xGov-30 ShareALGO CreditRating

Author 1m1 (1m1-github)

Category dApps

Focus User Onboarding

Open-Source Yes

ALGO Requested 300000


imagine there exists a cool dApp on Algorand that a (new) user wants to try. probably less than 1 $ALGO is enough to try the dApp, more than 0 $ALGO is needed for sure.
however, the smallest amount a user can on-ramp into Algorand currently is ca. 30 $USD worth. that is a huge hurdle to a new user to just try; a waste even, since 1 $ALGO already allows for 1k transactions.

let’s assume for simplicity that each user only needs 1 $ALGO to use/try whatever cool dApp.
1 user (A) buys 30 $USD worth of $ALGO from a typical credit-card to Algorand on-ramp. this user keeps 1 $ALGO for itself and makes the other 29 $ALGO available to others, on-chain.
29 other users (B1, …, B29) can each borrow 1 $ALGO on-chain and use that $ALGO to try some dApp, without on-ramping. the borrowing creates debt. each B owes A 1 $ALGO, which they eventually have to repay.
debt is a smart signature, allowing A to retrieve upto the borrowed amount (potentially plus interest, as a parameter) after a certain time.
unpaid debt results in negative reputation for any B. any service/dApp could check our service for existing debt/credit-rating to potential deny interaction.
as B interacts with various dApps on-chain, B eventually will either have received $ALGO to pay back A or B will on-ramp itself, once convinced that having $ALGO is worthwhile to use the awesome services available on Algorand.

this solution lowers the hurdle to try Algorand for completely new users (which is what we want) via an on-chain sharing+debt solution regulated via reputation.

credit rating:
this solution only works if the ecosystem uses credit rating provided; else a malicious user could create lots of new accounts, borrow lots of $ALGO, never pay back and never have suffer a negative consequence.
the credit rating system would be an on-chain API for anyone to check against.
over time, the credit rating can include credit events from other dApps.

Link for details

i would love if people could easily try out algorand and its dapps, its just a pleasure to use algorand and even after i found some interesting new protocols on other chains with good UI i always come back because the underlying blockchains are not as good to use.

but i honestly dont understand the idea really as its easy to generate new addresses (drain the liquidity of your protocol) + a lot of projects dont have any easy way to opt out of smart contracts in a way that frees up every ALGO. so they would be able to pay back everything. also how are they supposed to pay interested if they dont buy ALGO on exchanges? additionally, if someone tried algorand out and returned the funds, why wouldnt they buy ALGO the next time on exchanges? i dont see why a user would use the protocol more than one time which would mean the credit rating wouldnt get used really