blockchain enabled and incentivized review and reward platform · solution 5-1. review reliability...
TRANSCRIPT
Blockchain Enabled and Incentivized Review and Reward Platform
WHITE PAPER
MAY 2018
Ver 3 DraftMay be Amended
2
Tableof Contents
1. Abstract
2. Background & Vision
3. Market Overview
3-1. Global Digital Marketing Industry
3-2. SNS(Social Networks Service) Growth
3-3. AdBlock
3-4. Native Display Advertisement
4. Problem
4-1. Lack of Review Reliability
4-2. Lack of Compensation Transparency
4-3. Concentrated Reward
4-4. Limited Review Content Utility
5. Solution
5-1. Review Reliability
5-2. Compensation Transparency
5-3. Decentralized Reward
5-4. Review Contents Preservation(Blockchain Technology)
6. What We Already Have
7. Ecosystem
7-1. Service Mechanism
7-2. Ecosystem Components and Participants
7-3. Ecosystem Flow
7-4. Technology-Ecosystem
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5
6
6
6
7
8
11
11
12
13
16
17
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21
22
24
24
25
28
30
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8. Token Mechanism
8-1. LITER CUBE Issuance & Consumption Principles
8-2. LITER CUBE Issuance
8-3. LITER CUBE Maximization
8-4. Conversion between LITER CUBE and LITER COIN
8-5. LITER COIN Consumption
9. Long Term Plan
9-1. Platform (Alliance)
9-2. Search Service
10. Technical Challenges
10-1. Contents Related
10-2. Search Related
10-3. Advertising Campaign Related
10-4. Volatile Nodes Operating Policy
10-5. Price Stabilization Policy
11. Token & fund Allocation
12. Roadmap
13. Team
Founder
Advisor
Team
Tableof Contents
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1. Abstract
The growth of digital marketing spend has increased exponentially since Internet has become mainstream some 25
years ago and has grown even bigger since the advent of Mobile Internet and the proliferation of social media and
community platforms in the last decade. A growing percentage of the this digital advertising and marketing spend flows
to “Influencer Marketing”, especially on social media platforms such as Facebook and Instagram and their counterparts
in other countries and geographies. Although this form of marketing had great traction and efficacy in its early days,
there is growing discontentment with the format from both advertisers as well as consumers as trust has eroded and
“user reviews” are seen as nothing more than paid content disguised as impartial reviews. The opacity in the review
methodology, compensation and centralized review systems discourages consumers from participating or partaking
in such review based advertising, leading to further deterioration of trust and efficacy of this form of information
dissemination.
LITER looks to solve these issues using a blockchain based review platform in which all methods of collection, dissemination
and compensation of honest reviews are transparent, decentralized and most importantly: provide unbiased, honest
and useful consumer reviews of products and services.
LITER’s artificial intelligent matching algorithm will provide reliable, user-driven reviews that will be compensated
fairly and transparently by the consumer community through smart contracts within LITER’s blockchain based on the
review’s contribution to the community. This community-based compensation system will ensure honest and useful
reviews since it is the community itself that decides how useful and therefore, how much the reviewer will receive in
compensation tokens. The blockchain compensation system will benefit all members of the community, whether he/she
is a reviewer or a consumer of the reviews who will also be compensated for his/her activities such as “like” or “rating”.
Also, all reviews and subsequent activities will be preserved in LITER’s blockchain so that community members or new
potential users are able to search and view the contents.
As technological development has strengthened user influences, LITER will lead the revolutionary changes in the
environment of marketing, search service, and ecosystem to be user-centered. With the advertising market and the
technologies behind it becoming smarter and more targeted, LITER’s blockchain looks to be the first mass-market
“Tokenomics” enabled platform that leads advertising and marketing efforts in a revolutionary individual user-centered
direction.
1. Abstract
5
2. Background & Vision
LITER is designed on the premise of two core ideas, Motivation and Absolute Value.
Motivation
According to Thomas Hobbes in the Leviathan, “Every man is presumed to do all things in order to his own benefits, no
man is a fit Arbitrator in his own cause.” He states that every man acts under motivation of pursuing what benefits him
the most. However such self-interest doesn’t have to be only “selfish” in nature and can be utililzed for a greater benefit
of all if harnessed properly. Whether one agrees with Hobbes or not, in today’s capitalistic market environment, it is
difficult to argue that self-interest is the strongest market motivation and that is the first core thesis of LITER.
Absolute Value
In the past, consumers made purchasing decisions based on brand recognition/appreciation, price, and past experiences.
However, Itarmar Simonson, professor of marketing at Standford University, recently suggested that existing marketing
strategies are no longer applicable in today’s shopping environment with the massive increase in access to information
and product options.
With super easy access to information such as search tools, search engines, user review sites, social media, professional
reviews, and the continual development of new technologies and services, consumers are now able to make better
decisions leading to what Simonson considers “Absolute Value”, that is maximized value for the price paid. Historically,
partial product information or limited product availability hampered optimized consumer experiences and forced
consumers to make bad choices, presented with only relative value. Although far from perfect, today’s shopping
experience is much closer to providing Simonson’s Absolute Value environment. This is the second core thesis of LITER.
With the two core theses: ‘motivation’ and ‘absolute value’, LITER looks to revolutionize advertising, marketing and
shopping environments by providing a platform that invites consumers to create and promote his or her own product or
service reviews and even profit from that activity. The collection of these first hand experiences will create a database
of experiences and unbiased reviews that will allow consumers to make purchasing decisions closer to Simon’s Absolute
Value, maximizing the consumer’s purchasing power and satisfaction level.
LITER will create a search service that will list product and service reviews for user convenience. LITER will construct a
new ecosystem that can also collaborate with other marketing and advertising services that require a database of user
experiences for their own marketing efforts. It is LITER’s objective to be the repository of the most robust, transparent,
neutral and useful information for products and services from which all well-intentioned marketing efforts can benefit.
2. Background & Vision
6
3. Market Overview
The global digital advertising market has and continues to show growth every
year. By 2020, the market is expected to reach US $335.48 billion, a 46%
increase from 2017.
3-1.
Global Digital Marketing
Industry
3. Market Overview
335.48
304.34
269.85
229.25
194.60
161.77
202020192018201720162015
Global Digital Advertising Market ($ billion)
Source: eMarketer, 2016
3-2.
SNS(Social Network Service)
Growth
Number of Social Network users worldwide from 2010 to 2021 (Billion)
Source: eMarketer, 2017
15’14’13’12’11’10’ 21’20’19’18’17’16’
0.971.22
1.401.59
1.912.14
2.282.46
2.622.77
2.903.02
According to eMarketer, the number of social network users worldwide will
increase by over half a billion people from 2017 to 2021.
[fig.3-2-1]
[fig.3-1-1]
[fig.3-2-1]
[fig.3-1-1]
7
According to 2016 PageFair, users of AdBlock worldwide were increased from
21 million to 491 million, a 23 X multiple. This is a clear indication that users are
moving away from traditional form of annoying banner or intrusive interstitial
advertising.
3-3.
AdBlock
3. Market Overview
Monthly Users
Source: TechCrunch, 2016
YoutubeFacebook WechatFacebookMessenger
SnapchatWhatsappTwitterInstagram
2B2017.06
1.5B2017.06
700M2017.04
328M2017.04
1.2B2017.02
255M2017.05
1.2B2017.04
889M2016.12
Global Users of AdBlock, 2010-2017(Millions)
Source: PageFair, 2016
201520142013201220112010 20172016
21 3039 54
121
181
21,6 236
145
275
380
Desktop Mobile
In 2017, monthly users of Facebook has increased 400% from 2010. Instagram
has increased by 7000%, and Youtube has increased 2600%. The growth
of these top three social networks is the growth engine for the global digital
advertising market.
[fig.3-3-1]
[fig.3-3-1]
[fig.3-4-2]
[fig.3-2-2]
8
3. Market Overview
Statistics of 2016’s IAB(Interactive Advertising Bureau), PwC, IHS show that
digital advertising is still growing at an impressive rate overall. However, all of the
growth is coming from native display advertising that is embedded to appear as
natural content as opposed to disruptive non-native banner advertising or the
totally disruptive interstitial pop-ups. Consumers do not respond well to non-
native ads and the deterioration of the user experience has forced advertisers
shift to a more consumer-friendly advertising methods.
3-4.
Native Display Advertisement
US Native Display Ad Revenue(Billion)
Source: IAB, PwC, IHS, 2016
The Millennial generation who are the most active consumers in today’s
contemporary media environment is very proactive. There is a high propensity
to search, collect and share content of their interest or creation and very much
object to pushed content or intrusive marketing methods. Relevant native
display advertisement does not interfere with their preferred activities; rather
it provides content that they can utilize, process, produce, and share.
Among native display advertisement options, influencer marketing has had
the biggest growth in scale and increase in market share. Endorsement by a
known or trusted voice, such as an “Influencer” is often shared voluntarily by
the consumer, hence causing a “viral effect.”
An Influencer is an individual who has a large following with a trusted reputation
in social media. “Influencer marketing” has had a massive 150-400% increase
in the last three years and is expected to reach $5~$10 billion by 2020.
2021E2020E2019E2018E2017E2016E
$ 0
$ 20
$ 40
$ 10
$ 30
$ 50
$16.8$20.9
$25.2
$28.9$33.5
$36.3$13.2
$13.4
$13.6
$13.6
$13.0$12.8
Native Display Non-native Display
[fig.3-4-1]
[fig.3-4-1]
9
3. Market Overview
The Evolution of Influencer Marketing
Source: : traackr, 2016 Google Trend, 2017
201620152014201320122011 2017
3,900
6,460
21,000
According to Google Trend graph, interest in ‘influencer marketing’ was
gradually rising since 2014 and doubled in 2015. The amount of Google search
on ‘influencer marketing’ at the end of 2017 was increased by 325% compared
to the previous year.
Brand Sponsored Influencer Post Growth (est.)
Instagram EstimatedInfluencer Marketing Growth
Source: : Google Trend, 2017
Source: Influencer marketing hub, 2017
$700M
$1.2B
$1.7B
201820172016
3.6M
6.8M
12.9M
24.2M
201720162015 2018
The number of postings on ‘influencer marketing’ in SNS platforms increased
by 358% in the last three years, between 2015 to 2017, and it is expected to
double between 2017 and 2018. On Instagram, the size of ‘influencer marketing’
is expected to reach $1.7 billion in 2018, a 240% increase from 2016.
[fig.3-4-3] [fig.3-4-4]
[fig.3-4-3]
[fig.3-4-2]
[fig.3-4-4]
[fig.3-4-2]
[Monthly Searches]
10
Influencer Marketing
Organic Search
Paid Search
Display Advertising
Affiliate Marketing
Others
22
22
19
10
10
2
16
Most Cost-effective Online Customer Acquisition Method (%)
Source: Tomoson, 2017
[fig.3-4-5]
[fig.3-4-5]
65421$0 3 131211987 10 201918161514 17
7%
14%
21%
[fig.3-4-6]
Revenue per Dollar Spenton Influencer Marketing
Source: Tomoson, 2017
[fig.3-4-6]
3. Market Overview
Influencer marketing is the most cost efficient and effective form of user
acquisition.
11
Advertiser ReviewerPaid and/or Misleading
Guided Reviews
Review Request
4. Problem
4. Problem
The prevalence of advertisers’ direct and indirect compensation for guided and
paid reviews leads to an environment of suspicion of the reviews and information
distortion, rendering most reviews on existing commerce platforms ineffective.
There is a vicious cycle of increased skepticism as time passes, leading to even
more bombardment of such ineffective marketing efforts.
4-1.
Lack of Review Reliability
52% 30%of people like a company more when they see a response to a negative review
of people do not trust a product with only recommended review
Products with high ratings
in 500 reviews
in 5,000reviews
Products with low ratings Consumers prefer products
with more reviews regardless review rating
Source: https://www.reevoo.com/en/ratings-and-reviews
Consumers are highly sensitive and suspicious of paid sponsorships and paid
reviews. Advertisers are often paying for such ineffective marketing campaigns
that continues to degrade the ecosystem of referral programs.
According to Reevoo 2016 research findings, honest reviews increase brand
image and purchase conversion rate than paid reviews.
Source: Association for Psychological Science, 2017
Review Reliabilty by Review Exposure
[fig.4-1-1]
[fig.4-1-1]
12
AS IS
Advertiser decides rewards
Reviewer
RewardDecision
Advertiser
Reviewer
Reviewer Reviewer
REVIEW REVIEW
REVIEW
REVIEW
4. Problem
4-2.
Lack of Compensation
Transparency
The current models have the manufacturer or the advertiser at the center
of the model, compensating the reviewer or a commerce platform based on
their marketing budget for the guided or paid reviews. But only that advertiser
knows how everyone is compensated and the ecosystem is usually opaque to
everyone else.
13
4-3-1. Cost of Influencer Marketing (supply<demand)
Current models reward only a few active influencers whose reviews are
becoming increasingly less effective, as most consumers have wised up to
such sponsored reviews. Most honest and well-intentioned reviewers are not
motivated nor properly incentivized to participate in this current model.
Advertiser’s demand for influencer marketing is increasing (2016’s IAV, PwC,
IHS data) while supply of influencer with a large number of followers is limited.
This raises cost of influencer’s review post but does not guarantee advertising
effect, which lowers cost effectiveness and creates vicious circulation.
[fig.4-3-1A]
Influencer Classification Based on Follower Size
Source: influence.co, 2017
[fig.4-3-1A]
Influencer
4-3.
Concentrated Reward
2.4%
75K~100K
50K~75K
25K~50K
5K~10K
2K~5K
<2,000 10K~25K
1M+250K~500K
150K~250K
100K~150K
500K~1M
15.1%
7.4%
3.3%
$124 $137$93
$133$185 $208
$258
$395 $400
$690 $684
$1,405Average Sponsored Instagram Post Rates by Follower Count
Source: influence.co, 2017
[fig.4-3-1B]
Engagement Rate per Follower
Source: Adweek, 2016
[fig.4-3-1B]
4. Problem
14
4-3-2. Decline of User (influencer) Influence: Platform Governance
According to Adgo in 2017, Facebook’s organic reach had been continuously
declining. Decline of organic reach suggests decline of user influence on
platforms such as Facebook.
Facebook Page Organic Reach
Source: Adgo, 2017
[fig.4-3-2]
5%
15%
20%
0%
10%
Jun.2016
Mar.2015
Mar.2014
Nov.2013
Sep.2013
Feb.2012
Dec,2013
[fig.4-3-2]
There is an inverse proportionality of
users with larger number of followers
and their influence, which is measured
by the followers’ engagement rate
(ER). Simply put: the more followers
you have the less engagement you
have with your followers.
Advertisers’ expectation increases in
proportion to the number of followers
of a particular influencer., but ER
does not meet that expectation. In
most cases, the difference between
the advertiser’s desired effect and
the actual advertising effect is over
90%, creating a toxic environment
Engagement Rate per Follower
Source: Adweek, 2016
[fig.4-3-3]
10,000~99,999
1,000~9,999
Under1,000
Over100,000
15.1%
7.4%
3.3%2.4%
[fig.4-3-3]
of advertiser dissatisfaction and user experience degradation. Currently, a
vicious cycle is building in which advertisers try to compensate for this loss
of advertising efficacy with even more such ineffective influencer marketing,
creating even more distrust by the consumer community. The culprit for this
4. Problem
15
4. Problem
unhealthy ecosystem are the SNS or the commerce platforms that monopolize
and control the flow of information. The opaque and centralized compensation
system that rewards a few influencers with impressive follower numbers that
are ineffective and often uninformative result in misinformation and often
untrue reviews or endorsements that takes advantage of the community’s
trust of the influencer. This oligopolistic practices of the social networks and
commerce platforms undermine the basic tenants of the open and engaged
content and consumer community that wants honest and helpful information
from content providers.
16
4. Problem
4-4.
Limited Review Content
Utility
Currently, review contents are written and saved for specific commerce or
social networks. This creates a very linear information flow controlled, limited
and potentially even terminated by the commerce or social network. The
reviewer has very little control of the content that he/she generated and is
at the complete mercy of the platforms’ business interests. Once a review
content is created, the content itself as well as its reach and usage is entirely
under the platforms’ controls. And no new or other platform or community can
benefit from that existing review content. Also, if the existing networks where
reviews are stored change its policies or practices, all existing content can be
repositioned, limited or even vanish without the review generator’s input or
permission.
Reviewer
MembershipTermination
Non-member service
ServiceClose
REVIEW REVIEW
REVIEW REVIEW
REVIEW
ServicePlatform
REVIEW
ServicePlatform
ServicePlatform
ServicePlatform
ServicePlatform
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5. Solution
5. Solution
LITER provides the platform that produces honest and constructive reviews
based on real user experiences. There is guidance or compensation from the
manufacturer or advertiser.
5-1.
Review Reliability
Advertiser Reviewer
Reviewer
Paid and/or Misleading Guided Reviews
AS IS
Advertiser’s direct/indirect compensation to reviewer (review generator)
TO BE
Advertiser sends review request to platform,and platform compensates reviewer (review generator)
Platform
Send ReviewRequest
TargetMatching
(Review Guide X)
(Algorithm)Advertiser
Review Request
In reviewer selection process, LITER will provide 2 options that advertisers
can choose from. One is a ‘reversed auction’, which allows all users to apply
for review activities. The other is LITER AI algorithm, which selects reviewers
categorized by gender, age, location, and interest upon advertisers’ request.
These matching processes will increase review reliability as well as maximize of
advertisers’s ROI.
As direct solutions for the problems listed before, LITER will construct the blockchain enabled and incentivized review
and reward platform. The platform enables all consumers become reviewers and reviewers to conveniently write
unbiased reviews on their choice of products. Users will engage in the reviews and LITER will reward reviewers and
users according to the level of review responses.
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TO BE
Users decide rewards
Reviewer Reviewer
Reviewer ReviewerRewardDecision
REVIEW REVIEW
REVIEW REVIEW
AS IS
Advertiser decides rewards
Reviewer
RewardDecision
Advertiser
Reviewer
Reviewer Reviewer
REVIEW REVIEW
REVIEW
REVIEW
LITER will reward reviewers based on the community’s responses and
appreciation. The more useful the reviews are, with more people “like” the
more the review generator will be compensated. The community, not the
manufacturer or the advertisers, decides how the reviewers are paid. This
democritises the system and also saves expense for the advertiser.
5-2.
Compensation Transparency
5. Solution
As the process of advertisers spending advertising cost based on the actual
advertising effect within the budget is recorded in the blockchain, the process
and administration of compensation will be transparent.
Currently, most advertisers pay influencer according to the number of
followers, hoping that there is natural exposure to such followers. LITER will
change the compensation system from that passive exposure system to that of
engagement and activity of the reviewer and his/her follower, proportional to
the number of actions such as “like” or “rating”. Reviewers with 50 followers,
as long as those followers are all engaging, can be better compensated than
those with a thousand followers who only reads, but doesn’t act on the review
posts. This ensures that all reviewers are rewarded fairly, proportionally, and
transparently so that anyone with an opinion will be motivated to provide and
disseminate useful information to others in the community.
5-3.
Decentralized Reward
19
AS IS
Compensation based on the number of followers(prediction of potential passive exposure)
TO BE
Compensation based on Engagement(actions that propagate contents such as “like”
or “rating”)
5. Solution
20
5. Solution
Engagement is the central factor in determining LITER’s compensation
structure with its three vectors: like, rating, and abuse reporting. Each vector is
weighed differently and reward will be calculated according to the community’s
evaluation of the review content.
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LITER will not be linked to any specific service platform, but will provide a very
fluid, transferable review content platform that any existing platform can use
and benefit from.
LITER will store all review content in the blockchain in a decentralized manner
so that the community can access and propagate or post any and all useful
content on any platform, LITER or otherwise, with no worries of the content
ever being limited, terminated or relegated to oblivion; thereby increasing the
value of every review content. By interlocking ID hashes, users will be able to
access and manage their own content, historical or current, regardless of what
any specific platform does with the content.
5-4.
Review Content Preservation
(Blockchain Technology)
5. Solution
LITER Ecosystem
*Implementation of system may be changed or updated according to technical environment
REVIEW
REVIEW
REVIEW
REVIEW REVIEW
REVIEW
ServicePlatform
REVIEW
ServicePlatform
REVIEW
ServicePlatform
BlockChain
Reviewer
MembershipTermination
ServiceClose
22
6. What We Already Have
0.8L is a global review platform that connects advertisers and consumers
directly.
In the past 3 years, 0.8L has built a global review platform and provided services
to 7 countries (beta services to 4 countries.)
• 3,000 brands with 85% satisfaction rate
• 540,000 reviewers, influencers & micro-influencers
• 620,000 authentic, user-driven reviews
2015
07 0.8L Korea Web Launch
10 Patent Registration
� Promotional campaigns and sales management based on users’ SNS activities
� Products’ campaign management based on user experience (UX) on the global platform
� Campaign management through algorithm that selects UX applicants on SNS
12 0.8L China Web Launch
2016
06 0.8L USA Web Launch
10 0.8L Korea App Launch
2017
03 0.8L Korea TRY paid service 0.8L USA and China TRY NOW open
11 0.8L USA and China App Launch
2018
03 0.8L Vietnam Web Launch
6. What We Already Have
23
Building on resources from our partner, LITER will
democratize and decentralize the production and
consumption of consumers’ honest reviews that is very
sought after, but seldom available; thereby reducing reliance
on ineffective untrustworthy “influencer marketing.”
Reviewers Reviews
Reviewers
540KReviewsAdvertisers
3,000 620K
07 09 11 01 03 05 07 09 11 01 03
2016 2017 2018
0 0
07 09 11 01 03 05 07 09 11 01 03
2016 2017 2018
6. What We’ve Already Done
700,000
500,000
300,000
100,000
800,000
600,000
400,000
200,000
7-1.
Service Mechanism
24
This is the service mechanism of LITER ecosystem.
Reviewer(Review Generator)
Advertiser(Review Solicitor)
User(Review Consumer)
AllianceSystem
Contents System
Blockchain
Review Request REVIEW User
Response
Advertiser-requested review generation
(Advertising Review Campaign)
REVIEW
Reviewer’s voluntary review generation
7. Ecosystem
7. Ecosystem
Reviewer(Review Generator)
Contents System
Blockchain
UserResponse
User(Review Consumer)
RewardSystem
Reward Reward
RewardSystem
Reward Reward
7. Ecosystem
7-2-3. Advertisers
Brands, companies, or individuals that want reviews generated for their products
and services. Advertisers would pay fiat currency to purchase LITER COIN that
would kick off a review campaign for either marketing or purchasing purposes
or both. Those LITER COINS would be converted to LITER CUBES that will
be rewarded to Reviewers and Users who evaluate and/or further comment
through “like”, “rating”, or other rewarding activities on the LITER ecosystem.
7-2-4. Reviewers (review generators)
Individuals who evaluate Advertisers’ products or services through written ed-
itorial, image or video contents. These reviewers will be rewarded with LITER
CUBES based on the reviews’ popularity and usefulness, as voted by the User
7-2.
Ecosystem Components
and Participants
7-2-1. LITER CUBE
LITER CUBE is the reward and activity unit that is issued for new review
generation and responses to those reviews. This unit of “currency” or “point
system” is used only within the LITER ecosystem as the intra-platform trading
unit.
LITER CUBE will be rewarded to reviewers and users in the LITER ecosystem
according to the level of their contribution for development of the ecosystem.
For further details regarding LITER CUBE issuance, please refer to 8-2 in this
white paper.
25
7-2-2. LITER COIN
LITER COIN is a tradeable unit coin that converts between fiat money into
LITER CUBE and vice versa. LITER COIN is the conduit between the “outside
world” such as first time advertisers and the LITER Reviewers and Users: an
advertiser would purchase LITER COINS from platforms and exchanges and
convert them into LITER CUBES which will be used for all LITER ecosystem
exchanges. When LITER CUBE is converted back to LITER COIN(and into the
fiat world), nominal fees, conversion minimum, and time restrictions, will be
applied. Simply stated: LITER CUBE is an activity unit whereas LITER COIN is a
purchase unit.
26
7. Ecosystem
£$
₩
€LITER COINLITER
CUBE
7-2-7. Reviews
Review contents include all written editorials, images or videos generated
by Reviewers that help Users in the community become better informed
consumers. While LITER will become the central platform for these contents,
any and all useful references, anecdotes, links, hashtags are welcome. All helpful
information will be preserved in a decentralized, easily accessible blockchain
that is designed to provide maximum utility to the User community. And the
User community decides how useful or informative the Reviews are, rather
than the Advertisers, ensuring that the information provided is unbiased and
truthful in its intent.
7-2-6. LITER PATRON (owners of LITER CUBE)
Any participant such as Reviewers, Users or Advertisers who possesses
LITER CUBES. Among all LITER PATRONS, the top 1% Patrons become LITER
COLLABORATORS and 0.1% of all LITER CUBE PATRONS become LITER
MASTERS. LITER COLLABORATORS and LITER MASTERS are eligible to various
benefits and additional rewards in the LITER ecosystem.
7-2-5. Users (review consumers)
Individuals in the community who searches for information on products and
services. Users can respond to reviews through activites such as “like” or
“rating” or “abuse reporting” and be rewarded through these “voting” activities.
So a very useful review that has a large following will result in more LITER
CUBES being issued to both the Reviewer and the Users.
community. The more insightful and helpful the reviews, the more they will
be rewarded. The amount of reward is calculated algorithmically by Users’
responses.
27
7. EcoSystem
7-2-8. LITER Platform’s Primary Composition Systems
7-2-9. Alliances
• Alliance System: The system that applies advertising campaign requests,
controls campaigns conditions, and executes the campaigns.
• Reward System: The system that measures the value of generated reviews
and their responses. There are three vectors considered in the Reward
System: like, rating, and abuse reporting. With these data, reward system
rewards Reviewers and Users with LITER CUBE in a algorithmic, fair and
transparent system.
• Contents System: The system that preserves and manages contents data.
Review contents will be saved in a decentralized manner and users will be
able to search and manage their own contents within the LITER blockchain
with ID hashes.
For indigenous growth of LITER ecosystem, LITER platform should provide an
environment that Advertisers, Reviewers and Users are able to enthusiastically
engage in the activities. As the LITER ecosystem grows, the number of alliances
that desire LITER services will increase. In the expanded LITER ecosystem,
Reviewers and Users will benefit more from the various services and products
offered.
28
7. EcoSystem
The LITER ecosystem will utilize the existing user-base of its parent company,
0.8Liter, with its 3,000 advertisers, 540,000 user-base and 620,000 existing
reviews. LITER will benefit from the existing organic activities of 0.8Liter as its
first platform partner.
LITER will provide a fair and transparent mechanism for Reviewers to be
rewarded by the User community for their time and effort by issuing LITER
CUBES. Advertisers provide these LITER CUBES through the purchase of LITER
COINS (which are converted to CUBES) to generate interest and incentivize
Reviewers to evaluate their products and services. However, because the
Reviews are evaluated by the Users and not the Advertisers, the Reviews will
be unbiased since the User community would not “like” Advertiser sponsored
reviews.
LITER is designed to attract only those Advertisers with desirable products and
services that would be well received by the Reviewer and the User community.
However, there is value in knowing the strengths as well as weaknesses of any
products or services, so the “focus group” created on LITER can be a valuable
asset to Advertisers as well.
As mentioned in section 3, the preference of digital marketing is only growing
with influencer and referral marketing taking center stage in the world of social
media. With e-Commerce also taking an increasingly bigger share of global
retail purchases, consumers will increasingly rely on unbiased review content
while making their purchasing decisions. For both brand marketing as well
as increasing purchasing conversion rates, the LITER platform will provide the
most effective venue for merchants and advertisers in the shifting consumer
and marketing industries.
7-3.
Ecosystem Flow
29
7. EcoSystem
AS IS TO BE
REVIEW REVIEW REVIEW
⇠Advertiser Advertiser
Review Request
⇠
CONTENTS SYSTEM
REWARD SYSTEMALLIANCE SYSTEM
LITER PLATFORM
Reviewer
ReviewerCashReserve
· Purchase Conversion
Rate Increase· Convenient Review Writing
· Casheable Rewards
· Various Purchase Benefits
within LITER Ecosystem
Consumption (product/service use)
· Cash Reserve or Discount Benefit
· Purchase Conversion
Rate Increase
· Effective Marketing
· Enhance Brand Image
30
Application Layer: This layer will provide various functions in LITER ecosystem
that Users and Alliances can utilize. Review generation, responses, and
advertising campaign requests are executed through the application layer.
Service Layer: This layer will provide services from the application layer in the
form of APIs. It stores the generated reviews in the contents layer and sends
the stored information back to the block chain. It also sends the user responses
to the smart contract in the block chain. In addition, it provides the information
recorded in the block chain to the application layer. The service layer and the
content layer become the “workhorses” of the ecosystem, functioning between
the interfacing application layer and the deeper level smart contract layer.
Smart Contract Layer: This layer enables functions that service layer provides
to applications in the block chain. It provides transparency to the functions
that require trust and verification. For example, the compensation algorithms
for review producers, storage of response and compensation, and execution
of advertising campaigns and rewards are handled in this layer, ensuring the
results promised to Users in the service and Reviewers in the LITER ecosystem.
LITER Blockchain Layer: This is the core layer of LITER blockchain. This
layer will record all LITER Patrons’ activities including responses, and manage
7-4.
Technology-Ecosystem
7. EcoSystem
· Review Generation
· Responses
· Campaign Application
· Campaign Request
· Engagement Service
· Review Service
· Campaign Service
· Campaign Execution
· Reward Caculation
(evaluation/execution)
Application Layer
Contents Layer Service Layer
Smart Contract Layer
Blockchain Layer
31
7. EcoSystem
everything related to LITER CUBE and LITER COIN or any other crypto currency
that may be involved on the LITER ecosystem in the future. This layer will
be constructed to match LITER ecosystem’s characteristics by comparing and
analyzing concepts and hypotheses of smart contract based blockchains such
as Ethereum or EOS.
Contents Blockchain Layer: This layer includes all contents data created in the
LITER blockchain. Storage of review contents created with Markup and data
layer in a video format will be permanently secured and stored, in a decentralized
manner, which will guarantee data persistency as well as infrastructure
related(construction or maintenance) efficiency. At first, we will use IPFS that
is proven by d.tube but will also consider appointing nodes for storage by the
importance of each layer after data layer specification, or rewarding main nodes
(as important data storage centers) with LITER CUBE. Upon contents storage,
users will be able to search and manage their own contents generated within
the LITER blockchain with ID hashes.
IPFS(InterPlanetary File System)
d.tube
A peer-to-peer dis-tributed file system that seeks to connect all computing devices with the same system of files.
Source: www.ipfs.io
The first decentralized video platform that is built on top of the STEEM blockchain and the IPFS peer-to-peer network.
Source: https://about.d.tube
8. Token Mechanism
8. Token Mechanism
LTR : LITER COIN
LCB : LITER CUBE
LITER B2B CENTER
ALLIANCE SYSTEM
REWARD SYSTEM
Exchange(external)
LITER CUBE(Advertising
campaign reviews)
LITER CUBE(Voluntary reviews)
Conversion Fee 10%
Contribution Fee %
LITERECO-Resource
LITER PLATFORM
Refund incomplete marketing campaigns
• LITER B2B CENTER: Converts fiat money to LITER COIN for the convenience of advertisers requesting marketing campaigns.
• LITER ECO-RESOURCE: LITER ecosystem development center. Conversion fee and contribution fee will be collected and reserved in LITER ECO-RESERVE as a source of additional LITER CUBE issuance.
- Conversion Fee: 10% from LITER CUBE to LITER COIN - Contribution Fee: A portion of Advertisers’ LITER CUBE reward on advertising campaigns.
33
8. Token Mechanism
Advertisers
• Conversion from advertising campaign:
Advertisers will purchase LITER COINS to initiate the review process.
Those COINS will be converted to LITER CUBE to be used within the
LITER ecosystem.
Reviewers and Users
• All registered Reviewers and Users will be issued CUBES and
become LITER PATRONS upon registration.
• CUBES issued for responses of review contents: Engagement
responses will be valued in three vectors:
1. Like
2. Rating on a scale system
3. Abuse reporting
Each vector will be measured and CUBES will be issued algorithmically.
8-1.
LITER COIN Issuance
& Consumption Principles
LITER COIN looks to maximize utility and maintain stability by:
1. Sustain and stabilize monetary value of the COIN
2. Enhance the value of the interactions in the LITER ecosystem
3. Increase market size and production
4. Provide financial motivation for Advertisers and Reviewers to be active
5. Maximize service value among alliances
8-2
LITER CUBE Issuance
8-3.
LITER CUBE Maximization
All LITER PATRONS will be holding CUBES that have inherent value, as they can
be converted back to LITER COINS, which can be converted to fiat currency.
By utilizing LITER CUBES, Advertisers can provide the most effective marketing
campaigns available: actual “word of mouth” endorsement from a community
who are interested in and have reviewed the product of the service.
LITER PATRONS can enhance the value of their CUBES by becoming an elite
class of PATRONS who actively participate at least 30 times a month. The top
1% of the most active PATRONS become LITER COLLABORATORS and the
most active PATRONS who are in the 0.1% percentile become LITER MASTERS,
also benefit from various services within the ecosystem.
34
8. Token Mechanism
LITER MASTERS and LITER COLLABORATORS are entitled to participate in
Advertising Review Campaigns and gain profits from copyright sales of their
own review contents. In addition, discount on LITER CUBE to LITER COIN
conversion fees will be offered. All benefits are provided differently according
to the title of LITER class and will be adjusted as the service environment
changes.
Over time, the more activities influencers and micro-influencers will holdmore
LITER CUBES. The incentive system is designed to invite more activity by all
LITER PATRONS, but will naturally preferentially reward the most active users
in the community.
8-4.
Conversion between LITER
CUBE and LITER COIN
LITER CUBES are rewarded for all qualified review generation and responses.
The amount of LITER CUBES already held by the PATRON will determine the
level of benefits that users can have within the LITER ecosystem. LITER CUBES
need to be converted into LITER COINS in order to use products and services in
LITER ecosystem or to convert to fiat money. To ensure stability of the system,
there will be a nominal fee and a wait-time (LOCK) upon conversion request
from CUBE to COIN. To be clear: CUBES are units of accumulation from the
Review and response activities, and not tradeable or sellable except through
their conversion into COINS.
BENEFIT
LITER MASTER
LITER COLLABORATOR
LITERPATRON
LITERCUBE HOLDERS AMOUNT
35
8. Token Mechanism
8-5.
LITER COIN Consumption
Advertisers
• Modification or cancellation:
- Percentage of amount for advertising campaign request will be applied
as penalty.
• Access to review’s copyright:
Access to copyrights on a single review or all reviews on a single product
cost differently, but this will be further discussed along with yearly unlimited
usage fee for all reviews’ copyrights.
• Conversion from advertising
review campaign
• Upon registration
• Sum of calculated review responses
for 72 hour period.
• Upon registration
• Upon responses
(within 72hrs)
• Upon campaign modification/
cancellation
• Access to review copyright
• Access to product or service offered
within LITER ecosystem
• Access to product or
service offered within LITER
ecosystem
LITER CUBE
Issuance
LITER COIN
Consumption
Advertisers Reviewers Users
• Upon advertiser’s campaign review responses, advertiser’s LITER CUBE will be provided in addition to LITER CUBE reward on voluntary review
responses.
• Upon reviewer’s voluntary review responses, LITER CUBE will be rewarded.
36
9. Long Term Plan
9. Long Term Plan
LITER will expand the ecosystem by collaborating with merchants and service
providers in various categories who need honest customer feedback and
insights as well as bring customers interested in their products and services. It
is LITER’s intention to help promote the best of class products and services by
providing a platform that creates communities interested in a genre, specific
product or service, and those who are experts in certain categories. All
participants in this community may benefit; the merchants and advertisers, the
Reviewers and the consumers.
LITER ecosystem will expand by building alliances in diverse consumer categories
and allow consumers to access products and services through LITER COINS.
Merchants in the alliance will accept LITER COINS as payment as they would
a credit card or other fiat payment. These COINS are converted from LITER
CUBEs obtained from review activities described in section 8. By functioning as
fiat currency with alliance partners, LITER COINS will garner more interest from
companies who wish to bolster their marketing as well as sales effort. 08Liter’s
existing international products along with LITER’s new international expansion
will increase the COIN’s profile and usage among existing Participants in the
LITER ecosystem and attract new Advertisers and alliance partners. And COINS
will function seamlessly as international currency without exchange fees for
the international transactions that are already happening on 08Liter which will
increase in volume when LITER is launched.
9-1. Platform (Alliance)
LITER
Platform
Fashion
Life
Service
etc
Food
Beauty
37
9. Long Term Plan
LITER is structured to mitigate Advertisers influence on Reviewers; thereby
enhance objectivity of the Review content. And because of the transparency
of the ecosystem, the Reviewer is incentivized to be as honest and helpful as
possible to the Users in the community. So the Users are, in effect, the ultimate
arbitors of what is determined to be the most effective usage of COINS (which
are converted into COINS) for the Advertiser and who decide which Reviews
get compensated. The LITER ecosystem is, therefore, truly “User-driven”.
With this as a background, LITER will provide a unique search tool that focuses
on user-generated review, which is very antithetical to most existing search
tools in the market, which are mostly advertiser-focused search engines.
LITER’s search tools will collect and collate the highest rated (by Users) reviews
for products and services. There will be no sponsorships or advertiser-driven
editorials like those currently available in the marketplace.
9-2.
Search Service
USA Korea
Japan
Europe
China
Singapore
Indonesia
Thailand
Vietnam
Malaysia
LITER
38
10. Technical Challenges
10. Technical Challenges
The method of collection and storage of content is central to the stability and
accessability of the LITER ecosystem.
It is necessary to test and verify the effectiveness of contents storage using
decentralized file system such as IPFS (InterPlanetary File System) and
interlocking on LITER blockchain without performance degradation, which
remains a challenge.
To preserve contents in a decentralized but secure manner, LITER will examine
a few interlocks on the decentralized blockchain. With IPFS, database of data
referenced to core layer and contents layer hashes must be sustained. Use of
IPFS not only secures data’s decentralized characteristic, but it also promises
permanent preservation through IPFS hashes.
IPFS?
InterPlanetary File System (or IPFS) is a protocol designed to create a
permanent and decentralized method of storing and sharing files. It is a content-
addressable, peer-to-peer hypermedia distribution protocol. Nodes in the IPFS
network from a distributed file system.
IPFS addresses pieces of content by a unique “hash.” IPFS enables the creation
of fully decentralized technologies that can connect all computing devices
within the same file system. IPFS is similar to how a bit torrent swarm exchanges
information, in a decentralized yet organized way.
10-1.
Contents Related
It is essential to develop effective indexing and ranking policy in order to provide
numerous contents nodes within the blockchain. Also, it is necessary to discuss
about the plan of building a decentralized blockchain enabled search engine.
10-2.
Search Related
In order for advertisers to receive transparent performances on desired
advertising campaign within the blockchain, smart contract must be applied.
Therefore, development of policies and tools that frees from review abuse
problems is much needed that mitigate abuse of the reward policies is need.
10-3.
Advertising Review
Campaign Related
39
10. Technical Challenges
In order for LITER CUBE to be a stable exchange unit on the platform, certain
level of volatility must be addressed. For this, LITER is considering 3 models of
Oracle.
1. Receiving reliable data source
2. Selecting median value of data source supplier
3. Schilling point mechanism
10-5.
Price Stabilization Policy
Considering “rights to be forgotten” issue that has been controversial online
regarding blockchain’s permanence, operation of volatile nodes needs to be
discussed or evaluated. Along with conderation of volatile nodes operation,
penalty against indiscreet anonymity and volatile nodes that may harm the
LITER ecosystem must be granted.
10-4.
Volatile Nodes Operating
Policy
40
11. Token Allocation
11. Token & Fund Allocation
Fund Allocation
PLATFORM R&D
OPERATION
MARKETING
BUSINESS DEVELOPMENT
RESERVE
15%
10%
25%
20%
30%
Token Allocation
ECOSYSTEM BUILDING
RESERVE
TOKEN SALE
TEAM & ADVISOR (1 year)
FOUNDER (1 year)
BUSINESS DEVELOPMENT
30%
10%
10%
10%
10%
30%
41
12. Roadmap
12. Roadmap
2017
03 · 0.8L Korea TRY Paid Service
· 0.8L USA , China TRY NOW Open
11 · 0.8L USA, China App Launch
· 0.8L Korea, USA, China BUY NOW Open
2018
2019
2020
Q2
Q1
Q1
LITER Private Sale
LITER Alliance Buildout
LITER Mainnet
Q3
Q4
Q2
LITER Service Launch, Testnet
LITER Exchange Listing
Blockchain Enabled and Incentivized Review
and Reward Platform
42
13. Team
• Animoca Corp. Chairman
• Daum Corp. Director
• Lycos, Inc CEO
• NASDAQ listed China.com CFO
• Softbank
• Stanford Univ. Economics.
David Kim
Founder
• 0.8L CEO
• EduTech BtoB No.1 Brown Edu CEO
• KOSDAQ listed Ever Resources Inc.
CEO
• KEPG CEO
Jacob Choi
Founder
Founder
Advisor
13. Team
• Principle Capital, Shanghai Partner
• Clayton, Dubilier & Rice(CD&R)
Executive Director
• McKinsey & Company Hong Kong/
Seoul Office Partner
• Head of Asia-Pacific Private
Equity Practice, McKinsey &
Company
• Harvard Law School JD
• Stanford Univ. Industrial
Engineering, Economics Ph.D
James Ahn
Financial Advisor
• Michael Yang Capital Partners, L.P.
General Partner & CEO
• KORBIT, BITCOIN, ETHERUM, EOS
Early Investor
• Hanmi Bank (NASDAQ: HAFC) Board
• Stanford Institute of Economic Policy
Research (SIEPR) Advisory board
• mysimon.com, become.com
Founder & CEO
• UC Berkeley, MBA
• Colombia Univ. Computer Science MS
• UC Berkeley Electrical Engineering
and Computer Science
Michael Yang
Business Advisor
• Blockchain research and
development CHAIN LABS CEO
• e-motion CEO
• 2003 Korea Venture Business
Association Prime Minister Award
• 2002 KOSDAQ listed e-motio CEO
• Yellow Mobile COO
• Seoul National Univ. Industrial
Design, Technology Management,
Economics and Policy ME.
John Jung
Business Advisor
42
• ST INVICTUS PARTNERS
Hong Kong Executive Director
• BRV KOREA ADVISORS Partner
• KT Strategic Investment
Department Senior Vice President
• SoftBank Ventures Korea Vice
President & General Partner
• McKinsey & Company Seoul Office
Associate
• Stanford Univ. MBA
• Seoul National Univ. Business
Administration
Don Han
Financial Advisor
13. Team
• True Global Ventures, Partner
• Zeroth.AI, Partner
• Digital Leaders Ventures,
Board Member
• Outblaze, CEO
• Animoca Brands,
Director and Co-Founder
• Barunson, Executive Director
• Asian Youth Orchestra,
Board Member
Yat Siu
Business Advisor
• PAG, Founding Partner
• Pacific Alliance China Land, Founder
• Hong Kong-Vietnam Chamber of
Commerce, President
• VINACAPlTAL Vietnam President
• Deutches Haus Vietnam CEO
• State Univ. of Hamburg, MBA
Horst F. Geicke
Financial Advisor
• ZPER Co-founder, CSO
• Funda CEO
• Korea P2P Finance Associate
Vice Chairman
• Seoul National Univ. Electrical
Engineering
Sean Park
Business Advisor
43
Team
• Developer of high-availability
exchange engine based on
cryptography
• 08L CTO
• SK Communications
• KOREACENTER.com
•0.8L Development Team Leader
• KOLONBENIT
• TongYang Networks
Sun Park
CTO, 0.8L
Cola Kim
CTO, LITER
Wilson Baek
Team, R&D
• 0.8L GM
• e-motion Project Director
• Isobar Korea CEO
• CBT ecommerce AON, CEO
• ROK-EU Trading & Set-up Partne
• SK 11st
• Platform Consulting Group, NY
Gunn Kim Sue Lee
Team, Business Team, Business
Joen Cho
Team, Business
14. Team
43
14. Team
Jemma Yoon
Team, Developer
Lucy Na
Team, Product Designer
Ssong Lee
Team, Developer
Mylo Yoo
Team, Developer
Work Force
44
Disclaimer of Liability
This LITER White Paper is provided solely for the informational purpose.
This paper does not include all of the relevant facts on the information listed. Also, contents of this paper do
not imply any specifics of the contract. The sole purpose of this paper is to provide comprehensive information,
so that it can help potential users with overall analysis of our company and decision making when purchasing.
Materials herein do not constitute a prospectus or offer document of any sort and are not intended to constitute
an offer of securities or a solicitation for investment in any jurisdiction.
This White Paper is not constituted under the laws, regulatory requirements or rules of any jurisdiction.
LITER is not and will not be intended to constitute securities, digital currency, commodity, or any other kind of
financial instrument and have not been registered under relevant securities regulations, including the securities
laws of any jurisdiction in which a potential LITER holder is a resident
LITER COIN cannot be offered and distributed as well as resold in jurisdictions where transactions with digital
currencies are prohibited or in any other manner restricted by applicable laws.
LITER confers no other rights in any form, including but not limited to any ownership, distribution (including,
but not limited to, profit), redemption, liquidation, property (including all forms of intellectual property), or
other financial or legal rights, other than those specifically listed in this White Paper.
Certain statements, estimates and financial information contained herein, constitute forward-looking
statements or information. Such forward-looking statements or information involve known and unknown risks
and uncertainties, which may cause actual events or results to differ substantially from the estimates or the
results implied or stated in such forward-looking statements.
In case of purchasing, users should acknowledge that LITER is not to be understood, interpreted, classified, or
treated as following;
i. Any other kind of currency other than crypto currency
ii. Debentures, stocks or shares issued by any persons or entity, rights, options or derivatives in respect
of such debentures, stocks, or shares
iii. Collective investment scheme unit
iv. Business trust unit
v. Derivatives unit in a business trust or
vi. Any other security or class of securities
This White Paper is a draft without legal review and bears no legal responsibility. This White Paper may be
modified and changed, and we do not inform separately when modification or changes occur. In every updates,
we will try our best to keep accuracy of the data provided in this White Paper.
This White Paper does not constitute any personal, legal, and financial advice. We strongly advise you contact legal and
financial professionals for advices.
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End of Document