9. Machine Reputation & Performance Index

The Machine Reputation System is the coordination mechanism that determines how machines participate in the network, how they are ranked, and how much they earn. It ensures that machines with higher execution reliability, precision, and efficiency receive greater economic opportunity.

This system transforms raw hardware into competing economic actors, each optimizing to improve performance and maximize $KTQ earnings.

9.1 Purpose of the Reputation System

Robots do not all perform equally.

The Reputation Index:

• Measures execution reliability

• Rewards precision and consistency

• Filters low-quality or malicious machines

• Prioritizes high-performing machines when tasks are available

This prevents:

• Task failures

• Wasted operator funds

• Abusive or spam machine registration

In short: Reputation protects economic integrity.

9.2 Reputation Score Inputs

Each machine accumulates a Reputation Score (RS) based on real performance data:

Metric	Description	Effect on Score
Execution Success Rate	% of tasks completed within constraints	↑ Consistency = ↑ RS
Completion Efficiency	Time and motion efficiency relative to standard	↑ Efficiency = ↑ RS
Precision Accuracy	Deviation from expected end coordinates	↓ Deviation = ↑ RS
Agent Diversity	Ability to execute different behavior modules	↑ Flexibility = ↑ RS
Failure Rate & Error Flags	Task aborts, tool slips, or unsafe movements	↑ Failures = ↓ RS
Uptime Availability	Participation consistency	↑ Reliability = ↑ RS

The score is computed continuously and stored on-chain.

9.3 Reputation → Economic Priority

Reputation directly influences economic outcomes:

Reputation Tier	Effect	Economic Outcome
High Reputation	Gets task priority	Earns more $KTQ
Mid Reputation	Standard queue allocation	Stable earnings
Low Reputation	Reduced task access	Lower earnings, potential removal
Bad Actor / Repeated Fails	Bond slashed and deregistered	Removed from Assembly

This ensures the best machines rise naturally.

9.4 Machine Bonding (Phase II)

To join the network, machines bond a minimum amount of $KTQ. This bond is partially or fully slashed if:

• The machine submits fraudulent motion logs

• The machine repeatedly fails tasks

• The machine attempts to spoof identity or execution

This creates economic cost for unreliability, and economic reward for stability.

Behavior	Bond Effect
Verified Task Execution	Bond remains secure
Sustained High Reputation	Bond requirement decreases
Execution Failure / Inconsistency	Bond partially slashed
Malicious Activity	Bond fully slashed + permanent removal

This removes the need for centralized enforcement.

9.5 Reputation and Competition Dynamics

Machines naturally compete to:

• Execute more tasks

• Achieve higher precision

• Access higher-paying jobs

• Reduce their bond requirements

• Select better-performing Agents

This creates self-optimizing economic pressure:

Machines evolve. Agents improve. Execution cost decreases. Network throughput increases. Task demand expands.

The system becomes stronger through participation.

9.6 Reputation as a Machine Identity Asset

A machine’s Reputation Score becomes:

• A persistent state

• A market signal of quality

• A predictor of expected execution performance

Reputation is not a marketing claim. Reputation is execution data stored as cryptographic state.

Over time, a machine’s Reputation becomes more valuable than the hardware itself.

This is where the Machine Economy transitions from:

Hardware Value → Performance Value → Identity Value

And machines become economic identities.