# CommunityFi Flywheel

### CommunityFi Centered Around Credit

TagAI, together with ecosystem projects Donut and Nutbox, has built a CommunityFi economy driven by communities. Starting from social tipping, it allows for the easy Lego-style combination of social tokens, social trading, and community DeFi modules.

<figure><img src="https://4190099792-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FusnyDHk4GsFD80sZOUtB%2Fuploads%2FlXKokM4IkD2wx2pIEDUV%2F649.png?alt=media&#x26;token=ca773ed9-e165-45e4-9e76-135df9a7baf2" alt=""><figcaption></figcaption></figure>

Users inject tipping reward pools or issue tokens as reward pools, which motivates token holders to increase their credit in order to compete for greater curation power (i.e., higher decision-making influence over the reward pool). This leads to:

* Tipping tokens to new users through comments and likes on Web2 social networks;
* Rewarding content that holds early community consensus.

Through content-centered social tipping (social interactions with token flows), people engage in repeated strategic games, forming an increasing number of social (and transactional) links.

### The CommunityFi Flywheel

As social tipping games around content intensify, more Web2 users will gradually participate, leading to a shift toward community credit—a combination of IPShare, token staking, LP token holding, and trading.

The competition is built on Proof-of-Brain backed by composable community credit. It encourages individuals to build reputation through social tipping, because:

* Higher reputation →
* Higher IPShare →
* Higher community credit →
* Greater influence in social tipping →
* More curation rewards after tipping.

The competition for IPShare not only boosts the reputation of the entire network but also increases the social influence of individual IPs. As a result, token transactions and IPShare trading linked to personal IP content will rise, driving up platform fee revenue. At the same time, as people stake more tokens to enhance their community credit, the platform earns additional yield.

TagAI, Donut, and Nutbox will utilize protocol mechanisms to automatically allocate 80% of their fee revenues—based on on-chain metrics—for ecosystem token buybacks and secondary distribution.

<figure><img src="https://4190099792-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FusnyDHk4GsFD80sZOUtB%2Fuploads%2FFIR58IIQSpIMWrWZfPWM%2F941.png?alt=media&#x26;token=8b8c0ccb-7859-4d2d-8240-6fc437d73d84" alt=""><figcaption></figcaption></figure>

Thus, starting with a tipping reward pool or token issuance as the reward mechanism, the **CommunityFi flywheel** can spin rapidly into motion.
