Merits

Merits reflect a person’s contribution record, but at the same time Merits are also a crypto token. In practice, they live in a person’s linked wallet while also functioning as a visible record of support, commitment, and standing within the community.

There are three basic forms of Merits. Liquid Merits are transferable and tradable. Staked Merits are locked into the system as an investment and can later be withdrawn. Rooted Merits are permanently staked and remain locked forever.

Direct donations are typically awarded using rooted Merits. Staked Merits are generally understood as an investment into the token. For titles and rights, what matters most is the combined number of staked and rooted Merits a person holds. That total is what determines current status in the community.

It may seem that buying liquid Merits and then staking them is always the better path, because staked Merits can later be withdrawn and sold. But the price of liquid Merits is set by the market, while the price of rooted Merits is set by the government, which may make rooted Merits slightly more cost efficient in some periods.