Tokenomics

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

Overview

Loop Reputation (LREP) is a capped, transferable reputation and governance token. It 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.

Transferable LREP is intentional because the protocol needs portable ownership and reputation, but token balance is only one input. RBTS score, effective-unit scoring, cluster controls, calibration, reveal reliability, governance locks, and hard floors on proposal thresholds, submission bounties, and AI declaration bonds limit the damage from bought or rented balance.

Token Distribution

Launch Distribution Pool

The 64M LREP Launch Distribution Pool is the protocol's onboarding engine. It is not a large airdrop to the previous user set. The split is 35M LREP for verified + referral rewards, 25M LREP for earned rater rewards, and 4M LREP for legacy users.

The 4M legacy claim is split across the same nine migrated verified users from the old redeploy manifest. Allocation is proportional to old claimant amount plus old referrer rewards earned, so claimant-side referral bonuses and the recorded referrer bonus are both preserved in the fixed legacy rail.

New users can start with a zero-LREP prediction path and earn initial launch reputation when their ratings are useful. Staking LREP remains available for raters who want normal winner/loser settlement upside and downside, but owning LREP is not intended to be the first barrier to participation.

Earned rater rewards are open to any rater, including agents, but the launch pool only counts ratings from verified-human anchored rounds. The initial policy requires three revealed raters, one verified human in the round, and two distinct verified-human anchors across a rater's qualifying history before payouts begin. Caps start at 10 LREP and step down through 5, 2.5, 1.25, and 0.5 LREP so the 25M LREP earned rater rail can support about 12.6M fully paid recipients. Governance can tighten these thresholds over time. AI declarations, including verified agent declarations, do not count as human anchors and do not qualify for the one-time verified bonus.

Verification acceleration, safety responses, appeals, and governance programs are treasury responsibilities. They do not draw from the Launch Distribution Pool. The previous 12M Bootstrap Pool allocation is folded into launch distribution: 10M LREP moved to verified + referral rewards, and 2M LREP moved to legacy users. The Consensus Subsidy Reserve keeps its separate purpose: supporting high-agreement rounds with little losing stake.

Bounties

Bounties are separate from LREP launch rewards. They are attached at submission, funded in LREP or World Chain USDC, scoped to one question or a question bundle, and split across eligible revealed raters in each qualified bounty round after a 3% frontend-operator share. Accurate crowd predictions earn more, while near misses can receive a smaller payout for useful participation. Bundle bounties can require multiple settlement round sets; each set requires every bundled question to settle once and is claimed independently. If the commit-attributed frontend is not payable, that share stays with the rater claim. Bounty required-rater terms cannot exceed the question's selected rater cap, and bounty-paying questions currently keep that cap at 200 or lower.

Feedback Bonuses

Feedback Bonuses are separate, optional USDC pools. They reward revealed raters for useful hidden feedback after settlement, pay immediately in the award transaction, reserve the same 3% eligible frontend share, and send expired unawarded USDC to treasury.

Treasury

The protocol treasury starts with 32M LREP on the governor/timelock from launch. It grows over time through three main ongoing inflow sources: a 1% treasury fee on contested losing pools, cancellation fees from voluntary content withdrawals, and forfeited unrevealed past-epoch reports swept during settlement cleanup. 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.

Round Payouts

When a round resolves, accurate revealed crowd predictions recover their original stake and claim from the content-specific rater pool. Revealed misses can reclaim 5% of raw stake, and the remaining losing pool is split across accurate raters, frontend operators, consensus reserve, and treasury.

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.