Reward speakers with trading fees, understand the attention market experiment Loud in one article.

Original author: @0x_ultra

Original text compiled by: Zen, PANews

TL;DR

Loud is an experiment about the relationship between attention and value. The $LOUD token itself has no intrinsic value, and each transaction incurs a fee. These fees are used weekly as a marketing budget, rewarding the top 25 users who can best enhance Loud's mindshare. Allocation is done using @KaitoAI's mindshare data, which is currently one of the most efficient incentive mechanisms.

This is not a revolutionary paper on the attention mechanism in neural networks; rather, it is an experiment on the purest attention market. This experiment will run indefinitely and will not be subject to human intervention.

Source of Inspiration

We often talk about the attention economy in Web3, and the platform built by Kaito AI is essentially a system that allows everyone to participate in attention trading, thereby accelerating the development of the entire industry. In this process, it has also created one of the most optimal proof-of-work incentive mechanisms in history: a reward mechanism based on "mindshare." This Web3 primitive allows project parties to achieve the highest possible output for every dollar invested: creating a reward pool that is contested by those willing to contribute labor. This is the first piece of the puzzle.

The second part is inspired by the successful practice of the Web3 launch platform Believe: establishing a long-term model of interest binding between speculators and creators through trading volume and fees, thereby feeding back into the creators' continuous creation. In fact, the project's attention completely relies on the output and maintenance of the creators, and thus, the creators are the key driving force in maintaining attention.

What would happen if we could combine the advantages of these two models and create a new incentive mechanism that aligns the motivations of all participants towards the goal of "maximizing mental ownership"?

What is Loud?

Loud is an experiment that refines the purest form of cryptographic primitives, removing the intermediate product forms.

It is time to bring back "3, 3 Game Theory".

( 3, 3) The concept of game theory was proposed by Olympus DAO. It is derived from the collaborative thinking in game theory, expressing that a "win-win" situation can be achieved when participants cooperate with each other. Its essence is an optimized version of the prisoner's dilemma, combining the token economic model of Web3, conveying the idea of "we win together" to the community in an easily understandable way.

In the game matrix, "3" represents a positive effect for both the protocol and the participants; "-3" represents a harmful effect. Therefore:

• ( 3, 3): You stake, I stake, everyone supports the protocol, the protocol grows, and we all gain the most → Win-win
• (-3,-3): You sell, I sell, the agreement collapses, we both lose → mutual loss
• ( 3,-1): You stake, I sell, you take the risk, I profit → Unilateral game

Experimental Setup

We combine the best "Proof of Attention Work" model with a mechanism that allows creators to earn a share of transaction fees over the long term. What would happen if we provide continuous rewards for those who spread a certain topic?

We will get the purest "3, 3": a direct link between a speculator and a Key Opinion Leader (KOL) - no intermediary products are needed anymore. A sustainable attention engine driven by KOLs, subsidized by speculators.

The fees paid by traders will be directly deposited into a prize pool, which will be shared among the "topic creators" who rank high on the attention leaderboard, incentivizing them to continuously generate greater dissemination and trading volume. You should have already seen the prototype of this flywheel mechanism.

• The goal of topic creators: To stimulate higher trading volume
• Trader's goal: To buy attention through fee subsidies.

This is an experiment about whether attention is sufficient to create value. If something receives enough attention, does its price rise accordingly? And vice versa?

Actual Operating Mechanism

• The $LOUD token will be traded on the Solana chain through the liquidity pool of the Meteora liquidity platform, with a fee charged for each swap, priced in SOL.
• Users can gain "mind share" by publishing content about Loud.
• The mindshare ranking mechanism provided by Kaito AI will objectively quantify contributions.
• Users can visit stayloud.io to view the leaderboard and register their wallets to receive rewards.
• Once a week, trading fees (in SOL) will be distributed to the top 25 users on the leaderboard based on their mindshare contribution ratio.
• 20% of the transaction fees will be rewarded to $KAITO stakers to promote the ecological flywheel and achieve interest binding.
• The flywheel mechanism will continue permanently without intervention.

Loud is the purest symbiotic model for speculators to subsidize KOLs.

About the Top 25 Ranking Mechanism

Why set a limit of the top 25? Because, as mentioned earlier, every fee paid by traders is essentially to "buy attention." Setting a smaller reward pool can motivate participants to work harder to gain volume for token holders and traders. Even if they enter the top 25, they cannot rest easy—the reward distribution will be entirely based on the mindshare contribution ratio, and participants must continuously maximize their dissemination efficiency and influence.

Note: Loud is an experimental project, and its mechanism will be continuously optimized and adjusted based on community feedback, while always adhering to the principle of minimal intervention. Its aim is to conduct the first large-scale experiment of a "decentralized attention-value system."

What will happen next?

The $LOUD token is about to be launched, and the specific release time and distribution method will be announced in a later notice. The experiment is about to begin, supported by technology from Holoworld AI.

This is a community-owned experimental project: no team reserved tokens, no hidden interests, completely fair launch, 100% transparent. How it will develop next depends entirely on the community.