Onchain Reputation: From Plutocracy to Valocracy - Daniela Zschaber, Blockful | Chainlink Advocate

all right so hello everyone um I'm dny I present myself um in the next slide so let's talk about onchain reputation from plutocracy to ocracy um I'm going to approach what is plutocracy and what is velcra also um this is my favorite Topic in web 3 by the way so um yeah I will ask to interact with me I have bronchitis right now so to speak like five words I need to give a deep breath so don't forget to interact with me interact is caring but yeah about me I am dy. e um also known as Daniela I'm product manager uh blogu um and I won eak uh by building a reputation protocol I'm also a chain Le Community Advocate and a postgrad um professor in two colleges in Brazil also a cat an EB grade lover um and I like raia also um biased by the Serbian culture um how it all started um basically as I said before I have joined day haathon and since then I started to study a lot about reputation and this subject really got me I wrote this um article called implications of a reputation FL protocy to ocracy if you are interested please reach me out I can send you the link um we won three prizes and the product was um inspired by this dap uh of the polka dot um ecosystem um I have bued this product with uh laru he's uh the first ambassador of polka dot in Brazil and the print screen um there is about coin Telegraph telling that Brazilians w three prizes in E Argentina hak it was very fun but uh let's talk about reputation um this is the atmology of the word reputation so basically uh it comes from the Latin word where hipot so he consider he which means again once more and which means think so basically reputation is about consider again think about it again so I guess it's a it's a nice uh top to approach because probably you already submitted a proposal in a dow and everyone votes no because nobody knows you and you were like okay I just wanted those guys to consider me again because I'm I'm actually a build a builder here I can potentially build a good product um so this is why I love reputation because underrepresented members can be uh reconsidered in some ecosystems well in the ecosystem we don't know what reputation is this is crazy uh reputation is this Lipp fish of web 3 nobody knows how to define it so what the hell are we doing here because this this uh narrative comes back and forth but we still don't know how to define it so who's going to Define it deps d d members we don't know yet so that's why I'm here in the stage we want to I want to discover with all of you this is alchemy page about reputation which is very very crazy because there's I think 26 DS and none of them are related to each other so if you go to Alchemy right now and search for reputation you'll find like a 26 DBS and collab land and also orange protocol we will find even gitcoin and col blend has nothing to do with gcoin so what is repetition even uh alchemy that aggregate those kind of deps can't tell what it is um well I have watched this uh guy um talking his name is CA uh at the dev con for this video is really really nice if you are interested in reputation on chain you should um search for this video um well let's try to Define what reputation is uh it's our work here it's up to us to Define so in the dictionary um concept obtain obtained by a person from the public or society which he lives which is awesome uh because we can translate Society uh in Dows or Community to this web three environment and this guy here um said the reputation is the trust graph and the history of behavior I love that part because history of behavior is exactly what I wants to approach here uh we need something to aggregate our my data your data our data on chain to show to organizations and to multiple DS that we are building that we have put some efforts in this ecosystem um so why repetition is important this is very very um important here to approach because we are going to have more informed data in decision making um some time ago some discussions were on Twitter about security councils because members um with a huge political power um are participate in security councils and they never read a line of code which can be very very dangerous for DS uh so repetition can be important in this part so uh I can have aggregated data telling me that I have contributor to codes to I don't know audit contracts uh and so on and then the uh this uh Security Council role can be assigned to me because I can show my reputation and my knowledge uh on on codes for example also more fair collaboration and engagement as repetition is already an instant heward so I'd be very very happy if I contribute for example to Abid shund and I want I don't know like a badge I'll be very happy um and also if he gives me uh multiplier of my voting power so here is an example suppose you have a voting weight equivalent to two but you contributed to the Dow so you can have I don't know 7 or 0.5% of that voting power and you can increase your voting Power by uh uh using your efforts and not only your money because use your money to um govern something is plutocracy also doubt toou relation so for example even if maker has nothing to do with wi swap in a protocol level they can make things together in a reputation level so if maker has a member and this member is very engaged in the defi um ecosystem and Unis swap is needing a d to I don't know create some contract this uh uh uh Unis swap can search and make her da oh hey maker da um I saw you have a great uh uh a great score about the five members could you give me could you name please a member who's very good in codes and defi please and then they are related this is very important because this is connecting the wires of the ecosystem so even though they are not protocol related they can be um rep ation related and help each other on how to define good members on this this environment defy or Dows or codes um and that we will improve Cross organization collaboration which is very very important uh also L influence of certain members that can remain in dominant and challenged over time it leads to Forks um do you know nounal as anybody knows here nounal raise your hand okay so probably you know that announc out for I guess in the end of 2023 because of it because of the political power so um this is very very bad because downside is reducing Network effects so not everyone is speaking the same language you will split the treasure it will split the engagement and I I I I am a dow member I'm announc Dow member and I don't know in which D should I be involved in after the fork which is crazy and reputation could solve this uh here is a print screen of the r quit now down tried a lot to do it over the time and reputation could help it because if uh if I'm a defi person and I'm involved in naow I can have like a roll assign telling people like okay I'm good at defi let me decide what to do with the treasure right now and if you are good of community go and decide what to do with the community so the political Powers would be more fair and less about trust in someone um pfb also um this text this text is very very good you should read that and um it's called exit voice and loyalty and basically members have two options exit or use their voices if they're if they are using their voices um they can be loyal but if not they will exit that Community basically and um probably if you are in this ecosystem for a while you are already joining the Dow and you notice that you don't have voice inside the da and you just stop engaged with that so this is exit um yeah and loyalty is very very important because loyalty will prevent us to Forks so uh loyalty is what will makes us um not split the treasure not split the community the engagement we keep us together towards a good future of uh the governance or the da or the community and so on wait a second I need to drink something otherwise I would die um well so let's start to approach plutocracy what is plutocracy does anybody wants to explain what plutocracy is no okay basically plutocracy is when um money is leading the decisions so we can talk about one token one vote if I have a lot of tokens I have a lot of voting Powers so means that money is leading that decisions and it's not considering for example economic and social background of the members um and this phrase of vredo parto is very very interesting because frequently democracy ends in plutocracy because of the because the power of money is more effective than the power of morals or intelligence but plutocracy can be a problem in some Dows for example we can mention Unis swap is not a problem in Unis swap case uh Unis swap is has a plutocratic uh governance model but attracted huge vs great vs such as a16z but a16z is um leading most of the decisions because a16z has around 30 % of the uh voting power inside unit swap it can be good because it attracts money but it can be bad because it will make under represented members live the the Dow uh for example I a Arbitron member I have a lot of tokens but my voting power is still z% perc it's crazy um well the downside is of course centralization and Plateau said some time before that um such as system plutocratic systems uh leads to instability and eventual moral and social degradation in the end of the day it's not a problem for UNIS swap for example but in web3 plutocracy is about selling your decentralization so basically one token vote is like okay there's amount of tokens here if you want to buy a huge amount of the token means that I'm selling you my decentralization but how to solve that okay we know that one token one vot leads to plutocracy low engagement bribery centralization exit and so on so democracy should work right no because one person will vote is democracy but leads to civil attacks even though we use like identity um platforms such as gcoin and we have a lot of them is still uneffective because the hard work members is are still under represented because one person one vote they still like for for what I'm going to do put efforts in this community makes no sense because everyone has the same voting power here so let's approach vcy uh this is a phrase I took from vcy Manifesto It's very very interesting text from a guy from Brazil he's a very influent in this web three ecosystem um he called himself a techop philosopher is very very interesting he's a professor very smart guy and he created this veloc Manifesto so structure so social economic and political framework that attempts to leverage blockchain technology in order to create new forms of organization with the goal of emping communities along with their individuals and their combined effort so ocracy can be like a third path for governance models so democracy plutocracy and then ocracy considering efforts and this is very powerful because if efforts were considered we wouldn't need that this is um some print screen some screenshots I took from arbitral and recently I I have seen a lot of a lot of uh proposals on Empower or represent under represented members delegates and so on so if efforts were considered on chain and not only in a social level we wouldn't need that what do you think it's going to happen with all those members if they still under represented they will leave that now they will try to fork in some way um also this is uh regarding resource allocation which is very very important we know that Dow provides like huge grants so without reputation uh new projects are just new projects notice that being new is not a problem but I don't have any story o chain about the founders and uh if you go to the quest book um Abit Quest book or optimis grants you can see that most project um asked for Grants and the founder just vanished which is crazy because the doubt is pting money and assuming risks uh without knowing who are those guys um yeah unknown members great potential loss explorability this is a nice uh metric like explorability is about how explorable a doubt is like how easy is to take money to that uh from that doubt so as I said before member can ask for Grants and then vanish and highrisk exposure but with reputation new projects backed by P success phone chain could be funded members with a history of contributions to the ecosystem can be funded in a fair way and great potential for applications meaning that you can build on top of reputation you can bring more engaged members you can bring more Builders and mitigated risks with reputation resource allocation Bec comes easier um also with quadratic funding as you can see with gitcoin but I can see like quadratic funding more like Network Focus network based than reputation and efforts based so if I apply to receive some grants or to be funded through gcoin through quad quadratic funding it works it's very nice it's very fun gcoin is doing nice work but is more about Network so nobody knows me if I ask for funding people will look to my project and I don't know this girl I'm not give I'm not I'm not going to donate anything to her but if I have a picture with I don't know a huge optimism logo in my t-shirt probably people will donate to my project because I am famous and I have a huge brand back in me uh why do we care we I mean block F because we care about longevity of doubts we work mainly um with public goods um optimizing human coordination and developing doubt tooling uh to make it it easier to on board members or to give them the reputation they deserve and because we let the Dows tell their members what reputation means to them um if you remember we don't know what reputation is so let's the Dow tell to their members members what reputation is to them so you will create a relation uh between members and doubt so okay d reputations uh to you means develop developing means engineering and also uh don't know Community call so it has something to do with my concept of uh reputation so I'm going to join this D um so it can create a a relation even before I join this Dow it can be like a decision a process of decision uh when I read what reputation means to that Dow and because we want to make resource allocation accessible and fair uh so what are we building we are building a reputation aggregator uh basically we will read all your own chain data such as po app events votes proposals blah blah blah blah blah and some your you're in real life USIC cases and then Dow and organization can create their um score so okay I am Maker Now to me it's very very important to consider your pabs so join us and if you have a lot of Po apps you I don't know you have voting power uh um and that that's it we already have an MVP using as e attestation service and uh D can read the data we are aggregating by using in their own schemas they will choose what reputation means to them this is the page we created let me know if you are interested in test it we need someone to test it so let me know please okay let me know reach me out after the the the talk I'll save your number and we're going to test it and let's see if you have a great repres on chain H um well in the words of Calvin collage it is much more important to kill bad bus than to pass good ones well thank you reach me out if you want to test here's my Telegram and let me know if you have any questions um regarding reputation andow governance please raise your hand go ahead oh just wait for the mic second I should be drinking water not Coca-Cola hey can you hear me yeah okay hi um I'm also involved with reputation a little bit so my question for you is and this is the US case that I'm cracking it inside of my head do you see a reputation or tokenized reputation becoming a def buy asset at some point near in the future because at the end of the day this will become an asset that will hold that will represent some value right so do you see this entering the defi anytime soon yeah this is a an awesome Point um I faced this question um in the hakon in Argentina and the idea is to not transfer those this reputation because it's about my efforts it's about my it's about me I cannot transfer the works I have done for Block Fu or abital and so on but I remember that when I created this uh project in Argentina we created using so bound tokens and the judges didn't like it and I was like okay so what's the point can I transfer like and I don't know add my reputation Assets in a liquidity pool and trade that it doesn't make any sense but here we have more problems to face so if you turn this uh Badges and attestations and everything your reputation uh um so bound we have another risk involv it that is if someone lose their private key or seed phase right you will lose all the reputation but that's an interesting question uh in my point of view it should be non-transferable because it doesn't make any sense I scammer can buy my repetition and be funded so it all will be mess it up again I don't know let's talk about I want to see your point of view on it do thank you more questions no okay thank you so much danela and take the water