added by Austin Castellaw and · updated 2y ago
A Novel Framework for Reputation-Based Systems
- -To identify and reward the users who have contributed value to the platform—a form of signaling, which those users can parlay into public reputation.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- To create a form of liquid value attached to reputation, coins should accrue to point holders through a series of dividends, where each point holder is awarded coins based on the number of points they have.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- For platforms where participation functions like employment, as with gig or creator platforms, the optimal strategy would be to distribute coins to point holders at a regular interval: for example monthly, or even daily. That means the users who make valuable contributions, thus maintaining a certain point level, receive a stable income.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- That said, the platform may not have a clear sense of the contributions’ value, especially early on, so there needs to be a mechanism for experimentation and recalibration around token distribution.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- To identify and reward the users who have contributed value to the platform—a form of signaling, which those users can parlay into public reputation.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
Austin Castellaw added 2y ago
- Social capital shouldn’t be bought—but that doesn’t mean it can’t generate liquidity
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- We’ve outlined some core principles of social token design, but it’s equally important to complement such designs with product-market fit that intrinsically motivates users. For example, a play-to-earn game that focuses its efforts on enabling users to profit but that doesn’t get the “play” element right misses the point: that games are, first and ... See more
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- In many crypto projects, the largest holders end up being just the people who were aware of the project earliest. But those early adopters are not necessarily the most valuable to the future of the ecosystem. So it is essential to maintain incentives for ongoing contributions and engagement. One natural way to achieve this in a two-token framework ... See more
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
sari added 2y ago
- Yet these two roles are in opposition to each other. A token needs to be exchangeable in order to be liquid. But the more liquid a token is, the less effective it can be as a pure signal of reputation.
from A Novel Framework for Reputation-Based Systems by Andreessen Horowitz (AZ)
Austin Castellaw added 2y ago