Synereo, the startup linking the attention economy to crypto coins, launched the WildSpark social network, to build a system of rewards based on content posted on several traditional platforms. The rewards in crypto coins would be available for posters on Imgur, Medium and YouTube, distributed with no middleman or pay cuts.
To boost its project and the reward system, Synereo would also burn 307 million AMP tokens, or around 33% of the total supply, with an estimated market capitalization of $100 million. In addition to the scarcity, the launch of the WildSpark social network would increase the usage for the remaining tokens, thus raising their value for content creators.
After the news, the price of the AMP token rose by more than 30% in a single day, to around $0.50.
The Synereo social network is an answer to the pressures of Facebook and YouTube, which make monetization more difficult. The rewards on WildSpark depend only on other users appreciating the content, and not on centralized control that penalizes some users.
"The internet wouldn’t be what it is without the content that people create and share with one another," said Dor Konforty, CEO and co-founder of Synereo."
At this point, the Synereo project remains well-funded due to the appreciation of its Bitcoin holdings, so no new AMP tokens would be minted, further preserving the value.
Founded in 2014, Synereo has established itself in the world of cryptocurrencies. With the increased mainstream interest, the WildSpark social network comes at just the right moment for maximum effect.
"The release of WildSpark is a major milestone for us in reaching our goal of creating the Liberated Attention Economy based on novel decentralized technologies. Now that our growth milestones have been met, we are happy to burn our tokens and make AMP much more valuable for our users," said Konforty.
At the moment, the total supply of AMP coins is 622 million, while about 100 million are in active circulation.