What is Sugar?
Sugar was named in hopes that users would spot high-quality content the same way bees spot ripe flowers for pollen and nectar. It is the internal fuel of U Network and functions similar to Gas in Ethereum.
Sugar represents the right to use U Network and its related applications while functioning as the link between value, content and users within the network. It is also the primary value carrier of U Network.
What does it do?
At its core, Sugar will function as a means of valuation within U Network. The range of features it will support include:
- Voting — Upvoting and downvoting of posts assist in the curation and filtration process by removing low quality posts through downvote contamination and increasing the visibility of high quality posts through upvotes.
- Economics — Each vote would cost a given amount of Sugar to prevent bot cheating or spamming.
- Rewards — Creators of quality content gain rewards through a portion of the Sugar spent by explorers in upvoting the post. Early stage upvoters will also be rewarded with Sugar after the content has gained traction and acquired more votes. These processes are achieved through a redistribution mechanism put in place by U Network.
- Participation — U Network encourages continuous engagement and participation through the process of incentivizing daily sign-ins, sharing of content to other social media, friend referrals and taking part in dispute settlements. These activities reward points, and although they are not convertible, points can be used in voting which would in turn yield Sugar as a reward.
- Subscription Model — Experienced investors can cast predictions for future market movements which regular users would need to spend Sugar to view.
- Stakeholder Privileges — U Network users can purchase Sugar and lock it away to gain extra rights and privileges. Locked Sugar are added to extra voting power and increases the weight of each vote the user casts. This process of reducing the liquidity of Sugar aligns the interest of the stakeholders with the community and ensures users are more cautious when voting as it would be in their self-interest.
How do I get it?
There are two major sources of Sugar: purchasing and conversion. Purchased Sugar can be bought on exchanges. Sugar can also be converted from reward points received from completing community tasks.
Reward points are gradually released from the system’s “content-reward pool” with a limit on the daily release. This results in a competitive environment where all user-generated content must contend with each other for the limited daily rewards. On top of that, the “content-reward pool” will shrink yearly and induce a deflationary environment, thereby creating scarcity to increase value while providing early adopters with additional incentives.
