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P2P Protocol works using a unique on-chain reputation system which not only builds up user trust and privileges but actively helps prevent fraudulent activity within the P2P landscape.

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Building Trust Through Reputation

A user can increase their Reputation Points (RP) score via a series of on-chain tasks which make them more trustworthy in the eyes of the community. From completing anonymous KYC to referring friends, each newly completed task reinforces the user’s on-chain reputation while unlocking fresh rights and benefits along with upgraded transaction limits.
Reputation Building:Users earn reputation through:
  • Completing successful trades
  • Maintaining clean dispute histories
  • Achieving ZK-KYC verification tiers
  • Building transaction diversity across rails and geographies
  • Receiving referral attestations from established users

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Inputs (illustrative, governed)

The Proof-of-Credibility system considers multiple factors:

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Trade History

  • Successful trades (size-weighted)
  • Trade frequency and consistency
  • Time since account creation (age/decay)
  • Dispute history and resolution outcomes

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Identity and Verification

  • KYC proof tier (ZK-KYC completed, source diversity)
  • Verification method diversity (government ID + social accounts + passport)
  • Verification freshness

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Network Participation

  • Rail diversity & geography
  • Referral attestations from trusted users
  • Community standing

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Negative Events

  • Slashed events (negative deltas)
  • Dispute losses
  • Appeal outcomes
  • Timeout violations

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Outputs

The reputation score determines:

Transaction Limits

Order limits (min/max) scale with reputation. New users start with small limits that grow as they build credibility.

Fee Tiers

Higher reputation users access preferential fee structures as a reward for consistent, honest behavior.

Bond Multipliers

Trusted users may post lower bonds or skip bonds entirely, reducing capital requirements.

Matching Priority

Merchants with higher reputation receive priority in order matching, increasing their transaction volume.

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Regional Caps

Regional caps by compliance policy may override individual reputation limits to ensure adherence to local regulations.

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Sybil & Gaming Resistance

The protocol employs multiple mechanisms to prevent gaming:

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Weighted Decay

Reputation scores decay over time if not maintained through continued activity. This prevents users from building reputation once and then engaging in fraud later. 
RP(t) = RP(0) * e^(-λt) + Σ(new_contributions)
Where:
  • RP(t) is reputation at time t
  • λ is the decay constant (governance parameter)
  • New contributions continuously refresh the score

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Diminishing Returns

Repeating the same action yields progressively smaller reputation gains, encouraging diverse participation rather than grinding a single activity.

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Rail-Mix Requirements

Higher reputation tiers require demonstrated competence across multiple payment rails and geographic regions, making it harder to game the system through a single method.

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Anti-Gaming Detection

The protocol includes automated detection for:
  • Wash trading between related accounts
  • Artificial inflation through circular transactions
  • Coordinated behavior suggesting Sybil attacks
  • Suspicious patterns in timing or amounts

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Optional Attested Device/Account Fingerprints

Privacy-respecting commitments to device or account fingerprints can help identify coordinated Sybil attacks without exposing user identity.

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Reputation Calculation Example

Starting State:
  • 1 ZK-KYC verification (social account): +50 RP
  • 3 successful trades (100,100, 150, $200): +45 RP
  • No disputes: +0 RP
  • Total: 95 RP
Unlocks:
  • Max transaction: $500
  • Standard fees: 0.5%
  • Bond requirement: 2x trade value
Current State:
  • 3 ZK-KYC verifications (ID + social + passport): +200 RP
  • 87 successful trades (average $300): +435 RP
  • 2 disputes filed (both won): +20 RP
  • 5 successful referrals: +50 RP
  • 3 payment rails used: +30 RP
  • Decay factor: -35 RP
  • Total: 700 RP
Unlocks:
  • Max transaction: $5,000
  • Preferred fees: 0.3%
  • Bond requirement: 1x trade value
  • Matching priority: High
Current State:
  • Full KYC verification: +300 RP
  • 2,400+ successful trades: +2,400 RP
  • 0.1% dispute rate (24 disputes, 22 won): -20 RP
  • 50+ referrals: +250 RP
  • 8 payment rails, 15 countries: +200 RP
  • Staked merchant bond: +500 RP
  • Decay factor: -130 RP
  • Total: 3,500 RP
Unlocks:
  • Max transaction: $50,000
  • Premium fees: 0.15%
  • No bond requirement
  • Matching priority: Maximum
  • Eligible for LP incentives

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Reputation Portability

One of the most powerful features of on-chain reputation:
  • Cross-client portability: Your reputation follows you across all clients (Coins.me, p2p.me, third-party integrations)
  • Cross-border recognition: Reputation earned in one region is recognized globally
  • Composability: Future protocols can build on the same credibility graph
  • No vendor lock-in: You own your reputation through your wallet, not through any platform
Reputation is stored as on-chain commitments tied to wallet addresses. As long as you control your private keys, you control your reputation—it can never be taken away or siloed by a platform.

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