How It Works

At its core, Points Protocol is elegantly simple.Three steps.Infinite possibilities.

The Attestation Flow

1. Track → Submit with Bond

When you perform a valuable action, you record it on - chain by "tracking" an event.This isn't free—you post rent as a bond. Think of it as putting skin in the game.

User performs action → Submits event + rent bond → Event awaits validation

2. Confirm → Validate & Release

Someone else validates your action by "confirming" the event.When they do, the bond gets released and flows to the domain treasury.You get points.They might get fees.Everyone wins.

Validator confirms event → Bond released to treasury → Points awarded to user

3. Reward → Value Flows

Points accumulate to your account across all domains.Rent flows to domain treasuries.The network grows stronger with each validation.

Points → User account | Rent → Domain treasury | Fees → Validators

Bonded Transactions and Rent Mechanics

Every event starts with a bond—rent paid upfront when you track an action.This serves multiple purposes:

** Economic Security **: False claims cost money.Real actions get rewarded.

** Infrastructure Funding **: Domain treasuries collect rent to fund operations.

** Network Effects **: More valuable domains attract more users and validators.

The bond isn't lost—it's transferred to domain treasuries when events get confirmed.Think of it as pre - paying for the validation service.

Meta - Attestation Network

This creates something unprecedented: a network - level validation system where individual attestations get validated by the broader network.

** Traditional Model **: Platform owns all attestations

• Single point of failure
  • No portability

    • Value extraction

      ** Points Protocol Model **: Network validates attestations

      • Distributed validation
        • Cross - platform portability
          • Value creation

Each domain becomes a node in a larger attestation network.Validators can specialize in different types of verification.Users can build reputation that works everywhere.

The Network Effect

As more domains join, the network becomes more valuable for everyone:

• ** Users ** get more places to earn and spend points
  • ** Validators ** get more opportunities to earn fees
    • ** Domains ** tap into a larger pool of users and validators

This isn't just infrastructure—it's a flywheel. Every participant makes the network more valuable for every other participant.

Why This Changes Everything

Traditional platforms have to choose between being open or being profitable.Points Protocol makes them the same thing.

The more open you are, the more validators you attract.The more validators you attract, the more reliable your attestations become.The more reliable your attestations, the more valuable your domain becomes.

Openness becomes a competitive advantage, not a liability.

This is how we build digital infrastructure that serves everyone instead of extracting from everyone. Not through regulation or good intentions, but through better incentives.