Proof of Reputation (PoR)

Proof of Reputation is a cashback mechanism in $8lends designed to reward Projects for two on-time, on-chain “reputation” actions:

  1. KYB / Due-Diligence: Successful payment (or, optionally, completion) of Know-Your-Business (KYB) and Due-Diligence fees.

  2. Timely Loan Repayment: Full repayment of principal + interest when due.

The goal is to offset compliance costs and incentivize punctual servicing of debt, thereby reducing default risk for Users.

Token Issuance, Lockup & Release

  1. KYB/DD cashback: Tokens are accrued and locked until full loan repayment, but may be used to cover on-chain penalties (see Penalties).

  2. Repayment cashback: Same lockup and penalty-coverage rules as above.

  3. Loan fully repaid on time

    • All accrued $8LENDS not used to cover penalties are unlocked.

    • The Project may then:

      • Use them to pay Platform fees,

      • Mint and withdraw real $8LENDS on-chain,

      • Or sell on the open market.

  4. Payment delay: Accrual of new PoR tokens halts immediately.

  5. Default event: All locked PoR tokens are forfeited and distributed pro-rata to the pool’s CT-token holders.

Note: All Proof of Reputation calculations are performed off-chain (as with PoL and EAB) for gas efficiency; the aggregate $8LENDS issuance is synced on-chain via the bonding-curve mint function

PoR Formula (Advanced Users)

When PoR is calculated, the total cashback pool is proportional to the sum of KYB/DD and repayment spend, normalized by the current bonding curve price P_mint ​(see “P_mint”). A fraction C goes to the Project, and the remainder (1−C) goes to its Affiliate (or to the Platform, if no referral applies).

where:

  • C: share of cashback to the Project.

  • 1−C: share of cashback to the Affiliate (or Platform).

  • DD_cost: amount paid by the Project for KYB/DD in USDC. If paid in $8LENDS, this component is treated as zero.

  • DC: cashback coefficient for KYB/DD.

  • P_pay: total on-time repayments (principal + interest) up to the PoR calculation date.

  • PC: cashback coefficient for timely repayments (set by the Platform).

  • P_mint: current mint price of 1 $8lends on the bonding-curve contract (see § 7.1)

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