FIREDAO FIRESOUL : THE VERY SOUL OF DILIGENCE
Intro
Soulbound tokens or SBTs have the potential to revolutionize Web3 networks by employing non-transferable tokens as indicators of reputation, replacing the conventional reliance on monetary frameworks. Presently, lenders verify borrowers’ bank account balances, credit scores, and repayment history to provide undercollateralized loans.
However, with SBTs serving as credentials, reputation becomes the collateral for securing an undercollateralized loan. Now, if we delve into the fundamental concept of NFTs, they represent property or assets possessing monetary value. Yet, in a trustless blockchain system, how can one verify someone’s reputation? To grasp this notion and comprehend the functioning of SBTs within the Web3 realm, let’s consider the example of a decentralized autonomous organization’s (DAO) voting system. Most DAO governance models allocate voting power based on the number of tokens held by a member.
Nevertheless, DAOs that issue SBTs could prioritize reputation over the quantity of tokens owned by a member. Reputation can be verified through users’ interactions within the community. For instance, trophies obtained from Kusama’s Governance Rewards program, earned by participating in on-chain referendums, can be utilized to represent an individual’s reputation.
Introducing the Soul Bound Token from FireDAO
FireSoul, Token Type: ERC721 extension, Non-transferable, Soulbound.
FireSoul is the Soul Account of FireDAO and is minted by burning the identity token, FireSeed. When a user mints a Soul Account, they become an official member of FireDAO. Each Soul Account is assigned a FID, which will produce the “on-chain reputation” of that account.
Each wallet can only mint one Soul Account and generate one FID, which is non-transferable. The Soul Account records the different SBTs owned by the wallet. Each SBT has a different weight coefficient, and the comprehensive weight of a Soul Account is calculated by multiplying the SBT holding quantity by the weight coefficient. This comprehensive weight becomes the “on-chain reputation” score of the Soul Account. On-chain reputation is calculated using the independent ERC20 token FRT. The voting power of each member of FireDAO is determined by the amount of FRT in their Soul Account.
Through community governance via universal voting, the FireSoul Soul Account can be upgraded to add or reduce the types of SBTs and adjust the weight coefficients of different SBTs. This process recalculates the account of FRT.
Soul Accounts can be burned and terminated, severing the relationship with the DAO. When an account is burned, the SBTs within the account are also destroyed. To regenerate a Soul Account, one FireSeed token needs to be burned again.
RESOURCES
https://www.firedao.co/
https://www.firedao.co/fdpaperen.pdf
https://docs.firedao.co/
About the Author
Joseph Johns is a successful Emergency Medicine Physician and an ardent cryptocurrency and Blockchain connoisseur
Bitcointalk Username: Janus23
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=3528981
Wallet address: 0xc5df5839c467b2d7A69f461979255443A8637955
