. We have plans, and there's no need to worry. Let's focus on building this product together and promoting a more open literary content ecosystem. I believe WCM will eventually gain recognition in the market.

8. Previously, you mentioned developing a book reading product for web2 users. What is the progress now?

The progress isn't significant as of today. To be very candid, with limited content, our appeal to web2 users remains limited. Therefore, it's crucial to establish our author ecosystem and content ecosystem first before targeting web2 users.

This will likely come after our V4 version or be synchronized with the V4 version, not before the V3 version.

Understanding of Worldcoin:

Nina (EMCprotocol):

 In 2021, I came across Worldcoin from the perspective of Universal Basic Income (UBI). It was highly controversial, and some countries might have even started restricting it due to privacy and security risks. It deviated from data security laws in certain ways and even aspects of web3 privacy protection.

However, looking at it from a positive and objective standpoint, I believe the founding team has a vision for the future of AI. In that future, using UBI through such a means might be necessary and valuable. In a world increasingly dominated by AI, there's a potential for a divide between super individuals and an underprivileged class, somewhat reminiscent of scenarios from movies like "The Matrix" or "Ready Player One." This is where UBI could play a role, especially in certain developing nations, to establish a basic income for all. Initially, it might have been seen as a well-intentioned and encouraged social experiment.

But by 2022, with the bear market in the crypto space, speculative elements might have tainted the project. In 2023, as understanding of AI and UBI deepens, people are beginning to realize Worldcoin's true vision. Despite its extreme promotion methods, Worldcoin might represent the concept and vision of AI and UBI.

Joe:

Worldcoin is a project developed by OpenAI, aiming to bridge the gap between cryptocurrencies and traditional fiat currencies. The team's development philosophy centers around wealth redistribution, addressing the growing divide between the wealthy and the less fortunate. Traditional fiat currencies have solidified class distinctions, while early adopters of cryptocurrencies like Bitcoin and Ethereum primarily gained through mining or early trading. However, obtaining Bitcoin now can be costly. Worldcoin intends to redistribute wealth by providing wallets through iris scanning, potentially making access more democratic.

Chari:

Worldcoin's adoption by influential figures like Mark Zuckerberg is a positive sign. UBI has been discussed before by other prominent individuals like Twitter's Jack Dorsey. UBI requires people with substantial influence to gain trust and promote it on a global scale. AI experts understand that a globally-reaching project needs the advantages of cryptocurrencies, which are well-suited to a globalized financial system. This project marks a significant endorsement for the cryptocurrency field. While the approach of using iris scanning for UBI raises security concerns, it has likely brought many new users into the cryptocurrency ecosystem, particularly in regions where cryptocurrency adoption was low.

Worldcoin's Motivation and Vision:

Nina:

In a world where wealth inequality is growing, the relationship between production and relations of production must intersect thoughtfully. I generally support their vision and future judgment, although it doesn't need to be as pessimistic as a total global unemployment scenario. However, I am concerned about their chosen implementation methods, particularly iris recognition. There are better ways to verify individuals. Iris data is personal and precious, and handing it over to an experimental project is a risk. They admit to the dangers and risks. As a conservative, I would not support iris collection.

Joe: Worldcoin aims to redistribute wealth through a UBI approach, helping to address the increasing wealth gap and making cryptocurrencies more accessible. The idea is to provide wallets through iris scanning, which can raise questions about privacy and security. While the vision of using UBI to offset job losses caused by AI is noble, the implementation raises concerns about privacy and centralization.

Chari:

The idea of using UBI to offset the potential job losses from AI is a noble one. However, the current approach of using iris scanning for distribution raises security and privacy concerns. It's important to consider alternatives and ensure that the solution is robust and doesn't compromise individual rights.

Overall, the discussion highlights a range of perspectives on Worldcoin's vision, goals, and potential implications. While there is recognition of the positive intentions behind the project, concerns about privacy, security, and the effectiveness of the chosen methods are also evident.

Joe:

Hello, hello. I study finance, and I'd like to discuss this issue from different angles. Firstly, I believe this matter needs to be divided into stages. Let's assume the first stage, for example, the current era is in the first stage: some jobs are slowly being replaced by AI, but not all jobs are replaced by AI. We are currently in this stage. For instance, programmers, data analysts, UI designers, and video creators may have some of their work replaced by AI. However, at this stage, these unemployed individuals are not being compensated, right? That's the first stage.

Let's assume the second stage, a future scenario where all jobs, including agriculture, technology, and biochemistry, are replaced by AI. Wouldn't that be an ideal society for humanity? It would be a society with abundant material wealth, where everyone can enjoy the fruits of AI's labor without having to work. If we reach this stage, what kind of problems do you think might arise?

I believe one major problem would be whether to distribute this wealth to every individual worldwide. However, if we distribute it to everyone, it would be no different from printing more fiat currency, right? We have already been increasing M2 money supply, but it hasn't really changed our economy. In the end, everyone may have a lot of money, and everyone can stop working, but the value of the products created by AI's labor still has a price. If there's a price, and if everyone gets more of this currency, then the price will rise. Essentially, the problem remains.

Assuming this problem doesn't exist, I think the difficulty lies not in artificial intelligence, but in ourselves as humans. Once social classes become fixed, those in the upper echelons of society won't want those below them to be on the same level. The ruling class will likely require the lower class to serve them in some way, whether through labor or other means. I don't think this aspect can be changed since the beginning of human existence. Even if AI can solve our productivity issues, it may not address this problem. Thank you, these are my thoughts.

Chari:

First of all, Worldcoin is not a stablecoin; its value will certainly fluctuate. According to its design, it will collect income generated by AI, and the income from ChatGPT should be substantial, including the revenue from licensing the service to Microsoft, which can be quite significant. Let's assume this income reaches billions of dollars annually. I believe the fluctuation of this income will directly affect the volatility of Worldcoin.

When it is used for payments, it gains value, and then it becomes a valid means of distributing money. It is not a perfect solution, but it is undoubtedly a solid step. If someone like Ultraman can lead the charge and donate all the proceeds from the AI world to repurchasing Worldcoin, then it will gain value. If all products in the future start accepting Worldcoin as payment and he is willing to invest real money into this, then I think he can build the ecosystem. As long as this ecosystem can be established and continuously receives funding and value injection, it will have a chance to develop in the crypto world. It is not a stablecoin, but as long as there are real people willing to back it and continuously inject value into it, the ecosystem will thrive. Thank you!

Worldcoin itself has some risks or problems, and there may be solutions. The first risk is iris recognition; there are people who might not care much and still participate, which could lead to wealth accumulation.

The second risk is centralization. Tech giants or technology geniuses, professional people should do professional things. For example, Libra and Facebook have ambitious goals in the cryptocurrency market, but we have seen that the more centralized something is, the less likely it is to succeed or become a real ecosystem.

As for the future, I think it's hard to predict how things will develop. Personally, I have some resistance to revealing biometric information as I study cryptography. However, in the future, maybe the significance of iris recognition will diminish, just like fingerprints or facial features, which have already been exposed in Web 2.0. So, in the long term, it might not be as crucial as we think. These are some of my thoughts. Thank you!

Joe:

Hello, hello. I understand that iris recognition and privacy security are concerns, but in the long run, our iris might not be as important as we think. It might be similar to fingerprints or facial features, which are already exposed in Web 2.0. So, in 10 or 20 years, we might feel that our iris is just like that, not that significant. These are some of my thoughts, thank you.

Chari:

I completely agree with your point. A centralized company might find it challenging to create a decentralized product; it's like trying to hold sand too tightly, and it will slip away. I admire projects like Bitcoin and Ethereum that have successfully achieved decentralization. They have not tried to control everything too tightly, and they have achieved some positive results, such as helping impoverished areas, utilizing renewable energy, and providing value to people who were previously excluded from the global economy. I think these things will be discovered and valued by the market naturally.

Regarding the future prospects of Worldcoin, I think it has enormous potential, but it also faces some risks and challenges. The technology, privacy security, and finding the right balance between centralization and decentralization are critical considerations. The ideal scenario would be for it to gradually transition towards decentralization while allowing community participation and governance. Thank you all for sharing your views and insights!

Nina:

Thank you all for sharing and discussing. Everyone has provided different perspectives and opinions on the future of Worldcoin, which is exactly what we expected for this topic. Let's continue to pay attention to and discuss the development and changes of Worldcoin and other crypto projects together. Thank you all!

This is the translation of the Chinese conversation into English. If you have any other questions or need further discussion, please feel free to let me know.

Joe:

I remember they seem to have a built-in app, which is their wallet. First of all, we have an old saying in China, "The beginning of all things is difficult." I believe they are currently in this stage because they are heavily restricted by laws and risks from various countries, making it very challenging for them to achieve large-scale promotion.

If someday in the future, everyone really starts using their app, I think if their founding team is ambitious, they will definitely move towards instant messaging and develop a community similar to Twitter. Because in Web 2.0, there are many business models to reference. For example, WeChat started with simple chat functionality, but gradually expanded to include features like short videos, public accounts, and Moments.

Product teams definitely won't keep their products simple. Of course, I can't rule out the possibility that the Worldcoin team founders are very pure in their intentions, but personally, I think that's less likely.

Similar to overseas platforms like Facebook, it started with just chat, then added personal posts, and later incorporated the popularity of short videos. It's a similar principle: once a product has a large user base, or when facing competition, they will find ways to adapt and add features to the existing foundation.

So, I believe it's difficult to avoid this scenario, and I think the functionality of the app will likely expand more and more. It might even incorporate instant messaging, community sharing, and possibly some Web3 games. It's possible that within one application, you can play games and directly purchase items from others using the wallet. I believe this is very likely to happen! These are my thoughts, thank you.

Chari:

You have such a huge user base, you have an app, a currency, and cryptocurrency, a strong consensus, and great trends, right? I think this foundational infrastructure is very promising.

Regarding what the team will do in the future, firstly, with such a capable team, and considering the entrepreneurial ecosystem in the United States is different from China, where people tend to think, "If someone else is making money, I won't do it to compete or grab a share from them," we might see more entrepreneurs taking a stance of "If someone else is already doing it, I might not."

We need to do new things. Based on this foundation, the team might come up with business ideas that we can't even imagine today. It won't be as simple as creating a Facebook for the southern hemisphere or a Tinder for the southern hemisphere, I think it won't go that way.

I feel they might focus more on AI-related ventures, sharing profits, and helping underdeveloped regions secure basic livelihoods. They could potentially engage in elite projects, and there could be some positive expectations.

We've discussed a lot of aspects, but overall, this is undoubtedly an excellent team for the cryptocurrency community, working on a remarkable project. This project will definitely contribute significantly to the overall growth of the cryptocurrency market.

Nina:

Currently, EMC is a layer 2 solution for ICP, and in the future, we will also be expanding to Bitcoin and Ethereum for multi-chain integration. EMC's underlying architecture is a distributed computing power network. The foundation is based in Singapore, and the team comprises professionals with years of experience in the Web3 blockchain and cryptocurrency fields, along with financial experts. Additionally, there are executives with extensive experience in global multinational companies who have worked on GPU cloud services like AWS.

The underlying computing power network currently consists of the equivalent of over 2000 GPUs with a rating of 90 or above. Throughout the development of AI, our goal is to make these GPUs decentralized. Essentially, anyone with a GPU-equipped computer at home can participate in this network. Your computer can receive various AI model tasks, somewhat like the scenario on a platform like Bilibili, where your computer might engage with someone else's AI assistant.

This encourages more individuals to participate in the AI industry. On one hand, the AI industry is facing a shortage of computing power, and on the other hand, platforms like Ethereum, Filecoin, and even many consumer-grade GPUs can perform various inference tasks for AI. By building a computing power protocol and implementing a business model, we aim to involve more people in the foundational aspects of the AI industry.

As for rewards, there should be no issues. I think we can organize more joint activities with Read2n. Later, I will post a link to the activity in the comments section.