In our previous post we described the Vortex Revenue Splits. The splits define how Vortex income is divided among several parties. In this post -- the last before we go into production -- we describe the most critical party: the resource bank.
In our cloud-based Internet, every service (for example, Instagram) consumes at least 3 resources:
- CPU. Processor power to execute the code that runs the service
- Bandwidth. The bytes that travel back and forth between you, your service, and many other providers.
- Storage. Here we refer to persistent storage -- the photos, videos, and messages you create and share "on demand" with other service users.
These resources naturally cost money. In a typical service, these costs are rolled up into the overall operational expense of the entire system, and then are indirectly reimbursed through advertising revenue or user subscription fees.
Since Vortex aims to be intrinsically sustainable, instead of overall revenues being expended to pay for overall resources, we charge the resources consumed by a single content room against that room alone.
Hence the resource bank associated with each room. Whenever revenue flows to the room -- through its creation, when users acquire room roles such as Content Creator, or by way of future income-generating mechanisms -- a portion of that revenue is assigned to the room's resource bank. The resources consumed by that room are then paid out of that room's resource bank.
FILLING THE BANK
To be clear, the resource bank is used as the first line of funding for a room's service costs. The general idea is that the more users who join a room, the more funds are deposited into the bank to offset the increased consumption of room resources. Since this is an entirely new approach it is somewhat experimental and of necessity will be adjusted as we move forward. We do envision future room monetization opportunities including product sales, and these would also contribute to the resource bank. Whatever approach we take it will always emphasize intrinsic sustainability.
This is our final blog post before Vortex goes into production. Join us on this great adventure at https://vortex.social.