The KARMA project aims to be a social network where users are incentivized “to do good in the world”. Their native token called KARMA is used as a reward mechanism for users who decide to do so. KARMA works in a similar way to how the STEEM blockchain functions, where content creators receive tokens when someone up-votes their post.
On the KARMA social media platform, users will be able to up-vote other users’ posts similar to a “like” on conventional social media platforms as Facebook. But up-votes on KARMA are not only likes. When up-voting a post, a certain amount of newly created KARMA is allocated to the content creator from the reward pool. A post can also be downvoted, this is a way to counter posts and users attempting to game the system. When a post is downvoted, a portion of the pay-out for that post will be subtracted from the total.
The initial circulating supply of KARMA is set at 9,469,148,945 KARMA but the amount will then be inflated once the platform is launched. 70% of the inflated KARMA supply will be dedicated to content creation. The ratio at which KARMA tokens will be paid out to content creators will be 95% to video posts and 5% to photo posts. The other 30% of the inflated KARMA tokens will be allocated for “engagement rewards”, to the “KARMA platform development pool” and to token holders staking their KARMA tokens.
KARMA didn’t hold an ICO as KARMA tokens were “fairdropped” to EOS holders. Where an airdrop “drops” a corresponding number of tokens depending on the amount of EOS a certain account holds, a fairdrop does the same but caps the distribution of tokens to larger EOS accounts. In the case of KARMA, the cap was set at 250,000 EOS. So even if an account had more than 250,000 EOS, the account will not receive more KARMA tokens. The tokens that were not distributed were burned by the KARMA team.
The KARMA team hopes to achieve cryptocurrency mass adoption by mixing a user-friendly interface and easy to understand Web 3.0 social media application with a tokenized reward system to encourage good behaviour on the platform. Ultimately, the KARMA website and application will function like the STEEM blockchain, with the difference that KARMA is focused on content where users show they are spreading good to other people on the planet.
