Commit Protocol: Groups

Overview

An extension to the Commit Protocol that introduces Commit Groups — community-driven ecosystems powered by their own ERC20 tokens and liquidity pools. This mechanism enhances engagement, rewards participation, and creates a dynamic market around recurring challenges.

Commit Groups & ERC20 Tokens

• Group Formation:

  • A Commit Group represents a recurring theme or community (e.g., "Runners in Stockholm").
  • When a group is created, it deploys its own ERC20 token.

• Token Dynamics:

  • Minting: Verified participants earn tokens upon completing a commit.
  • Liquidity Growth: A portion of commit join fees and stakes is allocated to a Uniswap liquidity pool (LP) for the group’s token.
  • Price Appreciation: As more users participate, more funds enter the LP, increasing liquidity and potentially raising the token’s market price.

Economic Incentives & Market Dynamics

• For Participants:

  • Beyond direct commit rewards, verified users receive group tokens that may appreciate in value.
  • If demand for the token increases, participants can swap their earnings for ETH/USDC or hold them as speculative assets.

• For Speculators & External Traders:

  • Group tokens become tradable on Uniswap, allowing investors to speculate on growing communities.
  • As activity and verification rates increase, the token’s perceived value may rise, further incentivizing early adoption.

• Long-Term Effects:

  • Positive Feedback Loop: More challenges → more participants → increased liquidity → higher token value → further growth.
  • Sustainable Engagement: Participants have a long-term incentive to maintain and promote their Commit Groups.