Gov/en/Portal:R&D/Innovations:Rings Of Trust

💡 In simple words: Rings of Trust are circles of people who trust each other. The closer someone is to you in the ring, the more you trust them. It helps the platform know who is safe to work with, like rings of friends, friends-of-friends, and strangers.

Wiki Core · Concept

Rings of Trust

Rings of Trust at a Glance

Definition	Agreement between ≥2 User Groups
Currency	Karma tokens
Coefficients	1 (restricted) to 10 (wide)
Self-generation	❌ Not allowed
Welcome amount	✅ Small grant to new users
Examples	Babysitting-Tutoring, Festival
See also	Karma tokens
See also	12 Programmes

A Ring of Trust is a formal agreement between two or more WikiDeal User Groups to accept each other's Karma tokens for services. Rings define the scope and conditions under which Karma tokens can be used — creating a functional complementary economy that grows organically as User Groups choose to cooperate.

A Ring of Trust is not imposed from above — it is created by User Groups who choose to cooperate, defining their own terms within the WikiDeal framework.

What Is a Ring?

A Ring of Trust is:

• An agreement between two or more User Groups (the minimum is 2)
• A commitment to accept Karma tokens for services within the Ring's scope
• Governed by a usage coefficient that determines how widely the Ring's Karma tokens are accepted
• Registered in the WikiDeal system for transparency and auditability

Usage Coefficients: 1 to 10

Each Ring operates with a usage coefficient that reflects how widely its Karma tokens are accepted:

• Coefficient 1 — Restricted: Karma tokens can only be used within the two founding User Groups
• Coefficient 5 — Moderate: Karma tokens accepted across a cluster of related User Groups
• Coefficient 10 — Widely accepted: Karma tokens can be used across many Rings and User Groups in the ecosystem

A higher coefficient is not automatically better — it means the Karma tokens are more versatile but may be worth less per unit due to wider supply. User Groups choose their coefficient based on their community's needs.

Karma Token Interoperability

The key innovation of Rings is interoperability. Karma tokens earned in one User Group can be spent in another User Group — but only if both are in the same Ring. This creates:

• A network effect: more Rings → more useful Karma tokens
• Community incentives: User Groups benefit from joining Rings with complementary services
• No forced participation: User Groups choose which Rings to join

No Self-Generation of Karma tokens

User Groups and individuals cannot create Karma tokens from nothing. The only exception is a small welcome amount granted to new members entering the ecosystem — enough to make a first Transaction and understand the system, not enough to distort it. This rule prevents inflation and ensures Karma tokens remain tied to real contribution or funding.

Examples of Rings

🍼🎓 Babysitting-Tutoring Ring

A babysitting User Group and a tutoring User Group agree to accept each other's Karma tokens. A parent can earn Karma tokens by offering babysitting services and spend them on tutoring for their child. A tutor can offer lessons and receive Karma tokens usable for childcare.

🎪 Festival Services Ring

Multiple User Groups involved in festival organization (sound, catering, transport, security) form a Ring. Workers can earn Karma tokens in one role and spend them in another, creating a self-sustaining festival economy that minimizes CHF exchanges.

Rings and Programmes

Rings of Trust work alongside WikiDeal's 12 Programmes. Many programmes define natural Ring configurations — for example, the Shared Resources Programme facilitates Rings between User Groups sharing physical assets, and the Microcredit Programme enables Rings between lending and borrowing communities.

See also: Karma tokens Karma Token Market 12 Programmes User Groups Open Call Guide

💡 Improve this concept — submit a proposal via Open Call