# Holder Reputational System

Malicious intent is more likely to arise under the veil of anonymity. Keeping a record of relevant data will reveal patterns of constructive and counterproductive behavior performed by members, identified through their wallet/user activity.

The actions of a user across $CARROT holder platforms are automatically collated and passed through undisclosed formulas to generate reputational metrics. It’s important that these formulas remain undisclosed at the Carrot Fndn to prevent any holders from being able to manipulate the system. The equations must also accurately represent the metrics they display.

They will have a singular numerical output that scales up with the quality of the user. The formula can be amended as needed by an unbiased third party.

The system will output a simple and easy to understand set of four metrics. Three will be type-designated components of the fourth aggregate reputational metric. This holds users accountable for their actions, both positive and negative.

For more information on [Generating ](https://whitepaper.carrot.foundation/documentation/appendix/generating-reputational-metrics)and [Applying ](https://whitepaper.carrot.foundation/documentation/appendix/applying-reputational-metrics)Reputational Metrics see Annex.
