Community Flywheels

Published on: August 27th, 2021

With the Exponential Age upon us, it is crucial to grasp the opportunity that the network effects of community can create. Value, loyalty, synergy. The flywheel effect. Tokenization will follow quickly, contributing economic growth which has never existed before but that will exist in a decentralized universe, outside of the current economic system. The metaverse, where mutual benefit and value can be created without the middlemen and the scalpers who earn the golden crumbs generated by the friction of intermediation. These are not disruptive businesses… far more, they are disruptive concepts. And that is a force to be reckoned with.


  • JR
    Josh R.
    27 August 2021 @ 21:50
    Instantly I want a share of the RV tokens. It’s a way of supporting an organisation and community that has given me so much insight, knowledge and success. It’s also a way for me to get further involved and gain more exposure. This helps me understand why people will do the same for their favourite artists, teams, organisations. I’m starting to get my head around why this is going to be big. Thanks Raoul and RV community yet again.
    • KH
      Kevin H.
      27 August 2021 @ 22:06
      I agree!
  • SB
    Stephen B.
    27 August 2021 @ 23:41
  • SR
    Steve R.
    28 August 2021 @ 01:35
    Sounds like just another way of doing marketing to try and extract more money from paying consumers and cut out the middleman. This is nothing new, its just a digital form of multi-level marketing (pyramid selling), which works until it doesn't. If everyone does this kind of thing won't it will just massively dilute the whole digital economy, where there will be only a handful of big winners and the other 99.99% just end up paying more or earning a pittance? The 'gig economy' being the great example. As those who have tried to be become 'professional influencers' will discover, in the vast majority of cases, you will spend massively more time for less reward than you ever imagine. You need new content, things, products, etc. all the time, day in day out, almost every day in real time to stay relevant. Very very few can do this over any duration as history shows. In the exponential age people are very fickle and far less loyal than you imagine especially when social media can be used to turn public opinion in an instant. RV is essentially an aggregation platform, its guests are not tied exclusively to the platform, why would they when they can easily monetize their own communities? So not sure how this token idea will pan out? I remain to be convinced, but good luck. Sorry, but I just can't buy into all this, at least not yet. More than happy to be proved wrong of course. I really want to believe all this but being a hyper-realist I just can't see this (at least in its current incarnation) as anything more than a huge money grab/pump and dump. At the end of the day you don't do something without a ROI, and at the end of every supply chain is a paying consumer, hence its just another form of revenue generation. I like being contrarian, but as I said, happy to be proved wrong. Good luck.
    • SR
      Steve R.
      29 August 2021 @ 01:09
      Hi Will, I think I've been going along the same journey as you. I also eventually bought both Bitcoin and Ethereum, but not because I believe they will necessarily last the test of time (but I'm open-minded on this), but just because I can make money from them. And I think many people share this view too. The problem with technology is that it can change very fast and what's here today won't necessarily be around tomorrow. But who knows maybe it will? Bitcoin hasn't been around long enough to past this test in my personal view. These are the other 'things' I'm yet to be convinced on and find difficult to draw conclusions on one way or the other: 1. I still get the feeling the entire crypto space has only flourished since the GFC because central banks have destroyed yield forcing people to look elsewhere to make a decent return (i.e. going out on the risk curve). Thus everyone has been hopping on the crypto bandwagon because of the big 'potential' gains. My big question, and one that's unlikely to get answered until it happens, is what will happen to the crypto markets if we have a major financial meltdown or prolonged bear market where stocks grind lower year after year. And yes, it could happen, see Japan in 1989. Eventually the current market madness will end, could be weeks, could be years, but when it ends it could really end. My guess is people would just do what all (well most) humans would do in that scenario and panic sell. And in such a high vol instrument? Not sure crypto will be the white knight that saves the world? Who knows. Exponentially can work on the upside, but it also works on the downside. And when the intrinsic value is zero that will be the true test of Bitcoin's store of value. 2. What do you do if something goes wrong? Who do you call to fix a problem? How do you do this in a decentralized world? Where would blame lie? No one ever answers this question. The best answer is "well you can buy insurance now" - laughable. Again, this ties back to the need for regulatory frameworks to handle this situation. I wouldn't want to be a lawyer in court trying to convict an AI algorithm that's dynamically mutating in real-time. Good luck with that one. 3. Are community tokens really just moving towards the monetization of a human being? 4. In the decentralized world you are relying on an army of people to run nodes in the network. How well will this work out in practice over the long term? I could run a node for all kinds of networks, but unless I'm financially rewarded for doing so why would I? What's the incentive? I could turn off my machine, or dump the networks I don't want for ones that I do. People are fickle and what's hero today can be zero tomorrow. That's even more relevant in today's exponential age and social media driven world. Sentiment can change in an instant. What could actually happen is the exact opposite in that it could make things more centralized again? As ever, happy to be enlightened and educated! Cheers.
    • SR
      Steve R.
      29 August 2021 @ 00:58
      Hi Daniel, Great post, thanks! Yes, I agree with your legal assertion, as I can see this all being a massive hotbed for fraud unless there is some kind of regulatory framework, but its also early days yet. Any system based solely on trust is doomed to failure (IMHO). And that's not just me being overly cynical, its based on personal experience and the fact we are only human. How many politicians have gone into office wanting to change things for the better only to be consumed by the corruption of how things actually work. To quote a line from a Clint Eastwood movie "absolute power corrupts absolutely". Your point on gaming I do totally get. I have a 9 year old who spends much time on Roblox so I see your observations playing out daily. Having said that my daughter would rather spend her money on real things rather than digital things, at least at the moment. Your point re decentralized tokens I can also relate to. So what you are saying is that tokens can live and persist outside of what may have originally created them, providing potential longevity so long as the token continues to hold value, and your SkyMiles is a good example so long as they are transferable and don't have restrictive expiry dates. My only counter argument to that point is that voucher providers typically provide an expiry date as its in their interests to 'force consumption'. I've also been looking for some analogies. One I think is the SaaS business model. As a software provider I can build and release a software product that is consumed by paying subscribers. In this case my 'token' is the credentials to access that software. So my community is my subscriber base. But to Raoul's point how do the subscribers share in my company's growth and success? Well I have a roadmap and deliver a regular stream of new features so by them paying the monthly subscription they are benefiting from continued use of the software. If I put the subscription price up I receive that increase, I do not share it with my subscriber base because I am already delivering increased value every month with new feature releases. I cannot see why I would ever tokenize and free-market my access credentials (monthly subscription fee), it just doesn't make sense (at least to me). As ever, happy to be enlightened and educated! Cheers.
    • SR
      Steve R.
      28 August 2021 @ 23:37
      Many thanks Nymann, Daniel, Will for your feedback - I'm hear to learn and educate myself from those more knowledgeable than myself. I'll reply to your posts Daniel and Will separately as you raise great points. Just for background, yes I am a boomer, and been in the tech industry for decades (MS-DOS 1.0 and the Sinclair ZX80 onwards). Although I am very open-minded I sometimes think this can act as a barrier because I have accumulated much experience over the years and learnt many lessons. As a person once told me 'question everything'. If you have an idea that can withstand all the detailed probing and scrutiny, then success will take of itself. Its definitely a philosophy that's worked well for me over the years. Ok, so I've been looking into Rally after having re-read Raoul's piece for a 3rd time in an attempt to 'get it'. So I go onto the Rally website and look at the list of creator coins. At the top of the list is a Japanese football player by the name of Keisuke Honda. He even has his own wiki page. On the Rally overview page it states "By buying and holding $KSK you are supporting the creator and participating in their economy. As a $KSK holder you are eligible for creator benefits and $RLY rewards.". Ok, so can I buy into a slice of his future earnings just as I would a traditional stock by owning his token? Is this how it works? Nowhere on the site can I find any kind of contractual obligations to show how I would directly benefit from being part of his economy, e.g. if I 'owned' a slice of him would I get a slice of any big deal he pulls off should he discover the next Ronaldo or Messi, or revenue from his events streaming business? Alternatively, in such a scenario would his coin just go up because of the 'perceived value' he's created even though I cannot get a direct share of his earnings? In that case for me to benefit in his economy I would have to buy his coins in the hope he does something that increases his 'perceived value'. So it would be like owning a traditional growth stock that pays no dividends? Is this how it works? Is all this just about the monetization of a human being's future 'potential'? Or, if you forget the monetary side of it, you buy his coins on the expectation he provides you with some kind of unique 'thing' as a reward for holding a number of his coins, e.g. a front row seat to a live gig or something? So its more for fans rather than investors in him as a person? Ok, I can see how this might work....but why do tokens have to have a monetary value? Why not just work on the basis of collecting points/tokens when say you attend one of his events? After you've attended 5 events you get a front row seat at the next gig etc.?. All this buying and selling of tokens requires a middle man (who conveniently take their cut) which I would have thought goes against one of the core themes behind crypto in general and that is to remove the middle man. So just swapping middle man 'A' for middle man 'B' then in the digital age? There are plenty of websites that allow people to swap tokens/points/vouchers without a middle man taking a cut. Again, am I missing something here, or is this just a way for tech to muscle in on the 'middle man market'? It just seems all so unnecessary. With owning a traditional stock there are regulations, financial reporting etc. that all underpin and (hopefully) paint a true representation of the stock at a point in time. For this to work with creators wouldn't you also need a similar framework as a proof/evidence mechanism? If not the scale for potential fraud is off the charts. With the ability to create anything digitally these days you could literally invent a person and their history and use (abuse) the power of social media to enact fraud on a massive scale. Perhaps the biggest weakness in all this is that its a system based on trust, or which can be fabricated. One thing I've learned well over the years is that trust is earned never given. So, are my assertions above correct?, have I completely got the wrong end of the stick?, or am I again missing something, because I still don't quite 'get it' yet? Interested to get your thoughts.
    • WM
      William M.
      28 August 2021 @ 16:27
      I am mostly where you are Steve R. NFTs are a "bridge too far" for me at the moment. Unless just a couple of years ago I was "anti-Bitcoin" and made a few comments on here about gold vs BTC. However, I have now got 12% of my investible wealth in crypto although currently breakeven on value due to late entry. I find it difficult as a mid date Boomer to buy into all the "influencer" and decentralized digital arena that has become so much of RVT's content in the past couple of years. However as a very keen observer of geopolitics and current events, it is clear to me that the 2020s may indeed be a watershed in the world economy and human history not seen for almost 100 years. Consequently I am trying to keep an open mind in opportunites which can bolster my just entered into retirement. Your comments and Daniel W's above too, are well thought out and honest perspectives that aid my own thoughts.
    • DW
      Daniel W.
      28 August 2021 @ 12:01
      Steve R. - Great points. To be honest, I haven't read the paper yet, but you've started a great conversation and i want to keep it going because it is we are very likely in the discovery phase of this whole space, so nothing in so clear and black/white. My initial thoughts and then hopefully, if I have a chance to read it later this weekend, we can keep responding to each other. First, I think the legal and regulatory system needs to catch up to the entire digital space before any of this goes truly mainstream. Are digital contracts like NFTs truly enforceable? Are community tokens really just a new form of equity that needs to be overseen by the SEC? I am not sure of either. But in creating my framework, I am assuming that both of these will be properly regulated and end up being legal assets or contracts. Second, to your point rewards points are already a "thing", but I think the community tokens primarily accomplish 2 things. 1) It democratizes everyone's ability to generate rewards points or community tokens, which creates a VC environment. A VC environment that has open liquidity, where typical VC investments do not have an easy exit to the open market. From my perspective, who cares...I don't follow any YouTuber and most people I follow provide free content, so why would I pay. Sure...but that is very traditional view. My 12 yr old nephew has been raised in the digital age and adores the celebrities that play his games. If he could pay to have more personalized interactions, he would! So now imagine Ninja (no idea what game he plays or whatever), who made $7M playing games as a teenager. Currently his demand is meteoric...imagine if you were able to buy one of his community tokens back before he was making $7M for something like $5. Obviously, now his token would be worth much more. It is the NFT's of humanity...and hoping some of your humans/communities end up being worth more. 2) It decentralizes ALL community tokens. Once this becomes mainstream, no one will have centralized rewards/community tokens. This is huge...and the bigger concept, in my opinion. Currently, I have 100K of Delta SkyMiles because my company only uses Delta. At 100k I get some perks and 150k I get tons of flights, etc. But if my company stops using Delta, most of my ability to earn Delta SkyMiles goes away, thus removing much of the value of those SkyMiles because they are centralized - I can only interact with the corporate entity, who determines the value of those SkyMiles. But if it is decentralized, now the open market can determine the value of those SkyMiles and I can exchange them for other things. Imagine I have 100k of SkyMiles that are useless to me, but you need 100K SkyMiles to get to 1M, which gives you lifetime domestic flights or something. In order to earn 100K of SkyMiles, you may have to take 20 flights, which may cost $3K. But you may be able to pay me $2K (and save your time and expedite the achievement process) for my 100K. Now you have the elite 1M SkyMiles and I was able to extract value from my dormant SkyMiles. That is awesome! It almost is the complete digitization and democratization of barter. So the way to extract value is to be able to identify the trends early. I look forward to hear your thoughts. Cheers!
    • SR
      Steve R.
      28 August 2021 @ 08:20
      Hi Nymann I. Everyone talks about deriving more 'value' (whatever that actually is), from these communities and tokens. Unless that 'value' is only obtainable by owning a 'token', but isn't that just the same as paying a subscription or an entrance fee? I belong to numerous online communities, no tokens, no subscriptions, nothing required, just a group of people with a collective interest exchanging content. I get immense real value from these communities without any tokens etc. And that's probably because the model Raoul talks about is only applicable if you're trying to sell or monetize something. In which case you need paying consumers which brings me back to my point about its just a different form of marketing for the 'digital age'. Having looked through dozens of so-called 'creators' on I can't see why this will ever work long term. What I obviously fail to understand yet is how all this will add to MY bank account rather than just paying into someone else's. What is the 'thing' that's so powerful to draw me to it above all the alternatives of doing the same thing elsewhere? I just don't see it. Real examples anyone? Being beholden to a community is just as much a liability as an asset as many 'influencers' have discovered, some paid the ultimate price. All the use-cases so far just seem like ways to sell more product or to just pump up the price of something on the basis of some notion of increased 'perceived value'. Reminds me of 2000 all over again, but I'm genuinely interested to see how all this plays out as an observer.
    • NI
      Nymann I.
      28 August 2021 @ 06:45
      Why not seeing it as an opportunity to be an active shareholder and derive more value, intellectually and mybe economically, than a traditional stock owner?
  • JM
    Jake M.
    28 August 2021 @ 01:59
    Raoul, what do you think about, a competitor to Rally?
  • MD
    Michael D.
    28 August 2021 @ 02:02
  • NI
    Nymann I.
    28 August 2021 @ 04:02
    Wauw - this is new. Thanks for giving us the opportunity to jump on the wagon this early and learn by participating. i am in 😅
  • ph
    phil h.
    28 August 2021 @ 04:07
    Great. I’m on a similar journey with similar thoughts. Very useful.
  • ps
    prathiba s.
    28 August 2021 @ 11:04
    Hi Raul, I live in Australia. I use swyftx exchange to buy crypto coins in Australia. I tried all the exchanges in Australia but not able to buy Rally. Can anyone suggest which exchange we can buy rally. Thanks Prathiba
    • TC
      Tash C.
      2 September 2021 @ 14:37
    • ps
      prathiba s.
      29 August 2021 @ 12:03
      Thanks Everyone for responding
    • JW
      JULIAN W.
      28 August 2021 @ 21:45
      Hi Prathiba, I live in Oz too and bought it on I use Coinspot for most of my other crypto trades. It's a pretty decent platform and easy to use with good support and features for easy tax complianece etc. Jules
    • JR
      Josh R.
      28 August 2021 @ 19:19
      Search for the coin on and it will list all the exchanges that have the coin available
    • NP
      Nick P.
      28 August 2021 @ 18:30
      give coinex a try.
    • RB
      Ryan B.
      28 August 2021 @ 16:30
      I bought RLY on the balancer exchange using my metamask wallet. I live in the US. Not sure if that makes a difference.
  • SK
    Stefan K.
    28 August 2021 @ 16:25
    Indeed inspirational Raoul! Unbelievable rabbit hole that grows exponentially by the day... With respect to Chiliz and Rally, what is you investment approach and timeframe? Is there any or is it a bit like the Ethereum approach, buy and wait 5yrs ? Many thanks and all the best, Stefan
    • RP
      Raoul P. | Founder
      30 August 2021 @ 20:45
      Very long term as community tokens will be the big thing for the next cycle like Defi and NFT's were for this cycle and hopefully there will be more protocols and platforms to invest in over time.
  • JW
    28 August 2021 @ 21:51
    Thanks Raoul. So good to have a clear oversight view explained like that. I've been wondering for a while when there was going to be a Real Vision token. Makes perfect sense. I'll definitely be in. It'd be nice to get rewarded for all the word of mouth advertising! Having bought Rally and Chiliz a while ago that was nice confirm,atory bias ending to the article too!
  • ip
    ivo p.
    29 August 2021 @ 12:31
    Awesome stuff! What I don't get is the following. The way you imagine the RealVision token makes sense, it creates a use case, scarcity and value. However I don't see this back in the RLY token (same for CHZ). I understand the use case for the protocol, but how is the token going to profit? In case of RLY, only 1.5% of the tokens are currently issued, meaning there will be a 65x inflation on the tokens. The tokens will not be burned, the coins don't earn apy. Why should you hold?
  • JW
    JW2 W.
    29 August 2021 @ 21:26
    Fascinating look into the engine room of ideas & plans. Lots to think about.
  • MK
    Max K.
    30 August 2021 @ 07:34
    Thanks Raoul. Ditch all the irrelevant middleman costs and reward participation is the only way forward, you almost don’t have a choice. We will all be pioneers with RV and as a community we will grow.
  • JW
    JW2 W.
    30 August 2021 @ 17:11
    I am doing some research on the metaverse with the intent of writing an article about it. This is rather daunting especially after reading Matthew Ball's 'opus magnum' on the topic, see He is also the brains behind the Roundhill Ball Metaverse ETF (ticker: META). I looked at various ETF's in this space and this the one with the most intelligent holding list in my view. Thought I'd share this here in case people were looking for some actionable insights beyond crypto. I have started a modest position in this ETF btw.
  • RL
    Randy L.
    31 August 2021 @ 18:45
    Wow Raoul! Your quote below might explain religions of the world in general, but it totally misses how Christianity was established. Nowhere in the Bible does it teach that your adherence to a set of rules provides you salvation or entrance into heaven upon your death. It is like this: "For by grace are you saved through faith, and that not of yourselves, it is the gift of God, not of works, lest anyone should boast." Eph 2:8-9. And, "For God so loved the world that He gave his Only Begotten Son, that whosoever believes in Him shall not perish but have everlasting life. " John 3:16 "However, this incentive-based reward system is the key method by which complex adaptive systems such as human societies are organised. Religion grew out of this exact methodology. A set of societal rules are established and if you adhere to these rules the incentive is that you go to heaven, are reborn or become enlightened" I do love the way you think and it has been fun over all these years to invest along with your advice.
    • BS
      Bernd S.
      8 September 2021 @ 14:11
      love this
  • RS
    RV S.
    1 September 2021 @ 02:28
    From what I see, this seems to pretty make sense. A product like Apple can create a community of stakeholders to promote her culture via supporters in various roles and rewarding them with tokens that can be used as money as well as governance. These stakeholders will vote with their tokens on how much reward is fair and if it is not, they can simply take their business elsewhere. The tokens can be used to purchase Apple products, maybe at a discount from fiat. None stakeholders may motivate to acquire such tokens to get the discount boosting the value of the tokens. Apple can then choose to monetize the tokens or burnt them to increased the token value. Token can only be generated by proof of work done. Work done could be like advertising Apple products in other platforms, doing reviews, hold metaverse events etc whatever brings more people to contribute and grow the community. When these tokens become valuable, they can be traded in Dex for other similar valuable tokens from other communities. Supporters of a particular skills can choose which communities they like to promote and get rewarded accordingly. Then there's NFT that could be created by Apple that could tied to even more perks then the tokens. These NFT can be an intelligent NFT to proof the status of the beholder via a one time hash. It is like Lupin will not be able to fake his identity if he doesn't own one. All sound so exciting and I hope I got this right.
  • JW
    JW2 W.
    5 September 2021 @ 12:25
    Put rally-io to the test and wrote-up a small piece about that first encounter on the Exchange.
  • WK
    William K.
    6 September 2021 @ 15:29
    Raoul, super analysis....I look forward to seeing and participating in the evolution of Real Vision......and the Real Vision community.
  • MP
    Matt P.
    7 September 2021 @ 05:31
    Awesome! F#%king Awesome! ...goosebumps...
  • ac
    adam c.
    9 September 2021 @ 15:48
    This was both interesting and alot of fun too read it has really helped me create a picture in my head of what is happening. thnak you for Sharing
  • RR
    Raj R.
    17 September 2021 @ 13:25
    Fascinating stuff!
  • TY
    Tony Y.
    17 October 2021 @ 13:07
    I've been in the internet space for a long time and I think this piece is over simplifying the opportunity and ignoring many major issues. First, for example, tokenizating real estate? There is no point, all the red tape middleman you think you can get rid off are still needed in some other shape/form, eg how can I as a real estate token investor be sure that the property deeds linked to the token are authentic? You'll need a law firm to confirm that. Just put the real estate a publicly traded company, then there you go everyone can buy 1 share and "real estate investing has been decentralized". Second, the Community Token concept you outlined, is just a glorified customer loyalty rewards program. Exactly the same thing can be done without blockchain or tokens. The only difference is the financial engineering part, ie token owners could trade the RV tokens for ETH or trade the token price increase/decrease, and I think we can all agree if the financial engineering part is the key value/attraction of this RV token, then the concept has failed. This is exactly the same pitch as ICOs minus the fund raising part. General rule, if a project can exist without blockchain, then it's not a good blockchain project idea.