Introduction to Gator Labs and Chomp

In a world inundated with information, discerning truth from fiction has become increasingly challenging. Enter Gator Labs, a pioneering company aiming to revolutionize the way we seek and verify information through their innovative app, Chomp. In this episode of Unlayered, hosts Sal and ZenLlama sit down with Isaac Simons, co-founder of Gator Labs, to explore how they're leveraging blockchain technology and game theory to create a decentralized platform for truth-seeking.

Chomp is not just another social media app or question-answering platform. It's a carefully designed game that incentivizes users to provide honest, thoughtful responses to questions while simultaneously gauging the collective sentiment around various topics. By combining elements of prediction markets, consensus mechanisms, and gamification, Chomp aims to create a more reliable and contextually rich information ecosystem.

The Genesis of Gator Labs

Isaac Simons' journey to co-founding Gator Labs is as intriguing as the concept behind Chomp itself. With a background in neuroscience and psychobiology, Simons initially ventured into advertising, where he honed his understanding of human behavior and motivation. This experience laid the groundwork for his later pursuits in economics and blockchain technology.

Simons explains, "I studied neuroscience and specifically like psychobiology in undergrad and then actually went into advertising when I decided to... I didn't really want to be a doctor and advertising is all about human behavior and how to get people to buy something or, you know, create an emotion with, you know, some sort of creative that speaks to people in kind of like some way."

This interdisciplinary background provided Simons with a unique perspective on human behavior at scale, which he later applied to his work in crypto token design and incentive systems. It was during a Solana Hackerhouse event in Berlin that Simons met his co-founder, Kasey, and the idea for Gator Labs and Chomp began to take shape.

The Problem with Information

At the core of Gator Labs' mission is addressing the fundamental issues plaguing our current information landscape. Simons articulates this problem succinctly: "The information landscape of the world kind of like sucks. And there's a lot of things missing from it. And there's a lot of things that are, you know, trying to explicitly manipulate you or bias you or get you to make some decision that maybe you don't necessarily want to make."

This observation is particularly poignant in the crypto space, where scams and misinformation run rampant, making it difficult for newcomers to navigate the ecosystem safely. However, the issue extends far beyond crypto, affecting virtually every domain of knowledge and public discourse.

Chomp aims to tackle this problem by creating a system that not only aggregates information but also provides crucial context and gauges the collective sentiment around various topics. By doing so, it hopes to offer users a more nuanced and reliable understanding of complex issues.

Chomp: A Game of Truth-Seeking

At its core, Chomp is a game designed to make information gathering fun and rewarding. Users are presented with questions and asked to provide their own answers as well as predict how others will respond. This dual-layer approach allows the system to capture both individual beliefs and perceptions of collective sentiment.

Simons elaborates on the game mechanics: "When we asked this question, we have users answer two different like questions in relation to like the question... The first question is like, what do you think the answer to that question is? Like, yes, it will, no, it won't. And then what percent of people do you think answered yes to this question?"

This innovative approach draws inspiration from various fields, including prediction markets, blockchain consensus mechanisms, and game theory. By carefully designing the incentive structure, Chomp aims to encourage honest responses while making the process engaging and potentially rewarding for participants.

The Mechanism Behind Chomp

The heart of Chomp's functionality lies in its unique mechanism for aggregating and interpreting user responses. Simons introduces the concept of the "surprisingly popular" answer, which forms the basis of Chomp's truth-seeking algorithm.

He explains, "If 80% of people say Wyft is gonna hit $10 billion and 90% of people say, or the expectation is that on average, 90% of people would have said yes. The answer that we actually pull out on the back end here is no, Wyft will not hit $10 billion."

This counterintuitive approach is based on the idea that the gap between what people believe and what they think others believe can reveal important insights. In the example given, if a large majority already believes an asset will reach a certain valuation, it suggests that this expectation is already priced in, making further growth less likely.

Incentivizing Honesty

One of the key challenges in designing a system like Chomp is ensuring that users are incentivized to provide honest responses rather than gaming the system for rewards. Simons and his team have put considerable thought into this aspect of the platform.

"The incentive structure is designed to basically get people to only input like what they truly think," Simons states. This is achieved through a carefully calibrated reward system that takes into account both the accuracy of a user's prediction and how closely it aligns with the consensus.

By separating the questions into first-order (what the user believes) and second-order (what they think others believe) components, Chomp creates a scenario where the most profitable strategy is to be honest. This clever design helps maintain the integrity of the information gathered through the platform.

Gamification and User Engagement

While the economic incentives are crucial for ensuring honest participation, Simons emphasizes that the fun factor is equally, if not more, important for user retention. "The games being fun are way more powerful than the economic incentives," he asserts.

Chomp is designed to be an enjoyable experience that users can engage with in short bursts throughout their day. Whether it's during a commute or a brief moment of downtime, the game offers a quick and engaging way to contribute to and benefit from collective knowledge.

This focus on user experience sets Chomp apart from many other blockchain-based applications, which often prioritize tokenomics over usability. By creating a product that's accessible and enjoyable even for those unfamiliar with blockchain technology, Gator Labs hopes to achieve broader adoption and more meaningful data collection.

The Information Layer

While Chomp is the first product from Gator Labs, it's part of a broader vision to create what Simons calls an "information layer" or "data layer." This concept goes beyond simply aggregating answers to questions; it aims to build a comprehensive social graph that tracks individual expertise and interests across various topics.

Simons envisions a future where this information layer could facilitate connections between people with shared interests or complementary knowledge. He explains, "It would be super cool if, you know, there was just somewhere I could go, like, oh, here's all these people who have, you know, these reputations that are above, you know, 70% I can just go hop in that group chat with them because I also have, you know, reputation above like 70% and now I'm part of this community."

This potential for community building and knowledge sharing adds another dimension to Chomp's value proposition, extending its utility beyond mere information gathering.

Comparison to Prediction Markets

Given some similarities in functionality, it's natural to draw comparisons between Chomp and prediction markets like Polymarket. However, Simons is quick to point out some key differences.

"We are very similar to a prediction market. It's certainly got prediction market elements to it. One of the key like legal differences is that we don't give people incentives for like the actual outcomes," he explains. Instead of rewarding users based on the eventual outcome of an event, Chomp focuses on capturing sentiment and opinions at a specific point in time.

This distinction allows Chomp to operate in a different legal framework while still providing valuable insights. It also enables the platform to address a wider range of questions, including those that might not have clear, verifiable outcomes.

Potential Applications and Integrations

The versatility of Chomp's approach opens up a wide range of potential applications and integrations. Simons mentions several possibilities, from helping businesses conduct market research to providing sentiment data for decentralized autonomous organizations (DAOs).

"We've talked to a few different social applications on how we can help them. Also like things that you don't necessarily think are like social protocols like DAOs right like the Jupe DAO for example. Like people are just voting yes on everything because they get paid to do it. So like why wouldn't they do it. And so like you can kind of help them filter out for people who read the post and actually you know learned what it had to say," Simons explains.

This potential for integration with existing platforms and protocols highlights the broader impact that Chomp and similar systems could have on the blockchain ecosystem and beyond.

The Economic Philosophy Behind Chomp

Underlying Chomp's design is a thoughtful economic philosophy that sets it apart from many other blockchain projects. Simons articulates this perspective: "I'm in crypto because I have like a core fundamental belief that tokens are simply the single greatest opportunity in all of human history to explore large scale coordination mechanisms of human behavior."

This view informs every aspect of Chomp's design, from its incentive structure to its token economics. Unlike many projects that simply "slap a token" on an existing product, Gator Labs has taken a token-first approach, carefully considering how to create an economy that produces a valuable information product.

Simons criticizes the common practice of creating capped supply tokens, arguing that this approach, while suitable for Bitcoin as a store of value, may not be optimal for creating a thriving economy around a product or service. Instead, he advocates for designing token economics that encourage value flow and creation rather than hoarding.

The Future of Chomp and Gator Labs

As Chomp continues to evolve, Gator Labs has several exciting developments on the horizon. Simons mentions an ongoing "Team Coin Madness" tournament in collaboration with Orca, featuring 16 different meme coins competing for a liquidity pool with token emissions.

Looking further ahead, the team plans to introduce new features such as question filtering and tagging, as well as potentially expanding their game offerings. Simons hints at a "new form factor" for Chomp that he's particularly excited about, though he refrains from spoiling the surprise.

The long-term vision for Gator Labs extends beyond Chomp, with plans to create additional games and products that contribute to their information layer. By continuing to innovate at the intersection of game theory, economics, and blockchain technology, Gator Labs aims to reshape how we interact with and understand information in the digital age.

Conclusion: A New Paradigm for Information

In an era where misinformation and biased reporting pose significant challenges to public discourse and decision-making, platforms like Chomp offer a glimmer of hope. By leveraging the power of blockchain technology, game theory, and carefully designed incentive structures, Gator Labs is pioneering a new approach to information gathering and verification.

While still in its early stages, Chomp demonstrates the potential for decentralized systems to address some of the most pressing issues in our information ecosystem. As the platform evolves and potentially integrates with other applications and protocols, it could play a crucial role in fostering a more informed and engaged online community.

The success of Chomp and similar initiatives could have far-reaching implications, not just for the blockchain space, but for how we approach knowledge and truth-seeking in the digital age. As we continue to grapple with the challenges of information overload and misinformation, innovative solutions like Chomp may well point the way toward a more reliable and contextually rich information landscape.

Facts + Figures

• Gator Labs was founded by Isaac Simons and his co-founder Kasey after meeting at a Solana Hackerhouse event in Berlin.
• Chomp is the first product developed by Gator Labs, designed as a gamified platform for information gathering and verification.
• The app uses a dual-question system: users answer what they believe and what they think others believe about a given topic.
• Chomp employs a "surprisingly popular" answer mechanism to determine the most likely truth from user responses.
• The platform currently uses Bonk as its in-game currency, with plans to launch its own token in the future.
• Users can earn up to 50,000 Bonk (increased from 10,000) for accurate predictions in the game.
• Chomp is designed to be played in short 3-5 minute sessions, making it accessible for casual use throughout the day.
• The platform aims to create an "information layer" or "data layer" that tracks individual expertise and interests across various topics.
• Gator Labs is currently running a "Team Coin Madness" tournament with Orca, featuring 16 different meme coins.
• The company plans to introduce new features such as question filtering and tagging in the near future.
• Chomp is available as a Progressive Web App (PWA) that can be downloaded or played on desktop browsers.
• The platform is designed to be accessible even to users unfamiliar with blockchain technology, like Simons' mother who plays Chomp without knowing how to use a wallet.

Questions Answered

What is Chomp and how does it work?

Chomp is a gamified platform developed by Gator Labs that aims to gather and verify information through user participation. Users answer questions about various topics and predict how others will respond. The system then uses a unique "surprisingly popular" answer mechanism to determine the most likely truth from these responses. This approach combines elements of prediction markets, consensus mechanisms, and game theory to create a more reliable information ecosystem.

How does Chomp incentivize honest responses from users?

Chomp incentivizes honest responses through a carefully designed reward system. Users are asked two questions: what they believe and what they think others believe. The platform then rewards users based on the accuracy of their predictions and how closely they align with the consensus. This dual-question approach, combined with the reward structure, makes honesty the most profitable strategy for users, ensuring the integrity of the information gathered.

How is Chomp different from traditional prediction markets?

While Chomp shares some similarities with prediction markets, it differs in key ways. Unlike prediction markets that reward users based on the eventual outcome of events, Chomp focuses on capturing sentiment and opinions at specific points in time. This allows Chomp to operate under different legal frameworks and address a wider range of questions, including those without clear, verifiable outcomes. Additionally, Chomp's gamified approach makes it more accessible and engaging for casual users.

What is the long-term vision for Gator Labs and Chomp?

Gator Labs envisions Chomp as part of a broader "information layer" or "data layer" that tracks individual expertise and interests across various topics. The long-term goal is to create a comprehensive social graph that can facilitate connections between people with shared interests or complementary knowledge. Beyond Chomp, Gator Labs plans to develop additional games and products that contribute to this information layer, potentially reshaping how we interact with and understand information in the digital age.

How does Chomp's token economy differ from other blockchain projects?

Chomp's token economy is designed with a "token-first" approach, focusing on creating an economy that produces a valuable information product. Unlike many projects that simply add a token to an existing product, Gator Labs has carefully considered how to incentivize value flow and creation rather than hoarding. This approach challenges the common practice of creating capped supply tokens, arguing that such models may not be optimal for fostering a thriving economy around a product or service.

What potential applications does Chomp have beyond its current form?

Chomp has potential applications in various fields, including market research for businesses, sentiment analysis for decentralized autonomous organizations (DAOs), and integration with existing social media platforms. The versatility of Chomp's approach allows it to potentially address issues like voting manipulation in DAOs or provide more contextual information for social media content. As the platform evolves, it could play a crucial role in improving decision-making processes across various industries and online communities.