# 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.