ConsenSys-Backed Crypto News Outlet Decrypt to Launch Reward Token in Q2 2020

Published on by Cointele | Published on

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Decrypt, a major cryptocurrency and blockchain publication funded by ConsenSys, is launching a new token to reward users for engaging with its content.

The new Ethereum-based Decrypt token will allow Decrypt readers to earn rewards in return for reading and sharing articles as well as other types of interactions with the company's content.

Decrypt plans to roll out the new token as early as the second quarter of 2020.Decrypt token will act as a utility token pegged to a fixed mapping of "Any value token" on Ethereum.

In order to launch the token, Decrypt partnered with crypto micro-transactions provider and Ethereum-based token infrastructure supplier Ost.

Jason Goldberg, founder and CEO of Ost, emphasized to Cointelegraph that the Decrypt token will act "Purely as a regulatory compliant utility token," which means that the reward token won't be tradeable on secondary markets like cryptocurrency exchanges.

The executive stressed that the value of the Decrypt token would be based solely on a fixed mapping of any value token on Ethereum.

"Using Ost technology it's possible to create a fixed mapping of any value token on Ethereum to a utility token on Ost's layer 2 Ethereum chains. Any ERC-20 can be used as the base token, e.g. DAI, USDC, ETH, or the OST token In the Pepo app for instance OST is used as the base token. The mapped conversion rate can be set as desired upon setup of the Decrypt token and then it's locked into the smart contract forever."

Josh Quittner, editorial director and co-founder of Decrypt, outlined that the Decrypt token is in response to the "Broken" advertising model in the media.

As Decrypt tokens will be released during certain periods known as "Seasons," each season will be co-sponsored with an advertising partner and users will be able to collect tokens across seasons and store them in their in-app wallet.

Matt Hussey, the Decrypt editor who authored the Decrypt token announcement, specified to Cointelegraph that the firm plans to set a daily limit for the number of tokens per user.