In our last post, we introduced the concept of XKU (Experience Keeping Units) and established how Runs is a pioneer in bringing it to life. We also explained in detail all aspects of XKUs including the 3S factors - Story, Source, and Sustainability. We ended by talking about the future where Runs will evolve into into a DAO (Decentralized Autonomous Organization) like model.
In this post, we will be discussing more in detail about the Runs platform and the DAO model.
The Runs Platform - Transforming eCommerce Experience For Users
To begin with, Runs will transform eCommerce in two ways:
From Centralized Monopolies (Intermediary) to a Decentralized Platform built on Digital Trust (Facilitator)
From Electronic (SKU) Commerce to Experience (XKU) Commerce
There are two “agents of change” that will enable Runs to deliver on this transformation. Blockchain Technology will deliver on establishing decentralization and digital trust while the XKUs (Experience Keeping Units) will replace products (Stock Keeping Units) and transform Electronic Commerce to Experience Commerce. As a consequence, Runs aims to be a Decentralized Experience Commerce Platform.
No transformation is instantaneous and therefore Runs will evolve across two transformative phases – Pre-Decentralization phase and Post-Decentralization phase. The platform’s features and functions are closely aligned to the objectives of the two phases and will eventually culminate in establishing Digital Trust.
Now, let’s get to the Runs platform itself. The activities on the platform consist of buying/selling/auctioning of XKUs and validating XKUs and merchants (e.g. validation of a merchant’s profile from a story, source or sustainability perspective and other means of enhancing experience and engagement with merchants).
The currency of transaction on the Runs platform will be Runs Tokens. We will be talking about Runs Tokens in the next post. Experiences are transacted through the sale and purchase of XKUs on the platform by members. Members are incentivized for creating content on the RUNS platform such as text, audio, video and pictures relating to user experiences and XKUs.
The RUNS platform has the following components:
The Participants: Members and Brands
The Value Unit: Experiences listed as XKUs on the platform
The Filter: Runs Tokens
The combination of these three components create the core interaction and main incentives associated with the Runs Platform. The Runs Platform will evolve over two phases – Pre Decentralization and Post Decentralization.
Pre-Decentralization
Initially, the RUNS Platform will integrate with any existing brand, both online or offline, that seeks to engage its users or customers with a more relevant approach of offering experiences listed as XKUs. Through this, RUNS aims to convert the users or customers of such brands into active members of its platform.
In this phase, RUNS will be the sole seller on the platform and members would buy experiences from RUNS. Members will be incentivized for their activities, that include purchases, contributing user generated content (as discussed earlier) to the RUNS Platform, and promoting the RUNS Platform. These incentives are administered through rewards in the form of RUNS Tokens.
RUNS Tokens will be the primary currency that would be used by all members of the platform to carry out their transactions. The below diagram indicates the interaction mechanisms across stakeholders in the pre decentralization phase.
As shown in the diagram, in the initial period, the control would lie with the platform to maintain stability.
Post-Decentralization
As the members and brands reach a critical mass for decentralization, RUNS would start arriving at its vision of creating a Decentralized Experience Commerce Platform. It is this progressive evolution that would culminate in an experience economy where participants would be able to interact with minimized market filters. The Post-Decentralized RUNS Platform will operate as a permissionless, public Blockchain that consists of immutable ledger entries and records related to XKUs with the RUNS Tokens as its native cryptocurrency. The RUNS Token will be the only medium of exchange for all transactions involving XKUs. As a consequence, it also acts as the incentive for the platform participants to perform verification of the XKU documentation, ratings, and its subsequent transactions. The below diagram indicates the interaction mechanisms across all stakeholders in the post decentralized phase.
In this phase, the platform will shift to the role of a facilitator.
This stage marks the beginning of decentralized value creation for all participants of the platform as they will be able to interact with a layer of transparency and trust that is made possible by the Blockchain.
The need for Digital Trust requires a new age platform that builds on and fills the gaps of traditional eCommerce platforms. However, expecting the platform to function as a decentralized system from the beginning is a tall order. Thus, Runs has developed a unique approach of onboarding participants before progressing towards decentralization.