Credibility has an important role in our lives, we rely on it on a day to day basis, be it hiring help for daily mundane tasks or for making significant decisions like buying a vehicle or a house. Taking the feedback or review about a product or service is important as it assures that the promised quality is delivered and it's worth the money paid. This in turn implies that the source of feedback should be genuine and authentic, or else the feedback or reviews given by it will not be worth it's salt. In a nutshell it's an intercorrelated system in which all the relevant stakeholders have their own credibility score. An entity with higher credibility would attract more business and hence more wealth. Credit Score to evaluate Financial Credibility The Credit score is used to quantify the financial credibility of an individual or an organization or even a nation. It reflects the credit worthiness or the likelihood of the entity to repay debt, it plays a pivotal role in the loan approval process. Banks or private agencies conduct due diligence and evaluate the worthiness of an entity. The Credit score is plotted on a spectrum of values, higher the value better it is. Few key parameters taken into consideration are: Age of Credit Repayment Behaviour Types of Account Credit Exposure Before a new credit is given to an entity financial institutions make a hard enquiry, interestingly too many enquiries hurt the credit score. Advantages of a good Credit Score Quicker Loan Approval Reduced Interest Rate Lower loan processing charges Credit Card with better features Having such a score is helpful in maintaining parity, high scorers are rewarded with superior financial offerings and poor scorers are penalised with lower quality products. The most renowned credit rating entities are , , and . Moody's Standard & Poor's (S&P's) Fitch Ratings Participant Score for Community Building The blockchain technology by being rudimentary decentralised in structure thrives on a strong community for existence & growth. Similar to banks depending on credit agencies for an authentic credit score, there is a need for a participant score for this industry. A participant score can be used to reward good contributors, separating them from people who are just freeriders, who are in to make a quick gain and not concerned about the real success of a project. To leverage the power of community projects should engage their members, the community participants will have to be involved deeply and then only the bigger goal of mass decentralisation would be achieved. Sample Parameters This is a non exhaustive list of sample parameters: whenever a community participant invests something from his own pocket the involvement would always be better, this parameter can be given high importance in calculating the participant score. Investments can be recorded in BTC or some other coin. Amount invested: this can be for quantification of tasks undertaken to build & spread the project Count of Tasks: this can be for the quality of community tasks undertaken Spread of Tasks: this can be for a number of days/blocks the participant is involved Involvement Age: this can be for the amount invested other than the seed capital Reinvested Amount: Each parameter may be given proportional importance while calculating the participant score. HODL Score HODL Score is one such example of a Participant score. It is implemented by Freehold which works on Proof of Transfer (PoX) consensus. It measures the asset creation history of each participant as a contributor to the community. Parameters Accounted It is the amount stacked, measured in BTC value. It's the total amount from various community activities. Amount Hodled: its the ratio of tokens the participant continues to stack & has not liquidated. It is calculated as the current value of tokens in the wallet divided by the total value earned by the participant as part of community activities. Hodl Rate: this parameter accounts for the involvement period of the participant, it's measured by the no. of blocks mined since the first contribution was made. Block since Hodling started: this is for the activity level of the participant, it is measured by the no. of blocks mined since the last contribution was made. Blocks since last Hodl earnings: supposedly there would be multiple sub goals and this parameter will account for the variety mix of projects participated. Hodl Mix: Comprehending HODL Score Community members with higher HODL score are more concerned about the project's goal & success and they get more opportunities to collaborate & get rewarded. HODL Score ranges from 630 to 850 where, is considered to be Excellent, the participant is the most active contributor in the community and hence gets a lot of opportunities to contribute more 720 to 850: is considered to be good. Participant will get a fair amount of opportunities to collaborate to community. 690 to 719: this reflects score of a fair participant, who can be considered as a newbie and has just started to contribute. Or also a bad participant who hasn't hodled much or is not actively contributing to the project’s goal 630 to 689: Final Thoughts Cryptocurrency space has thousands of active projects, it's imperative that community power has to be harnessed for the success of this industry. A metric such as a Participant Score can be a game changer, a positive sum community can play a pivotal role in quicker success of the projects. One such example is HODL Score proposed by Freehold.

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