Token-curated registries are decentralized curated lists with economic incentives for token holders to curate the list’s contents honestly.
There are essentially three user types in a token-curated registry: 1. Consumers: desire high quality information 2. Candidates: desire to be included in lists as top list entries 3. Token holders: desire to keep the demand for the token they hold high
Token holders ultimately decide the contents of the list and use a democracy-like system to regulate each others entries. - Each list has tokens that can be bought by anyone, making that individual a token holder - A token holder must deposit a specific number of tokens to submit an application to the registry - Any token holder may challenge the application if they believe it does not belong, and each challenge requires depositing of a number of tokens - Voting then takes place amongst token holders, where the weight of each token holder's vote is determined by the number of tokens they hold - If the application is rejected, the applicant's deposit is forfeited and is split between the challenger and voters - If the application is upheld, the challenger's deposit is forfeited and is split between the applicant and voters The system ultimately allows a policing of entries in an attempt to ensure the most accurate information is listed for the consumers.