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The On-Chain Reputation System is a decentralized framework designed to bring transparency, fairness, and trust to Web3 communities. In traditional online platforms, reputation is managed by centralized authorities, often leading to opacity, manipulation, or limited portability. By moving reputation management on-chain, this system ensures that reputation points are secure, verifiable, and accessible across multiple decentralized applications (dApps).

Users earn reputation points through positive interactions such as participation, governance, or meaningful contributions. These points become a permanent record of credibility, stored directly on the blockchain, and can be viewed or validated by anyone. Unlike centralized solutions, on-chain reputation is portable and interoperable, enabling individuals to carry their trust score across projects and ecosystems.

Smart contracts serve as the foundation, governing how reputation points are awarded, deducted, and utilized. Reputation can unlock real privileges—such as greater voting power in governance, access to exclusive services, or eligibility for rewards. This merit-based approach incentivizes constructive behavior, discourages abuse, and empowers communities to recognize genuine value.

By combining accountability with decentralization, the On-Chain Reputation System creates a new digital identity layer for Web3. It fosters reliable collaboration, strengthens community trust, and ensures that reputation itself becomes a meaningful asset.