Can’t somebody create multiple accounts and make tons of fake positive reviews for themselves?
Yes, in general it is cheap and easy to create positive reviews. In order to protect against a Sybil Attack like this, Uprightly puts an emphasis on the age of an address as well as the age and reputation of addresses that they have transacted with. It would be very difficult, if not impossible, to make a convincing network of fake accounts, considering they would have to do real transactions with other users and stake real money and be at risk of losing those stakes as they build the fake accounts.
What is to stop somebody from just creating a new address after they scam someone?
The history of staking. If a user has staked a considerable sum of money over time and accrued many reviews, they are unlikely to abandon it! Of course, they could abandon it and start a new address, but it would be costly since they would have to start from zero with no reputation at all. For this reason, it is probably not a good idea to do business with someone who has a new reputation without a high stake value because they cannot be trusted to stand by their address’ reputation.
What is “burning?”
Burning is the act of destroying cryptocurrency in a public and irreversible way. A simple example of this is when a user sends currency to an invalid address (0x0, for instance.) Everybody can see that this user ‘burned’ the token by sending it to an invalid address. In addition, it is an act of goodwill to the rest of the network because it effectively reduces the supply of the token, increasing the value of everyone else’s tokens.
What if the UPT token varies widely in price?
This is a possibility with any cryptocurrency. If UPT were to rise in price sharply, all users would benefit from a more valuable staking token. If UPT declined, users would be hit with a declining staking value, but would be incentivized to buy more tokens at this point to protect their staking ability. This may actually cause the price of the token to remain relatively stable compared to a token that was purely at the whims of speculation.
Do I have to stake my tokens immediately?
No. You can hold them like any other ERC20 token. You are free to choose when to stake transactions on the Uprightly protocol.
Can I get my staked tokens back?
Yes. If the transaction ends and you receive a positive review, you will get your tokens back. You only lose your tokens if you receive a negative review. In the case that it is a joint review (each person reviewing each other), you only lose your tokens if BOTH parties leave a negative review.
I don’t see the point of a consumer having a good reputation. Why should a consumer care about his/her reputation?
It is true, a buyer doesn’t really need a great reputation in order to buy most goods. But for more complicated transactions, the buyer definitely needs to be trustworthy. In the real world, we already have these buyer reputations in the form of credit scores, eBay reviews for buyers, business contracts, lender agreements, and so on. Also, it may not be apparent, but even in simple transactions, buyers have a reputation as well. For instance, if you constantly return items on Amazon or make fraudulent claims about lost shipments, your account will be closed. Consumers just don’t see this aspect of the business because it is fully controlled by the platform operator (Amazon, in this case). The platform is basically making the guarantee to the seller that the buyers are legitimate and won’t try to scam the merchants.
Why are you creating a token when the basic premise can be accomplished without a token?
While it is true that basic staking can be done with ETH, there are benefits to a token that is limited in scope. For instance, it decouples the value of a staked amount from the whims of speculation that occur in other currencies. It also allows for advanced features in the future that may not be possible without a token (like offering insurance against staked amounts or loaning stakes to users.) It is also a mechanism for funding the ongoing development of the network.
More questions? Join us on our Slack channel