🪙KudoFuel

Our Mutual Credit System

KudoFuel is the mutual credit system used by Weaverly. It is not a cryptocurrency. It aims to encompass more than just the financial value of contributions to Weaverly.

KudoFuel is open to all users, not just the platform engineers. Developers, marketers, designers, even local shops onboarded by Trusted Peers can use the mutual credit.

The KudoFuel system allows support engineers and Weaverly Library contributors to earn credit by offering their support services and knowledge to the community. Within Weaver Networks the value of KudoFuel will be directly linked to the capacity of the engineers to provide support. This system ensures the value of KudoFuel reflects the dynamic availability of support for the edge hosting community.

Put another way, the more the Weaverly platform is used (the better the support and the more comprehensive the library) the more KudoFuel will be used. Market dynamics, coupled with our Matching Engine algorithm, will lead to a progressive expansion of KudoFuel value.

To ensure the stability of KudoFuel, users will be assigned a credit limit. Weaverly users with negative balances will be expected to clear them by providing support services to hosts. Credit limits will be assigned using historical KudoFuel transaction volumes and Evos feedback.

Our Evos feedback and reputation system will have the added benefit of giving contributors access to the governance of KudoFuel, offering an active role in maintaining the system, setting credit limits, and resolving disputes.

KudoFuel and Trusted Peers

To ensure fairness within Weaverly, all participants must maintain trust. To achieve this, we will:

• Use a transparent accounting system to show platform operating costs.

• Provide accurate records of KudoFuel transaction volumes.

• Show the number of outstanding completed and overdue requests.

• Highlight reputation scores, roadmap milestones, and qualifications which will give access to detailed data analytics and platform governance roles for community members who want it.

To prevent abuse of the mutual credit system ‘Trusted Peers’ will have access to credit allocation. Trusted Peers are platform users with a good reputation score and who have achieved specific milestones.

Trusted Peers will participate in platform governance on behalf of the community, ensuring transparency and integrity.

Please see our KudoFuel Currency Paper for more information.

The Weaverly Reserve

The total supply of KudoFuel is based on platform metrics, such as the number of support requests, CSEs, currency transactions, and the KudoFuel Reserve balance.

The Weaverly Reserve issues KudoFuel Mutual Credit.The transaction fee is directed to the Reserve, which helps to balance accounts and fund the operations of the platform.

The KudoFuel total circulating supply increases as it is bought from the Reserve to exchange with CSEs in return for IT support.

Put simply, KudoFuel is generated only when there is a need for it.

Each time a platform user requires support, and purchases KudoFuel to pay a CSE, the mutual credit is generated and transferred to the User’s wallet. When the User and CSE have been matched using the Peer Support Matching Engine, that KudoFuel is marked as ‘allocated’ in the User’s wallet, to prevent double spending.

Upon satisfactory task completion by a CSE or Support Participant the allocated KudoFuel is released from the User’s wallet and transferred to the CSE or Support Participant’s.

The Weaverly KudoFuel Reserve always has a negative balance while the platform is in operation, having ‘issued’ the first KudoFuel in exchange for fiat. The KudoFuel Reserve is backed by those fiat reserves.

When Kudofuel is bought from the Weaverly Reserve the circulating supply increases.

As KudoFuel is redeemed by CSEs and Participant Supporters from the Weaverly Reserve in exchange for other currencies it is taken out of circulation and the total circulating supply is reduced. This feedback system helps smooth variation in the value of KudoFuel while reflecting the total circulating supply in proportion to the platform support capacity and use. When released KudoFuel will be available from the Weaverly Reserve, and in the future from Decentralised Mutual Credit Common’s Exchanges.

Benefits

We will encourage people to join our KudoFuel mutual credit currency system and platforms by offering:

• Increased visibility within the Edge hosting community, making it easier to find new clients and opportunities.

• A stable value, providing participants with confidence in KudoFuel, the platform and each other.

• Increased trust by combining it with the Evos Community Reward System.

• A lower-cost alternative to traditional payment methods as participants can exchange services peer-to-peer with low transaction fees.

• Users will have the capacity to influence the management of the system including transaction fees and credit limits.

• More control over financial affairs and less dependence on traditional financial institutions and currencies.

• Ability to participate in the system on their own terms without being beholden to the rules and regulations of extractive financial institutions and working practices.

• A sense of community and collaboration as peers work together to support each other's needs and build a sustainable, participatory, local economy.

The KudoFuel system allows support engineers and Weaverly library contributors to earn credit by offering their support services and knowledge to the community. Within Weaver Networks the value of KudoFuel will be directly linked to the capacity of the engineers to provide support. This system ensures the value of KudoFuel reflects the dynamic availability of support for the edge hosting community.

Put another way, the more the Weaverly platform is used (the better the support and the more comprehensive the library) the more KudoFuel will be used. Market dynamics, coupled with our Matching Engine algorithm, will lead to a progressive expansion of KudoFuel value.

To ensure the stability of KudoFuel, users will be assigned a credit limit. Weaverly users with negative balances will be expected clear them by providing support services to hosts. Credit limits will be assigned using historical KudoFuel transaction volumes and Evos feedback.

Our Evos feedback and reputation system will have the added benefit of giving contributors access to the governance of KudoFuel, offering an active role in maintaining the system, setting credit limits, and resolving disputes.

KudoFuel Multipliers

We will use KudoFuel multipliers to encourage engineers to provide high-quality service and continue to use the platform.

If an engineer completes a pre-defined number of support requests within a set period, and they meet the required Evos limit, they will receive a multiplier of the earned KudoFuel value for those tasks.

The multiplier levels will be active for a maximum of 1 month to avoid the artifical creation of dominant participants. To achieve this the multiplier is reset each month to encourage engineers to stay up to date with the knowledge base library and maintain their Evos feedback scores.

Additionally, the use of Earned KudoFuel by engineers (rather than just cashing out to fiat) is incentivized through ‘cashback’, where each exchange results in a 0.1% return. This is taken from the KudoFuel transaction fee.

Exact percentage amounts will be set by a user group of Trusted Peers representing the engineers, hosts and platform staff.

KudoFuel and Trusted Peers

To ensure fairness within Weaverly, all participants must maintain trust. To achieve this, we will:

• Use a transparent accounting system to show platform operating costs.

• Provide accurate records of KudoFuel transaction volumes.

• Show the number of outstanding completed and overdue requests.

• Highlight reputation scores, roadmap milestones, and qualifications which will give access to detailed data analytics and platform governance roles for community members who want it.

To prevent abuse of the mutual credit system ‘Trusted Peers’ will have access to credit allocation. Trusted Peers are platform users with a good reputation score and who have achieved specific milestones.

Trusted Peers will participate in platform governance on behalf of the community, ensuring transparency and integrity.

Please see our KudoFuel Currency Paper for more information.

Pre-authorisation

To exchange KudoFuel between hosts and support engineers, a pre-authorisation will be used to ensure that enough KudoFuel and engineer time is available, indicating both the host's need for support and the engineer's capacity to provide it. This will match peers together to complete transactions. The KudoFuel will be held in reserve in the host's wallet at the time of the agreed contract and will be released following the "Proof of Support” protocol above. If the support request is not marked as complete within 5 days, it will extend the reserve "holding period", flag the request, send a reminder and enable further support if the host requires it. This is designed to prevent double expenditure of KudoFuel.

KudoFuel Value

KudoFuel value is not fixed and will vary due to the design of our mutual credit system and the feedback loops we implement. The supply is dynamic, so the value will not fluctuate wildly;

Within the Peer Support Matching Engine engineers will be given suggested market value range which they can use to ensure they are fairly recompensed for the work and time they contribute. The feedback loops will act as the indicators for engineers to set fees within that range. This will ensure a fair exchange of value between all platform users, both the engineers and support requesters.

There is no mining of KudoFuel. There will be no KudoFuel airdrops.

Before launching KudoFuel as an operational system, Mutual Credit Commons Exchanges need to be available. The value of Kudofuel can be influenced by market dynamics within those exchanges, such as the demand for mutual credit currencies more broadly.

Engineers are responsible for exchanging their KudoFuel on a Mutual Credit Commons Exchange, and market dynamics will set the value. Engineers can use this information to set their KudoFuel fee parameters in the Peer Support Matching Engine.

Demurrage

To encourage active use of KudoFuel, and disincentivize hoarding, Earned KudoFuel is subject to demurrage or a timed, progressive loss of value. The smart contract associated with the KudoFuel will include a dated generation tag which will be used to identify the oldest KudoFuel in a wallet. Any that is more than 6 months old will progressively lose 1% each month. So, 10 KudoFuel would be reduced to 9.9 KudoFuel at six months and by another 1% the following month if it remains unused.

Reserves

The KudoFuel Reserve balance always aims to be zero.

The total supply of KudoFuel is based on platform metrics, such as the number of support requests, engineers, currency transactions, and the KudoFuel Reserve balance.

The Reserve can issue KudoFuel Mutual Credit, and the transaction fee goes to the Reserve, which helps to balance accounts and fund the operations of the platform.

The KudoFuel total volume increases as new engineers are onboarded to the platform, and when the Reserve gives credit, and decreases as the KudoFuel transaction fee zeroes the balance.

Put simply, KudoFuel is generated only when there is a need for it. Each time a host requires support, and they purchase KudoFuel to pay an engineer, the mutual credit is generated and transferred to their wallet. Once the host and engineer have been matched via the Peer Support Matching Engine, that KudoFuel is allocated in their wallet, to prevent double spending, and then transferred to the engineer upon task completion. When the engineer redeems their Holofuel, for fiat or another currency or service, that KudoFuel is

This feedback loop helps increase and smooth variation in the value of KudoFuel at exchanges as it maintains total volume in proportion with the platform support capacity and use.

Credit Limits

Initially, engineers are assigned a credit limit based on factors such as their experience, reputation, and capacity to provide IT support. The credit limit can be adjusted dynamically based on their activity on the platform. For example, if an engineer consistently provides high-quality support and customer satisfaction, while clearing their balance, their credit limit may be increased.

As the platform matures, Trusted Peers will beempowered to define credit limits that are fair and equitable.

Depending on their platform status, Trusted Peers may be given the capacity to offer KudoFuel to individuals or businesses seeking hosting support as an incentive. It will be possible for this credit to be exchanged with any engineer on the platform. The issuing Trusted Peer will receive a proportion of the platform transaction fee for introducing a new user to the platform. By offering credit to potential customers, engineers can help to onboard a larger and more vibrant community of peers, while increasing the overall value of the KudoFuel for all Weaverly participants.

Credit Clearing

The credit clearing system is important for making sure the KudoFuel mutual credit currency is fair, transparent, and sustainable. It helps ensure the platform's long-term viability.

The clearing system has parameters, like minimum and maximum credit limits, interest rates on negative balances, and handling defaulted debts. Each Weaverly user has a secure and private view of their balance and transaction history.

If a participant has a long-standing negative balance and doesn’t act to restore it to zero, there are consequences such as reduced platform permissions or being expelled from Weaverly. After 12 months of inactivity, the platform fee will be used to clear outstanding debts and bring the reserve balance back to zero.

Benefits

We will encourage people to join our KudoFuel mutual credit currency system and platforms by offering:

• Increased visibility within the Edge hosting community, making it easier to find new clients and opportunities.

• A stable value, providing participants with confidence in KudoFuel, the platform and each other.

• Increased trust by combining it with the Evos Community Reward System.

• A lower-cost alternative to traditional payment methods as participants can exchange services peer-to-peer with low transaction fees.

• Users will have the capacity to influence the management of the system including transaction fees and credit limits.

• More control over financial affairs and less dependence on traditional financial institutions and currencies.

• Ability to participate in the system on their own terms without being beholden to the rules and regulations of extractive financial institutions and working practices.

• A sense of community and collaboration as peers work together to support each other's needs and build a sustainable, participatory, local economy.