One of the major concepts common in Web 3.0 communities is the return of value to individuals that contribute value to the community. The Geo Web project brings this concept to life through the use of SourceCred, a technology that measures positive community interactions and offers a tangible reward for both technical and non-technical contributions. It can monitor community activity across Discord, Discourse (these forums), and GitHub.
The Geo Web project aims to be a truly open organization where anyone can participate and be rewarded for doing so. A question from a layman can be just as valuable as a question from a developer under the right circumstances. What matters is that it healthily spurs community interaction or benefits the community. If you engage with the project and support others without attempting to game the system, the system will recognize you as a contributor.
The SourceCred system then allows for value distribution to those contributors through the Ethereum blockchain. These distributions come with tax implications, so make sure to keep track if you opt in.
What is SourceCred?
SourceCred is a system built to assign scores to individual contributions to a project as determined by the community and then distribute that value back to the individual.
It does this through using a scoring system called ‘Cred,’ in combination with a token called ‘Grain.’ The scoring system, distribution rules, and token uses are unique to each project - some projects distribute Grain that offers utility value (like voting power), while others distribute Grain that can be redeemed for stablecoins or other cryptocurrency.
The Geo Web project falls into the latter category. Interactions between members of the community are measured and given a Cred score based on how valuable their contributions are. At the end of each week, a distribution of Grain takes place to all users who contributed and have opted in to the system. That Grain can then be redeemed for an equal amount of DAI, a stablecoin worth $1.
Since Grain is redeemable for stablecoins, there are tax implications involved. Geo Web users have to opt in to the SourceCred system to qualify for the weekly Grain distribution.
Earning Cred
The Geo Web project is using SourceCred to monitor and score contributions made to the Geo Web. Anyone can jump in and start earning Cred immediately, regardless of technical skill. If the community thinks the contribution is valuable, then it can earn Cred. So how is it calculated?
Whenever someone posts to the forums, communicates in Discord, or interacts with the project on Github, they make a contribution.
As an example, let’s take this post. The system takes note of the post and the author (me) and creates a node with a Cred score for the post. Everyone that ‘likes’ or replies to this post will then connect to that node and give it a small boost. It functions similarly across Github and Discord - Cred scores for contributions are weighted based on various factors, such as technical difficulty or the Discord channel where someone communicates.
At the end of each week the system distributes Grain to those contributors who have opted in.
Grain Distribution
The Geo Web project distributes 1,500 Grain per week to contributors. The Grain amount is based on the current stablecoin balance held by the Geo Web project and is revisited every quarter. SourceCred payouts to-date have been entirely funded by Gitcoin Grant donations.
The distribution policy for the Grain is set to do so in a 50/50 ratio - 750 Grain is distributed based on Cred earned the prior week and 750 Grain is distributed based on Cred earned last week, plus each week before that with a 25% decay per week. This encourages both immediate interaction with the community through engaging with others and creating content that lasts and continues to draw the community in.
Anyone can jump in and earn, because everyone that participates in a community has value - regardless of skill level. The amount each contributor receives depends on their Cred relative to the total amount of Cred earned by all contributors that have opted in. You can see previous distributions by checking out the Geo Web SourceCred Explorer.
Once a significant amount of Grain has been accrued it can be redeemed for an equal amount of DAI by reaching out to @graven.
I am not a tax professional or advisor, but I do recommend keeping a personal record of all Grain distributions in case a tax professional or advisor needs them at a later date.
Opting In
The documentation for SourceCred lists that Grain distributions are a taxable ordinary income event. Because of this, only users that opt in to the system are eligible for the weekly Grain distribution.
You can opt in by filling out this form with your Ethereum wallet address and usernames for Discord, the Geo Web forums, and Github. They will all be merged into a single identity for the SourceCred system to keep track of. If you don’t have an account for all three, that’s fine - a new account can always be added later and any amount of participation is welcomed!
Have a question? Join the Discord, and let us know!