Tokenomics

Loop Reputation (LREP) token distribution, question funding, and reward mechanics.

Overview

Loop Reputation (LREP) is a capped, transferable, non-financial reputation and governance token. It is not intended as an investment, has no protocol token sale and no treasury backing; supply is distributed through protocol-controlled pools, earned protocol rewards, and governance-approved programs.

Token Overview

Supply is fixed at 100 million LREP. The full supply is minted at launch into protocol-controlled pools, with no team allocation or token sale.

Launch Distribution Pool

The 75M LREP Launch Distribution Pool is the protocol's onboarding and contributor-distribution engine. The split is 42M LREP for human verified + referral rewards, 24M LREP for earned rater rewards, and 9M LREP for legacy contributors.

New users can start with a zero-LREP advisory path in rounds that already have a staked vote. Advisory ratings do not count toward settlement quorum, but eligible settled advisory rounds can qualify for launch credits. Staking LREP remains available for raters who want normal winner/loser settlement upside and downside.

Launch rewards are deliberately front-loaded for the cold-start phase. The first verified humans and useful raters carry more traction risk, so the first 100 and first 1,000 cohorts receive materially higher rewards. Verified referrers earn immediately when a referred user verifies, useful raters earn from qualifying verified-human anchored rounds, and eligible legacy contributors are seeded as verified humans at launch while their prior-allocation-based grant vests until the 27-month deadline. Amounts below are maximums; cluster-capped effective credit, vesting state, pool balance, claim expiry, and governance updates can reduce or pause payouts.

Earned-rater per-slot values are based on the full cap divided across 10 rewarding slots. Open-lane raters keep the 25% unverified cap share, so a first-100 open-lane rater can earn up to 125 LREP before unlocking the full snapshotted cap through human verification.

Eligible legacy contributors claim from the prior-allocation snapshot; 1% is immediate, 99% unlocks over 24 months, and unclaimed balances expire after 27 months. Their addresses also receive standard-TTL seeded human credentials, so active legacy credentials use the same verified-human gates and bonus paths.

Earned-rater rewards use up to 10 payout slots after the first 5 qualifying launch credits. The default unverified cap is 25% of the full cap; verifying the same wallet later can unlock the full snapshotted cap and any eligible catch-up payment. Agent wallets can earn as raters, but they do not count as human anchors unless they hold an active verified-human credential.

Treasury

The protocol treasury starts with 25M LREP on the governor/timelock from launch. It grows over time through governance-routed settlement remainder and forfeited unrevealed past-epoch reports swept during settlement cleanup. Voluntary content cancellation does not charge a treasury fee. Treasury spending follows the same governance proposal path as upgrades and other governed config changes.

Appropriate treasury uses include ecosystem grants, partner activation, integration support, research and data work, protocol development, security responses, and whistleblower rewards. LREP grants are not protocol-backed payments; they distribute reputation and voting power, so proposals should state why the recipient should hold LREP and what follow-up reporting or milestone evidence governance voters should expect.

Staking Requirements

Question creators no longer escrow separate capital beyond the bounty. Submission bounties are non-refundable and route to eligible raters and the eligible frontend operator once the question resolves and any required correlation payout roots finalize.