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Digital Currency for Creative Community

White Paper
Written by: Michael Pastushkov, michael@pastushkov.com
June 15, 2017

Abstract

Creative Community consists of individuals, whose profession and activities are related to creative pursuits in a very broad sense – painters, writers, musicians, sculptors, photographers, dancers, actors, etc.. By and large, such a community provides services to the rest of the world in exchange for compensation in the form of traditional money.

However, there are many interactions within CC that are not consumed directly on the outside, if at all. CC members collaborate within the area of their talents, abilities, passion, while contributing to creative endeavours of other members.

Traditional Currencies

Traditional currencies evolved to serve nearly all transactions between individuals, companies, governments, countries, etc. in the “real world” as we know them. At the same time they may limit interactions among creatives, especially when their “output” is not intended for direct consumption by the outside world.

Thus, a writer may need a professional quality headshot photo and illustrations for his book, a photographer may need an essay about his collection, a video blogger may need a soundtrack for her clip, a musician may need audio mastering services and so on.

Today many transactions among the creatives are treated no differently than buying milk or paying for garden work. They often involve mutual trust, but more so – payments in traditional currencies to quantify the amount of services provided. There is also creative collaboration without the use of money, mutually benefiting both sides, but it’s typically limited to two parties.

Some of the creative services and results are intangible by nature, and just unquantifiable with the traditional money.

The potential for collaboration is much greater within the creative community, if only there were a way to quantify everyone’s contribution in a trusted, transparent, decentralized and efficient manner, easily accessible to everyone, accommodating the unique needs of the creatives, however subjective their results may seem.

CREATIX

With the advent of the blockchain technology and crypto currencies such as Bitcoin and Ethereum, it becomes possible. We propose special digital currency Creatix /krēˈātiks/ to serve the creative community accommodating its specifics needs.

Much like Bitcoin and Ethereum, Creatix is based on blockchain technology with its decentralized distributed database of all the transactions in the system, mining nodes providing computing resources for the system to function.

Unlike such as Bitcoin and Ethereum, Creatix will not intermix with “the rest of the world” transactions, making it relatively light to mine (at least in the beginning), free from possible collisions with traditional trading, investing, fraud, government regulations and tax implications (or at least at much lesser extent than established cryptocurrencies).

Designed for CC from ground up, Creatix will have little interest to the players outside of the community, speculative and fraudulent activity, for its main purpose is to serve transactions on assets of creative nature, without direct exchange with the outside world.

Note: Creatix does is not meant for monetary gains (or loses). It will be not convertible to traditional money or mainstream cryptocurrencies in the beginning. However, this is a possibility when it gains popularity and user base, enough to sustain its operations.

Ways to earn:

Initial Coin Offering (ICO) with “proof of belonging” similar to “proof of assets”;
Initial loans and loans from existing members;
Mining while contributing computer resources to the system;
Community service (moderation);
Providing creative services;
Sponsorship for an artist, group, project;

Ways to spend:

Render creative services (main);
Loans to other members;
Access to shows, concerts, exhibitions for fellow creatives;
Advertising

Technology Aspects

The proposed currency will be running on Ethereum implementation of blockchain technology with its own instance, not linked to any of the established cryptocurrency. Creatix wallet, mining and all the other software will be distributed for free as Open Source (much like Ethereum).

With small transaction base, the transactions will execute in near-real-time, even with relatively small number of mining nodes. Much like with all the other blockchain applications, the transactions are irreversible.

Members are encouraged to advertise their creative services to be paid in Creatix, fully or partially on their own sites and via social media. The software provides integration for major web and mobile platforms so the participants can easily embed offerings and/or demands on their web sites.

In addition, the organizers will host a marketplace where providers and consumers can list themselves, if they want to. Such a marketplace is not essential for the currency itself, and will only be used as its facilitator in the beginning.


Reasonable Questions, Objections and Challenges

Q: Once Creatix is visible enough, powerful miner houses (mining Bitcoin, Ethereum, etc. today) would generate large amounts for themselves, exchange it for creative services and results, just to be re-sold for hard or cryptocurrencies.

A: This is not expected in the beginning. Creatix will not be attractive for non-creatives for it won’t directly exchange for other currencies. However, if mining takes off generating large amounts to be used in exchange for creative “goods”, this would be in fact a very positive trend for creative community. Powerful miners become self-made sponsors of art, investing their resources and bridging the gap between creatives (suppliers) and non-creatives (consumers). This will result in creatives earning more of the currency, to be used in exchange for whatever they feel is right or needed. In the end, this will increase the overall activity with creative pursuits, which is considered goodIn a way, these players will act much like exchanges between crypto and hard currencies.

(to be continued)