Fraud and Scam Protection

As with any public commercial system, the KIP Ecosystem faces two primary risks:

• A seller charges for a product or service and fails to deliver.

• A seller sells something they do not actually own.

To mitigate these risks, we offer an opt-in staking system.

Sellers can stake tokens in the Decentralized Autonomous Organization (DAO) to demonstrate their credibility. If a seller is accused of wrongdoing, evidence can be presented to the DAO.

• If the evidence is insufficient, no action is taken.

• If fraud or a scam is proven, the seller's staked tokens will be forfeited and redistributed to the complainants as both compensation and a reward for maintaining system integrity.

Staking tokens is not mandatory. Sellers may choose to establish their reputation through other means. However, publicly known staked amounts can serve as a testament to a seller's credibility—the more tokens a seller stakes, the greater the assurance they provide to potential buyers.