Apps and games contain many user and player actions. Some are social and others are functional. Commonly in social apps you can FOLLOW, SHARE, LIKE, FAVORITE, BLOCK, MUTE etc. In games you can SWING a sword or HIDE or FIGHT and so on.
COVAL will be experimenting with tokenizing such actions, or verbs, and creating a token economy around this concept. Only ₡OVAL can be used to purchase these tokens which could then be earned, purchased or traded by an app's users based on the app owner's rules and terms. Pricing has not yet been finalized. We will also be using these within VOCAL.
The tokens will be Counterparty Subassets of COVAL's VERB asset. For example, VERB.INVITE, VERB.FOLLOW etc.
COVAL VERB is based on a previous unlaunched project called CryptoVerbs circa 2014. Information on that project was recently published as a reflection piece. You can check it out here.
COVAL VERB is one of COVAL’s four initial token projects and has a relation to the COVAL Custom Currency service. VERBs are tokens that are used to represent all of the actions users take within apps, games and social networks as well as any other kind of software. Some examples of actions in a social network are FOLLOW, UNFOLLOW, FAVORITE, LIKE, MUTE, BLOCK, SHARE, RETWEET, SAVE, SUBSCRIBE, TIP, FLAG, REPORT etc. In basic software, common actions are SAVE, DELETE, COPY, SEND, OPEN, LOCK, EDIT etc. In games, actions like SWING, HIDE, FIGHT, CHAT, GRAB, CLIMB, CRAWL, SHOOT, ESCAPE etc.
Countless verbs are used by people across a wide array of applications and in some cases, tokenizing these verbs could add an interesting meta-economy and gamification layer that would not have otherwise been possible. The activity data associated with these token transactions would also generate a trusted data graph that could provide new insights and intelligence into the networks and economies. Tracking these actions in a traditional centralized database is less useful and less trusted in the context of decentralized networks. Having the granular activity data associated with token transactions on trusted distributed ledgers allows for public or private access to these data sets that can even be controlled by users themselves.
COVAL does not presume anything when it comes to how VERB tokens are used but we do think it will be interesting to enable this type of token economy to live alongside a parent economy. If a partner’s application(s) and economic model is a good fit for adding additional VERB tokens, then the partner can purchase an assortment of these tokens in bulk or on-demand from COVAL as needed (paid for with ₡OVAL only). The COVAL VERB Sidechain handles this by securing and logging ownership and transaction data of the actual tokens issued via the Counterparty platform using the VERB XCP asset.
The partner can associate the VERB tokens with it’s application’s own user actions (i.e. a BOOST button, a DOWNLOAD video option etc) and related reward models (gamification layers). How VERB tokens are integrated are not dictated by COVAL. COVAL only sells these tokens and maintains some nodes on the distributed ledger network.
If the partner has collateralized their Custom Currency with ₡OVAL, the partner could allow users to exchange VERB tokens for units of the Custom Currency which could then be swapped for ₡OVAL to exit the partner’s economy. Otherwise, the VERB tokens would stay within the partner system and be continuously recirculated.
Since COVAL does not lock or limit the supply of VERB tokens, the value of them is not based on common currency market metrics and instead are valued based on demand within the partner community and from cross-network p2p exchanges with other COVAL partners. A partner-to-partner exchange is conditional. The two COVAL partners would need to agree to allow VERB tokens to be sent and received between the two economies and users.
This relationship and the transactions between the two partners would again be handled by the COVAL VERB Sidechain where all transactions are logged. On the Counterparty/XCP side, the native Bitcoin assets are moved to appropriate wallet address associated with the recipient partner (settlement).
Since the COVAL Partner owns the actual VERB tokens, they are free to sell them on the Decentralized Exchange provided by the Counterparty Platform or transfer them to their users to do so and COVAL would not be involved with these transactions. However, this would affect the ability to do partner-to-partner transfers or convert VERB tokens to the Custom Currency and to ₡OVAL since the accounting between Bitcoin Blockchain and COVAL Sidechain would not be balanced. Until the partner balances their supply (buys more VERB tokens from COVAL), those advanced moveable value features would be disabled.