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- Oct 2021
To create DAOs resilient to corruption, DAOstack’s first governance templates implement voting rights using a system called Reputation. Reputation is a score assigned to each user that represents that user’s voter power. Each DAO has a separate ledger of Reputation scores, and so Reputation cannot be directly transferred from peer to peer. Rather, it is distributed through the passing of proposals inside the DAO.Indirect transfers of Reputation that cannot be completely prevented, such as a user transferring selling control of their account, are discouraged by a DAO’s ability to slash Reputation: if DAO voters find that an account has indirectly transferred its voting power, the DAO can pass a proposal to set that account’s Reputation score to zero.
The selling of one’s personal account is an achilles heel of individual reputation scores. Bad actors could approach individuals and entice or coerce them, thereby reputation becomes misrepresented.