Dmany Nexus Protocol:A Decentralized Reputation Protocol for Scalable Web3 Economies Through Dynamic Trust Quantification and Zero-Knowledge Mechanisms (v0.3)

The advent of Web3 technologies, leveraging blockchain and smart contracts, promises a paradigm shift

toward decentralized and autonomous economic interactions. However, the lack of robust trust and repu-

tation mechanisms among pseudonymous participants hinders its evolution into a fully functional economic

system. This paper introduces the Dmany Nexus Protocol, a decentralized reputation system that

quantifies user trustworthiness through verified on-chain and off-chain actions, addressing critical issues of

information asymmetry, moral hazard, and adverse selection inherent in decentralized networks.

Building upon the live data and insights from the Dmany Quest Engine, the Nexus Protocol inte-

grates advanced principles from information economics, game theory, and mechanism design to develop a

quantifiable reputation metric—the Social Capital Score ((SCS)). This metric aggregates multiple facets

of user behavior, employing sophisticated anti-collusion algorithms and zero-knowledge proofs for privacy

preservation. Unlike existing solutions, the Nexus Protocol offers a standardized, interoperable, and tamper-

resistant reputation system that enhances economic efficiency and fosters mass adoption by enabling secure,

privacy-preserving interactions among pseudonymous actors.

Empirical analyses demonstrate that the protocol effectively mitigates security risks such as Sybil attacks

and reduces information asymmetry, leading to improved task quality and reduced fraudulent activities in

decentralized platforms. By establishing a foundation for trust and cooperation in the Web3 ecosystem,

the Dmany Nexus Protocol significantly advances the potential for scalable and efficient decentralized

economies.