A reputation-based approach to DeFi – the Meryt Protocol
The team behind the Meryt Protocol is trying to change the way decentralized digital organizations (DOs) manage money in the De-Fi space and ascribe value to users based on a meritocratic solution. The protocol introduces a new reputation-based system in the marketplace that gives users more voting weight based on their particular efforts and skills, rather than how many tokens they have in their wallet. In this way, Meryt will enable digital organizations and DAOs to manage chain funds in a truly decentralized manner, which makes managing de-fi opportunities through low / no code modules easier and more efficient.
As part of this new approach, the platform acts as a performance society. Meritocracies are community-run organizations that enable users to gain more influence by doing more for the good of the community. In a performance society, a user is only as relevant as the value he brings to the platform. These networks form a self-sustaining, self-governing organism in which decision-making powers are placed in the hands of people based on their skills, time and other contributions.
What problems does the Meryt protocol try to fix?
This market approach helps alleviate many of the problems that decentralized DOs are currently facing. The current model for most of these protocols is based on financial weight. The more governance tokens you have, the more weight your vote will have. However, there are some limitations to this approach that have slowed adoption.
In addition, decentralized digital groups are organized around Web 2.0 tools like Discord, Slack, and others. These platforms are primarily designed for communication, but lack the capabilities that blockchain can provide and that Web 3.0 organizations require. To address these concerns and accelerate adoption, the Meryt protocol brings low-code and no-code development solutions to the marketplace that enable digital businesses to better manage de-fi investments in the chain.
Wealth vs. Contribution
The current structure of most decentralized networks values financial power over real ingenuity. This approach poses many problems. For one, it just gives users an incentive to focus on holding more coins rather than contributing other valuable assets like their skills and time. In the end, wallet credit usage isn’t the single most important determinant of a person’s network worth.
The Meryt Protocol offers developers a new way to connect with their communities. By giving regular users more incentives to be creative in their posts, it opens the door to endless possibilities. It also enables skill-intensive users to offer more value without directly investing more money.
Functions of the Meryt protocol
There are many features that the Meryt protocol brings to market. On the one hand, it is designed as a self-sufficient platform. The network introduces a very low fee structure and improved scalability over its predecessors. Due to its technical characteristics, users enjoy almost instant transactions when using Meryt.
Digital Organizations (DOs)
Digital Organizations (DOs) act as a core component of the Meryt Protocol’s ecosystem. These teams consist of groups of decision makers. The network enables developers to easily create and integrate bespoke DOs using simple and intuitive drag-and-drop functionality. This approach offers developers a simplified way to implement a self-governing organism in their creations.
In addition to the Meryt protocol, there is a no-code solution for non-technical DO executives (see Thinker below). It includes functionality that provides decentralized teams with the DeFi tools they need to manage their DeFi assets. This includes multi-sig wallets, voting mechanisms, staking mechanisms and identity modules. In this way, Meryt gives everyone access to Web 3.0 technologies, accelerates the adoption of De-Fi and enables digital organizations to better manage themselves.
Mechanics of the Meryt Protocol
The Meryt protocol introduces some proprietary protocols to allow the network to do its job. The network unites builders, thinkers, contributors and stakers in a unique way. The first step in becoming a voting member of the network is to offer value.
What is my worth
The Meryt protocol determines your network value based on several factors. The system evaluates your previous contributions, e.g. your participation in projects. In particular, the network checks your consistency, your expenditure of time and your added value for past activities. It also reviews the accuracy of your insights, predictions, preferences, and the overall impact of your votes.
The system also takes into account the number of tokens you have provided, the number of people you have added to the network, and the amount of funding offered. Finally, the mechanism will review your previous reward level and engagement. All of these factors are combined to create a total score for each participant.
Builders play a vital role in the Meryt protocol network. You are the user responsible for creating modules. Modules can be anything from functions to plug-ins that suit the use cases and requirements of DOs. Builders in particular can set their level of remuneration for their work. They can also set payment preferences for their services. You can choose between one-time payments or royalties from the thinkers and contributors who use your solutions.
Thinkers are also an important part of the Meryt Protocols network. Thinkers are users who build digital organizations to fill gaps in existing market solutions. One of their main goals is to generate payments for home builders. Thinkers are critical to creating an environment where contributors can use their professional skills and create value for one another.
Contributors are users who help identify areas for improvement for digital organizations. Contributors earn by proactively offering their skills to advance the development of digital organizations. You can think of contributors as designers, business developers, growth hackers, researchers, marketers, and other seasoned users. For their efforts, contributors are privy to both reputation and financial rewards. It’s live and you can join in here.
The Build Layer is where developers can design and launch their custom creations. This section contains build modules, features, and even entire organizations. Other developers can also use these functions.
The thinking layer plays a valuable role in the onboarding process. With this low-code layer, users enjoy a smooth entry into the Meryt protocol. The aim of the think layer is to simplify the construction and introduction of new digital organizations.
The network’s native governance and utility token is $ MRT. Users must own $ MRT in order to interact with the services and features of the network. You can also use $ MRT to help secure passive income.
The staking features of the Meryt Protocol allow anyone to secure a passive income for themselves. Stakers are primarily users who don’t meet the reputation level requirements to become decision makers. These users can delegate their tokens to others. This maneuver helps to increase the security of the network.
In particular, stakers help reduce the speed and price volatility of Meryt tokens. They do this by taking tokens out of circulation. In return for their efforts, the stakers receive rewards, a prospect of recognition, and more. The overall goal of the platform is to seamlessly transform stakers into builders, thinkers and contributors.
The Meryt Protocol – Gain value based on your actions
The concept of a platform that enables decentralized communities to better manage chain investments in a more performance-oriented manner is both unique and exciting. Users can now be more inventive in building decentralized groups. By simplifying its creation and use, the Meryt protocol provides a valuable service to the entire marketplace.
For more information on Meryt, follow them on Twitter and Telegram at https://go.meryt.org/bio