4.1 Reputation

Each participant in the ReSource Network may gain Reputation points when acting in ways deemed beneficial to the network, and lose them when displaying unwanted behaviours. However, more than an incentive mechanism and measure of desired behaviour, Reputation measures a participant’s stake in the network, their dependence on it, and their alignment of interest with it.

Members

Members gain Reputation when: 1. Participating in network transactions, 2. Swiftly rebalancing accounts to zero, 3. Demonstrating high availability for trading activity. 4. Receiving high ratings from customer reviews

Members lose Reputation when: 1. Remaining in deficit for too long, 2. Rejecting purchase requests by other members, 3. Default or late payments, 4.receiving low reviews by other members, 5. violating terms of service

Underwriters

Underwriters gain Reputation when: 1. Generating below-average default rates of underwritten members.

Underwriters lose Reputation when: 1. Generating above-average default rates of underwritten members.

Note that underwriters, by their very nature, stake large amounts of SOURCE and are exposed to the majority of the network’s risk. Hence, their influence over the network’s policy is somewhat guaranteed, but may significantly decrease in case of suboptimal performance on their part.

Ambassadors

Referrers gain Reputation when: 1. Generating below-average default rates of underwritten members.

Referrers lose Reputation when: 1. Generating above-average default rates of underwritten members.