A Novel Framework for Reputation-Based Systems

Reputation tokens on digital platforms typically serve two purposes:

-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.

We propose a two-token reputation system, whereby one token, which we call “points,” serves as a non-transferable reputation signal. A second token, “coin,” is a transferable asset dispensed to holders of points on a regular cycle. Effectively, points spin off dividends in coins that can be used as tradable currency.

So what if we instead separate transferability from the token itself? That’s why many games already split scores or points and coins or currency; it’s easy to imagine how spending your “score” could really backfire.

Drawing on our knowledge of economic theory and game design, we argue for a reputation system design based on a pair of tokens—one for signaling reputation and the other for offering liquidity—which could serve as tangible representations of meaningful contributions.

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.

Reputation tokens on digital platforms typically serve two purposes:

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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