[AHA] What is the difference between token-based compensation and member mileage?
[Aha Blockchain] Q〉Blockchain platforms with token-based compensation provides coins for the activity of its users. Why does this service abandon conventional mining or ICO methods and instead give out reward coins as compensation? Also, as for reward coins, how is it different from the conventional member mileage or cumulative points? “The conventional mining method has limits on the number of people that can be involved in the mining process, and professional equipment may be needed as well as time and costs. There is also the issue of concentration of mining. At the end of the day, the ICO method involves the distribution of tokens after receiving investments or sales of tokens, so this method also puts a limitation on the number of participating individuals. As for mining, the compensation method suits blockchains with their own systems. The ICO’s purpose is to place investment capital, so the best token economy for Dapp to choose would be the ‘token-based compensation,’ since the application provides a large range of services. You may not feel a big difference between token-based compensation and other services, such as regular card points, airline mileage and cellular service points in the sense that you can use the points like cash. However, token-based compensation has a number of advantages. Mileage and points expire after a certain period, but cryptocurrency activity token-based compensation does not perish unless the company or project dies out. As long as the cryptocurrency transaction is supported, it can not only be used as cash, but transaction and liquidation is possible if the company is listed on the cryptocurrency exchange. It is a hassle to sell points, but tokenized points are transferable. If mileage and points were the reward for purchasing products and services, token-based compensation can be used as rewards for a more diverse range of activities. Even through this “Aha” service, you can get token compensation for the activity of knowledge sharing. I hope my response assisted you.” *This post was based on a discussion of users named ‘서현아빠,’ who raised the question and ‘erc20,’ who answered, on the blockchain Q&A section of the blockchain knowledge commerce platform ‘Aha.’ Link to original text: https://www.a-ha.io/questions/41070a2a7963d36695757e3e7dac2ccf