Editing DAO (section)

=== Reputation ===
''Main page: [[Reputation]]''

Reputation is a personal judgement based on your past actions. Business relies on your counterparty’s reputation to predict how they will act during a transaction, to give you the confidence to enter a bargain. History has repeatedly proven<ref>Avner Greif (1994) "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies", The Journal of Political Economy. 102 (October 5): 912–50. doi:10.1086/261959. S2CID 153431326.</ref> the proper attitude for a healthy market environment is to seek to improve and protect your reputation for the long term, not to simply acquire as much money as possible in a single business deal. A secure and reliable system that accounts for meaningful reputation transforms such zero-sum competitive behavior concerned with immediate profits into an environment which motivates future-oriented, sustainable cooperation. When a single game turns into a repeated game<ref>George J. Mailath & Larry Samuelson (2006) ''Repeated Games and Reputations: Long-Run Relationships'', Oxford University Press.</ref>, the incentives are transformed. In a system with repeated business, reputation is actually a positive sum quality, since it can be created from nowhere. Whenever two parties behave well and collaborate productively, perhaps sacrificing their own short-term gain on some aspects of the deal, they produce valuable reputation that signals the potential for further positive interactions in the future.<ref>Craig Calcaterra & Wulf Kaal (2021) ''Decentralization'', De Gruyter, Chapters 4 and 6.</ref>

How can we foster a culture which respects and values reputation more than money in a DAO which allows pseudonymous members to join or leave at will? Properly designing and programming a robust mechanism that is secure against the infinite strategies for gaming any algorithmic reputation system is not a simple task. DGF is built to capture the meaning of genuine reputation with digital representations, REP tokens. [[Reputation tokenomics]] is devoted to specifying precisely the economic value of a REP token to objectively determine how accurate that representation is.