Author Topic: Ad Words, DAC  (Read 872 times)

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Offline bytemaster

Ad Words, DAC
« on: November 21, 2013, 08:37:15 am »
Suppose there was a way to replace Google's AdWords with a DAC.   This DAC would be responsible for deciding who owns a current word and what ads should be displayed when a user looks up a given phrase.   At first glance this DAC would behave in a manner very similar to DomainShares.

1) Users would bid on names at an auction, but instead of owning the names forever, they would always expire after 1 day
2) Users could 'bump' the owner of a name at any time, provided they reimburse the current owner for lost time and paid more.
3) A user who owns a name could post URLs to one or more ads they would like displayed.

This system would work very well for assigning ads to words, but would be of little value if no one displayed the ads anywhere.  This DAC would require motivated individuals to purchase shares in the DAC and then start honoring the ads in the database.  If they do a good job, then the value of the DAC shares will increase and more people will bid on the names.    Anyone could use this database, but their only avenue of profit is appreciation of the DAC shares as a result of their actions.   

Unfortunately, this DAC has a fault that I have not been able to resolve.  If I only own 1% of the DAC money supply, and invest $1 million dollars in honoring the DACs social contract by 'republishing' the Ads through various channels and as a result add $2 million dollars to the market cap of the DAC, I only see 1% of that gain and thus am operating at a loss.   The rewards are SOCIALIZED while the effort, risks, and investment is privatized.   

This may work for many small users each contributing insignificant free advertising (such as in forum sigs, or personal blogs) where the aggregate of all contributions and 'donations' of the users increases demand for the coin.  I think such a system would gain some traction in certain corners of the internet.   

What really needs to be found is a way to reward those who actually honor the social contract to display the Ads and invest in their propagation.
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.