Overview of Loud: An experiment in a Decentralization attention market that rewards speakers with transaction fees.

Original author: @0x_ultra

Compiled by: Zen, PANews

TL;DR

Loud is an experiment on the relationship between attention and value. $LOUD tokens have no intrinsic value on their own, and each transaction incurs a fee, which is used as a weekly marketing budget to reward the top 25 users who can best increase Loud's mind share. Distribute using @KaitoAI of Mindshare data, which is one of the most efficient incentives out there.

This is not a revolutionary paper on the attention mechanism in neural networks; rather, it is an experiment on the purest attention market. This experiment will run indefinitely and will not be subject to human intervention.

Inspiration

We often talk about the attention economy in Web3, and the platform built by Kaito AI is essentially a system that allows everyone to participate in attention trading, thus accelerating the development of the entire industry. In this process, it has also created one of the most optimal proof-of-work incentive mechanisms in history: a reward mechanism based on "mindshare." This Web3 primitive allows project parties to achieve the highest possible output for every dollar invested: creating a reward pool that people willing to contribute labor can compete for. This is the first piece of the puzzle.

The second part is inspired by the successful practice of the Web3 startup platform Believe: through transaction volume and fees, establish a long-term model of binding the interests of speculators and creators, so as to feed back the continuous creation of creators. In fact, the attention of the project is completely dependent on the output and maintenance of the creator, so the creator is the key driver to maintain the attention.

What would happen if we could integrate the advantages of these two models and create a new incentive mechanism that aligns all participants' motivations towards the goal of maximizing "mind share"?

What is ### Loud?

Loud is an experiment that distills the purest form of cryptographic primitives, removing the intermediate product forms.

It's time for the "3,3 Game Theory" to make a comeback.

(3,3)Game Theory is a concept proposed by Olympus DAO, originating from collaborative thinking in game theory, expressing that a "win-win" situation can be achieved when participants cooperate with each other. Its essence is an optimized version of the Prisoner's Dilemma, combining the token economic model of Web3, conveying the idea of "we win together" to the community in an understandable way.

In the game matrix, "3" represents that the operation has a positive effect on both the protocol and the participants; "-3" represents that it is harmful. Therefore:

• (3,3): You stake, I stake, everyone supports the protocol, the protocol grows, and we all gain the maximum → Win-win
• (-3,-3): You sell, I sell, the agreement collapses, we both lose → Mutual loss
• (3,-1): You stake, I sell, you bear the risk and I profit → One-sided game

Experimental Setup

We combine the best "Proof of Attention Work" model with a mechanism that allows creators to receive long-term fee-sharing profits. What would happen if we provided continuous rewards for those who spread a particular topic?

We will achieve the purest "3,3": a direct link between a speculator and a Key Opinion Leader (KOL) - no intermediary products needed at all. A sustainability attention engine subsidized by speculators and driven by KOLs.

The fees paid by traders will be directly channeled into a prize pool, which is shared among the "topic creators" who rank high on the attention leaderboard, incentivizing them to continuously generate greater dissemination and trading volume. You should have already seen the prototype of this flywheel mechanism.

• The goal of topic creators: To stimulate higher trading volume
• Trader's goal: To buy attention through fee subsidies

This is an experiment about whether attention is sufficient to confer value. If something receives enough attention, does its price rise accordingly? And vice versa?

actual operating mechanism

• The $LOUD token will be traded on the Solana chain through the liquidity pool of the Meteora liquidity platform, with a fee charged for each swap, priced in SOL.
• Users can gain "mind share" by posting content about Loud.
• The mindshare ranking mechanism provided by Kaito AI will objectively quantify contributions.
• Users can visit stayloud.io to check the leaderboard and register their wallets to receive rewards.
• Once a week, the transaction fees (in SOL) will be distributed to the top 25 users on the leaderboard according to their mindshare contribution ratio.
• 20% of the transaction fees will be rewarded to $KAITO stakers to promote the ecological flywheel and achieve interest binding.
• The flywheel mechanism will continue permanently without intervention.

Loud is the purest symbiotic model for speculators to subsidize KOLs.

Regarding the Top 25 Ranking Mechanism

Why set a limit of the top 25? As mentioned earlier, every fee paid by traders is essentially to "buy attention." Setting a smaller reward pool can motivate participants to work harder to compete for volume on behalf of token holders and traders. Even if one enters the top 25, there is no guarantee of security—reward distribution will be entirely based on the contribution ratio of mindshare, and participants must continuously maximize their dissemination efficiency and influence.

Note: Loud is an experimental project, and its mechanisms will be continuously optimized and adjusted based on community feedback, while adhering to the principle of minimal intervention. It aims to conduct the first large-scale experiment of a "decentralized attention-value system."

What will happen next?

The $LOUD token is about to be launched, with specific release time and distribution methods to be announced later. The experiment is about to begin, supported by technology from Holoworld AI.

This is a fully community-owned experimental project: no team allocated tokens, no hidden interests, completely fair launch, 100% transparency. How it will develop next entirely depends on the community.