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DNN & DCC

The DNN platform consists of two types of tokens: DNN and DCC (DNN Contribution Coupon). Both tokens have unique functionality on the platform. DNN deploys a two-token system to ensure price stability and flexibility to distribute DNN tokens fairly — that is, in proportion with the weight of the contribution. Token payout is structured to reward actions that ensure the published articles are factual and consistent with the platform’s content guidelines.

In a one-token economy, we would need a way to balance the supply of the token in accordance with its value. If the token supply is infinite, each user could be issued a token, but the token would hold almost no value outside the platform. If we make the token supply finite, then the token would be valuable, but availability within the system would be scarce.

The secondary token (DCC) could be seen as an internal credit that gets divvied out freely to each user proportional to their contribution. DCC tokens would have an infinite supply so scarcity is not a risk. They can also be used to express the number of DNN tokens a user is entitled to, once they become available.

On the other hand the DNN tokens would be representative of value on the platform. They will have a finite supply, can be traded outside the platform to provide a degree of liquidity, and would be in constant demand because they are required to participate.

More on the DNN Token

The DNN token is the primary instrument of value that can be redeemed or used to carry out actions on the platform. To enable the ability to price actions (including writer tips or reader subscriptions), the DNN token will be divisible by up to 3 decimal places and have a fixed supply. DNN tokens are obtained by contributing to the network in some fashion. Amounts potentially acquired depend upon the role the contributor chooses.

For example, writers use DNN tokens to pay for a writer fee associated with submitting their article to the network. Once an article has been accepted, writers can earn DNN tokens through engagement generated by their article. Learn more about DNN’s token economy here.

Reviewers use DNN tokens to to be considered by the network as a reviewer of a submitted article.

Readers use DNN tokens to interact with articles in the form of viewing, commenting, liking, and tipping writers.

Unlike writers, reviewers, and readers- publishers do not spend DNN tokens on the network because they don’t carry out actions. Instead, publishers must hold them to increase the amount of DNN tokens they can potentially earn to. Each time a review has gone through the review cycle, publishers are entitled to a portion of DCC tokens proportional to their DNN token holding.

DCC Token

The DCC token is an instrument of accounting that helps facilitate the distribution of DNN tokens while maintaining the stability of the DNN token price. DCC tokens live exclusively on the DNN platform, have an unlimited supply, and have no monetary value.

Writers, reviewers, and publishers earn DCC at the conclusion of the review process. The review process is considered to be finished when each reviewer has voted. The number of DCC tokens a contributor can earn is determined by the types of contributions they make to the network. For reviewers, this depends upon the number of tokens they bid during reviewer selection.

DCC tokens serve merely as an indication of entitlement to a portion of the DNN tokens available for distribution. In this sense, they are an accounting tool.

To access DNN tokens in the reward pool, users must trade in their DCC tokens which they earn by contributing to the platform. The rate of DCC to DNN tokens gets determined by the available supply of DNN tokens in the reward pool and the number of DCC in circulation.

The withdrawal period is a 24 hour time window which occurs every two weeks and gives users the ability to exchange their DCC tokens for DNN tokens held in the reward pool. Upon exchanging into DNN, the DCC tokens collected by the smart contract are immediately burned and as a result, reduce the overall DCC in circulation.

Moreover, DCC tokens are used to divvy up or split DNN tokens (when necessary for change or for fractional amounts of DNN tokens) as they get funneled into the reward pool through the collective actions of every user.