Thoughts on a rolling Wallet reputation.

Hi SmartCoin and @jonray, here some thoughts and Ideas for Wallet reputation

1) Calculator for wallet rep. It would be great to avoid problems with delivery of the information and problems because not being up to date. It would also help to build trust in the project through clarity with the current rules.

2) I read somewhere that the wallet reputation is not applying in Jade for a certain time frame but I could not see an official announcement. I know that you are trying to educate people and people should DYOR but in points like this would be good to make some short comment on the official Twitter account. I asked twice @jonray and got no answer, for something as important as this (single most important rule of the protocol), would be important to get clarity on important issues during the transition time to the rolling system.

3) there have been some talk about how time in the project should be taken in consideration. Ideally should be a formula were each token gets weight for the time that has been staked, a multiplier Factor to calculate the adjusted Value of JADE in the Wallets

factor 1 = for $Jade staked since the first day

Factor 0 = for $Jade staked today

this means that the calculation should be done through an automated algorithm because the factor for each $Jade would change everyday.

Lets say the project is 100 days old and I have $Jade staked since day 25 (2 JADE), 50 (4 JADE) and 75 (2 JADE). This means that total averaged Weight is 0.75*2 + 0.5*4 + 0.25*2 = 4 JADE. But on the day 101, the 2 $jade staked since day 25 will have a factor of 0.75247524752, this means that this is a real rolling factor!

The problem comes when some Jade has been unstaked, in this case I would remove the tokens from old to new out of the calculation. in this way those that Unstake the big Ammounts of JADE get automatically a penalty loose value of their Jade for the decisions.

This factor is just for what you have staked disregarding what you might have done to the protocol

4) On top of this could be extra factors for DD,DH, for people that have never sell, etc to be applyed on top of the Adjusted Value of JADE in the Wallets

for example (take just as an example)

• DD = 3x
• DH = 2x
• people that never sold, that are longer as 50 or 75% of the project life = 2x
• people that never sold and are more that 2 month in the project = 1,5

It should be defined what is a DD , DH, etc and how people move in and out of each Level. No Level should be defined as “was part of the project in the beginning and will keep this status eternally”. All levels should be based on objective values.

The good thing is that this system works in the other direction too. With values between 0 and 1 for wallets that damaged the project in some way

• whales that sell big amounts of jade at once = 0.25
• wallets doing actions that are softly damaging the protocol = 0.9
• wallets repeatedly doing damage to the protocol = 0.5
• Wallet doing high damage to the protocol = 0.0

in this way you don’t need to blacklist anybody, it happens automatically and if those persons learn something on the way can take actions to improve wallet reputation. I would not like a system that considers that if you have done something bad to the protocol, you will be bad forever, investors should be allowed to correct their wrong actions, specially if the mantra of the protocol is to Educate people.

I have no idea how difficult is to implement something like this, so please Team, just take it as a concept, the values are just examples to be amended if necessary.

5) I find that the definition of the values should be done as a % or as factors of the total treasury (or backing // investment treasury) or any other intrinsic value of the Protocol like total days of the protocol, etc. In this way the values would be automatically updated during the growth or shrink phases of the protocol and will not have to be constantly changed, which in the future should be a problem when the project becomes a real DAO

For example, It’s to expect, that the maximum amount of JADE that can be unstaked will change depending for example on the total amount of JADE, the market cap, or the floor price.

6) Depending on the status defined on Point 4 (and not taking the adjusted value in consideration) it would be great to have a Reward system that allows the Protocol to work as a partial OHM fork.

In this way Depending on the status you have on the protocol

• could get rebases.
• The APY could be adjusted to your status
• Most importantly, only the tokes falling into that status should get the rewards. In this way and as an example, if somebody becomes a diamond hand because it have been more than 1 Year in the protocol without selling an he is now 18 months in the protocol and owns 100 JAde since the beginning (18 months old) and 100 Jade since he becomed a diamond hand (6 months old), only the tokens that he owns since at least 1 Year (100 Jade) should get the rewards.

Again, I have no idea if an implementation of this system is possible at all. Dev-Team, just take what you think is fair.

I hope my thoughts for a rolling Reputation system are welcome.

I’m looking forward to the announcements on the 12 January

Enjoy life!