👤SOUL Token

Ecosystem Native

Reputation tokens in the digital realm generally serve a dual function: 1. They recognise and reward users who bring value to a platform, allowing them to elevate their public reputation. 2. They furnish a means to monetise contributions by converting the token's inherent value into a tradeable form. However, there's an intrinsic conflict between these two objectives. For a token to be monetisable, it must be tradeable. But as its liquidity (or ease of exchange) increases, its ability to purely signify reputation decreases.

Consider a scenario where reputation tokens are easily traded. If they were regarded as reliable indicators of reputational worth, they would naturally have high market value. This would incentivise holders to sell them. But once these tokens enter circulation, they lose their reputation-signaling value, thereby undermining the very essence they were designed to represent.

Introduced in a paper titled “Decentralized Society: Finding Web3's Soul” by E. Glen Wey, Puja Ohlhaver, and Vitalik Buterin in May 2022, a Soul Bound Token (SBT) is at its core, a non-transferable token. This simple, yet impactful design holds great promise for the Web3 space. SBTs can be used to create a distinct identity system in Web3, allowing the minting of tokens to signify a myriad of personal attributes like social connections, academic achievements, professional experience, financial standing, philanthropic activities, and affiliations to DAOs. SBTs can also serve effectively as a reputation signaling tool due to their non-transferable nature. Recognising the need for individuals to monetise their reputation despite this non-transferability, we have introduced the concept of SPARKs. These tokens, periodically generated by the SOULs, can be burned, allowing individuals to capitalise on their reputation and engagement.

In the PairedWorld context, the SOULs are semantic soulbound tokens (EIP-6239) that hold three distinct attributes, each possessing unique qualities and scope.

1. ID: A distinct identification number akin to the unique DNA in living organisms.

2. Strength: An External Reputation Index, reflecting the adaptability and experiences accrued from external environments.

3. Level: An Internal Reputation Index, symbolising the growth and stature achieved within the PairedWorld ecosystem.

Through SOULs (and the ecosystem's 2nd native token - the SPARKs), we address the paradox of reputation tokens by preserving the integrity of reputational value.

SOULs grant users free access to SPARKs on a periodic basis, allowing them to attend Meet-ups, make Connections and earn $PAIRED.