Article source: Zen
Original author: @0x_ultra
Compiled by: Zen, PANews
TL;DR (Summary)
Loud is an experiment about the relationship between attention and value. The $LOUD token itself has no intrinsic value, and every transaction incurs a fee, which is used weekly as a marketing budget to reward the top 25 users who can enhance Loud's mindshare the most. Distribution is based on mindshare data provided by @KaitoAI, which is one of the most efficient incentive mechanisms currently available.
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 permanently, free from 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 output for every dollar invested: creating a reward pool that those willing to put in the effort can compete for. This is the first piece of the puzzle.
The second part of the inspiration comes from the successful practices of the Web3 launch platform Believe: establishing a long-term binding model of interests between speculators and creators through trading volume and fees, thus feeding back into the creators’ continuous work. In fact, the attention of the project entirely relies on the output and maintenance of the creators, so the creators are the key driving force that maintains attention.
So what if we could merge the advantages of these two models and create a new incentive mechanism that aligns the motivations of all participants under the goal of 'maximizing mindshare'? What would happen?
What is Loud?
Loud is an experiment that distills the purest form of crypto primitives, removing the intermediary product form.
It's time for '3,3 game theory' to return.
(3,3) game theory is a concept proposed by Olympus DAO, which originates from cooperative thinking in game theory, expressing a situation where 'win-win' can be achieved when participants cooperate with each other. Its essence is an optimized version of the prisoner's dilemma, combined with the token economic model of Web3, conveying the idea of 'we win together' to the community in an understandable way.
In the game matrix, '3' represents 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 maximize our benefits → Win-win
(-3,-3): You sell, I sell, the protocol collapses, and we both lose → Lose-lose
(3,-1): You stake, I sell, you bear the risk, and I profit → Unilateral game
Experimental setup
We combine the best 'attention proof-of-work' model with a mechanism that allows creators to earn fee-sharing long-term. What happens if we provide continuous rewards to those who spread a certain topic?
We will achieve the purest '3,3': a direct link between speculators and opinion leaders (KOLs) — no intermediary product needed. A sustained attention engine driven by KOLs, subsidized by speculators.
The fees paid by traders will go directly into a prize pool, which will be divided among the top-ranking 'topic creators' on the attention leaderboard, incentivizing them to continuously create greater dissemination volume and trading volume. You should already see 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 about whether 'attention is enough to confer value'. If something receives enough attention, does its price rise accordingly? And vice versa?
Operational mechanism
$LOUD token will be traded on the Solana chain through the liquidity pool of the liquidity platform Meteora, with each swap incurring fees 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 (priced in SOL) will be distributed to the top 25 users on the leaderboard based on their mindshare contribution ratio.
20% of the 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 where speculators 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 'purchase attention'. Setting a smaller reward pool can incentivize participants to work harder to gain volume for token holders and traders. Even if you make it to the top 25, you cannot rest easy — reward distribution will be entirely based on the proportion of mindshare contribution, and participants must continuously maximize their dissemination efficiency and influence.
Note: Loud is an experimental project, and the mechanism will be continuously optimized based on community feedback, but it 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 coming soon, with specific release time and distribution methods to be announced later. The experiment is about to begin, supported by Holoworld AI.
This is a completely community-owned experimental project: no team-reserved tokens, no hidden interests, completely fair launch, 100% transparency. How it develops next completely depends on the community.
