The **READIO ** is an original content protocol based on blockchain technology, committed to creating a worldwide online original content incentive system by blockchain technology. READIO covers original content distribution and incentives, copyright investment, copyright derivatives trading and other fields.
The first goal of the READIO will start from the field of online literature, with the block chain to redefine the online literary ecology, and then gradually expand to comic, online drama and other original content areas.
READIO , with a new business model and blockchain-based Token Incentives, aims to motivate writers and readers involve together to participate in the building of a reading community, so as to truly achieve "readers read for free and writers be paid" Benign ecology.
Background of the project
China’s online literature market has seen continuous and rocketing development. By the end of 2016, the number of online literature users had surpassed 300 million and new literature works came out at a rate of 2 million yearly, mostly on mobile devices. The market value of China’s online literature in 2016 was over 500 billion RMB. And with a following Matthew Effect, the market became monopolized by 4 giants: China Reading, Alibaba, Baidu and iReader.
Online writers have seen increasing income compared to the past. But this is just an entitlement of a small group and most online writers belong to a disadvantaged group.
Below are some of the major facts:
\1. Besides the top writers (very few), almost all online writers don’t have the full set of copyrights of their books.
Online writers are highly reliant on reading platforms to sell their books and they have to sign agreements with obviously unfair terms. For example, promotional resources are not guaranteed and they have to give away all copyrights even with a term of 30 years after death. Once signed the agreement, they have to publicize their following books on the same platform. Most online writers have no say in the negotiation and have to accept the unfairness. ( The most well-known examples: "The Adventures of Three Tomb Raiders” by “Tianxia Bachang” and “Yuzui” by “Chang Shuxin” )
\2. Writers contribute plenty of efforts and time to their works but cannot receive a proper income. Sometimes they have to rely on pure luck.
With the rising competition, it’s getting longer and longer for a writer to get remuneration for their works. It now takes more than 6 months compared to 3 months a few years ago for a book of a million words to be paid and what's even worse, it may end with no pay at all. Most new writers work for months and have to leave with zero income. Writing is no longer pure and even falling into the mire of “bad money driving out good money”.
Even if everything goes well, there still will be an excessively long “zero income” period for writers. Just like a startup company, unexpected risks are lurking and you may end up with nothing at all.
\3. No transparency in recommendation rules and reading data on mainstream platforms. It’s very writer-unfriendly especially to new ones.
Now most of platforms are based on a recommendation system by editors. Recommendation resources are controlled by editors and most of them are directed to top books or some that need “special care”. It’s hard and even like a lottery for new writers to get recommendations.
What’s more, sales data is not open to writers either and this sometimes leads to wrong decision-making as they cannot have a clear and accurate judgement on the market. Some of them give up just one day before their books are recommended. Some give up because they don’t know if their books will be displayed at a good section. Some decline to find favor with the platform and editor and cater to their interest.
Due to limited resources, almost all platforms are introducing a “PK” (Player Killing) mechanism. Only a few books can win in a “PK” and those that lost will have no chance to come back. This is preferable for experienced writers and therefore lift the threshold for new comers.
The “PK” mechanism also leads to content similarity and copycats. Many good books are aborted with no proper income or recommendation.
Craftsmanship no longer exists with impetuous minds.
\4. No transparency in recommendation rules, settlement rules and sales data generates inside jobs and corruption.
In 2010, a famous online writer cut ties with a platform as it has eaten up his legit income. He even sued his company. In 2016, an editor of a reading platform accidentally sent a table to a QQ group which exposed an embezzlement of writers’ remuneration.
\5. Excessively high profit-sharing by platforms drives up reading cost and rampant privacy. Writers’ income becomes even less.
At present the profit-sharing ratio of platforms and writers is close to 1:1, aside from all operational costs and other expenses. Even readers’ tipping must be divided 1:1. The ultimate remuneration of a writer is no more than 1/4 of what the readers have paid.
On the other side, readers sometimes need to pay hundreds, even thousands RMB for a book. Privacy therefore becomes endemic and do harm to writer’s interests.
Above all,We can see from above that existing reading platforms have a lot of problems that are suffocating writers and leave them no other choice.
Readers on the other side hope to pay less or even nothing to read the books they like and support their favorable writers. In a nutshell, based on the status quo, both writers and readers are eager for a brand new platform to make a change. Blockchain technology provides a perfect solution for all the problems. And that’s why Xuanchain comes into being. If the current platforms are iOS or Windows, READIO will act as Android or Linux, which has a very promising future.
**The project of READIO **
READIO will build up an original content protocol based on blockchain technology，and design a brand new online writing platform with a decentralized public ledger system and smart mining algorithm (POWR - Proof of Writing). It will allocate Lianzai.com tokens based on writers’ performance ( frequency of content updates, writer level etc. ) and readers’ comments ( Reward, vote, like, dislike, sign, score, etc. )
Below are 3 core parts of READIO consists:
1. A blockchain-based cryptocurrency incentive ecosystem
READIO adopts a POWR mining algorithm - writing equals to mining. Writers will win READ (READIO token) with their creations. The procedures will be determined by writers’ performance and reader votes instead of the platform itself, with open and transparent rules.
Writers don’t need to rely on the platform
Writers’ income is not dependent on the platform. As long as they have fans and can well manage reader communities, they can get a proper income.
Writers own 100% ownership of copyrights
With the rise of “pan-entertainment” industry, pursuit of well-known IPs becomes rampant. But it has nothing to do with writers as they have long given up their IPs, either by selling them with extremely low prices at an early stage or being forced to waive them by unfair clauses. However with READIO , writers will have 100% ownership of all their copyrights, including electronic, physical, audio forms of their works and rights to adapt their works for games, films, animations etc.
Writing pegged income
Writers can get income from the very first moment they release their books as long as they can win readers. This is an attraction for a lot more writers who want to devote themselves in writing.
Under current conditions, unless a book is sold with a lump sum, the duration of profit-sharing may last as long as 6 months. Even like this, writers still cannot be guaranteed with certain income as it’ll be determined by competition and recommendation mechanisms.
READIO guarantees incentives for writers at an early stage so that they can continue with their dedication to the industry.
Fans read for free
Paid reading has developed for many years and will continue to grow.
But on the other hand, free reading has also presented market vitality, especially after the IP frenzy started. An IP will have more influence if they can cover as many readers as possible.
READIO provides an even better platform for readers to vote for or tip their favorable books/writers, or participate in ICOs to support them, and enjoy total free reading of original contents.
Free reading also effectively turns down prevailing piracy. Readers will all rush to READIO platform for the best reading experience and following of writers’ updates.
What’s more exciting is that free reading is not at the cost of writers’ interest. They can benefit as well through system rewards in READIO tokens and trading of them.
Blockchain-based READIO makes all data public so as to prevent any inside jobs or corruption.
2 .Ecosystem of Copyrights investment
A new book is like a new startup or a project. A good book can deliver huge value.
READIO designs an investment ecosystem for writers to survive at the early-stage zero-income period， and investors to participate in by iinvestment to support their books and also win the rights of profit of the book.
Also, if writers wan to fully develop their copyrights of their books to animations, games, or films, they can initiate an finance on the platform to raise funds and achieve their goals.
Data reference: In 2016, the famous writers “Tang Jiasan" paid a royalty of 122 million CNY, “Tiancan Tudou” 60 million and “I eat tomato” 50 million.
Copyrights investment attracts readers to join in and become players. This equals to an update from “platform vs player” bet model at SatoshiDice to “player vs player” model at JustDice. Copyright investment will be strictly in accordance with the laws and regulations, the numer of supporters will be limited to 200 people,and only fans have rights to paticipate.
A works investment Story
An online writer “Zhang San” plans to write a novel called “Lord of War” (LoW) and he has finished about 30,000 words for the beginning. He wants to initiate an option crowdfunding with 10% of the rights to profit of his book and issue a total of 10,000 “LoW points”, each of which worth 10 Yuan.
The platform will evaluate the option crowdfunding and approve it if the potential value of “Lord of War” is accepted. It will be provided with promotional resources from the platform after a signing of investment agreement. The platform will charge a% of the option crowdfunding amount as fees and b% rights of profit of “Lord of War”.
A reader “Li Si” falls for “Lord of War” after reading its beginning and would like to participate in the option crowdfunding. He spends 1,000 Yuan to buy 100 “LoW points” and also introduces the investment to his friends “Wang Wu”, who believes in Li Si’s choice and buys 2,000 “LoW points” from the platform.
Soon “Lord of War” sells out the percent of its rights of profit and raises 100,000 Yuan in form of READIO tokens. The platform will charge a% fee from the 100,000 Yuan, so Zhang San will get 95,000 Yuan in READIO tokens. But the platform will not pay all 95,000 Yuan to Zhang San at one time as he may not finish his book once receiving the money.
So a smart contract is introduced with which the READIO tokens will be automatically paid to Zhang San in 10 consecutive months. Zhang San needs to guarantee regular updates every month to satisfy his readers. Once readers’ complaints/dislikes reach a specific ceiling, the smart contract will activate a bankruptcy procedure and return the unpaid tokens to investors.
When the option crowdfunding of “Lord of War” succeeds, its “LoW points” will be available for trading on READIO exchange so that early-stage investors can choose to exit and new investors can be on board.
An investor “Wang Wu” suddenly becomes bearish on the rights of profit of “Lord of War”. So he place a sell order of 2,000 “LoW points” with the price of 9 Yuan.
A new reader “Ma Liu” however, is very bullish on “Lord of War” but he didn’t get the chance to buy the originated issued points. So he started to buy in them with a price from 9 Yuan to 15 Yuan.
At the same time, “Lord of War” gains overwhelming reader popularity and the writer maintains regular updates, which helps him get handsome READIO block rewards. He gains 3,000 Yuan profits in the first month, divided into 600 Yuan for the platform, 2,100 Yuan for Zhang San and 300 Yuan shared by all investors (0.03 Yuan for each point).
Fans and investors keep recommending the book to their friends and “Lord of War” becomes even more popular.
Soon it attracts attention from a game company who would like to pay 2 million Yuan for its copyrights, pushing up the price of its points to 50 Yuan.
When its copyright for game adaptation is sold, the platform gains 400,000 Yuan, all investors share a total of 200,000 Yuan (20 for each point) and Zhang San gets 1.4 million.
After a serial update of 2 years, the “Lord of War” story comes close to its end and the point price rises to 320 Yuan. During the period, its profit-sharing saw ups and downs and the book sold out a few more of its copyrights (audio, animation, mobile game, web game, internet drama, film, derivatives etc.).
People may become bearish when the realize the story is ending and start to sell their points. The price will then decline and return to the initial option crowdfunding value. Zhang San will buy back the points and reclaim all rights of profit before the option crowdfunding.
All major events of “Lord of War” will permanently recorded on the public READIO . Anyone who wants to buy its copyrights can inquire from the chain and therefore avoid any copyrights disputes led by asymmetric information or intentional concealment.
3. Copyrights certification and trading ecosystem
Blockchain technology can perfectly eliminate copyrights disputes. Tampering is not possible once on the chain and on-chain timestamp will prove the ownership. On-chain copyrights trading is also available.
Data reference: Copyrights of the "The Graver Robbers’ Chronicles” are worth over 20 billion Yuan and its investor company has a valuation of 1.5 billion. Brands of “Hua Qian’gu” and derivatives are worth 2 billion Yuan.
READ is a digital asset tokens based on blockchain technology issued by the Singapore-based non-profit READIO Foundation (which approved by ACRA,Singapore), representing read rights in READIO _ protocol , The total is limited and can not be issued additional, all transactions on the chain are transparent and can be found.
Generation of READ
The total supply of READ is 2.1 billion , generated through the mining algorithmof writing, READ's production halved every two years, getting harder as time goes by, therefore, the pre-participation get more advantages.
The address of Contract:
Value of READ
- Writers can get READ as incentives for their works on our platform;
- Readers can use READ to gain free reading rights, and can use READ to reward their favorite works. At the same time, they can also use READ to participate in the copyright investment of works and receive the right of income, or other kind return of the works.
- By holding READ, readers can get props (flower/egg) which will affect the income of a book;
- Investors can buy copyrights using READ;
- It becomes available for overseas readers to support the writers they like.
READ Allocation Mechanism
40% are distributed to users through mining mechanisms and algorithms
30% distributed to early participants (unlocked over two years)
15% lianzai.com Team Incentives
10% for users READ community operations
5% Xuan chain Foundation reserved
READ rewards creators for writing consistently and creatively through rewards by writing mining algorithms, early participants unlock their READ gradually over two years.
READ Issue Mechanism
READ will be produced with every new block. Its amount will be zero at the first place and then grows with newly mined blocks.
POWR Mining Algorithm
POWR(Proof of Writing)
By calculating the influence index of each work, we can draw the "calculating power" of the work on the whole network, and finally assign the corresponding READ according to the proportion of the calculating power.
Similar as bitcoin, miner's computing power corresponds to the influence index of writer`s work at a time obtained by the comprehensive parameters, as the number of votes, clicks, comments, chase Read, as well as the number of updates to the work, update stability and other factors are closely related.
Each work is a mine, the reader is a miner, and writers is the ultimate beneficiaries.
In order to prevent multiple account cheat votes, readers hold a certain READ are qualified to to contribute InfluenceIndex to the artwork, this is “Fans Power”.
The period of New work
In order to motivate new writers, platform will setting new books with a coefficient (-20% to-30%) on the InfluenceIndex during the new period.
Mining details of the algorithm can refer to the READIO "technical white paper."
READIO with a new business model which based on blockchain-based Token Incentives, Can effectively solve all kinds of pain points and problems in the existing online literary ecology and provide a new choice for the vast number of online writers realize their dreams of literary creation, so as to truly achieve "readers read for free and writers be paid" Benign ecology.
This document only describes the project, does not constitute any investment advice and suggestions, and this document does not form any formal contract or commitment.
Participants of this project must clearly understand the risks of the project. Once involved, the participants will understand and accept the risks of this project and are willing to bear all corresponding results for this purpose. The project team expressly disclaims any direct or indirect damages caused by any participation in this project.
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