TL;DR

Moxie is an innovative system developed by Airstack that enhances your Farcaster experience by integrating incentives through holding Fan Tokens. These tokens unlock exclusive benefits and features for holders, creating a dynamic and rewarding environment.

Moxie rewards are closely tied to engagement on the Farcaster network, encouraging quality content and active participation. Fan Tokens operate on a bonding curve model, providing financial incentives and increasing in value with each new purchase. With daily claims, users can convert their engagement into MOXIE tokens, further participating in the Moxie ecosystem. As of this writing, MOXIE has not been officially launched but is expected to go live around the end of July 2024.

Moxie Ecosystem: A Real-World Comparison to Dave & Buster's

To better understand how the Moxie ecosystem works, let's loosely compare it to a familiar real-world example: Dave & Buster's.

At Dave & Buster's, you start by getting credits. You purchase these credits to play various games available at the arcade. You can play any game around Dave & Buster's as long as you have credits.

Similarly, in the Moxie ecosystem, you begin by engaging on Farcaster or buying in to Moxie. You create posts, reply to others, and participate in discussions. This engagement earns you Moxie tokens, which are the starting point of your journey in the Moxie ecosystem, much like purchasing credits at Dave & Buster's.

Next, you use your credits to play games at Dave & Buster's. Each game offers a different experience, and you choose which ones you want to play. As you play, you earn tickets based on your performance.

In the Moxie ecosystem, you use your Moxie to obtain Fan Tokens. These Fan Tokens represent special access or membership within any entity on Farcaster, such as an individual's account or a specific channel. Just like playing different games at Dave & Buster's, you have the freedom to choose which Fan Tokens you want to acquire.

As you play games at Dave & Buster's, you earn tickets. These tickets can be redeemed for various prizes or more credits to continue playing. The more you play and perform well, the more tickets you earn.

Similarly, by holding Fan Tokens, you earn rewards. These rewards include exclusive perks, access to private groups, and other benefits such as more Moxie.

At Dave & Buster's, you redeem your tickets for prizes or more credits. You can choose to cash in your tickets for different rewards, such as toys, gadgets, or more credits to keep playing games.

In the Moxie ecosystem, you can use your earned rewards to get more Fan Tokens. This continuous cycle of engagement and rewards enhances your experience on Farcaster. Just like redeeming tickets at Dave & Buster's, you can use your rewards to gain more benefits.

The Moxie ecosystem functions similarly to the Dave & Buster's experience. You start by engaging and earning credits, use those credits to access various features and benefits, and earn rewards that encourage further participation.

Table of Contents:

1. What is Moxie?

2. Moxie Rewards and Engagement

3. Understanding Fan Tokens

4. Moxie Bonding Curves for Fan Tokens

5. Daily Claims for Moxie Tokens

6. Using MOXIE Tokens for More Benefits

7. How to Use Fan Tokens as a Channel Owner

8. Rewarding Engagement w/ Your Fan Tokens

9. Payouts for Earned Rewards

10. How to Get Started with Moxie

What is Moxie?

Moxie is an innovative system designed to enhance your experience on Farcaster by integrating economic incentives. It allows you to engage and grow your audience by offering exclusive perks through a special type of token called Fan Tokens. These tokens create a dynamic and rewarding environment for both you and your followers.

Moxie was developed by Airstack, one of the leading developers in the Farcaster ecosystem creating tools and frameworks that enhance user interaction and engagement such as the Social Capital Score. With the introduction of Moxie, Airstack aims to provide a robust economic engine that empowers users and communities to thrive.

Moxie Rewards and Engagement

Moxie rewards are closely tied to engagement on the Farcaster network. Previously, Farcaster used a points system called "Not A Token" (NOTA) to reward community members and developers for their contributions. This system has now been integrated into Moxie, providing a seamless transition to a more comprehensive rewards mechanism.

Here’s how it works:

- Daily Engagement Rewards: Users earn tokens based on their daily engagement within the Farcaster network. These tokens can be claimed each day and converted into MOXIE tokens, providing a consistent and ongoing way to earn rewards for active participation. To see how your personal posts perform on Farcaster you can go to Airstack and take a look at each of your post's score.

- Quality Content: High-quality posts, replies, and interactions are rewarded with Moxie tokens. This encourages users to create valuable content and engage meaningfully with others on the platform.

- Developer Contributions: Developers who build valuable frames and applications on Farcaster are also rewarded. This incentivizes the creation of tools and features that enhance the overall user experience.

Understanding Fan Tokens

Fan Tokens are unique digital assets that represent membership or special access within any entity on Farcaster, such as an individual’s account, a specific channel, or even the entire network. When your followers hold these tokens, they unlock exclusive benefits and features that you, as the owner, provide and design.

Think of them as VIP passes that offer your most dedicated fans special treatment and additional content/access.

Fan Tokens can be tied to any entity on Farcaster. They operate on a bonding curve model, which means the price of the tokens increases with each new purchase. This structure creates an incentive for early participation and continuous engagement.

Benefits of Holding Fan Tokens

Exclusive Access: Holders of Fan Tokens can access special content, private groups, early releases, and more. This makes them feel valued and gives them a reason to hold onto their tokens.

Earning Mechanisms: Beyond access to gated content, Fan Tokens also offer financial incentives:

• Reward Sharing: A portion of all rewards earned by the entity accrues to the Fan Token smart contract, benefitting all token holders. For example, if a member earns rewards for high-quality posts, a percentage of these rewards is distributed among their Fan Token holders.

• Increased Token Value: As more people buy Fan Tokens, the value of existing tokens rises due to the bonding curve model, benefiting early adopters.

Fan Tokens create a robust and engaging ecosystem where both creators and supporters benefit from mutual success. They encourage continuous engagement, provide exclusive access, and offer financial incentives, making them a powerful tool for growing your presence on Farcaster.

Types of Fan Tokens

1. Member Fan Tokens: These allow access to features and benefits specific to the Member’s Fan Token holders. A portion of all rewards earned by the Member accrues to their Fan Token smart contract, benefitting all of their Fan Token holders.

2. Channel Fan Tokens: These allow access to features and benefits specific to the Channel’s Fan Token holders. A portion of all rewards earned by the Channel accrues to their Fan Token smart contract, benefitting all of their Fan Token holders.

3. Network Fan Tokens: These allow access to features and benefits specific to the Network-level Fan Token holders. A portion of all rewards earned by the Network accrues to the Fan Token smart contract, benefitting all of the Fan Token holders.

Keep in mind these tokens are not found on secondary markets, and person to person sales and transfers are not possible due to the design of the Farcaster native contracts.

Moxie Bonding Curves for Fan Tokens

After the Batch Auction, a smart contract using a bonding curve is created for each Fan Token. This contract automatically manages the buying and selling of Fan Tokens, ensuring that they can always be traded smoothly and fairly.

The bonding curves are designed to reward member utility rather than speculation, using a logarithmic curve to ensure price stability. The curves are relatively flat compared to exponential ones, meaning prices increase slightly with every purchase.

Only Farcaster Members can purchase Fan Tokens; non-Members cannot speculate on the tokens. Fan Tokens cannot be sold or transferred outside of the Moxie contracts. The only way to sell a Fan Token is to sell it back to the Moxie Bonding Curve contract.

Daily Claims for Moxie Tokens

With the Moxie Protocol, the engagement you generate on Farcaster as well as for the Fan Tokens you hold can be translated into earning more Moxie tokens.

Here's how it works:

• Daily Claims: There is a daily claim system where you earn tokens based on your engagement within the Farcaster network. These tokens can be claimed each day and converted into MOXIE tokens. This provides an ongoing way to earn and participate in the Moxie ecosystem.

• Engagement-Based Earnings: The amount of tokens you earn daily is directly tied to your level of engagement and activity on Farcaster. This includes posting high-quality content, participating in discussions, and interacting with other members. The more active and valuable your contributions, the more tokens you can earn.

Using MOXIE Tokens for More Benefits

Those who hold MOXIE tokens have a couple of additional options:

- Unvesting for Fan Tokens: If you hold MOXIE tokens, you can choose to unvest them to get Fan Tokens. This means you can convert your MOXIE tokens directly into Fan Tokens for your channel or others.

- Daily Claims: There is a daily claim system where you earn tokens based on your engagement within the Farcaster network as well as for any Fan Tokens you hold. These daily tokens can be claimed and converted into MOXIE tokens, providing an ongoing way to earn and participate in the Moxie ecosystem.

How to Use Fan Tokens as a Channel Owner

As a channel owner on Farcaster, you manage creating and distributing Fan Tokens to your followers. This process not only helps you build a loyal community but also provides a structured way to reward and engage with your audience.

Step 1: Setting Up Fan Tokens

First, you need to set up Fan Tokens for your channel. This involves defining the number of tokens you want to create and setting the initial pricing. The creation of Fan Tokens is facilitated by the Moxie protocol, ensuring that these tokens are ready for distribution to your followers.

Step 2: Launching an Auction

Once your Fan Tokens are created, they are made available through a batch auction. This method ensures fair and transparent pricing for all participants.

Here’s how a batch auction works:

As the channel owner, you decide on the number of Fan Tokens to be sold and set a minimum price (known as the limit price). Your followers who want to buy these tokens place their bids, stating the maximum price they are willing to pay. The auction runs for a set period, collecting all the bids. At the end of this period, all bids are reviewed, and a final price is determined at the point where the total number of tokens meets the demand. Everyone who bid at or above this final price will receive Fan Tokens at this same price. The proceeds from the auction are then used to provide liquidity and support for the tokens, ensuring they can be bought and sold as needed.

Step 3: Offering Exclusive Perks

Once your followers hold Fan Tokens, they gain access to special features and benefits that you offer. These perks can include exclusive content, private groups, and special offers. Here are some ideas for what you can offer:

- Exclusive Content: Share tutorials, behind-the-scenes videos, or special posts that only Fan Token holders can access. This makes your followers feel valued and gives them a reason to hold onto their tokens.

- Private Groups: Create private groups or channels where only Fan Token holders can join. This could be a space for more intimate discussions, Q&A sessions, or exclusive community events such as a private Farhouse.

- Special Offers: Offer discounts, early access to new content, or special deals on your products or services. These incentives encourage your followers to remain engaged and invested in your channel.

Rewarding Engagement w/ Your Fan Tokens

Moxie also allows you to set up rewards for your followers based on their engagement.

Here’s how it works:

You can reward followers who create high-quality posts or contributions to your channel. This not only encourages active participation but also enhances the overall quality of your community. Additionally, you can reward followers for participating in discussions, sharing your content, or using certain features of your channel. This helps keep your community vibrant and interactive.

Payouts for Earned Rewards

Payouts for earned rewards are issued automatically by the Moxie smart contracts. At launch, payouts are allocated as follows:

- 50% to the member who earned the reward.

- 20% to the Fan Token Bonding Curve Smart Contract for the member who earned the reward, which increases the price of the next-purchased Fan Token by burning the respective amount.

- 20% to the Fan Token Bonding Curve Smart Contract for the channel where the reward was earned (if applicable), also increasing the price of the next-purchased Fan Token by burning the respective amount.

- 10% to the Fan Token Bonding Curve Smart Contract for the network, similarly increasing the price of the next-purchased Fan Token.

For example, if a Farcaster member earns 1000 MOXIE for an action in the Base Channel community, 500 MOXIE is given to the member directly, 200 MOXIE is used to buy and burn Base channel Fan Tokens, 200 MOXIE is used to buy and burn the member’s Fan Tokens, and 100 MOXIE is used to buy and burn Farcaster Network Fan Tokens.

How to Get Started with Moxie

1. Join Farcaster

If you haven’t already, sign up for Farcaster and become an active member of the community. Engage with content, create your own posts, and start building your network.

2. Acquire MOXIE Tokens

You can earn MOXIE tokens through daily engagement on Farcaster or purchase them from the airstack exchange frame. These tokens will be crucial for participating in the Moxie ecosystem and are needed to swap for Fan Tokens.

2. Claim Daily Rewards

Take advantage of the daily claim system to earn additional MOXIE tokens based on your engagement within the Farcaster network. Convert these tokens into Fan Tokens or use them to further engage with your community.

If you're going to launch a fan token for your account or your channel:

4. Set Up Your Fan Tokens

Define the number of Fan Tokens for your channel and set their initial price. Use the Moxie protocol to create these tokens and prepare them for distribution.

5. Launch a Batch Auction

Conduct a batch auction to distribute your Fan Tokens to your followers. Set a minimum price and collect bids over a specified period. Finalize the auction and distribute the tokens to the winning bidders.

6. Engage and Reward Your Community

Offer exclusive perks to your Fan Token holders, such as access to special content, private groups, and discounts. Use the Moxie protocol to reward your followers for their engagement and contributions.

Example Scenario:

Imagine you run a niche channel on Farcaster. Here’s how you could use Moxie and Fan Tokens to enhance your channel:

First, you set up Fan Tokens for your channel, defining the number of tokens and their initial price. You then launch a batch auction, allowing your followers to bid on the tokens. The auction runs for a specified period, and at the end, the final price is determined based on demand. All winning bidders receive their tokens at the same price.

With these tokens, your followers could gain access to exclusive gated content on platforms such as Paragraph and private Q&A sessions on Farhouse. You could also reward followers who actively participate by creating quality posts, engaging in discussions, and sharing their own artwork as MOXIE or even through additional Fan Tokens.

If your followers hold MOXIE tokens, they can either unvest these to get more Fan Tokens. Additionally, you can claim daily MOXIE tokens from your engagment that can be converted to MOXIE tokens and swapped for your Fan Token. This ongoing interaction and reward system helps build a dedicated and interactive community around your Farcaster channel, offering unique experiences and rewards that keep your followers engaged and invested in your content.

Using Moxie, you can effectively grow your channel and strengthen your connection with your audience through these powerful tools. Enjoy building and nurturing your community on Farcaster!

(If you would like to deep dive into more information around MOXIE check out Airstack's offical website for the protocol here: https://build.moxie.xyz/the-moxie-protocol/moxie-token)