LTO Network was first established in 2014 as a spinoff but changed its name to LTO Network after the network's official launch in 2018. The LTO Network, an award-winning hybrid blockchain, has established itself as Europe’s leading blockchain with strong real-world usage. Decentralized identities and verifiable digital credentials are at the core of LTO Network’s focus. What separates LTO from most commercial blockchain apps and platforms is that cryptocurrency tokens play an important role in both network functioning and revenue creation.
In essence, a revolutionary business model propelled by the creators' optimism about the future growth and use of cryptocurrencies. Fortunately, LTO Network has also paid close attention to the network's real business applications outside of the revenue model. Any business that requires a production-ready blockchain that supports digital asset verification and fosters cooperation through the use of decentralised workflows can use the LTO Network.
Social Mining's first real-world application
The first real-world application of Social Mining was the LTO Network in the fourth quarter of 2018. It was essential to the launch of the community-built initiative that eventually won a free listing on Binance. The solution was in its early stages of development when it was released. As a result of the software being implemented early on, LTO Network reaped the most benefit from the APIs that compiled the efforts of its users.
Social Mining had propelled users to take LTO Network to new heights, despite the software's inability to supply user reputations and the enablement of community-sourced labour and reward validation at the time of launch. The community of token holders is a fundamental basis for any enterprise, and Social Mining allows you to nurture and strengthen that community. The advantages a tokenized enterprise can achieve by transforming its community into a DAO are demonstrated by the fact that even the first release of Social Mining was a success.
A DAO governance system called Social Mining
A DAO governance system called "Social Mining" encourages fair governance, reward sharing, and the curation of high-quality material from networks and communities. Beyond the significance of their efforts, the cryptocurrency sector requires a better incentive system to promote decentralised community formation and long-term project support. Social Mining satisfies such pressing needs.
Data is the backbone of the Social Mining platform. After signing up, the first thing a user does is provide personal information according to what they deem comfortable. In order to ensure that everyone does what they are most interested in doing within the time they claim they can spend on the project, we first seek to establish who the community and project holders are. Users are incentivized to quickly upvote or downvote information, which creates a feedback loop that leads to better quality, more engaging, and more useful content.
The concept of Social Mining is that people who contribute to the construction of a blockchain ecosystem should be compensated in its native currency. It is essentially a plug-in solution for any blockchain that enables it to become a decentralised autonomous organisation that empowers the community to propel the project forward.
The platform allows any user to submit and describe their work for the ecosystem, which is subsequently validated by other members of the community who are paid to do so. Workers and validators are then rewarded in the form of points, influence, and reputation, which are subsequently converted into tokens at the end of the month. These incentives can range from a few cents to a few thousand dollars, allowing particularly active members to earn a full income.
Short-term token holders and coin flipping are only two examples of the widespread difficulties plaguing the volatile cryptocurrency market. This high rate of token turnover makes it difficult for new innovations in crypto to gain traction and increase in value. The reward system shifted in favour of rapid flips, pump-and-dump transactions, and a plethora of dead coins.
Community as the essential pillar for the success of a cryptocurrency
According to LTO Network, the community is the essential pillar of any successful cryptocurrency venture. Employing a DAO made possible by blockchain technology, the community exercises its governance power by voting on which deserving contributors should receive a share of benefits, effectively decentralising the work environment. The term for this kind of collective strength is "distributed workforce." The community is encouraged to participate in the expansion of the ecosystem by engaging in activities such as using the network, promoting it, and working together to create the necessary solutions and tools.
Social Mining's primary role, which is to enable a community to work on a project, was successful even in the initial phase. The community behind LTO was responsible for the creation of a block explorer for the native chain, the promotion of the project, and the growth of a business support system. Proving that a tokenized project may gain benefits by turning its community into a DAO, Social Mining's early release was a resounding success.
LTO Network was another cryptocurrency launched via Social Mining with an ATH ROI +2,903.2%, according to CryptoRank. After a few months of onboarding, Social Mining drove an exponential expansion of the LTO ecosystem. At the time, 17,046 community members had signed up for Social Mining, thereby creating 17,046 employment prospects. About 3,215,684 total points were generated through Reddit and Twitter combined. The estimated total LTO handed out as rewards was 1,223,479 LTO.
By the fourth quarter of 2020, 35% of the market value, or around 81,000,000 LTO, had been wagered, which was worth $5.2 million at the time. Since SM deposits were eliminated from circulation, they had a much larger effect on the token's value than did listings on even the largest centralised exchanges. The project was able to overcome the difficulties of the bear market between 2018 and 2019 thanks in large part to the Social Mining software's abilities. In light of this, the community developed additional technologies for the project and helped propel LTO's commercial growth. During this time interval, the market capitalization of the LTO network had risen from $1,000,000 to $18,900,000.
The necessity and benefits of a well-coordinated community have become evident in the blockchain development arena. Almost all thriving crypto groups share certain characteristics, with community development and expansion being the most visible. Because blockchain technology is still in its early stages, most projects do not have large marketing expenses. Social mining, which helps to build a committed group, ensures free organic marketing via social media, word of mouth, and referrals. Furthermore, veteran community members frequently serve as first-line support for ecosystem newbies.
The lack of a structure that encourages meritocracy has led to the pernicious phenomenon of "the rich getting richer" thanks to crypto VCs. Right now, all cryptocurrency incentives are geared toward enriching the already wealthy. On the other hand, those who put in the most effort and make the greatest contributions are rarely factored into the equation of wealth creation. For this reason, Social Mining was created for the long-term good of projects, as it makes the most talented people satisfied and motivated, thus keeping them around while forcing the less skilled folks out.
LTO Network has seen a number of noteworthy advancements and new applications this year, and the team is excited to keep pumping out innovative technologies at breakneck speed.
DAO Labs has provided access to Social Mining exclusively to a small handful of industry-leading companies and will continue to adhere to its policy of entry to only the most outstanding projects.