FAQ
Phi Protocol Cred System: Frequently Asked Questions
General Questions
Q: What is a Cred in the Phi Protocol? A: A Cred is a Non-Fungible Token (NFT) that represents a user's identity or achievements within the Phi Protocol ecosystem. It serves as a verifiable proof of actions, status, or accomplishments in various blockchain ecosystems.
Q: How is a Cred different from a regular NFT? A: While Creds are NFTs, they are specifically designed to represent verifiable credentials or achievements. They include built-in verification mechanisms and can be curated by the community, making them more than just collectibles.
Participation
Q: Who can create a Cred? A: Creds can be created by Cred Creators, who set the criteria for claiming and verifying the Cred.
Q: How can I participate as an artist in the Cred system? A: There are three ways to participate as an artist:
In an OPEN system, anyone can participate.
In a PHI_TRUSTED + Custom system, you need to be either trusted by Phi Protocol or added by the Cred Creator.
In a Custom-only system, you need to be specifically added by the Cred Creator.
Q: How can I become a verifier for Creds? A: There are two ways to become a verifier:
In a PHI_TRUSTED + Custom system, you can be trusted by Phi Protocol or added by the Cred Creator.
In a Custom-only system, you need to be specifically added by the Cred Creator.
Trust and Verification
Q: How is the PHI_TRUSTED status verified? A: The PHI_TRUSTED status is verified using EthSign, which creates a blockchain-based attestation. It indicates that Phi Protocol has verified and trusts the participant (artist or verifier).
Q: Can a Cred Creator change the list of allowed artists or verifiers? A: Yes, Cred Creators can update their Custom Allowlist at any time, adding or removing artists and verifiers as needed.
Q: How are Creds stored and managed? A: Creds are stored on the arweave. The associated metadata, including verification information, is managed through the Phi Protocol system.
Curation and Rewards
Q: How can curators earn rewards? A: Curators can earn rewards through two main mechanisms:
Earning a portion of mint fees for the Creds they've invested in.
Profiting from buying shares at a lower price and selling them at a higher price.
Q: I'm unable to sell my shares. Why might this be happening, and what can I do? A: Lockup period: After buying shares, there's a 12-hour lockup period before they can be sold. Make sure this period has passed. Remember, rewards are only calculated and distributed when the distribute function is called
Q: When are rewards distributed? A: Rewards are only distributed when the distribute function is called. No fees are received without distribution.
Q: What's a typical strategy for profiting from Creds? A: A typical strategy is to buy shares in Creds likely to have NFTs minted, wait for fees to accumulate, trigger distribution, and then sell.
Investment Strategy
Q: What should I consider when deciding which Cred shares to buy? A: When deciding which Cred shares to buy, consider:
The verifier information
The Cred's description
Associated artwork settings
The number of shares purchased (which can be a significant factor in a Cred being featured)
Referral and Protocol Rewards
Q: What is the Referral Reward in the Phi Protocol? A: The Referral Reward is designed to incentivize individuals who discover and promote a Cred NFT mint page through platforms like X (Twitter), Discord, Farcaster, or others. You earn 0.00005ETH each time an NFT is minted through a link you share, whether the mint is completed on Phi protocol directly or on an alternative platform.
Q: How can I earn the Mint Referral Reward? A: To earn the referral reward, someone must mint a Cred NFT they found through a link you have shared. You can share these referral links in two ways:
Share or post a link to the collection via social media such as X (Twitter), Discord, Farcaster, etc.
Embed a link to the mint page on your external webpage.
Q: How does the reward structure change when there's a referral?
A: When a referral is involved in the minting process, the reward structure adjusts slightly. The key change is that the artist's reward is reduced to accommodate the referral fee.
Q: What happens to the curator fee in cross-chain NFT mint?
A: In cases where NFTs are created across different blockchain networks (ex, cred is base and art is optimism), the reward structure adapts. Instead of the curator receiving their usual fee, this portion is redirected to the verifier.
Q: Can artists customize their fees?
A: Yes, artists have the flexibility to set their own fee amount. They can choose to increase the fee beyond the standard amount.
Q: Who acts as the verifier for Merkle type Creds?
A: In the case of Merkle type Creds, the Cred creator also serves as the verifier.
Q: How are the protocol fees used? A: The protocol fees collected by Phi are used to stimulate the ecosystem. They are allocated towards organizing competitions and providing additional rewards, which helps to foster engagement and growth within the Phi Protocol community.
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