PURPOSE

Why build karma?

The Karma Protocol is a cooperative seeking to unlock the potential of reputation on web 3.0. Reputations establish trust, and trust allows for smoother interactions. The smoother the ride, the easier it is to build up momentum.

We believe that the most obvious challenge for reputation is found in DeFi. Currently decentralized lending is user-blind, meaning loans have to be fully overcollateralized. There is no overarching mechanism serving an analogous function to credit rating found in traditional finance. The Karma Protocol will initially be focusing on leveraging reputation building to eliminate the credit friction seen in DeFi. 

We believe that creating a reputation infrastructure will allow web 3.0  to grow beyond its current constraints and become at least as attractive to retail users as any established alternatives.