Cred.Hub
  • background
    • The Trust Deficit in Web3 Today
      • Enter Cred.Hub
    • Mission & Vision
  • introduction
    • Cred.Hub:Turning Trust into an On-Chain Asset
    • Reputation System
      • Reputation Scoring
      • Staking and Backing Mechanism
      • Reputation & Lending Market
    • Privacy, Integration, and Engagement Layers
      • Privacy Layer: Zero-Knowledge Proofs
      • Integration Layer: Cross-Chain Interoperability
      • Engagement Layer: Gamified Participation & Community Dynamics
  • Advantages of Cred.Hub
    • Cross-Ecosystem Compatibility
    • Economic Incentive Alignment
    • User-Friendly Onboarding
    • Cred.Hub Technology Architecture
      • Smart Contract Core
      • AI-Enhanced Scoring Engine
      • Zero-Knowledge Proofs (ZKPs)
  • Tokenomics
    • Tokenomics
      • Token Allocation
      • Utility
  • Roadmap
    • Roadmap
  • FAQ
    • FAQ
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  1. introduction
  2. Reputation System

Staking and Backing Mechanism

$CRED token holders play a critical role by staking tokens to vouch for others’ reputations.

When the backed user performs well, stakers earn dynamic rewards.

When the backed user is slashed or flagged, stakers share a proportional penalty.

This creates aligned, risk-sharing incentives across the ecosystem, encouraging careful, meaningful endorsements rather than blind trust.

Who

Action

Outcome

$CRED Staker

Stakes tokens to back a user

Earns rewards or faces penalties based on performance

Backed User

Receives endorsement

Gains access to premium services or better terms

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Last updated 2 days ago