Vouching indicates a high degree of trust.
In Ethos you vouch by staking Ethereum in an Ethos profile. This fundamental core mechanism is how Ethos captures a network of trusted relationships. It represents the extent to which you are supported by allies and supporters, and thus strongly impacts credibility.
Financial Stakes
Vouching, unlike reviewing, requires a backing asset: staked Ethereum (and in the future, other assets). This forces you to choose how you would allocate your trust and in what amounts and ratios. Does your entire network get equal trust, or do would you vouch for some more than others?
The amount of Ethereum staked represents the magnitude of the trust placed in you. Ethos does not differentiate between one person who vouches you with 10,000Ξ or 10,000 people who vouch you with one Ethereum. This has many benefits, including that credibility is not a popularity contest; having a single strong supporter can be more impactful than dozens of weaker ties.
However, the person you vouch DOES NOT HAVE DIRECT CONTROL over the backing asset. They cannot withdraw, spend, or re-allocate those staked funds.
Incentives
Ethos utilizes incentive structured for the protocol.
When users vouch for you, you are rewarded a part of the amount vouched (4%)
When you vouch for someone else, you are rewarded each time someone subsequently vouches for that person with a part of the amount vouched (4% total)
Incentives are being experimented with in the Testnet and will be updated once finalized for mainnet. Ethos has the ability to take a protocol fee in the future but does not currently have plans to do so.
Vouch reciprocity
When you vouch someone and they vouch you back, Ethos notes your mutual stake. This is commonly referred to as a (3,3) relationship. It represents cooperation between two parties to help signal to the rest of the network that two people find each other trustworthy.
Credibility score and rewards for both of you are magnified. You can see the status of these relationships under your "Vouch balances" page, in the column called "Reciprocated."
Slashing
To be implemented. Slashing is not live yet, but will be added a later date.
In the future, your vouch balance will be at risk to being slashed. Slashing provides a mechanism by which unethical behavior may be identified, socially validated, and punished via fines and reduced reputation. Slashing can induce fines up to 10% of one's total stake in Ethos. Details in Slash via the whitepaper.
We'll add more details to the knowledge base once it's enabled in the product.
Unvouch
You may withdraw your staked funds at any time by unvouching in "Vouch balances"
You cannot modify the amount staked in a vouch without withdrawing the entire vouch.
If you are mutually vouched (3,3) and unvouch, the person who was vouched can mark a vouch as "unhealthy" within 24 hours to signal to the network the vouch ended on poor terms.