Phaver points can be earned in-app or bought as in-app purchases (coming soon)
Points are issued by the Phaver app while any tokens are always issued by a separate entity
There are three main ways to earn Points in the Phaver app:
1) Inviting other users to join the app with each user's invite code (their username). When the invited user reaches Level 2 for the first time both parties will be rewarded.
2) Casting the Daily Stakes given for free to users in Level 2 and up, which rewards the staking user if a post they chose early enough becomes trending that day. This gamified content discovery helps provide higher-quality input for the upcoming feed algorithms. Dynamic rewards will be released in Q1 2024 while initial reward mechanisms have been static during the pilot.
3) Receiving Stakes on your post or a mirror made of it. The rewards are significantly higher if the user posts into a Premium Topic instead of a Free Topic. Shifting the earnings into the paid Topics has significantly increased quality and decreased spammy posts by making token farming more difficult.
The utility and earning logic will keep evolving based on user behavior and the development of the app, but all the earnings will be based on actions that improve the overall app experience in some way.
Using Phaver Points:
Points can be used to post into Premium topics which get boosted visibility in discovery and are more strictly moderated for quality and relevance. Posting into these topics costs some Points (depending on the popularity of the topic) each time but it can be earned back with additional rewards by receiving enough stakes on the post and having a higher reward coefficient per stake.
As an example with Q4-23 numbers, if a user makes a post in a Premium Topic it will cost 50 Points, but each Stake they receive is worth 10 points, so earning more than 5 will make the post gain more points than it uses. On the other hand, making a post on a free Topic will only give one point per Stake and also receive less visibility (fewer impressions).
Staking own posts for boosted visibility (Coming soon)
The Stakes a post receives have a significant impact not only on the rewards but also on the visibility of the post in user's "Recommended" feeds, where higher staked content rises. Besides posting in Premium Topics, users can soon also increase their visibility further by staking Points on their own posts. These will not affect the rewards and will be shown separately from Stakes by others, but will affect the ranking in the user feeds and allow users as well as brands to get added visibility with in essence a natural auction mechanism where the required amount of points to make an impact will increase with the reach in an efficient market.
In a Patreon/Substack style content creators can also define all or some of their content as gated premium material where the user needs to pay points to access it. This will allow a natural way for creators to monetize their most loyal fans without dividing to further platforms and will also help boost the demand for the tokens they earn in free posts since due to app store fees it will always be cheaper to buy points with Phaver tokens vs. in-app purchases.
With only the Premium Topic mechanism live, the point burn and mint numbers are already almost equal, allowing new features and level restrictions to increase burn above daily mints and thus unlocking market for both in-app purchases of Points and also token demand.