Proof of Value (PoV)
The primary goal of Blackbox Foundation is to reimagine what an organization is at its core, empower distributed communities, and thus to enable the Future of Work. One of the most difficult tasks is to correctly assess the quality of work performed, which is of paramount importance to incentivize people to produce quality work. Today, in most organizations, the total value of an individual’s contributions are very subjective and based on opinions, biases, benchmarks, and shifting scales. Our PoV protocol establishes a more efficient, meaningful, motivating, and thus meritocratic process that is performed upon deliverable completion.
Before the Proof of Value, the following steps take place, which will not be discussed here in detail:
- A draft DVP Proposal, which functions as a statement of work, has been created and submitted
- Expert feedback on individual deliverables making up the proposal is received, and consensus is reached
- Proposal is voted on, accepted, and for external projects, client accepts proposal
- Participants bid on, and win deliverables
- Work is performed as per deliverable outlined in a smart contract backed DVP Proposal.
Note: the arrows indicate that the Proposal is an output of the chevron to the left, and an input to the chevron on the right.
Our Proof of Value (PoV) protocol is a bottoms up algorithm that outputs the total realized value contributed based on reasonably objective factors. By reducing biases and opinions, PoV creates an evolving, scalable way to automate deliverable-based compensation and ensures fair rewards based on contribution.
COLA is the actual Cost of Living Adjustment Factor based on the Contributor who took on the deliverable. The main outcome of the PoV is to determine the Quality Factor Q, which depends on different factors based on the nature of the deliverable:
The PoV protocol outlines the following steps:
- After deliverable completion, Blackbox OS will show it in the list of items requiring PoV to all participants’ dashboards
- Experts with appropriate skills and project team members (where applicable) can provide feedback. Those experts who originally estimated the deliverable will be specifically notified. Clients can also provide feedback where applicable
- Feedback will update reputation and will also be used to determine the quality factor — see criteria list below
- If desired, the deliverable owner and experts can dispute feedback
As a result of this, the quality factor is determined, and tokens will be paid out to the deliverable owner within 14 calendar days. Below is an outline for how the quality factor is calculated:
PoV is a powerful tool that incentivizes participants to produce high-quality work. In the following table, the main advantages are summarized and compared to more traditional ways of providing performance feedback.
If you would like to read more about the Future of work, please take a look at our White Paper!