Proof of Contribution

Problem: Token Efficiency

Token distribution today is extremely inefficient.

This is because there is no way to know which users to reward - especially before TGE.

The outcome is a reverse flywheel: teams give out tokens to mercenary capital and farmers, who immediately sell the token without adding value. Token price then reduces, and the incentive to contribute reduces, and so on.

Tokens are a $100 billion industry - imagine if we could improve how efficiently they were used?

Solution: Proof of Contribution

Proof of Contribution (POC) is the engine that powers reputation and loyalty based economies. The core idea behind reputation tokens is that not all users are equal, and should not be rewarded equally.

POC works by automatically assigning a reputation score for all users of an ecosystem or app based on their onchain and offchain behaviours. This score can then be used by first and third party app builders to attract and reward the best participants.

Long term aligned users grow the ecosystem by net positive actions and selling is disincentivized.

Bigger Picture

Proof of Contribution enables smarter token distribution:

1. Rewards go to valuable users, not bots

2. Tokens are fairly and efficiently distributed

3. Sell pressure drops through dynamic, ongoing incentives

If it works, we expect many more projects to adopt the core concept behind Proof of Contribution.