Reputation

Economic incentives in a free market result create the potential challenge of perverse incentives, which can potentially undermine the purpose of Compendium as a platform. Enrolling all market participants in a reputation system, intrinsically tied to the degree of long-term economic incentives on the platform, enables the alignment of outcomes for information creators, validators, as well as the system itself.

All users begin with a raw Reputation score which begins at 50, out of a maximum total score of 100. Activity on the platform results in the increase or decrease of this Reputation score, based on a number of factors which will be black-boxed to avoid Goodhart's Law. This score will not purely be a community-driven metric - rather it is triangulated from various factors which includes both community metrics as well as independent verifications across a period of time.

Upon a threshold of activity on the platform, information creators and validators will unlock a publicly visible grade (A - E) which is tied to the numerical Reputation score of each system participant, without revealing the exact score or formula behind this computation. As a result, the system rewards market participants who are committed to the mission of Compendium, namely to uphold non-censorship and information neutrality to the greatest extent possible, while punishing those which do the inverse.

Market participants on Compendium are thus incentivized to maintain a positive Reputation score which directly correlates with the degree of economic incentives that they are able to yield based on their efforts. On the other hand, the Reputation system also enables users who are consuming information to make the most informed decision about any facts or assertions that are presented on Compendium, while maintaining the systematic integrity of the platform.