How Reputation Works in Fairdrive DAO

Fairdrive DAO introduces Colony’s approach to governance through its Reputation system, moving beyond traditional token-based power dynamics. This document explains the intricacies of Reputation within Fairdrive DAO, how it's earned, its significance, and the mechanisms behind its operation, providing clear examples to illustrate its functionality in our community.

Understanding Reputation

Reputation is a pivotal element of governance in Fairdrive DAO, emphasizing the value of contributions over mere token ownership. Unlike conventional systems where financial investment often translates to voting power, Reputation in Fairdrive DAO quantifies an individual's influence based on their contributions and participation.

What Makes Reputation Unique?

• Non-Transferable: Reputation cannot be bought or transferred; it is earned through active participation and contributions within the DAO.
• Reflective of Contribution: The amount of Reputation one holds is directly tied to the work they've completed within the DAO, offering a fair and equitable measure of influence.

Earning Reputation

Members can earn Reputation in several ways, primarily through completing tasks and being compensated in the DAO's native tokens. Importantly, payments made in stablecoins do not contribute to one’s Reputation, allowing for flexibility in financial compensation without impacting governance dynamics.

Special Circumstances for Reputation Awards:

• Manual Awards: In certain scenarios, such as the launch of a new project within the DAO, Reputation may be manually awarded to recognize foundational contributions.
• Participation in the DAO Ecosystem: Engaging in activities that support the broader ecosystem of Fairdrive DAO, including contributions that extend beyond direct DAO tasks, can also earn members Reputation.

Reputation Distribution

Upon receiving a payment in native tokens, a member earns Reputation not only in the specific team they worked for but also across all parent teams up to the Root. However, Reputation is not earned in child or sibling teams, ensuring that influence is accurately attributed according to the scope of contribution.

Example:

A payment for work done in the Development team results in Reputation in the Development Team, and Root of the DAO but not in any other teams like Marketing or Beta Testers.

The Dynamics of Reputation Decay

To maintain a dynamic and current reflection of members' involvement, Reputation decays over time. This decay ensures that influence within the DAO is continually earned and represents recent contributions. Specifically, every approximately 3.5 months, a member’s Reputation in all teams (if the member is not active) decays by half, incentivizing ongoing participation and contribution to the DAO.

The Role of Reputation in Governance

Reputation is central to the governance process within Fairdrive DAO, enabling members to:

• Create motions and proposals
• Participate in dispute resolution
• Vote on key decisions, with voting power proportional to one’s Reputation

This system ensures that those who are actively engaged and contributing to the DAO have a greater say in its direction and decisions, fostering a community-driven and equitable governance model.