Use-cases & Conclusions

Where we go from here

Three decades of the Internet, and almost a decade of DAOs, have shown us that it’s not only the user, the member, the participant, the contributor who needs to be accountable - rather, for a truly decentralized internet, and any truly decentralized financial system, the community needs to be accountable too. Being able to measure the credibility and KPIs of a decentralized hub, project, or community through a standardized and verifiable framework like Prestige can bring mutual accountability between participant<>community, and lead to a paradigm shift in various domains.

Use-cases

Some obvious use-cases are:

1. Informed investment decisions & project’s access to funding

2. Cross-/Multi-community cooperation, governance & shared accountability

3. Decentralized credit systems & milestone-based grants

1. Informed investment decisions & project’s access to funding

• Investors can use Prestige scores to assess the performance and potential of decentralized projects before throwing money into a DAO.

• Prestige scores can help investors identify projects with strong fundamentals, active communities, and a track record of delivering on their promises.

• By relying on a standardized and verifiable metric, investors can make more informed decisions and potentially reduce the risk of investing in fraudulent or underperforming projects.

• Funding Instruments like convertible notes and repayable loans can be negotiated on better terms from a project’s side, and with lower risk profile from investor’s.

• Prestige could offer a simple, standardized metric for decentralized project’s valuation, leaving less space to speculation and inflated/exploitative valuations.

2. Cross-/Multi-community cooperation, governance & accountability

• Prestige scores can facilitate collaboration and partnerships between decentralized communities.

• Projects and communities can easily merge, cooperate, co-invest, etc. with one another just using Prestige.

• In a multi-community environment, Prestige-based thresholds can be used as a tool for community governance and decision-making - assigning weight based on a project’s ability to deliver and its field-specific knowledge.

• Communities can set for voting rights, proposal submission, or access to certain features or rewards in a mergerlike environment - all while maintaining an individual brand, archetype and independence from one another.

3. Decentralized credit systems & milestone-based grants

• Prestige represents the credibility of a project - measuring its ability to complete tasks, grow a community, and deliver on its promises. This creates a network of verifiable hubs & nodes, that in turn helps mitigating risks and enhancing cross-ecosystem liquidity and network robustness.

• This means that Prestige can be used as a foundation for decentralized credit systems and lending protocols - for example offering Hubs with high Prestige lower collateral requirements, based on their provable previous results.

Conclusions

With this formula, we compare each Hub to the others directly - to prevent manipulation, or sudden spikes and drops. Since the weight is distributed across multiple parameters, the Project will be able to add/remove parameters in the future seamlessly.

This also sets the dynamics for each Hub to choose their "type" - that we call a Community Archetype. Through its Archetype, a Hub can track its own performance, and the achievement of their KPIs, period-by-period, as a traditional organization.

As well as easily assign a weight to each parameter starting with a default type setting, and progressively customizing each value.

It also sets the ground for covariance across multiple parameters, such as TCp (Total Community Points) and PS (Participation Score) of Members. In fact, despite a let’s say, extremely large community would score extremely high on the Size indicator, they would risk not to have enough Tasks for all community members, that would reflect in a drop in these Members’ Participation Scores, and therefore a drop in other Community’s parameters such as Performance (ratio between created and completed Tasks), and avg. Reputation of members.