A novel framework for reputation-based systems

The article proposes a reputation system built on two tokens: a non-transferable "points" token that signals reputation, and a transferable "coin" token paid as dividends to point holders. It argues that combining reputation and liquidity in one token creates a paradox, since transferability lets people without reputation buy signals and erodes their value. Points should be tied to verifiable contributions, such as content creation, moderation or gameplay, and the article says coin supply, dividend frequency and distribution are key design choices. It cites Discord moderator roles and Forefront's $FF token as examples.