CED – KAT Reward & Privilege Framework

 

Full Example Implementation of KAT Reward & Privilege Framework 1.0 (Implementation-Ready)

Status: Canonical example DAO
Applies to: CED Phase-1
Purpose: Demonstrate a complete, configurable, multi-stakeholder DAO instantiation

1. DAO Overview

DAO Name: Capacity Exchange DAO (CED)
Domain: 1-1 and small-group capacity exchange

Primary Design Goals:

• Reward verified participation
• Weight quality and reliability
• Use KAT for privilege & recognition, not income

2. Stakeholder Scope (CED)

CED recognizes contributions from the following stakeholder groups:

1. DAO Members (DEP participants)
2. Guides (Capacity Providers)
3. Explorers (Customers / Users)
4. Community Collaborators
5. Partners & Organizations
6. Ambassadors (internal & external)
7. Volunteers
8. KAT Holders (non-operational)

All stakeholders use the same Credit → Karma → KAT framework, with role-specific Credit rules.

3. Settlement Parameters (CED-Specific)

Parameter	Value
Settlement period	Monthly
KAT_per_Credit	5 KAT
Global KAT cap / month	5,000 KAT
Per-user KAT cap / month	50 KAT
Settlement method	Batch mint
Inactivity threshold	60 days
Inactivity effect	Tier −1 (Credits retained)

4. Contribution Rules (Credits) by Stakeholder

Stakeholder	Trigger Event	Verification Requirement	Credits (KC)
Guides	Completed 1-1 session	≥45 min, session marked completed	+1
Guides	Group / clinic session	≥5 participants, completed	+2
Explorers	Attend session	≥80% attendance	+0.5
Explorers	Structured feedback	Required template completed	+0.5
Explorers	Multi-session journey	4 sessions within 30 days	+1
Explorers	Qualified referral	Referred user completes 2 sessions	+1
DAO Members (DEP participants)	DAO active participation	DAO Organizer validated	+3 / month
DAO Members (DEP participants)	Process / tooling improvement	DAO Organizer validated	+2 / week
DAO Members (DEP participants)	Onboarding contributors	Verified onboarding sessions	+0.5 / session
Community Collaborators	Co-host community session	DAO Organizer validated	+1
Community Collaborators	Produce reusable content	Adopted by CED	+2
Community Collaborators	Outreach activity	Verified engagement	+1
Partners & Organizations	Provide experts / speakers	Session completed	+2
Partners & Organizations	Provide platforms / venues	DAO Organizer validated	+2
Partners & Organizations	Strategic collaboration	Formal agreement signed	+3 – 5
Ambassadors	Verified referral campaign	Engagement metrics met	+1
Ambassadors	Event representation	DAO Organizer validated	+1
Ambassadors	Advocacy content	Approved for use	+0.5
Volunteers	Session moderation	Verified by DAO Organizer	+0.5
Volunteers	Ops support	Weekly validation	+1
KAT Holders	Join DAO events	Session attendance ≥80%	+0.5
KAT Holders	Review & comment on DAO report / experiment	Comment verified as substantive	+0.25

 

Notes 

• Credits are append-only, never revoked
• Credits are issued only after verification
• Credit values reflect participation, not financial value
• All Credits feed into the same Credit → Karma → KAT pipeline

 

5. Karma Model (CED-Specific, Enforced)

5.1 Karma Levels & Multipliers

Karma Level	Multiplier
Low	0.0 – 0.5
Normal	1.0
High	1.2
Trusted	1.5

5.2 Karma Mapping Rules 

Note: Karma is level-based, reviewed monthly, and can be downgraded immediately by DAO Organizer.

Karma Level	Stakeholder	Description (when this stakeholder fits this level)
Low (0.0–0.5×)	Guides	• ≥1 no-show without valid reason in the period • Average rating < 3.8 / 5 (min 3 sessions) • Repeated verified complaints • Misleading session content or rule violation
Low	Explorers	• ≥1 no-show or late cancellation without reason • Spam / low-effort feedback • Repeated complaints from Guides or Ops
Low	DAO Members	• Missed assigned responsibilities • Repeated delays without communication • Misuse of DAO resources
Low	Community Collaborators	• Unreliable delivery • Low-quality or unused contributions • Breach of agreed scope
Low	Partners & Organizations	• Failure to deliver agreed participation • Misalignment with DAO values after engagement
Low	Ambassadors	• Spam-like promotion • Misrepresentation of CED • Unverified or misleading claims
Low	Volunteers	• Missed duties without notice • Repeated operational mistakes
Low	KAT Holders	• Spam voting / signaling behavior • Low-effort or disruptive participation

Karma Level	Stakeholder	Description (when this stakeholder fits this level)
Normal (1.0×)	All stakeholders (default)	• Meets expectations for assigned role • No no-shows or rule violations • Contributions completed as agreed • No unresolved complaints
Normal	Guides	• Average rating ≥ 3.8 / 5 • Reliable session delivery
Normal	Explorers	• Attends booked sessions • Submits required feedback
Normal	DAO Members	• Participates as committed
Normal	KAT Holders	• Participates constructively in governance or discussions

Karma Level	Stakeholder	Description (when this stakeholder fits this level)
High (1.2×)	Guides	• Average rating ≥ 4.5 / 5 • ≥3 completed sessions in the period • ≥2 different Explorers • No complaints or cancellations
High	Explorers	• Active participation across multiple sessions • Thoughtful, constructive feedback • Reliable attendance
High	DAO Members	• Consistently delivers responsibilities • Supports others beyond assigned scope
High	Community Collaborators	• Reusable, high-quality contributions • Positive engagement impact
High	Partners & Organizations	• Proactive collaboration • Adds clear value beyond minimum commitment
High	Ambassadors	• Consistent, high-quality advocacy • Positive engagement metrics
High	Volunteers	• Reliable, low-error support • Proactive assistance
High	KAT Holders	• Consistent, thoughtful voting • Constructive proposal feedback • Active stewardship behavior

Karma Level	Stakeholder	Description (when this stakeholder fits this level)
Trusted (1.5×)	Guides	• Sustained High Karma for ≥2 consecutive periods • Proven reliability • Contributes beyond sessions (mentoring, format design)
Trusted	Explorers	• Long-term constructive participation • Acts as community anchor or role model
Trusted	DAO Members	• Proven leadership and judgment • Trusted with coordination or sensitive tasks
Trusted	Community Collaborators	• Strategic, repeat contributor • Trusted partner of DAO Organizer
Trusted	Partners & Organizations	• Long-term aligned partner • Trusted for strategic collaboration
Trusted	Ambassadors	• Represents CED consistently and accurately • Trusted public voice
Trusted	Volunteers	• Long-term reliable support • Trusted for autonomous tasks
Trusted	KAT Holders	• Demonstrated high-quality stewardship over time • Trusted governance participant

Enforcement rules 

• Default starting level: Normal
• Auto-downgrade: Allowed immediately upon violation
• Auto-promotion: ❌ Not allowed in Phase-1
• Trusted: Manual assignment only, rare, revocable
• Karma affects KAT derivation, not Credit history

One-line summary 

Karma reflects how much the DAO should trust a stakeholder’s Credits, based on role-appropriate reliability, quality, and stewardship behavior.

 

6. KAT Derivation (CED)

CED applies the canonical formula:

KAT = Σ(Credits in month) × KAT_per_Credit × Karma_Multiplier

 

Rules:

• Karma evaluated at settlement time
• Caps applied before minting
• Credits never revoked

7. Tier System (CED Interpretation)

CED defines tiers purely as a derived view of CED-earned KAT.

Tier	KAT Range	Meaning
Seeker	0–19	New / trial
Contributor	20–59	Active
Builder	60–149	Proven
Steward	150+	Trusted core

Market-bought KAT does not affect tiers.

8. Privilege Surfaces in CED (Phase-1)

CED chooses non-disruptive, operationally safe privileges.

8.1 Access Privileges

Tier	Privilege
Seeker	Standard access
Contributor	Early visibility to newly opened session slots
Builder	Early access + pilot / experimental formats
Steward	Invite-only sessions, roundtables, closed pilots

8.2 Economic Privileges (Phase-1)

CED applies economic privileges only to subscription context.

Tier	Explorer Subscription Discount
Seeker	0%
Contributor	5%
Builder	10%
Steward	15%

 

No revenue sharing or payouts in Phase-1.

9. Operational Lifecycle (CED – Dual-Track Model)

CED operates the KAT Reward & Privilege Framework using two parallel but compatible operational tracks, depending on contributor type.

9.1 Track A - CED App Users (Automated)

Applies to: Guides and Explorers using the CED application.

Automated Credit Generation

Credits are generated automatically by the system based on predefined rules:

• Session completion (duration, attendance)
• Feedback submission
• Multi-session journeys
• Qualified referrals

Credits are:

• Calculated per event
• Logged automatically
• Visible to users in-app

No DAO self-reporting is required.

 

Automated Karma Evaluation

Karma signals are collected automatically:

• Ratings
• No-shows
• Cancellations
• Reports

System behavior:

• Default Karma = Normal
• Auto-downgrade for clear violations (e.g. no-shows)
• Auto-suggestions for High Karma (flagged for DO review if needed)
• Trusted Karma remains manual-only

Automated Monthly KAT Calculation

At settlement time:

1. System aggregates Credits
2. Applies Karma multipliers
3. Applies caps
4. Generates KAT preview
5. Executes settlement automatically

DAO Organizer oversight is exception-based only (alerts, anomalies).

 

9.2 Track B - DAO Stakeholders (Monthly Self-Submission)

Applies to: DAO Members, Collaborators, Partners, Ambassadors, Volunteers, KAT Holders.

DAO Monthly Reward Report

DAO submits:

• Credits Sheet (proposed)
• Karma Sheet (proposed)
• KAT Calculation Sheet (proposed)

As defined in previous sections.

 

DAO Organizer Audit & Execution

DAO Organizer:

• Audits submissions
• Adjusts if needed
• Imports approved data
• Executes settlement

 

9.3 Unified Settlement & Ledger

Despite two operational tracks:

• Credits are stored in the same DAO-scoped ledger
• Karma uses the same level definitions
• KAT derivation uses the same formula
• Caps apply globally

The framework does not distinguish how data is sourced - only that it is verified.

 

9.4 Exception Handling

• Severe violations by App Users → immediate Karma downgrade
• Misreporting by DAO Stakeholders → audit correction + governance action
• Disputes → resolved in next settlement cycle unless urgent

10. Reuse Guidance for Other DAOs

Future DAOs may:

• Define different contribution types
• Use different Karma signals
• Choose different privilege surfaces
• Set different parameters

As long as they respect:
Credits → Karma → KAT,
they remain fully compatible with Framework 1.0.

Closing sentence 

Capacity Exchange DAO demonstrates how the KAT Reward & Privilege Framework 1.0 can be instantiated through configuration, without modifying the framework itself.