Dynamic Contribution Scoring (DCS) is a core mechanism within the PeoPay ecosystem. It aligns user behavior with the platform’s goals by providing a transparent, adaptable system that rewards positive contributions and penalizes harmful actions. By incentivizing beneficial activities like staking, referrals, and governance participation—and discouraging spam, fraud, and malicious conduct—DCS ensures fairness, fosters growth, and promotes long-term sustainability.
The DCS formula calculates a user’s contribution score based on weighted positive activities and penalties:
DCS(t) = α * Tx(t) + β * Stake(t) + γ * Gov(t) + δ * Referral(t) - ε * Penalty(t)
Where:
DCS scores determine tier-based staking yields:
Users with higher DCS scores have greater voting power, enhancing their influence in decision-making and policy formation.
Merchants benefit from high DCS scores through:
Referral rewards scale with DCS tiers, encouraging users to grow the ecosystem organically.
Malicious activities like fraudulent referrals or governance spamming result in score deductions, reducing rewards and feature access.
DCS employs a tiered system to motivate active participation and higher contributions:
| DCS Tier | Score Range | Benefits |
|---|---|---|
| Bronze | 0–499 | Base staking rewards, standard fees |
| Silver | 500–999 | +10% rewards, 5% fee discounts |
| Gold | 1000–1999 | +20% rewards, 10% fee discounts |
| Platinum | 2000+ | +30% rewards, 20% fee discounts |
On-chain metrics (e.g., transaction volume, staking activity) and verified off-chain data (e.g., user referrals) feed into DCS calculations.
Automated smart contracts ensure transparent, efficient scoring and reward distribution.
Weight parameters (α, β, γ, δ, ε) are periodically updated to address ecosystem needs. For example, during early growth phases, the referral weight might increase to incentivize user expansion.
Users clearly see how their actions impact their DCS and associated rewards.
DCS aligns individual incentives with the broader ecosystem’s health and growth.
Penalties deter harmful behaviors, maintaining platform integrity.
Tiered rewards and progression create an engaging, competitive user environment.
Initial tests to be conducted in Kenya, the Philippines, and Nigeria, integrating with local mobile money systems (e.g., M-Pesa, GCash).
DCS parameters will evolve as the ecosystem matures, accommodating new use cases and governance structures.
DCS tiers may be represented as NFTs, granting on-chain credentials and unlocking exclusive platform benefits.
Future expansions into DeFi products (e.g., lending, borrowing) could leverage DCS scores for determining collateral requirements and interest rates.
DCS is integral to PeoPay’s vision of a transparent, user-driven financial ecosystem. By aligning incentives with collective goals, DCS fosters trust, engagement, and sustainable growth—ensuring the platform’s long-term success.