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Managing Network Reputation

Background

Company ABC inc launches a P2P insurance application on the Ethereum Blockchain. Let’s assume a user purchases an insurance cover by paying in ERC20 tokens and then submits a claim. Other members participate as claim assessors and decide whether the claim is eligible for a payout via claims assessor voting.

Scenario

John, a genuine case assessor observed that Steve has been trying to sway decisions by staking high financial bets, resulting in incorrect claims being paid out.

Community
GovBlocks Utility

John was able to flag Steve's vote to raise concerns on Steve’ voting decisions.
Based on evidence, the advisory board voted to punish Steve's behaviour by locking his staked tokens for a longer period and reducing his reputation score within the ecosystem. This resulted in a lower voting weight for future proposals despite staking high financial bets.

Result

The community is incentivized to flag bad actors and punished for bad behaviour via the Reputation Management component of the GovBlocks protocol.