Unleashing the Power of Community. Part II
Core Technology
Collusion is the biggest challenge to our approach and any decentralized system. In Bitcoin, it’s the 51% attack, which is especially an issue when the network is still small, making it easy for a large group to overtake the network and steal from the community. In our case, collusion happens when multiple analysts work together to make a project look great when it isn’t, just to sell their tokens at inflated prices.
The classic pump and dump. This has even happened with large groups of A-list celebrities promoting worthless tokens.
Cyrator’s value, like Bitcoin’s, comes from its ability to prevent large groups of people from colluding and promoting worthless tokens.
Our first defense is controlling who becomes an analyst. While anyone can join Cyrator, existing analysts have to vote to accept new applicants. Applicants need to submit at least five sample reviews and. Analysts can then vote on the application and provide feedback on the reviews.
Once accepted, new analysts can earn tokens for writing reviews and getting upvotes. However, they don’t get their tokens right away; there’s at least a one-week hold period during which the entire community can scrutinize their earnings and flag any suspicious behavior.
It’s like a Bitcoin miner having to wait for a week to get their mining rewards, and if there’s a 51% attack, old miners would flag it, vote on it, and the attackers never get their money. In Cyrator’s case, new analysts wait one month before participating in voting, making it impossible for a large group to quickly overtake the community.
Analysts also have to stake an increasing amount of CURE the bigger their following gets. An analyst with a million followers is a lot more dangerous than someone with only 100 followers, so they need to stake a bigger amount of CURE, otherwise their reviews won’t get published.
If someone reports an analyst for posting harmful content, their stake can be slashed, and they can be voted off the platform. This makes it really expensive for someone with a large following to promote a bad project. We also have other mechanisms, like giving the most upvoted reviews the heaviest weight and having separate roles for analysts, curators, bounty hunters, and more.
Most importantly, Cyrator’s focus is to keep developing tools that give users confidence that they can trust our ratings, the same way they trust the reliability of Bitcoin. If we can achieve that, then we can use the millions of hours currently spent on analyzing crypto projects to benefit analysts, investors, projects, and society as a whole.
In the next article, I’ll challenge the widely held belief that “99% of projects don’t need a token”. Instead, I’ll argue that the opposite is true and discuss how society could benefit enormously from a greater number of organizations launching their own tokens. Stay tuned!
Learn more:
