PoC Tokenomics
The Reputation Hook Tokenomics model centers around two primary tokens: pRO Tokens and RO Tokens. These tokens represent a user’s standing and influence within the ecosystem and are key to accessing premium services and participating in liquidity pools.
Token Types
pRO Tokens (Proportional Reputation Tokens):
Non-transferable ERC-1155 tokens.
Directly linked to a user’s reputation within the system.
Reputation scores are dynamically updated based on user activity in the pool (e.g., liquidity provision, trading volume).
Higher pRO scores can unlock rewards, lower fees, and access to premium liquidity pools.
Decay Mechanism: Over time, pRO tokens decay if users remain inactive. This incentivizes continuous engagement in the system.
RO Tokens (Reputation Operation Tokens):
Transferable ERC-1155 tokens.
Represent tangible rewards or assets users can spend to access premium features or services (e.g., discounted fees, enhanced trading options).
Minted based on users’ activity and reputation (pRO tokens).
Users can also stake RO tokens for long-term rewards, higher access tiers, or governance participation.
Minting and Burning Mechanics
Minting: RO tokens are minted based on users’ behavior in the pools, particularly when high-volume liquidity is provided or large trades are completed. pRO tokens can be converted into RO tokens in certain conditions.
Burning: RO tokens are burned when users consume premium services or lose reputation due to negative behavior (e.g., front-running, inactivity).
Fee Distribution
Dynamic Fees: Pool fees are dynamically adjusted based on user reputation, with higher-reputation users enjoying discounted fees.
Slashing Mechanism: If a pool remains inactive or engages in malicious behavior, a portion of the pool’s staked collateral is slashed, and fees are distributed back to active participants or to the ecosystem.
Revenue Streams
Premium Access Fees: Users with lower reputations can pay RO tokens to access premium liquidity pools or discounted trading fees.
Staking Mechanisms: Users can stake RO tokens to earn a portion of protocol fees or yield based on their participation.
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