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Tokenomics

Our DAO's native token is engineered to be a decentralised reputation layer that incentivises collaboration and transparency  

Our goal is to ensure that people that engage in a transaction have a framework for recourse together with the necessary transparency in order to understand who they are dealing with. We are not an identity storage service, we keep track of the reputation built on actions and real community interactions.

 

As participants transact, each party has the ability to rate their counterparts willingness to collaborate and share information (transparency). This rating is then related to the participants wallet and committed to the blockchain. Only participants that are in active trades are able to rate their counterparts.

 

Each  transaction using the Tradeflows network pays an initial fee that goes to the DAOs treasury. The DAO uses these proceeds to offer a Staking yield to the participants that stake tokens as part of their transactions.

 

The yield each participant generates is linked to the overall yield offered by the DAO weighted by their Score. Participants with the highest score keep the full yield while participants with low scores receive a lower yield. The yield that is not received by participants due to a lower score can potentially be used to fund an insurance pool that covers financial losses due to bad behavior but more on this later.