*In the **previous article**, we have introduced Wallet Reputation for users who hold and stake TRAVA. As we have witnessed the remarkable growth of TOD, we now officially calculate the reputation of users in the TraDAO protocol.*

Wallet reputation to TOD token is a parameter to evaluate users loyalty to the TraDAO protocol, showing the trust and reputation of the holder in the community. While our TRAVA reputation takes into account four tokens: TRAVA, rTRAVA, farming TRAVA, and farming rTRAVA, TOD reputation includes **TOD and staked TOD** tokens to calculate the reputation for TOD bonders, holders, and stakers.

# What are the benefits of a high reputation to TOD token?

At first, with a high-rank reputation, users have more opportunities to purchase bonds with higher installment percentages and owing a larger debt. In the long-term, we widen its application which influences other parameters such as APY staking, debt interest rate, repayment period, etc.

In particular, the APY staking is usually at thousands of percent. With a high reputation rank, this number is even higher, and the benefits you earn will be much more significant.

# How to calculate the reputation to TOD?

There are five reputation ranks, from 1 to 5, where the fifth rank is the best one. The TOD reputation will be calculated as shown in formula 1:

*Final rank = TOD_rank + Liquidation Point — Penalty Point (1)*

Where TOD_rank, Liquidation Point, and Penalty Point will be evaluated as follows

**Token_rank**

In this initial version of TOD reputation, we count the total amount of TOD bought from Bond for the last 30 days, while the TOD total asset will be determined by the number of TOD they held in the last 7 days.

For example, assume that you buy 1000 TOD today; after seven days of holding this asset, your reputation rank will be determined as rank 3.

Using these two parameters, the TOD_rank will be calculated as follows:

**Liquidation Point**

*Note that: The maximum point you get from buying liquidated bonds is 1.00, while the maximum subtracted points (when your bonds are liquidated) is — 1.00*

Users who have bought liquidated bonds on our Secondary Bond Marketplace for the last 30 days will get bonus points which are added directly to their TOD_rank. The amount of bonus depends on the amount of TOD, as shown in the table above. On the contrary, users who cannot pay out their debt and get their installment bonds liquidated for the last 30 days will be subtracted a certain point from their initial TOD_rank.

**Penalty Point**

The penalty point is a penalty for users who transfer TOD out of their wallets. In order to encourage your support of TOD, penalty points are calculated according to formula 3.

*Penalty Point = max(penalty_1, penalty_2) *(3)

*Where,*

*Penalty_1:**Penalty_2:*

*For example*, 30 days ago, Alice had 1000 TOD. She then transferred 200 TOD to Bob, and after a few days, she sold 400 TOD.

Alice transferred out 200/1000=20% TOD for the first time, and her subtracted point is 0.2. Then, she withdrew 400/800=50%, so her second subtracted point is 0.5. In total, her *Penalty_2 *is 0.2+0.5=0.7.

Based on the formula 3:

*Penalty Point = max (1.2, 0.7) = 1.2*

**About TRADAO**

TraDAO is a new product compatible with other products in the Trava ecosystem. It is the world’s first bonding protocol with installment and reputation tracking. TraDAO is protocol owned liquidity, accumulating value through such activities of bonding and staking, which are regulated by a treasury. TraDAO is deployed on the Binance Smart Chain and allows for bonding with tokens on BSC first; we then enable cross-chain deployment and offer bonds to be exchanged for various other tokens on other blockchain networks.

Website |Telegram |Announcement |Twitter |Medium |Reddit |Github