Blockchain-based media start-up Civil Media is launching its cryptocurrency CVL on August 13th. The company looks to sell a maximum of $34 million in CVL tokens, which will be valued at 27 to 94 cents each. The company has an ambitious plan to save journalism using blockchain technology and cryptoeconomics. After assembling 13 start-up newsrooms to kick things off, the company is also gearing up to launch its blockchain-based publishing protocol at the earliest.
The company used a lot of buzzwords in its announcement, like calling itself a “protocol” for journalism and saying it valued “decentralization.” But between the buzzwords, what is the company actually trying to do? – The problem with journalism, according to Civil, is that reporters are compromised by working for companies that value returns to shareholders over the relentless pursuit of truth. Ad-based business models drive reporters to generate shallow content to generate page views, while threats can cause publishers to alter or remove controversial stories.
Civil believes that one way to restore alignment between reporters and readers is to let readers buy the right to “vote” on whether a newsroom represents fair, quality journalism or not. The only way newsrooms can be challenged is if a majority of involved readers agree. The currency used in this process: Civil’s cryptocurrency, CVL, which will be based on the Ethereum blockchain.