Workchain FAQs

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Following are some of the more commonly-asked questions and related topics. A work in progress, it will be added to as workchain progresses.

General

Who's behind workchain?

Workchain and the Infinite Token Organization (ITO) was invented by the creator of the Initial Coin Offering and cryptocurrency pioneer, Antoine Sorel Néron.

Setting the Record Straight on Some Reporting Inaccuracies...

Did Antoine really come up with the first ICO?

How do workchain incentives compare with blockchain?

Blockchain provides dual, one-way incentives to the miner (directly) to perform work. Workchain provides a two-way incentive mechanism that can reward participants based on organic consensus (for producers) and weight (for buyers).


Because we are used to thinking of crypto as having only one-way incentives like bitcoin, the concept may be difficult to grasp at first. It may even seem like 'voodoo economics' to some.

Whether or not someone understands workchain (or, at least, thinks they do) there are plenty of historical examples of people equating new technology with something that is dangerous or harmful, such as the telephone or automobile. A great majority of the population still thinks Bitcoin is a scam. When you explain to them how it works, they can't conceptualize it. They may even claim that they understand it completely, and that is printing money over the internet.


The real understanding of workchain and decentralized capitalism will come when people can make use of it. No consumers needed the internet in 1991, but they could have made use of it. The more people use it the more value that they can extract from it without understanding how it works at all. As workchain spreads it will become easier to use.


The workchain source code is entirely open-source and straightforward. There are no mysterious functions or processes, or hidden wallet addresses. 


  • "The person who created an ITO could take all of the money." The ITO is decentralized. The person who created the ITO has the same authority as anyone else, and has no special ability to extract funds from the ITO. Any value added to it is distributed to those producers whose jobs get validated. If a producer gets 4% of the the current work block's validations, for example, they will get 4% of the ETH distribution. In order for anyone to scam the ITO they'd first need to add enough ETH to it to get enough validations for a job that they themselves have added. If an ITO has multiple producers adding real value, then the  scammer would be competing against them.

Workchain doesn't make any sense to me.

The future isn't supposed to make sense from the present. If it did, it would already be clearly seen. Is workchain the future of capitalism? There's no way to know what the future looks like, but it's safe to say that it'll be much different than today. Workchain will take time to develop and for people to see the value of, just as any other useful model did. However, workchain has the potential to disrupt just about every organization in the world, not just a handful in certain fintech industries.


If we compare workchain and blockchain to other kinds of technology, we might get something like this:

It would be difficult to think about the need for radio ("workchain") when by 1900 the telegraph ("bitcoin") had morphed into the spectacular invention of the telephone and it was spreading rapidly. 


Radio programs created value for the masses, whereas with a telephone call one could transact information with one other person at a time. Even so, no one really thought about this one-to-many value transfer until decades after the telephone was invented. People saw no need to actually produce anything using similar methodologies, as the telephone was disruptive enough at the time.


You can think of an ITO like a radio, with each station on it being run by one or more producers who create value by adding programs to it so that listeners (buyers) can tune in. The listener has already paid for the radio (ITO token) so they get all the stations for free (reward distributions). If they like a program enough they'll stay for the whole program, which validates it (with ratings) and provides the station with more advertising revenue to keep going.


Does the 'greater fool' theory apply to ITOs?

No, because the price is the same for everyone. One buys into an ITO in order to participate in its economy, and provide reciprocal rewards to producers, not to sell the tokens later. You could think of buyers getiting a token subscription service whereas producers are getting funding to provide better tokens as part of the service. However, eac participant needs to perform some kind of work in order to receive a reward for it. ITOs are utilities, not investment vehicles.


I am a buyer and have just received my reward. What can I do with it?

Anything you want. Your rewards are yours to keep. If you received ETH, you can do with it as you like. If you received personal or business tokens, you can use them appropriately or keep them for potential future value.


Why would I want those producers tokens that I can't sell now?

Each ITO has its own general purpose, and each will have tokens that are useful within that purpose.


If you're participating in a men's products ITO called 4MEN, for example, then many of the people that hold the token would be interested in those kinds of products. Further, the producers would want to supply them with those products in exchange for receiving their own tokens back with some kind of validation.

If you have received a total of 465,500 tokens from various retailers from being in 4MEN a few months, these have value to you because you are probably interested in what they have to offer. Of those 465,500 tokens, perhaps:


  • You have 29,000 from Kimit store. They are selling a razor that you want that is priced at 21,000 KIMIT tokens plus a validation of 30 4MEN tokens
  • You have 45,340 tokens from a store that sells exercise equipment. You plan to buy a machine for 60,000 tokens + 42 4MEN validations, so you need to hold the 4MEN ITO for a month more to get enough.
  • You have 184,000 tokens that you don't want, so you mark these as unwanted and they are automatically sold to other buyers that need them. You get 1,200 more 4MEN tokens in return. [These function do not exist now, but could be implemented with a workchain-based app,. They are illustrated here as an example]


The value of something is, of course, determined by the marketplace. In this case, the people buying into the men's products ITO value the tokens from retailers selling those products because they can use them to obtain what they're interested in.


Why would a producer want their own token as payment?

Because they have a fixed supply of tokens (ideally), a producer would want to be able to distribute those to other potential customers. By charging for a product or service in their own token plus requesting a certain number of validations to go along with it, the buyer could potentially receive a product worth $300 for only $45, for example, while the seller (producer) received $800 in rewards for a product that cost $184 wholesale. The producer would need to figure out the best weights between token distribution, prices, and number of validations needed for a purchase. This kind of radically different economic model wouldn't be for everyone, of course.


Why can't I just pay that provider directly? What's the benefit?

You're certainly welcome to use traditional methods of value exchange, but workchain is designed for a more distributed and decentralized economy that can reward the most competitive parties on both sides..


When a producer prices a product or service in a limited-supply currency of their own creation, they are taking advantage of a unique economic model where costs and rewards can be distributed over a much wider population than found in a one-to-one exchange, potentially allowing them to earn much more than they would be able to otherwise.

Website

Why is Fantom consensus network preferred over Ethereum?

Speed and decentralization go hand-in-hand. The slower and more costly a network or organization is, the more it mirrors bureaucracy.


Why are there disclaimers?

As an open-source project, no one except for you is responsible for your actions or your use of the information found on this website or of the code.


Code

Who controls the ITO's private keys?

As can be seen from the code, no private keys are generated. Once an ITO is initialized by linking its two contracts together, the creator has the same rights and authority as everyone else.


Once an ITO is released, the settings cannot be changed.


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