Original author: @0x_ultra
Compiled by: Zen, PANews
TL;DR (Key Takeaways)
Loud is an experiment about the relationship between attention and value. The $LOUD token itself has no intrinsic value; every transaction generates fees, which are used weekly as a marketing budget to reward the top 25 users who can most enhance Loud's mindshare. The distribution uses @KaitoAI's mindshare data, which is currently one of the most efficient incentive mechanisms.
This is not a revolutionary paper on attention mechanisms 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 also creates one of the most optimal proof of work incentive mechanisms in history: a reward mechanism based on 'mindshare'. This Web3 primitive enables project parties to achieve the highest possible output per dollar invested: creating a reward pool contested by those willing to contribute labor. This is the first piece of the puzzle.
The second part is inspired by the successful practices of the Web3 launch platform Believe: establishing a long-term binding model of interest between speculators and creators through trading volume and fees, thereby supporting creators' continuous work. In fact, the attention of the project entirely depends on the output and maintenance of the creators, thus making creators the key driving force for maintaining attention.
So what happens if we can merge the advantages of these two models and create a new incentive mechanism that aligns all participants' motivations towards the goal of 'maximizing mindshare'?
What is Loud?
Loud is an experiment that distills the purest form of cryptocurrency primitives, removing intermediary product forms.
It's time for '3,3 game theory' to return.
(3,3) Game theory is a concept proposed by Olympus DAO, originating from cooperative 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 Web3's token economic model to convey the idea of 'we win together' to the community in an understandable way.
In the game matrix, '3' represents that the action has a positive effect on both the protocol and participants; '-3' represents harm. Therefore:
(3,3): You stake, I stake, everyone supports the protocol, the protocol grows, and we all benefit the most → win-win
(-3,-3): You sell, I sell, the protocol collapses, and we both lose → lose-lose
(3,-1): You stake, I sell, you take the risk while I profit → unilateral game
Experimental setup
We combine the best 'attention proof of work' model with a mechanism that allows creators to earn long-term fee sharing. What happens if we provide continuous rewards for those who spread a certain topic?
We will achieve the purest '3,3': a direct link between a speculator and an opinion leader (KOL) — no longer requiring an intermediary product. A sustainable attention engine driven by KOLs and subsidized by speculators.
The fees paid by traders go directly into a prize pool, which is shared by those 'topic creators' who rank high on the attention leaderboard, incentivizing them to continuously create 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
The goal of traders: to buy attention through fee subsidies
This is an experiment on whether 'attention is enough to confer value'. If something gains sufficient attention, does its price rise accordingly? And vice versa?
Actual operational mechanism
$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 'mindshare' by posting content about Loud.
The mindshare ranking mechanism provided by Kaito AI will objectively quantify contributions.
Users can visit stayloud.io to check the leaderboard and register their wallets to claim rewards.
Once a week, trading fees (in SOL) will be distributed to the top 25 users on the leaderboard based on their mindshare contribution.
Of these, 20% of the fees will be rewarded to $KAITO stakers to promote the ecological flywheel and achieve interest binding.
The flywheel mechanism will continue indefinitely without intervention.
Loud is the purest symbiotic model for speculators subsidizing KOLs.
About the Top 25 ranking mechanism
Why set a limit of 25? Because, as mentioned earlier, every fee paid by traders is essentially to 'purchase attention'. Setting a smaller reward pool can incentivize participants to work harder to compete for volume on behalf of token holders and traders. Even if you enter the top 25, you cannot rest easy — reward distribution will be entirely based on mindshare contribution ratios, and participants must continually maximize their dissemination efficiency and influence.
Note: Loud is an experimental project, and the mechanism will be continuously optimized based on community feedback, but will always adhere to the principle of minimal intervention. It aims to conduct the first large-scale experiment of a 'decentralized attention-value system'.
What will happen next?
$LOUD token is about to launch, specific release time and distribution method will be announced later. The experiment is about to begin, supported by Holoworld AI technology.
This is a completely community-owned experimental project: no tokens reserved for the team, no hidden interests, completely fair launch, 100% transparency. How it will develop next depends entirely on the community.
