Unrealized Rep as a Collateral (URRC)

• ĀutID holders can borrow additional $AUT against their anticipated future reputation. This functions like Futures: you "bet" your reputation at a given time (payout period) will be X; anything less than X will reduce your Reputation.

• The borrowed amount is based on the predicted increase in their Peer Value ($\upsilon$) and is retained progressively, based on the monthly distribution of $AUT (based on the Peer Value $\upsilon$ of an individual ĀutID holder). This can be viewed as a Peer Value-based repayment plan for a Grant or non-repayable Loan.

Framework Design

The Unrealized Reputation-Collateralized (URRC) Grants mechanism enables individuals to receive non-collateralized grants leveraging their anticipated future Peer Value ($\upsilon$) — given by their contributions and standing within their Hubs and the network as a whole.

The collateral for these instant grants uses $\upsilon$, and the mechanism relies on predictive values of an individual's Peer Value to calculate the size of the grant for which they are eligible. This powers a sophisticated financial instrument that fosters meritocratic innovation and support.