The Brave browser / BAT incentive loop and multicollateral DAI
I have written about Brave browser and BAT several times on steem (here, here and here). One might think I’m obsessed with it. I don’t think I am. However it is a fascinating example of a crypto project which is disrupting an old industry, giving users a better experience and compensating them for their attention. Just today CZ the CEO of Binance tweeted along those lines.
Part of the ‘incentive loop’ that this ecosystem assumes is that content creators receive tips in BAT from content consumers. I unsuccessfully tried to find data on the numbers of consumers that tip content creators but my feeling is that it’s pretty low. We’re in such an early phase for crypto that people don’t want to be the bitcoin pizza guy - meaning, why would I spend it when I can hodl and one day it might be many many more times valuable?
Anywayyyyyy ... a new development changes everything (and I’m not talking about Brave Browser 1.0 with iOS Brave rewards). No, something newer. Just yesterday MakerDAO released its multicollateral DAI. The prefix ‘multi’ implies many, but there aren’t many (yet) - just ETH and BAT. That’s a big nod of approval for BAT and not that many people are talking about it! Now there’s even more incentive to hodl BAT and use it to create a ‘Vault’ (previously known as a CDP). This is very bullish for the long-term value of the token - there will be lots of BAT out of circulation locked in ‘Vaults’. I doubt that the creators of Brave/BAT had considered this as part of their master plan but I think it could potentially further disrupt their incentive loop.
Summary - bullish for BAT, bearish for content creators expecting tips from consumers.
