Back in 2015, Minds launched a Points system for users to earn rewards, support other channels and promote content on the network. At the time, 1 point was equivalent to 1 view, and 1,000 views were sold for $1.
In August 2018, Minds migrated its Points system to ERC-20 tokens on the Ethereum blockchain and pegged the value of one token to 1,000 views. The transition to the blockchain made a lot of sense due mainly to the alignment in values of transparency and user control. The Minds Token (and the cost of 1,000 views) was reduced to $0.15 in order to encourage easier usage, acquisition and adoption of the token.
Minds provides tokens for users in two ways:
1) Through a daily distribution to all active users based on their levels of contribution to the network.
2) Direct token sales; which are the main source of revenue for Minds.
After analyzing the supply and demand metrics of Boost, it has become clear that the current pricing of the Minds Token ($0.15) is no longer suitable for the health of the ad network. With this low price, increased demand for advertising has resulted in too much congestion on the network, leading to slower completion times, backlogs and the potential saturation of content in feeds.
Currently Minds is serving over 50 million Boost impressions per month. Due to the increase in Boost demand and token usage, and in order to move toward fair pricing, the value of the Minds Token (and 1,000 views on the network) will be adjusted to $1.25 per token. This adjustment will allow for more functional boost feeds, a better user experience and a Boost network that more resembles the current state of the site’s ad inventory. This change will not impact user rewards or existing balances.
The above graphic displays the projected “Inventory Saturation” at various prices of the Minds Token. As you can see, the Inventory Saturation at the current price of $0.15 is 176%, meaning that the Boost backlog is higher than our inventory. In order to reach optimal Inventory Saturation of 100%, the price needs to be increased to $1.25. This adjustment enables Minds to reduce pressure on Inventory Saturation while continuing to reward users at the same levels.
On occasion, Minds will adjust the price of its tokens to re-balance supply & demand among the various products and services available on our platform. These adjustments do not happen on a prescribed schedule, and it cannot be anticipated whether we will need to increase, or decrease, the price to bring about the desired balance. Any changes will be clearly communicated with supporting logic based on network activity.
In the coming weeks, we will be conducting a Community Airdrop, where we will deliver tokens directly into your OnChain Wallet, so we recommend setting this up with MetaMask sooner than later if you haven’t already (web browser only) . In addition, we are working to improve targeting, allow for longer term ad campaigns and provide better analytics for you to optimize the Boost network even further.
Thank you for your continued support and contributions to the network!
The Minds Team