Community-bound Tokens (CBTs) are modified ERC-20 tokens that can only be transferred among members of a community, which can be used for reputation, community merit based governance, opt-in social credit score, coordination games or engagement scores.
Community-bound Tokens (CBTs) are tight to a specific community of members (or a group of addresses), as defined by mathematics (cryptographically) through for example memberships of a multi-signature wallet, an ERC-721 or a membership Soulbound token.
The philosophy behind it is, that although Soulbound NFTs can be used as badges, it's hard to quantify them for reputation, and mostly require more work, since they need to be done one by one.
CBTs allow communities to decide how much they value certain actions and how many reputation points they attach to them. Preferably these actions are onchain so the CBTs can be dropped automatically to the earners, but they can also be off-chain by allowing the community to give CBTs retroactively based on a performed activity in the real world. Later on, these tokens can be used as a merit-based governance, for reputation, as a community credit score for under-collaterlised loans, or any creative ways the community can think of.
For this specific example project, with which we were finalists at ETHGlobal Paris, we forked a Safe{Wallet} and added a social layer to it. The purpose was to showcase how you can attach a specific value of CBTs to specific actions inside a Safe, and make a mu...