🪙$SOCAI Token

Fueling the Proof of Sentiment Engine

Just like Ethereum relies on gas fees to power its Proof-of-Stake mechanism, Proof of Sentiment utilizes the SOCAI token as its fuel.

Here's how it functions:

• Staking for Active Participation: Active traders can stake $SOCAI tokens to participate in the sentiment analysis process. This staking acts as a commitment and ensures the quality of sentiment data.

Similar to how gas fees in Ethereum discourage spam transactions, Proof of Sentiment's SOCAI token system discourages random or uninformed sentiment contributions. By rewarding good sentiment and penalizing bad sentiment, Proof of Sentiment fosters a community of active traders who are invested in providing valuable market insights.

• Rewarding Accuracy: The Gas for Good Sentiment: When an active trader provides accurate sentiment that aligns with successful trading outcomes, they are rewarded with SOCAI tokens. This incentivizes active traders to carefully analyze Spotonchain's insights and provide well-informed sentiment, effectively acting as the "gas" that propels the Proof of Sentiment engine towards better results.

• Penalizing Inaccuracy: Discouraging Random Guesses: In contrast, if an active trader consistently provides inaccurate sentiment, they will receive penalties in the form of reduced SOCAI rewards in subsequent validation cycles. This discourages random guesses and ensures active traders contribute meaningful sentiment that benefits the overall system.

• Transaction Fees for Successful Trades: Beyond active trader participation, SOCAI tokens also play a crucial role for passive traders and anyone utilizing the trading strategies generated by Spotonchain. When a trade executed through Spotonchain's automated solutions or managed portfolios is successful, a small fee in SOCAI tokens will be deducted. This fee contributes to the overall maintenance and development of the Proof of Sentiment ecosystem.

In essence, the SOCAI token serves a dual purpose. It incentivizes active traders to provide high-quality sentiment data and fuels the execution of successful trades for passive traders relying on Spotonchain's strategies. This symbiotic relationship ensures a well-maintained system that benefits all participants in the Proof of Sentiment marketplace.

Tokenomics: TBA