The Herald is the owner of the forum post's token (SVT).
There is only one SVT per post, so there can only be a single Herald.
The Herald is the user who values the author's content the most. They are the unique sponsor of the post, and pay royalties to its author.
But beware! The SVT is in permanent auction: anyone can buy it, if they're willing to pay more.
The Herald Status
In becoming a Herald, you make a statement: "I appreciate and value this content the most, and I'm going to support its author for it."
In return, you get significant visibility and recognition throughout Tidemint:
- Top comment: Your latest comment on the post is always displayed at the very top, regardless of user ordering. Shape the discussion.
- Priority styling: Your username and comments on the post receive an animated eth-aurora gradient border that makes them stand out above all.
- Site-wide recognition: Your role as a Herald is always displayed with the post information. You will also feature in the Herald leaderboards.
The Permanent Auction
The Self-Valued Token (SVT) is an NFT with a built-in Harberger market mechanism. This all happens automatically on-chain: permissionless, unstoppable. Built on Ethereum.
Herald Valuation (Val): Once you buy an SVT, you have to declare what the Herald position is worth to you by setting your Herald Valuation (Val) on-chain. This is the price anyone must pay you to buy the token and take Herald status away from you.
Continuous Author Support: You pay royalties in proportion to the Val you set (2% of Val per week). These royalties are paid automatically on-chain. Around 70% of these go directly to the content creator's account, providing sustainable income, and the remaining goes to the DAO's protocol treasury.
Permanent Auction: If someone pays your Val, they immediately become the new Herald. You receive the payment, but you lose the status. This ensures the Herald tends towards the user that values the content the most, and is willing to pay the most royalties.
The Correct Valuation
The Harberger mechanism leads to price discovery by the need to balance two opposing forces:
- Lower Val: Affordable royalties, but others can take the token and Herald status from you more easily
- Higher Val: Better protection from takeover, but higher royalty payments
Depletion
You have to maintain balance in the smart contract to pay the royalties, at all times.
If your account's balance runs out, you lose all Heralds automatically on-chain, and the SVTs become available at a Val=0.
Ready to dive deeper? Learn about Herald economics, lock period protection, and the Harberger tax mechanism in our Herald In-Depth Guide.