THE TOKEN - FUELING THE NETWORK
The Token is the foundation of our promise; it enables the tokenization of songs, proof of ownership, and complete transparency for all parties. We have created the Token, UOP, to act as the sole means of value transfer within the network.
When the market matures, we want the token to be the base for the whole music ecosystem, with the end-goal being: One play, One pay.
The Role of the UOP Token
Before going live on the UOP, third-party applications must stake a certain number of tokens. If an application is discontinued by the Foundation, the stake will be refunded. If an application commits a serious breach of the terms and conditions, or abuse of any kind, the stake will return to the Foundation. It is a simple application of game theory; participants are incentivized to behave with integrity.
Furthermore, Token holders in general can receive interest for staking their tokens. It is important to note that the tokens staked by developers are not beneficiaries of the reward program, and that a stake is not required to operate in our test environment.
Token holders who stake UOP will be invited to vote on the Genesis Application. Token holders will also be able to vote for changes in the blockchain or the Foundation. Node owners and the Foundation board maintain the right to a final decision, ensuring the popular vote is in the best interest of the music industry at large.
The token holders in the Decentralized Autonomous Organization (DAO) will decide who can put up projects on Genesis when it comes to artists or songs. The Foundation reserves the final right to promote artists via a decision taken by the board.
Currently, Utopia Token Bride connects Utopia to the Ethereum mainnet at a 1:1 ratio, through the Utopia Wallet. Token Bridge allows you to exchange the UOP Tokens residing in your Utopia Wallet onto the Ethereum ERC20 using smart contracts.
However, we hope to move to a Polkadot parathread within the year. Polkadot is the golden standard of interoperability; blockchains become parachains/threads in the Polkadot network, and thereby access the ability to share information and work together seamlessly through the permanent Relay Chain.
Click here to read more about our plans regarding Polkadot.
Currently, Utopia utilizes Proof of Authority (PoA) blockchain, a consensus algorithm that leverages the value of identities, based on trust and reputation. Block validators do not stake or mine the block, they use their reputation (their Proof of Authority) instead. Subsequently, PoA blockchains are secured by the validating nodes that are arbitrarily selected as trustworthy entities.
Validators undergo extensive due diligence before being invited to govern the network. They are, for the most part, Swiss firms, notaries, and big blockchain players, who are all transparent in their identity. Validators’s decisions are written in a public ledger.
However, we hope to gravitate to Polkadot soon. Not only will our move to a parathread ensure interoperability with other chains, it will put us under the protective umbrella of Polkadot’s security. All parachains and parathreads on Polkadot benefit from the pooled security of the network; by sharing information in real-time, the parathreads quickly ‘double-up’ on security.
The Utopia Prediction Tournament
Can we accurately predict music consumption?
The Foundation will create a weekly tournament to determine the most accurate machine learning models created by Third Party Developers.
To enter the tournament, participants must stake a minimum number of tokens. The most successful models will be rewarded up to 5% of the total tokens staked in the competition, depending on their correlation score - how accurately their predictions correlated to real consumption. After 10 rounds, the 3 highest scoring models will be eligible to sell their prediction model to Genesis token holders for a performance fee. The ranking is based on the weighted average of a model’s correlation scores over the past 10 rounds.