Intro to HONORCODE

Let's look at how an HONOR-based project reputation protocol can function as:

* contribution scoring
* prediction market
* results oracle
* governance manager

Therefore performing a role as a substitute for common liquid application tokens.

Overview

This protocol consists of a semi-transferable token: a token that can only be transferred between a set of contracts, known as artifacts. Artifacts belong to an organization or project and can represent any part of it. We know how impact can become disconnected from fully transferable assets, while soul-bound tokens lack flexibility. STTs aim for the sweet spot between these extremes.

HONOR tokens enable a number of actions and interactions.

* Stakers lock up yield-bearing assets (such as staked ETH) and **farm** HONOR
* Holders **vouch** for project artifacts
* Builders **earn** HONOR for their artifacts
* Artifact Vouchers **receive reward** from the virtual staked asset
* Vouching also allows participants to **allocate** to other artifacts

Why Semi-Transferability?

In DAOs generally and especially in the public goods space, we are searching for ways to track and recognize impact over time. Ideally, early contributors would want exposure to upside for building or supporting successful projects, but tokens can be exposed to unstable markets and capture by actors with unknown motivations. By insulating HONOR from direct convertability, we allow for a community to define its own values and relation to outside capital. If the org needs to allocate capital to builders or investors, it can do so with actual cash flows from staked assets. Effectively allocating these flows becomes a base function of governance.