Podcast
Questions and Answers
According to Fisher's 1911 observation, what can speculators effectively limit by withdrawing money from circulation?
According to Fisher's 1911 observation, what can speculators effectively limit by withdrawing money from circulation?
- The price of gold
- The demand for goods
- The money supply (correct)
- The interest rates
Which type of currencies does the dynamic of speculators limiting money supply particularly apply to?
Which type of currencies does the dynamic of speculators limiting money supply particularly apply to?
- Currencies with limited issuance (correct)
- Legacy fiat currencies
- Currencies with fixed interest rates
- Currencies with unlimited issuance
In the equation $P_t^{BAT} T_t^{BAT} = M^{BAT} V_t^{BAT}$, what does $V_t^{BAT}$ represent?
In the equation $P_t^{BAT} T_t^{BAT} = M^{BAT} V_t^{BAT}$, what does $V_t^{BAT}$ represent?
- The total number of BAT transactions
- The velocity of BAT (correct)
- The market capitalization of BAT
- The transaction fees for BAT
What does $Z^{BAT}$ represent in the context of currency usage?
What does $Z^{BAT}$ represent in the context of currency usage?
In the equation $Q = 1 - (P + c)$, what does 'c' represent?
In the equation $Q = 1 - (P + c)$, what does 'c' represent?
If the neighbor's valuation for a clean environment is (\nu), how is the loss from the sale of Q pollution permits expressed?
If the neighbor's valuation for a clean environment is (\nu), how is the loss from the sale of Q pollution permits expressed?
When the neighbor maximizes net benefit, which equation is solved to find the price of pollution permits?
When the neighbor maximizes net benefit, which equation is solved to find the price of pollution permits?
When the factory has the entire property right, what does the neighbor effectively purchase from the factory?
When the factory has the entire property right, what does the neighbor effectively purchase from the factory?
For Coase's theorem to hold symmetrically, what is a key requirement?
For Coase's theorem to hold symmetrically, what is a key requirement?
According to the content, who de facto owns user attention?
According to the content, who de facto owns user attention?
The exchange rate for BAT tokens is proportional to what?
The exchange rate for BAT tokens is proportional to what?
Besides well-defined property rights, what is another requirement for the validity of the symmetric version of Coase’s theorem?
Besides well-defined property rights, what is another requirement for the validity of the symmetric version of Coase’s theorem?
According to the formula provided, what will raise the exchange rate?
According to the formula provided, what will raise the exchange rate?
In the context of airline safety demonstrations, what behavior is mentioned as an example of de facto user attention ownership?
In the context of airline safety demonstrations, what behavior is mentioned as an example of de facto user attention ownership?
What does $V_t^{BAT}$ represent?
What does $V_t^{BAT}$ represent?
In the equation for the exchange rate, what does $Z_t^{BAT}$ represent?
In the equation for the exchange rate, what does $Z_t^{BAT}$ represent?
What is one reason given for why some $Z_t^{BAT}$ tokens may be inactive?
What is one reason given for why some $Z_t^{BAT}$ tokens may be inactive?
What does $\gamma$ represent in the equation for expected returns from BAT?
What does $\gamma$ represent in the equation for expected returns from BAT?
Which of the following describes the purpose of applying the risk-free exchange rate operator (R) to the period t exchange rate?
Which of the following describes the purpose of applying the risk-free exchange rate operator (R) to the period t exchange rate?
In the context of BAT tokens, what does $||St+1^{BAT}||$ represent?
In the context of BAT tokens, what does $||St+1^{BAT}||$ represent?
What is the result of the difference between the future expected exchange rate and the time-discounted exchange rate?
What is the result of the difference between the future expected exchange rate and the time-discounted exchange rate?
According to the formula, what happens to the optimal number of tokens held ($z_t^{BAT}$) if the risk aversion ($\gamma$) increases?
According to the formula, what happens to the optimal number of tokens held ($z_t^{BAT}$) if the risk aversion ($\gamma$) increases?
What assumption is made about the risk preferences of all BAT holders when calculating the economically efficient number of BAT?
What assumption is made about the risk preferences of all BAT holders when calculating the economically efficient number of BAT?
In the equation $||St+1^{BAT}|| − R(St^{BAT}) = \gamma\sigma^2(St+1^{BAT})z_t^{BAT}$, what does $\sigma^2(St+1^{BAT})$ represent?
In the equation $||St+1^{BAT}|| − R(St^{BAT}) = \gamma\sigma^2(St+1^{BAT})z_t^{BAT}$, what does $\sigma^2(St+1^{BAT})$ represent?
What is the significance of achieving the 'efficient frontier' in the context of modern portfolio theory and BAT?
What is the significance of achieving the 'efficient frontier' in the context of modern portfolio theory and BAT?
What does the model suggest about price stability in a token mediated economy?
What does the model suggest about price stability in a token mediated economy?
Which of the following is identified as a potential issue within the digital advertising ecosystem?
Which of the following is identified as a potential issue within the digital advertising ecosystem?
What is 'malvertising'?
What is 'malvertising'?
What is a key trend regarding ad blocking?
What is a key trend regarding ad blocking?
Which company was NOT mentioned in the resources as a key player in digital advertising?
Which company was NOT mentioned in the resources as a key player in digital advertising?
What does the acronym AIDA stand for in the context of marketing?
What does the acronym AIDA stand for in the context of marketing?
What concern did P&G express regarding digital advertising?
What concern did P&G express regarding digital advertising?
What has Snowden's revelations about privacy led to?
What has Snowden's revelations about privacy led to?
In the context of online advertising, who are the three idealized participants in a Coasean bargain?
In the context of online advertising, who are the three idealized participants in a Coasean bargain?
What does the acronym 'BAT' stand for in the context of the proposed Coasean bargain?
What does the acronym 'BAT' stand for in the context of the proposed Coasean bargain?
What is the advertiser trying to purchase from the user according to the text?
What is the advertiser trying to purchase from the user according to the text?
In the context of the text, intermediaries in the present advertising system cause which problem?
In the context of the text, intermediaries in the present advertising system cause which problem?
Which of the following represents the user's valuation of website content according to the text?
Which of the following represents the user's valuation of website content according to the text?
According to most CMOs what can be improved with promotions?
According to most CMOs what can be improved with promotions?
What problem do promotions fail to address effectively, according to the text?
What problem do promotions fail to address effectively, according to the text?
What is described in the text as something that cannot be achieved with promotions?
What is described in the text as something that cannot be achieved with promotions?
Flashcards
Fisher's Observation
Fisher's Observation
Speculators can limit money supply by withdrawing currency in anticipation of future utility.
Limited Issuance Currency
Limited Issuance Currency
Currencies like Bitcoin or BAT that have a capped total supply.
Transaction Quantity Relationship
Transaction Quantity Relationship
Describes the relationship between price, quantity, supply, and velocity of currency.
Velocity of BAT (VtBAT)
Velocity of BAT (VtBAT)
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Exchange Rate (StBAT)
Exchange Rate (StBAT)
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User Compensation
User Compensation
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Middlemen in Advertising
Middlemen in Advertising
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Promotions vs. Advertisements
Promotions vs. Advertisements
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Three-Way Coasean Bargain
Three-Way Coasean Bargain
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Basic Attention Token (BAT)
Basic Attention Token (BAT)
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Caa and Cap
Caa and Cap
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Transaction Costs
Transaction Costs
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Empty Cores
Empty Cores
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Pollution Rights
Pollution Rights
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Marginal Cost (c)
Marginal Cost (c)
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Price of Pollution Permit (P)
Price of Pollution Permit (P)
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Neighbor's Valuation (ν)
Neighbor's Valuation (ν)
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Benefit Maximization
Benefit Maximization
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Coase's Theorem
Coase's Theorem
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Information Symmetry
Information Symmetry
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User Attention Rights
User Attention Rights
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Velocity of Money (VtBAT)
Velocity of Money (VtBAT)
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Inactive Tokens (ZtBAT)
Inactive Tokens (ZtBAT)
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Proportional Relationship
Proportional Relationship
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Inverse Relationship
Inverse Relationship
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Token Mediated Economy
Token Mediated Economy
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Long Term Price Stability
Long Term Price Stability
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Attention Economy
Attention Economy
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Ad Tech
Ad Tech
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Malvertising
Malvertising
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Ad Blocking
Ad Blocking
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Privacy in Advertising
Privacy in Advertising
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Digital Ad Industry Control
Digital Ad Industry Control
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Expected Returns
Expected Returns
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Risk Aversion (γ)
Risk Aversion (γ)
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Volatility (σ)
Volatility (σ)
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Discounted Exchange Rate
Discounted Exchange Rate
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Efficient Frontier
Efficient Frontier
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Optimal Token Holding
Optimal Token Holding
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Economically Efficient Number
Economically Efficient Number
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Time Discounting
Time Discounting
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Study Notes
Basic Attention Token (BAT)
- Digital advertising is broken, with issues like middlemen, complex tracking, and ad blocking
- Mobile advertising costs users up to $23 per month in data charges and reduces battery life by 21%
- Over 600 million mobile devices and desktops employ ad-blocking software
- Traditional publishers have lost 66% of their revenue over the past decade (adjusted for inflation)
- BAT aims to create a decentralized, transparent digital ad exchange based on blockchain
- Brave browser blocks third-party ads and trackers and measures user attention to reward publishers
Attention Marketplace
- Attention is a commodity
- The ad-tech ecosystem is complex and inefficient
- Users face privacy violations, malware, and high download costs
- Publishers lose revenue, and advertisers struggle with attribution and fraud
- There is a need for a transparent and efficient ad marketplace
Value Proposition of BAT
- Provides strong user privacy and security in viewing ads
- Offers improved ad relevance and performance
- Provides a fair revenue share and better reporting for publishers
- Reduces costs for advertisers and improves ad attribution
Basic Attention Metrics (BAM)
- Measures user attention within the browser
- Monitors active tab view time for ads and content
- Accurately measures screen time and ads interacted with
- Allows for detailed tracking of user engagement
Token Technology (BAT)
- Functions as a token for a decentralized ad exchange
- Connects advertisers, publishers, and users, removing social and economic costs of existing ad networks
- Rewards user attention, protects user privacy, and improves conversion for advertisers and yields for publishers
- A future part of web standards, and solves the problem of monetizing content while protecting user privacy
- Part of a blockchain-based digital advertising system
- Based on Ethereum technology
Token Launch Details
- Goal of $24 million in funding (subject to market volatility)
- Token contract address revealed prior to crowdsale launch
- Crowdsale to be conducted within 30 days of a defined block number
- User growth pools and budget allocations will be handled during the crowdsale
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