A Reputation-Based Approach to DeFi — The Meryt Protocol
The team behind the Meryt Protocol seek to change the way decentralized Digital Organisations (DO’s) manage money in the De-Fi space and attribute value to users based on a meritocratic solution. The protocol introduces a new reputation-based system to the market providing users with more voting weight based on their particular efforts and skills, rather than how many tokens they hold in their wallet. In doing so, Meryt will allow Digital Organisations and DAOs to manage on chain funds in a truly decentralised manner, making management of De-Fi opportunities easier and more efficient through low/no code modules.
As part of this new approach, the platform operates as a meritocracy. Meritocracies are community-governed organizations that enable users to gain more influence by contributing more to the well-being of the community. In a meritocracy, a user is only as relevant as the value they bring to the platform. These networks provide a self-sustaining, self-governing organism, where the decision-making power is placed in the hands of people based on their skills, time, and other contributions.
What Problems Does the Meryt Protocol Attempt to Fix?
This approach to the market helps to alleviate many issues currently facing decentralized DO’s. The current model for most of these protocols is based on financial weight. The more governance tokens you hold, the more weight your vote contains. However, there are some limitations to this approach that have slowed adoption.
Furthermore, decentralised digital groups organise themselves around Web 2.0 tools such as Discord, Slack and others. These platforms are designed primarily for communication but lack the features that blockchain can offer and Web 3.0 organisations need. To combat these concerns and accelerate adoption — the Meryt Protocol provides low code and no-code development solutions to the market, allowing Digital Organisations to better manage on-chain De-Fi investments.
Wealth vs Contribution
The current structure of most decentralized networks values financial power over true resourcefulness. This approach creates many issues. For one, it only incentivizes users to focus on holding more coins rather than contributing other valuable assets such as their skills and time. In the end, utilizing wallet balances as the main determining factor in a person’s network worth comes up short.
The Meryt Protocol provides a new way for developers to connect with their communities. By providing more incentive for regular users to be creative in their contributions, it opens the door for endless possibilities. It also allows skill-heavy users to provide more value without the need to directly invest more of their funding.
Meryt Protocol Features
There are many features that the Meryt Protocol brings to the market. For one, it’s designed to be a self-sustaining platform. The network introduces a very low fee structure and improved scalability over its predecessors. Users enjoy near-instant transactions when they use Meryt due to its technical characteristics.
Digital Organizations (DOs)
Digital Organizations (DOs) function as a core component of the Meryt Protocol’s ecosystem. These teams are compromised of groups of decision-makers. The network allows developers to easily build and integrate tailor-made DOs using a simple and intuitive drag-and-drop functionality. This approach provides developers with a simplistic way to implement a self-governing organism into their creations.
On top of the Meryt Protocol is a no code solution for non-technical DO leaders (see Thinkers below). It includes a feature set that powers decentralised teams with the DeFi tools needed to manage their De-Fi assets. These include but are not limited to Multi-sig wallets, voting mechanisms, staking mechanisms and identity modules. In doing so Meryt gives everyone access to Web 3.0 technologies, accelerating the adoption of De-Fi and empowering Digital Organisations to better manage themselves.
Meryt Protocol Mechanics
The Meryt Protocol introduces some proprietary protocols to enable the network to accomplish its task. The network combines builders, thinkers, contributors, and stakers in a unique way. The first step in becoming a voting member of the network is to provide value.
What’s My Value?
The Meryt Protocol Determines your network value based on multiple factors. The system evaluates your past contributions such as your involvement with projects. Specifically, the network examines your level of consistency, time spent, and value-added to past ventures. It also reviews the accuracy of your insights, predictions, preferences, and overall effects of your votes.
The system also takes into account the number of tokens you have staked, the number of people you have brought into the network, and the level of financial provisions offered. Lastly, the mechanism reviews your past reward level and involvement. All of these factors are combined to create an overall value score for each participant.
Builders serve a crucial role in the Meryt Protocol’s network. They are users tasked with creating modules. Modules can be anything from features to plug-ins that fit the use cases and needs of DOs. Notably, Builders can define their compensation levels for their work. They can also decide payment preferences for their services. You can choose between one-time payments or royalties from the Thinkers and Contributors that use your solutions.
Thinkers are also a vital part of the Meryt Protocols network. Thinkers are users who create Digital Organizations to address gaps in existing market solutions. One of their main goals is to generate payments for Builders. Thinkers are crucial in creating an environment for Contributors to leverage their specialist skills and mutually generate value.
Contributors are users who help identify areas of improvement for Digital Organizations. Contributors earn by proactively offering their skills to further the development of Digital organizations. You can think of contributors as designers, business developers, growth hackers, researchers, marketers, and other skilled users. For their efforts, contributors are privy to both reputation and financial rewards. It’s live and you may join here.
The Build Layer is where developers can design and launch their custom creations. You can find build modules, features, and even entire organizations in this section. Other developers can leverage these features as well.
The Think Layer serves a valuable role in the onboarding process. Users enjoy a frictionless entrance into the Meryt Protocol via this low code layer. The goal of the Think Layer is to simplify the creation and launch of new Digital Organizations.
The native governance and utility token of the network is $MRT. Users are required to hold $MRT to interact with the network’s services and features. You can also stake $MRT to secure a passive income.
The staking features provided by the Meryt Protocol enable anyone to secure a passive income. Stakers are primarily users who don’t meet the reputation level requirements to become decision-makers. These users can choose to delegate their tokens to others. This manoeuvre helps bolster the security of the network.
Notably, stakers help reduce the velocity and price volatility of Meryt tokens. They accomplish this task by removing tokens from circulation. In exchange for their efforts, stakers receive rewards, a prospect of value appreciation, and more. The overall goal of the platform is to transform stakers into Builders, Thinkers, and Contributors in a seamless manner.
The Meryt Protocol — Gain Value based on Your Actions
The concept of a platform that empowers decentralised communities to better manage on chain investments in a meritocratic manner is both unique and exciting. Users can now be more inventive to help grow decentralized groups. By simplifying their creation and use, the Meryt Protocol provides a valuable service to the entire market.
For more information on Meryt, follow them on Twitter and Telegram at https://go.meryt.org/bio