5. The Pulse Credit System: Building Trust On-Chain with Every Action

The Pulse Credit System constitutes the foundational infrastructure of the Pulse ecosystem, functioning as a quantitative and dynamic measurement of user reliability and engagement. In Pulse, every user action counts: constructive behaviors will be rewarded, while negative behaviors will be discouraged. The Pulse Credit System integrates multiple behavioral and transactional dimensions — including economic behaviors, social interactions, content creations — to establish a comprehensive credit system. This framework is designed to incentivize constructive participation, reinforce trust among participants, enhance long-term user retention, and ensure the sustainable stability of the token economy.

What is Pulse Credit?

Pulse Credit is a dynamic score that reflects how reliable, engaged, and constructive a user is across the Pulse ecosystem. It is not fixed. It evolves as user activity evolves.

Every user action counts:

• Gaining credit from constructive behaviors

• Losing credit from negative behaviors

• More credit from recent activity than old activity

• Long-term commitment is recognized and rewarded

The Pulse Credit Score ("PCS") serves as the platform reward multiplier — it determines each user's share of periodic reward distributions and influences access to advanced platform features.

Getting Started: The Pulse Soul Pass

Before building Pulse Credit, users mint a Pulse Soul Pass ("PSP") — a decentralized identity credential authenticated through Decentralized Identifier ("DID") verification.

Upon successful verification, each user is assigned an initial credit seed — a baseline score that serves as the foundation for subsequent growth. The earlier users mint their PSP, the more it contributes to long-term credit, rewarding early adopters and sustained commitment.

How to Build Pulse Credit

Credit accumulates across four key dimensions:

5.1 Social Integrity

Social engagement demonstrates reliability and community value.

Activity	Measurement
Daily Activity	Continuous participation across both daily and cumulative active days ensures PCS reflecting genuine, long-term commitment
Direct Messaging ("DM") Engagement	Frequency of daily chats, breadth of contacts, and relationship quality indicate social connectivity
Group Interaction	Daily messages, breadth of groups, and influence within the group signal cross-community engagement and leadership
Follower & Social Network Quality	Quantity and quality of followers, mutual connections, and reciprocal relationships reflect social reach and trust
High-Value Interactions	Recognition by high-credit users, following high-quality users, and engagement with high-value content enhances credit weight
Official & Community Recognition	Verification, PSP ownership, being recognized as an outstanding creator, or having suggestions adopted enhances credibility
Community Roles & Contributions	Providing constructive feedback, reporting abusive behavior, moderating groups, and organizing events strengthen ecosystem integrity
User Referrals	Inviting new users — and the quantity and quality of these referrals — reflects social influence
PSP Holding	Duration and consistency of PSP ownership reflect long-term commitment and identity stability.

5.2 Content Creation

High-quality content builds credit and earns rewards.

Activity	Measurement
Consistent Creation	Regularly publishing casts and engaging through comments demonstrate active involvement
Quality & Influence	Clarity, relevance, creativity, and community engagement (such as likes, comments, tips) determine the score of quality & influence

5.3 Economic Behavior

Economic activity demonstrates financial engagement and responsibility.

Activity	Measurement
Asset Credit	Wallet holdings, recharge history, trading frequency, and asset retention indicate financial responsibility
Transactional Behavior	Total on-chain interactions, transaction frequency, participation in red packets, and in-app token-related games reflect financial engagement

5.4 Staking Incentive

Long-term commitment through staking boosts credit.

Activity	What It Measures
Stake to Earn	Staking Native Tokens shows commitment to Pulse ecosystem's growth, both amount and duration of which determine credit received

What Pulse Credit Unlocks

Benefits are unlocked based on the level of Pulse Credit:

Access & Privileges

• Standard level: Basic wallet features, standard reward share

• Higher level: Advanced functions, access to new features, governance participation

• High level: Exclusive credit-based services — credit loans, crypto cards, Pulse Smartphones

• Top level: Partner platform memberships, priority access, real-world benefits

Token Advantages

• The more PCS, the larger share of periodic $PULSE Point airdrops (daily or weekly)

• The higher Pulse Credit, the larger airdrop amounts received

• Points can be exchanged for Native Token at dynamic rates based on ecosystem activity

Governance Participation

• Proportional voting power to PCS on governance decisions

• Influence credit model parameters, rules, and reward policies

• Shape the future of the Pulse ecosystem

Portable Reputation

• Pulse Credit anchored on DID and verifiable on-chain credentials

• Functions as "Web3 reputation capital" across blockchains and ecosystems

• Benefits with financial providers, payment platforms, device manufacturers, and consumer brands, etc. will be unlocked

PCS Calculation

PCS is calculated as a weighted sum across all 5 dimensions:

Total PCS = (A% × effective Social Integrity score) + (B% × effective Content Creation score) + (C% × effective Economic Behavior score) + (D% × effective Staking Incentive score) - Misconduct Offset

Where:

• A% + B% + C% + D% = 100%

• Each component score is derived from user activities within the 4 key dimensions outlined above

• The weighting coefficients A% through D% are dynamically adjustable based on Pulse ecosystem's development needs, user behavior patterns, platform growth stages, and strategic priorities

Misconduct Offset

While constructive participation increases Pulse Credit, actions that undermine ecosystem integrity may result in deductions. These include manipulation attempts, abusive interactions, spam, and other behaviors that negatively affect community health.

The deduction mechanism evaluates patterns, frequency, and severity rather than applying rigid rules. Persistent misconduct leads to stronger penalties; isolated or minor issues have limited impact. This ensures the Pulse Credit System remains fair, resilient, and aligned with long-term community trust.

Time Dynamics

Pulse Credit changes over time. Pulse uses two mechanisms to ensure that the tangible value of reputation reflects both freshness and longevity.

Credit Decay

Recent activity matters more. Past activities gradually lose weight over time:

Effective Credit (t) = Initial Credit × e^(−λt)

Where:

• t = time elapsed since the activity (in days)

• λ = decay coefficient (adjustable by ecosystem policy)

• e = Euler's number

This keeps PCS dynamic, emphasizing current engagement while naturally diminishing the impact of distant past activity.

PSP Growth

PSP credit behaves inversely — it gains weight over time as the PSP matures, symbolizing sustained identity credibility and trust accumulation:

Effective PSP Credit (t) = Initial Credit × (1 + μt)

Where:

• t = time elapsed since minting (in days)

• μ = growth coefficient

The earlier users mint their PSP, the more valuable it becomes, rewarding long-term identity commitment and reinforcing trust within the Pulse ecosystem.