Karma Protocol — Whitepaper

22 min readJul 22, 2023

Abstract

Using decentralized technologies, the Karma Protocol tokenizes and incentivizes good deeds, fostering an ecosystem where all participants benefit. As a Decentralized Autonomous Organization (DAO), Karma Protocol invites third-party smart contracts to register for certification. Once certified by the DAO, these smart contracts offer users rewards in the form of KRM tokens, an extension of the ERC-20 standard. A micro-donation system further incentivizes DAO members to actively participate in voting processes. In partnership with KChain Solutions, Karma Protocol showcases its potential via an NFT marketplace linked to the DAO’s incentive system. A customized version of the ERC-721 standard, dubbed KRC-721, is utilized to represent good deeds as NFTs and reward all contributors. To attract investment, and finance protocol development, a GLDKRM token has been implemented, allowing investors to access a proportion of the project’s profits as dividends.

1. Introduction

“Good Karma,” a concept rooted in ancient wisdom, is often understood as the positive spiritual merit earned through kind deeds, compassion, and altruistic actions. It is the belief that benevolent acts create a positive force that returns to us, fostering a cycle of goodwill and positive energy. Leveraging this philosophical cornerstone, Karma Protocol seeks to manifest the essence of “good karma” in our digital age.

In the present world, an individual’s perceived worth often hinges on wealth, social status, and digital popularity. This paradigm tends to perpetuate materialism over altruism and benevolence, creating societal structures that favor personal gain over communal prosperity. Recognizing this imbalance, Karma Protocol proposes a paradigm shift, envisaging a world where individuals earn recognition and value based on their kind deeds and societal contributions.

Karma Protocol is pioneering a future where altruism is incentivized. Through a blockchain-based system, we encourage good deeds by rewarding them with Karma tokens. On our platform, the Karma Marketplace, users can donate goods and services, earning Karma tokens in return. A percentage of these transactions directly benefit charitable organizations, forging a cycle of giving that rewards both the giver and the broader community.

By converting good deeds into a quantifiable and tangible form, the Karma Protocol promotes a societal transition towards kindness, compassion, and social responsibility. It encourages individuals to contribute to the betterment of society, fostering a community where goodwill and shared prosperity are valued above personal gain.

In a revolutionary stride, Karma Protocol seeks to intertwine its system with social media platforms. Users are motivated to perform more good deeds, while simultaneously contributing to the betterment of the real-world community.

Karma Protocol is more than just a blockchain system — it represents a movement towards recognizing individuals for their societal contributions over their material possessions or social status. By incentivizing benevolent deeds and encouraging social responsibility, the Karma Protocol aspires to inspire a global transition towards a more compassionate, equitable society.

The Karma Protocol operates through a Decentralized Autonomous Organization (DAO) and smart contracts. These can subscribe to the DAO for certification and permission to distribute rewards in KRM tokens. KChain Solution supports the DAO with a decentralized NFT marketplace, where Donors can publish their unique Kollection of NFTs that represent Art/Skill, Time, or fundraising for charitable activities. Donors must update their NFTs to transparently demonstrate how user funds are utilized, with each Kollection verified and certified by DAO members to ensure adherence to promised standards.

Leveraging blockchain technology, Karma Protocol utilizes tokenization to actualize its vision. The ERC-20 standard has been expanded to implement the DAO, and the ERC-721 standard has been adapted to enable NFTs that can track updates from creators and manage sales commission distribution in a unique manner, as it will be shown in the Tokenomics paragraph.

2. Business analysis

I. Market analysis

The Karma platform will operate majorly in the crypto philanthropy market, which is growing exponentially and is projected to reach $1 billion by 2027 and $10 billion by 2034 as per the “The Giving Block 2023 annual report”. This market expansion can be attributed to various factors, including the increasing acceptance of cryptocurrencies by charities and

With Karma enabling the opportunity to earn and donate we expect this market to rise further. NGOs. In fact, 78% of US charities have already started accepting crypto donations, highlighting a growing trend towards utilizing digital currencies for philanthropic purposes.

II. Revenue streams

During the last year, the average crypto donation was 31 times larger than the average online gift size in the nonprofit sector, which was $204. The Karma platform will capitalize on the rising popularity of crypto donations, with its unique value proposition i.e. By enabling individuals to earn and donate a portion of their earnings in crypto. Our platform taps into a tax-efficient and potentially more substantial and transparent donation method.

III. User Adoption and Growth

With 108 million verified crypto users on Coinbase alone, the market potential for the Karma platform is substantial and will grow further as crypto adoption increases. By providing a seamless and user-friendly experience for individuals interested in contributing to charitable causes, the platform will attract a significant user base. Also with current capital gain tax laws an average donor can save up to 30% of the tax by donating an appreciated crypto instead of selling it and donating cash. This tax efficiency of crypto donations will serve as an incentive for users to engage with the Karma platform and make a positive impact. Karma Platform aims to onboard 5 Million Total users in 5 years who aim to donate via direct or indirect earnings on the platform.

V. Profitability and Cash Flow

As the market for crypto philanthropy expands and charities increasingly accept cryptocurrency donations, the Karma platform is strategically positioned to generate income from various sources. Our revenue will primarily come from transaction fees, set at a minimum of 3% of all transactions processed on the platform. Additionally, users can opt to pay a commission higher than 3% on our marketplace, if they choose.

With a target of 5 million users, Karma also plans to host bi-annual direct donation events. These events are designed to attract more users who wish to donate directly to charities, making them a key revenue source for the platform.

Moreover, we are exploring further revenue opportunities through advertising and potential partnerships or revenue-sharing arrangements. The launch of our initial GOLD KARMA coin is intended to secure funding for the platform’s first three years, within which we aim to achieve this user growth.

Through prudent financial planning and cost management, we anticipate the platform will reach profitability and positive cash flow within four years of its launch. Our goal is to provide a 7–9X return on investment to GOLD KARMA holders. Detailed cash flow projections are available upon request.

VI. Corporate and ESG

In addition to its appeal to individual donors, the Karma platform is uniquely designed to align with the corporate sector’s growing focus on Environmental, Social, and Governance (ESG) criteria. By integrating with the Karma platform, corporations can significantly enhance their ESG profiles and reputations. The platform offers a seamless avenue for businesses to contribute to social causes, thereby fulfilling their corporate social responsibility objectives and potentially improving their ESG scores.

The platform’s ability to track and report on charitable contributions and impact can serve as a valuable tool for corporations to transparently showcase their philanthropic efforts. This transparency is particularly important in today’s market, where consumers and investors are increasingly mindful of corporate social responsibility and sustainability practices. By participating in the Karma ecosystem, corporations can demonstrate a commitment to societal and environmental causes, an aspect that is becoming crucial for maintaining a positive public image and attracting socially conscious investors.

Furthermore, the Karma platform’s integration into corporate strategies allows businesses to engage their stakeholders — including employees, customers, and investors — in meaningful philanthropic activities. This not only fosters a culture of giving within the organization but also strengthens brand loyalty and customer engagement by aligning with the values of a socially conscious public.

VII. Risk Analysis

Like any business venture, the Karma platform needs to be mindful of potential risks and challenges. Key concerns include regulatory uncertainties related to cryptocurrencies, fluctuations in the market, and variations in tax laws across different countries. Additionally, maintaining user trust and ensuring security are crucial.

To address these issues, we plan to implement comprehensive risk management strategies. A significant part of this approach involves introducing the KRM certification, which is aimed at maintaining the trust of donors, NGOs, and the wider philanthropy community.

3. Tokenomics

Before delving into the technicalities, it is crucial to understand the fundamental concept driving the tokenomics of the Karma Protocol. This involves an exploration of the various participants within the protocol, their unique roles, and the incentivization mechanisms designed to stimulate their active participation.

The Karma Protocol’s tokenomics is a complex yet balanced ecosystem designed to incentivize participation from all its members. It reflects our commitment to fostering a community where altruism and social responsibility are not just valued but rewarded.

3.1 Participants

Donor: the Donor is an integral part of the Karma Marketplace. They are enabled to offer their Art/Skill and Time, represented as Non-Fungible Tokens (NFTs) based on the KRC-721 standard. Donors are not just sellers but also active contributors to the protocol. They can publish updates related to their service directly on the NFT, demonstrating their ongoing commitment and transparency.

Beneficiary: When creating an NFT Kollection, the Donor has the option to specify a Beneficiary. This Beneficiary is set to receive royalties from each transaction involving the Donor’s NFTs. For instance, an artist Donor can pledge a portion of their sales proceeds to a charitable initiative, creating a tangible social impact.

Kollector: A Kollector acts as a buyer and potential reseller of the KRC-721 NFTs. Each purchase transaction triggers the creation of Karma tokens, which are then transferred to both the buyer and the seller, thus rewarding active marketplace participation.

Investor: Investors in the Karma Protocol are holders of the Gold Karma (GLDKRM) token. This token represents an investment into the future of the platform and confers the right to access 40% of the DAO donations, derived from donations to the DAO.

DAO Member: A DAO Member, who is also a holder of GLDKRM, is a certified participant in the DAO with the right to vote. The influence of their vote is proportional to their GLDKRM balance, ensuring a fair representation of their stake in the organization. These members are actively involved in key decisions such as authorizing contracts, approving new members, and setting parameters for the DAO. To incentivize their engagement and contribution to the governance process, DAO Members receive a portion of 60% of the donations made to the DAO. This arrangement encourages a more active and invested approach to governance.

3.2 Karma Token (KRM) and DAO

The Karma Token (KRM) is a unique extension of the ERC-20 standard token, termed KRC-20. Unlike typical tokens, KRM begins with an initial supply of zero and gradually increases in circulation as individuals perform good deeds within the Karma Protocol ecosystem. This feature of KRM is designed to mirror the concept of Karma — every positive action in society generates new Karma, that has an infinite supply. Underpinning KRM is the concept of Proof-of-Karma (PoK), an innovative protocol that quantifies an individual’s contributions towards societal welfare.

The core philosophy guiding Karma is the belief that it should be acquired through authentic, altruistic actions, rather than being easily transferable or monetizable. In alignment with this principle, KRM tokens are soulbound and cannot be transferred. This design choice emphasizes the importance of owning Karma. It signifies its value as a symbol of benevolent contribution, rather than as a tradable commodity. This approach reinforces the idea that Karma is earned through genuine acts of goodwill and community participation.

Looking ahead, initiatives will be planned exclusively for KRM owners, based on their staked holdings, further enhancing the benefits of active participation in the Karma ecosystem.

KRM, therefore, serves as a symbol of status, representing one’s altruistic actions more than their monetary value.

But the KRC-20’s utility extends beyond just minting and transferring KRM. It’s also pivotal in managing DAO proposals.

The fundamental concept of a DAO is that its members can submit proposals for consideration. These proposals typically encompass the following functions:

• Certifying a contract

• Revoking a contract

• Altering the minting threshold. This determines the minimum value a contract must generate to mint a KRM token.

Once a proposal is submitted, all DAO members have the opportunity to vote, with their voting power being proportional to their GLDKRM stake holding. A proposal is accepted when it receives a positive vote from at least 51% of the total voting power, rather than just a simple majority of members. This means that the decision is influenced by the extent of each member’s stake in GLDKRM. It’s important to note that while each member can submit only one vote per proposal, the weight of their vote directly correlates with the size of their GLDKRM holdings.

A member is incentivized to vote coherently, aligning with the greater DAO objectives, in order to receive incentives deriving from the protocol’s adoption. This serves as a motivational tool to encourage active and thoughtful participation, further contributing to the growth and success of the DAO.

From this, we can appreciate the power embedded in the DAO’s ability to certify a contract. When a Kollector opts to interact with a DAO-certified smart contract, they have the assurance that DAO members have scrutinized and approved the Donor Kollection or a third-party contract. In this way, the Karma Protocol combines decentralized trust, participation-driven governance, and tokenized altruism into one robust ecosystem.

3.3 Gold Karma Token (GLDKRM)

The Gold Karma Token (GLDKRM), unlike the KRM tokens which symbolize societal contribution, serves a different purpose within the Karma Protocol ecosystem. It is an ERC-20 token with a hard cap of 100,000,000, specifically designed to encourage and reward financial investment within the network.

Holders of GLDKRM are entitled to a share of the dividends generated by the DAO, distributed in direct proportion to their token holdings. Importantly, these dividends are not distributed continuously, but rather, they accumulate over ‘epochs’ of 7 days each. This means that every 7 days, a new epoch begins, and the dividends for that epoch are allocated to the respective token holders. Notably, a user is eligible to receive dividends from the fourth epoch onwards after they have registered, further incentivizing long-term engagement with the network.

This epoch system cultivates an environment of active participation and steadfast support within the Karma Protocol network, as participants are encouraged to stay involved for longer periods to gain the most rewards.

The contribution scheme within the DAO is structured to offer incentives to both active participants and token holders. Out of the total contributions made to the DAO, 60% is reserved to reward those who engage in voting, underlining the protocol’s emphasis on active participation and commitment to the network’s governance. The remaining 40% is apportioned among the GLDKRM token holders as dividends, thus enhancing the appeal of token ownership and providing a monetary reward for long-term investment in the network.

The initial distribution of GLDKRM tokens is strategically orchestrated to cater to various aspects of the network. 20% of the total tokens are allocated to the Karma Protocol founders, 5% to the team, and 10% to marketing and airdrop initiatives.

The remaining 65% is available for purchase via ICO smart contract. Revenue obtained from the sale of these tokens is invested back into the network for its continuous development, maintenance, and to fund innovative strategies that further the Karma Protocol’s mission of incentivizing altruistic actions and promoting a more equitable society. This allocation supports private needs, operational expenses, and strategic initiatives crucial for the growth and development of the DAO.

4. Use case scenario

Below we see the implemented use case where the DAO and the Marketplace integrate. We will describe the possible interactions between various actors that animate the scenario.

[1–2] The Marketplace administrator possesses the authority to either grant or rescind Kollection creation privileges to the Donor.

[3–5] Investors have the opportunity to acquire GLDKRM tokens in exchange for USDC or USDT via the ICO contract. A total of 65,000,000 tokens, equating to 65% of the overall supply, are up for sale.

[6–10] The Donor is equipped to formulate new Kollections. During this process, they are required to determine their organization’s royalties, identify the amount of donation to be disbursed to the Karma DAO, and decide if they wish to designate an additional beneficiary. Each new Kollection triggers the creation of a proposal, which is subject to the DAO members’ approval.

[11–14] DAO members exercise their voting rights to endorse or reject the generated proposal. When the proposal garners enough positive votes to cross the minimum threshold, a claim can be initiated to record the approval. This approval activates the trade of NFTs produced by the Kollection.

[16–18] The Donor is at liberty to mint new NFTs or append updates pertinent to the NFT. An update typically comprises a textual description and an external link facilitating external visitors to browse related news about the NFT. These updates and the accompanying metadata are stored on IPFS. Users may opt to manage their IPFS node independently or utilize the Marketplace’s guided procedure employing the IPFS provider.

[19–22] DAO members maintain stringent vigilance over certified contracts, reserving the right to revoke certifications if non-compliance with community standards is observed.

[23–27] A Kollector can proceed to acquire an NFT, given its proprietor has listed it for sale. Upon the purchase, all due commissions are fairly disbursed among the rightful claimants.

[28–30] Once the minimum threshold is reached, DAO members can stake their claim to the rewards. As previously mentioned, 60% of the rewards are allocated to DAO members, while the remaining 40% is divided among the GLDKRM token holders.

5. Technical details

This section delves into the strategic and technical considerations that informed the development of our solution. The key principles guiding this process were a steadfast commitment to resilience and a pledge to uphold the absolute decentralization of data. In this design, the Donor exercises complete ownership over the Non-Fungible Tokens (NFTs) and their associated metadata. To achieve this, we handle NFT transactions on-chain, while their related metadata is stored on the InterPlanetary File System (IPFS). Acknowledging the complexities of maintaining a personal IPFS node, we’ve devised an easy-to-follow procedure that utilizes the interface provided by NFT Storage, thus alleviating the burden from the Donor and streamlining the process.

5.1 High-Level Design

Let’s delve into the architectural structure of the system, which is strategically distributed across three primary layers:

Application Layer: The application layer primarily consists of frontend components. This frontend application, developed in ReactJS, utilizes decentralized technologies, thereby ensuring no personal data is stored in its sessions. Interaction with the underlying data is seamlessly facilitated via the MetaMask wallet, safeguarding user privacy and security.

Integration Layer: The integration layer serves as a pivotal intermediary bridge, designed to streamline the interaction with the underlying layer. This includes tools such as NFT Storage, an IPFS provider chosen to ease the management of metadata not stored directly on-chain. Given that on-chain data storage can be costly and resource-intensive, storing data on IPFS and linking the IPFS reference on the smart contract (ERC-721) is a more economical and efficient solution. This design also gives expert Donors the flexibility to manage their data directly on their IPFS node.

The Graph is another key component of this layer, a protocol specifically developed to simplify the process of reading on-chain data. The integration with The Graph allows the application layer to execute complex queries with minimal latency, ensuring efficient response times.

Decentralized Layer: The decentralized layer stands as the backbone of the Karma protocol. All business logic is verified and overseen by smart contracts, encompassing:

DAO KRC20: This manages the DAO, the respective voting mechanics, and KRM minting policies.
Investor Vault: This governs the distribution of dividends.
KRC-721: This represents the NFT collections (extension of ERC-721).

Moreover, this layer provides third-party contracts with the opportunity to register with the DAO for certification, thereby enabling them to earn rewards in the form of KRM tokens.

5.2 Blockchain technology

The chosen technology for smart contract development is the Ethereum Virtual Machine (EVM). The EVM has been selected for its robustness, having been proven reliable over the past decade, and for its compatibility with a vast array of developed protocols and layers. This feature ensures superior code portability and simplifies the process of finding specialized talent. Utilizing Solidity as the primary programming language opens up the option to select from a plethora of high-market-cap blockchains. Notably, after Ethereum, alternatives such as Polygon, Avalanche, Moonbeam, Binance smart chain, and Arbitrum present attractive choices.

Implementing a solution based on the Ethereum Virtual Machine ensures an effective alignment with the non-functional requirements of scalability, security, interoperability, and transaction fee management.

Scalability: The Ethereum Virtual Machine (EVM) continually enhances its scalability through progressive upgrades, notably the Ethereum 2.0 upgrade. This improvement project encapsulates an array of network enhancements aimed at augmenting its scalability, security, and sustainability. With the implementation of shard chains and the transition to a Proof of Stake (PoS) consensus mechanism, the EVM is primed to expedite transaction processing, thereby improving the protocol’s scalability. Furthermore, several highly capitalized protocols that advocate significant scalability, such as Polygon, Avalanche, Moonbeam, Binance, and Crypto.com, are built on top of the EVM. These additional platforms further augment the potential scalability and interoperability of Karma protocol.

Security: The Ethereum Virtual Machine (EVM) boasts a long history of developed best practices aimed at enhancing security, providing a robust environment for running code. Ethereum smart contracts are subjected to extensive testing and rigorous auditing practices. This, combined with the system’s decentralized nature, ensures robust security against potential attacks. The EVM’s mature ecosystem benefits from a wealth of experience and continuous improvements in security protocols, further fortifying its resilience against vulnerabilities.

Interoperability: Ethereum boasts extensive interoperability with various other blockchain networks and traditional systems. This provides flexibility in the integration of services and fosters a more open and collaborative environment within the ecosystem.

Transaction Fees: Ethereum has historically been associated with high transaction fees, often referred to as gas fees. However, the recent Ethereum Improvement Proposals (EIPs), notably EIP-1559, aim to address this issue by making transaction fees more predictable, thus improving user experience and economic efficiency. Alternatively, should market demand dictate, the Karma Protocol could potentially transition to a blockchain with more affordable transaction fees, such as Polygon or Avalanche with almost zero effort.

In essence, an EVM-based solution offers a scalable, secure, and interoperable infrastructure, which is continually adapting to handle transaction fee issues, and fosters a greater level of interoperability within the blockchain ecosystem.

5.3 Deployment Strategy of GLDKRM with Ethereum and Polygon zkEVM

In our pursuit to optimize the Karma Protocol’s efficiency and reach, we have strategized a novel integration approach that leverages the strengths of both the Ethereum mainnet and Polygon’s zkEVM. The Gold Karma Token (GLDKRM), an ERC-20 token, will be initially deployed on the Ethereum mainnet, capitalizing on Ethereum’s robust security and extensive user base. This deployment is pivotal for establishing GLDKRM’s credibility and ensuring wide accessibility in the initial phase.

Simultaneously, the DAO and marketplace, which are integral components of the Karma Protocol, will be hosted on Polygon zkEVM. Polygon zkEVM represents a cutting-edge layer 2 solution that maintains Ethereum’s EVM compatibility while significantly enhancing scalability and reducing transaction costs. By operating on Polygon zkEVM, the DAO and marketplace will benefit from faster transaction processing and lower fees, leading to a more efficient and user-friendly experience. This is especially crucial given the high transaction volume and interactive nature of these components.

Bridging these two platforms is a vital aspect of our architecture. The bridge facilitates seamless asset transfers between Ethereum and Polygon zkEVM, ensuring that GLDKRM tokens can be effectively utilized within the Karma ecosystem, regardless of their network origin. This interoperability is not only a testament to our commitment to flexibility and inclusiveness but also amplifies the potential impact of our protocol.

In essence, this approach combines Ethereum’s unparalleled security and established network effects with the efficiency and scalability of Polygon zkEVM. The result is a harmonious ecosystem where security, accessibility, and performance coexist, propelling the Karma Protocol towards achieving its ambitious vision in the blockchain philanthropy space.

6. Roadmap

Last update date: November 2023:

6.1 Achievements to date

ICO platform is fully tested and accessible: https://invest.earnkarma.io
GLDKRM will be officially released on 15th December 2023
Our Minimum Viable Product (MVP) is currently undergoing refactoring and will soon be accessible at: https://app.earnkarma.io.
All smart contracts, which include the DAO, Tokens (KRM), KRC-721, and Investor Vault, are currently undergoing refactoring and will soon be accessible from our GitHub account.
We are presently in the process of extensive testing and are actively gathering constructive feedback from Donors, Investors, and Kollectors to refine and enhance the overall experience.

6.2 Future plans

From February 2024, we will be dedicating significant resources to foster and grow our community. This includes developing our website and establishing a strong presence on social media platforms such as Twitter and Discord.
We are planning to conduct a comprehensive security audit with the intention of optimizing and fortifying the security of our smart contracts before they are deployed in a live production environment.
Enhancements to our platform’s user interface and user experience (UI/UX) are an ongoing priority. We strive to ensure a user-friendly, intuitive, and enjoyable experience for all users.

The launch of the NFT marketplace on the mainnet is projected for July 2024.

The inauguration of the DAO Web Application with the feature for investors to claim dividends is slated for January 2025.

6.3 Looking ahead

In recognition of rapid technological advancements outside the realm of blockchain, such as Artificial Intelligence and Virtual Reality, we remain flexible and responsive to these emerging trends. Understanding the significant potential these technologies hold for user experiences, we are actively investigating strategies to incorporate immersive virtual reality experiences into the Karma Protocol in the future. The vision for Karma extends beyond creating a blockchain-powered platform for social change; we aim to bridge the physical and digital worlds to provide a truly unique and immersive environment for our users.

7. Conclusions

In conclusion, the Karma Protocol represents a significant breakthrough in the realm of blockchain and decentralized applications, integrating the concepts of altruism, rewards, and governance into a unique and efficient ecosystem.

The design and structure of this system, spanning across the Karma Token (KRM), Gold Karma Token (GLDKRM), and a decentralized autonomous organization (DAO), showcase the power of blockchain technology when applied to societal welfare and communal participation. The Karma Protocol’s tokenomics, underpinned by the Proof-of-Karma (PoK) mechanism, encapsulates the spirit of earning rewards through genuine societal contributions, as seen through the innovative token burn rate and DAO governance model.

Our solution relies on the time-tested and secure EVM machine and leverages the Solidity programming language, allowing for the protocol to tap into a host of high-market-cap blockchains. Furthermore, the protocol’s architectural layers ensure data decentralization, security, and scalability while keeping in mind transaction costs.

8. Terminology

Blockchain

Blockchain is a decentralized, distributed ledger technology that allows for secure and transparent digital transactions without the need for intermediaries such as banks or governments. It consists of a network of interconnected computers (nodes) that collectively maintain and validate a continuously growing list of records (blocks), which are linked and secured using cryptography. Once a block is added to the chain, it cannot be altered or deleted, creating an immutable and tamper-proof record of all transactions on the network.

Burning

Burning token is the process of permanently removing a specific amount of cryptocurrency or digital asset from circulation.

DAO

A Decentralized Autonomous Organization (DAO) is a type of organization represented by rules encoded as a computer program called smart contracts. It is controlled collectively by its members and not influenced by a central government. DAOs operate transparently and independently of any human intervention, including its original creators. DAOs are inherently global and democratized, open to anyone who wants to participate in the organization’s decision-making process.

dApp

A DApp, or decentralized application, is an application built on a decentralized network, typically using blockchain technology. DApps operate autonomously and securely without a central authority controlling the data or code. They often have tokens or coins associated with them, which can be used to interact with the application or as a means of exchange within the network. DApps have the potential to revolutionize many industries by enabling secure, trustless, and transparent interactions between parties.

ERC-20

ERC-20 is a technical standard used for the creation and implementation of smart contracts on the Ethereum blockchain. It defines a set of rules and functions that enable the creation and management of tokens that can be used as a form of digital currency or asset on the Ethereum network. ERC-20 tokens are fungible, meaning that each token is identical and interchangeable with every other token of the same type. They can be used for a variety of purposes, including fundraising through Initial Coin Offerings (ICOs) and the creation of decentralized applications (dApps) that rely on blockchain technology.

ERC-721

ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain. While most tokens are fungible (every token is the same as every other token; e.g., Ethereum’s native cryptocurrency, Ether), ERC-721 tokens are all unique. This uniqueness and scarcity are what gave rise to CryptoKitties, a game on Ethereum involving breedable, collectible, and oh-so-adorable creatures. Each CryptoKitty is a unique ERC-721 token.

GraphQL

GraphQL is a data query and manipulation language for APIs, and a runtime for executing those queries with your existing data. It was developed by Facebook in 2012 and later open-sourced. GraphQL provides a more efficient, powerful, and flexible alternative to REST and offers a more efficient data integration layer to develop and use APIs. It allows clients to define the structure of the responses to their requests, reducing over-fetching and under-fetching of data, thus improving the performance of the client application.

IPFS

The InterPlanetary File System (IPFS) is a protocol and network designed to create a content-addressable, peer-to-peer method of storing and sharing data in a distributed file system. IPFS was designed to make the web faster, safer, and more open, as it replaces the traditional, location-based addressing with content-based addressing. This means that instead of referring to files by where they are stored (a specific URL), IPFS refers to files by what they contain (a cryptographic hash). Consequently, IPFS can make the web more resilient against failures and censorship, while improving its efficiency.

Minting

Minting, in the context of cryptocurrency and blockchain technology, refers to the process of generating new digital tokens or coins. Minting can also refer to the creation of new non-fungible tokens (NFTs), where each newly minted token is unique and has distinct characteristics or metadata. In contrast to traditional fiat currency where minting involves the physical production of coins or bills, minting in the digital realm is entirely virtual and governed by software protocols.

Tokenomics

Tokenomics, also known as token economics, refers to the structure, distribution, and dynamics of a token within its broader ecosystem. It includes aspects such as the total supply of tokens, how they are distributed, how they can be used, and the rules governing their usage. Tokenomics is a crucial aspect of cryptocurrencies and blockchain projects, as it influences factors like the token’s utility, scarcity, and potential value.

9. References

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Earn karma protocol, https://www.earnkarma.io
KChain Solutions, https://kchain.solutions