📒Overview

The reward system in Musing operates on a hybrid decentralized/centralized model designed to ensure fairness and efficiency. Rewards are sourced from transaction fees generated when users buy and sell community coins, with each transaction incurring a 7% fee. These fees are accumulated in the reward pool and distributed to content creators daily based on the number of upvotes their content receives and other factors like views and reputation.

Transaction fees for community coins are sent to a designated address. Currently, the Musing service provider manages this address, taking the reward tokens and distributing them daily at a rate of approximately 10 cents per upvote. In the future, this address will be configurable through governance for each specific community coin.

The hybrid model is characterized by its combination of centralized and decentralized elements. While the actual distribution of rewards is managed centrally by a designated distributor address, the control over who manages this address is decentralized. This ensures that the community retains control over the reward distribution process, providing both efficiency and community governance.

Here's how the hybrid model works:

1. Centralized Distribution: The reward distributor is responsible for allocating rewards to content creators. This centralized management ensures that the process is streamlined and efficient, preventing issues like spam and bots from gaming the system.

2. Decentralized Control: The community has the power to vote on who the reward distributor will be. This is done through governance contracts, where community members vote on three leaders who collectively decide on the reward distributor address. This decentralizes the control over the reward distribution, ensuring that it remains transparent and community-driven.

The system incorporates various checks and balances to prevent spam and bot activities, ensuring a fair distribution of rewards. This approach addresses issues seen in past platforms, such as whales gaming the system by unfairly distributing rewards.

Unlike Steemit, where rewards were based purely on the number of tokens held by the upvoter (allowing whales to disproportionately influence reward distribution), Musing uses a hybrid model. Transaction fees are first sent to a reward pool contract. This contract locks up the reward tokens and releases them to the distributor periodically (e.g., daily). This mechanism prevents the reward distributor from receiving a large sum of tokens at once, reducing the risk of misappropriation.

The settings on the reward pool contract can be configured through governance. This includes the rate at which tokens are released and the selection of the reward distributor. The community can vote on who will be the reward distributor, ensuring that while the distribution process is centralized (one address manages the distribution), the control over who the distributor is remains decentralized.

In practice, the community will vote on three community leaders who will collectively decide on the reward distributor address, facilitating easier and more democratic changes within the community. This governance voting mechanism ensures that the distribution process remains transparent and community-driven.

By implementing this hybrid decentralized/centralized model, Musing ensures that rewards are distributed fairly and efficiently while maintaining a balance between centralized management and decentralized governance. This approach addresses the shortcomings of past platforms and fosters a more sustainable and engaging ecosystem for content creators and community members.