Trust Deposit & Reputation

A stake within the Verana Network that grows automatically as participants interact with ecosystems and builds transparent, verifiable reputation across decentralized trust networks.

Trust Deposit

A Trust Deposit is a stake within the Verana Network that grows automatically as participants interact with ecosystems. Each participant maintains their own deposit, reflecting verifiable activity and contribution to the trust networks they engage with.

Trust Deposit Growth Visualization

Initial Deposit

Starting participation

Growing Activity

Credential issuance & verification

Established Trust

High ecosystem participation

How Trust Deposits Grow

Validation Process

When a validation process is executed, the trust deposits of both the applicant and the validator increase, rewarding participation in the verification ecosystem.

Credential Issuance & Verification

If the ecosystem enables pay-per-issuance and/or pay-per-verification, the trust deposits of all participants in the permission tree grow each time a credential is issued or verified.

Additionally, the trust deposits of involved user agents and wallet user agents increment with each verified credential.

Service Directory Participation

Registering or renewing a DID in the service directory increases the trust deposit of the participant who executes the transaction, encouraging active ecosystem participation.

Conceptual Model

Percentage-Based Deduction System

The trust deposit operates as a percentage-based deduction applied to circulating trust fees. These deductions accumulate in individual deposits, reflecting ongoing participation and service provision.

Fee Distribution Example

Transaction Fees

Base Fee 100 VNA

Additional (20%) +20 VNA

Total Charged 120 VNA

Distribution Split

Liquid (80%) 80 VNA

Trust Deposit (20%) 20 VNA

Total Distributed 100 VNA

Note: The percentage allocated to trust deposits (e.g., 20%) is configurable and defined by the VPR governance authority, ensuring ecosystem-specific control over incentive structures.

Core Purposes

The trust deposit mechanism ensures that participants adhere to the ecosystem governance framework (EGF), combining incentives with enforcement to maintain decentralized accountability.

Incentivize Good Behavior

Participants risk losing part of their deposit if they behave dishonestly or violate governance rules.

Signal Serious Intent

Requires participants to have “skin in the game,” discouraging spam, fraud, and low-effort engagement.

Dispute Resolution

Deposits can be frozen during disputes. If harm is confirmed, held deposits may compensate for the damage.

Enable Slashing

Deposits can be partially or fully slashed when participants breach trust policies or contractual roles.

Support Decentralized Governance

Serves as the economic foundation for decentralized permission management, assignment, and revocation.

Non-Custodial

Trust Deposits are held on-chain within a VPR and are not controlled by any centralized authority.

Slash Mechanism

Governance Framework Rules

Each ecosystem defines, in its ecosystem governance framework (EGF), the rules participants must follow. The EGF also specifies the conditions under which a slash—a penalty applied to a participant’s trust deposit—may occur.

Pre-Slash Process

1. Assess Harm

Determine whether the participant’s actions caused measurable harm to the ecosystem or its members.

2. Compensation Request

Provide the participant with the opportunity to compensate affected parties directly.

3. Unresolved Dispute

If the dispute cannot be resolved and harm is evidenced, the ecosystem may authorize a slash.

When a Participant is Slashed

Deposit Forfeiture

A portion of the trust deposit is forfeited based on the severity or type of violation.

Activity Suspension

The participant’s ability to perform actions (e.g., issuing or verifying credentials) is suspended.

Restoration Process

To regain active status, the participant must replenish the slashed amount of their trust deposit.

This transparent enforcement mechanism keeps ecosystems aligned with governance policies, rewarding good actors and holding violators accountable.

Trust Deposit-Based Reputation

Transparent Digital Reputation

Because network activity and trust deposit data are publicly accessible, each participant naturally builds a digital trust reputation over time. This reputation reflects both positive contributions and any violations within the ecosystems they engage in.

Key Reputation Signals

Growth of Trust Deposit

Active, rule-abiding participants see their trust deposit increase as they contribute value to the network.

Ecosystem-Specific History

For each ecosystem a participant engages, their trust deposit history is transparently visible to other participants.

Credential Activity

The number of credentials issued and/or verified by the participant within each ecosystem is publicly observable.

Behavioral Accountability

Any dishonest or malicious activity—especially if penalized through slashing—remains permanently associated with the participant’s account.

Reputation Score Visualization

New Participant

Building initial trust deposit

Established Member

Active in multiple ecosystems

Trusted Authority

High trust deposits across ecosystems

This transparent data can be used to compute a reputation score or star rating, enabling trust-based decisions across the network.

Build Trust Through Participation

Start building your trust deposit and reputation in the decentralized trust economy.

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