Points System Framework

The Sourceful DER Network points system is designed to incentivize participation, ensure data quality, and promote network growth through a carefully balanced reward mechanism. This document outlines our approach to creating a fair, sybil-resistant points allocation system that evolves with network maturity. This system will evolve and change based on network needs and goals.

This framework provides the mechanisms for quantifying contribution and allocating points, guided consistently by three fundamental principles:

Growth: The model is structured to recognize and incentivize activities that demonstrably contribute to the expansion and enhancement of the Sourceful Energy network. This includes, but is not limited to, increasing network participation, expanding the volume and scope of valuable data contributions, and fostering positive network effects that enhance the collective utility of the platform. The mathematical elements aim to reflect the value generated through scalable and constructive expansion.

Quality: A primary objective of this framework is to differentiate between contributions based on their intrinsic value and reliability. The mathematical model incorporates elements designed to prioritize and reward high-quality inputs, such as data accuracy, consistency, and relevance, over sheer volume. Ensuring the integrity and usefulness of contributions is paramount, and the points allocation mechanics are architected to reflect this emphasis on quality.

Sustainability: The long-term health and viability of the Sourceful Energy ecosystem are critical. The mathematical foundation is therefore designed with sustainability in mind, aiming to create balanced, fair incentive structures that are resistant to manipulation and promote efficient resource utilization. It seeks to ensure that the points system supports enduring value creation and the continued resilience and operational integrity of the network.

The subsequent sections of this document detail the mathematical structures, formulas, and parameters employed. It is crucial to understand that this framework is designed for adaptability; while the core mathematical logic provides a stable foundation, specific parameters within the model are intended to be adjusted over time. This allows the points system to continuously evolve and remain optimally aligned with these guiding principles – Growth, Quality, and Sustainability – as the Sourceful Energy ecosystem matures and its strategic priorities adapt.

Mathematical Foundation

For any participant u at time t, points are allocated according to:

$Points(u, t) = \alpha_t \sum_{i=1}^{N_G} G_i^u(t) + \beta_t \sum_{j=1}^{N_Q} Q_j^u(t) + \gamma_t \sum_{k=1}^{N_S} S_k^u(t)$

Where:

• $G_i^u(t)$ represents growth-oriented metrics
• $Q_j^u(t)$ represents quality-oriented metrics
• $S_k^u(t)$ represents sustainability-oriented metrics
• $\alpha_t, \beta_t, \gamma_t$ are time-dependent weighting coefficients

This formulation allows us to gradually shift emphasis from growth to quality and sustainability as the network matures, with:

• $\alpha_t \approx 1$ in early phases
• $\beta_t$ and $\gamma_t$ increasing over time

Sybil Resistance

Our system incorporates mathematical protections against sybil attacks through strategic application of aggregation and dampening:

$Score(u, t) = f\left(\sum_{i \in D^u(t)} M(i) \times N(i, t)\right)$

Where:

• $D^u(t)$ is the set of all devices connected by participant u
• $M(i)$ is a multiplier based on device characteristics
• $N(i, t)$ is a contribution measure for device i during period t
• $f(\cdot)$ is our chosen dampening function

This approach ensures that: $f\left(\sum_{i} x_i\right) < \sum_{i} f(x_i)$

Making artificial fragmentation of contributions mathematically disadvantageous.

Validation Framework

The system includes a validation multiplier that rewards verified data sources, balancing between:

• Incentivizing third-party verification
• Maintaining accessibility for diverse participation
• Creating appropriate differentiation based on data quality

Daily Allocation Mechanism

Points are distributed from a fixed daily pool using a proportional allocation:

$Reward(u, t) = \frac{Score(u, t)}{\sum_{u' \in U} Score(u', t)} \times DailyPool$

This ensures consistent total distribution while dynamically adjusting individual allocations based on relative contributions.