> For the complete documentation index, see [llms.txt](https://pulse-network.gitbook.io/pulse-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pulse-network.gitbook.io/pulse-whitepaper/5.-the-pulse-credit-system-building-trust-on-chain-with-every-action.md).

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

**The Pulse Credit Score (PCS) is the primary reputation asset of the Pulse ecosystem.**&#x20;

It quantifies how a user participates, contributes, and behaves across Pulse — transforming social trust, content value, and economic activity into a measurable, composable on-chain asset.

PCS is not a static score. It evolves dynamically with user behavior, rewarding constructive participation and discouraging actions that undermine ecosystem trust.

In Pulse, reputation is not symbolic — it directly determines rewards, access, and influence.

#### **What is Pulse Credit?** <a href="#h-what-is-pulse-credit" id="h-what-is-pulse-credit"></a>

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

**PCS functions as a reward multiplier and access key**, determining a user’s share of distributions and eligibility for advanced features.

#### What Does Pulse Credit Measure?

Pulse Credit is calculated across **three primary dimensions**:

* **Social Integrity**\
  Measures reliability, consistency, and trust in social interactions.
* **Content Creation**\
  Evaluates the quality, relevance, and impact of user-generated content.
* **Economic Behavior**\
  Reflects responsible on-chain activity, asset engagement, and transaction behavior.

These dimensions form the core of PCS and are continuously updated as user activity evolves.

#### **Getting Started: The Pulse Soul Pass** <a href="#h-getting-started-the-pulse-soul-pass" id="h-getting-started-the-pulse-soul-pass"></a>

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** <a href="#h-how-to-build-pulse-credit" id="h-how-to-build-pulse-credit"></a>

Credit accumulates across the following dimensions, with **Social, Content, and Economic behavior forming the core**, and staking acting as a long-term multiplier.

**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 (upcoming)**

Long-term commitment through staking boosts credit.

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

#### **What Pulse Credit Unlocks** <a href="#h-what-pulse-credit-unlocks" id="h-what-pulse-credit-unlocks"></a>

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 higher PCS, the larger share of weekly $PULSE Point airdrops

• 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.

<figure><img src="https://img.paragraph.com/cdn-cgi/image/format=auto,width=3840,quality=85/https://storage.googleapis.com/papyrus_images/f7e781b277f6488ec865e943802433447109b991ebcea111a08f8712293e8d35.png" alt="post image" height="522" width="736"><figcaption></figcaption></figure>

{% hint style="info" %}
*Disclaimer: Pulse (Pulse Social Wallet) is a standalone Web3 application built on Account Abstraction technology. We are independent and not affiliated with the PulseChain Layer 1 blockchain.*
{% endhint %}
