Tako Weekly Founder Spotlight: Ethos Network Co-Founder Serpin Taxt

Original Article Title: "Tako Founders Club Weekly Founder Exclusive | Ethos Network Co-Founder Serpin Taxt"
Original Source: Tako Protocol

Editor's Note: To provide direct access for users to Alpha founders, Tako recently officially established the Founders Club. In collaboration with BlockBeats, Tako is launching the "Discover Base Alpha" series of dialogues. This series will regularly introduce projects within the Base ecosystem that have great potential, innovative products, and high-quality team backgrounds, inviting project founders to share their insights. Additionally, it provides users interested in emerging and hot projects with the opportunity to engage in direct conversations with founders.

This issue's guest for the dialogue is Ethos Network Co-Founder Serpin Taxt. Below is the transcript of this AMA:

Last week, we held our first "Founder Dialogue" event, inviting Ethos Network's co-founder Serpin Taxt as the sharing guest. The event was hosted by Julie.

The event covered the following topics:

· Ethos Story

· Ethos Product

· Comparison to Twitter

· Ethos Growth

· Trust Graph

· Ethos Vision

· Ethos Use Cases

· Why Base?

· Role of XPs

· Ethos Roadmap

· Founder Insights

· High Tech High Life

· Additional Community Questions

Ethos Story

Q1

Julie: I have listened to all the podcasts you participated in. You mentioned that in 2011 when the price of Bitcoin was between $13 and $30, you thought to yourself, "I would never buy into this thing." Many people have had a similar experience! What ultimately changed your perception of cryptocurrency? And how did you progress to founding Ethos?

Serpin Taxt: When I saw that Ethereum provided a "universally agreed upon API," I felt there was a tremendous opportunity here. In centralized networks, it was always a challenge to seamlessly connect the APIs of various products, but Ethereum's smart contracts were like giving everyone a universal "language."

To be honest, it wasn't until 2020 that I truly understood the potential behind smart contracts. Afterward, I realized that putting everything on-chain was quite elegant, and this directly led to our steadfast "on-chain first" principle at Ethos.

Q2

Julie: You mentioned that the crypto industry loses $9 billion to fraud and scams every year, which is truly astonishing! At what moment did you realize, "I am determined to solve this problem"?

Serpin Taxt: Friend tech is a great example that vividly illustrates the issue and made me realize that the solution has been there all along, such as Proof of Stake (PoS), where we simply swapped "machine nodes" for "humans" for validation. When I saw it working smoothly at a small scale in friend tech, I immediately knew this was a viable path.

Q3

Tako user: @nosir How did you meet your co-founder? How did you secure your initial funding? After raising $2 million, do you plan to continue fundraising?

Serpin Taxt: Ben and I met while working at Atlassian. We met while working on a new product called Beacon in their incubator, which was later rebranded as "Atlassian Guard."

Ethos Product Mechanism

Q1

Julie: Many people are not familiar with Ethos's on-chain reputation system. Could you explain it in simple terms? How can users enhance their reputation on the platform?

Serpin Taxt: We have many mechanisms, but to put it simply, they include:

· Who invited you

· Others' evaluations of you (positive, negative, neutral)

· Whether someone has actually endorsed you with ETH (vouch or stake)

· Your account history (Twitter, ETH wallet, etc.)

· Whether you have been "slashed"

These are the main factors in calculating your score.

Q2

Tako user: @zhaixingxing Reputation score is linked to user interactions, likes, etc. What if a group of acquaintances deliberately collaborate to boost their scores? Do you have any safeguards in place?

Serpin Taxt: We do not engage in centralized audits. This is indeed a characteristic of Ethos: everyone is part of social validation. To address abuse, we mainly rely on the "down vote" and "slash" mechanisms to maintain balance. This is a valid concern, and we often discuss it.

You can read this lengthy tweet thread for more information:

https://x.com/ethos_network/status/1895015992134447386

In short, we must guard against such issues while avoiding a return to centralized scrutiny, so we heavily rely on Ethos's own mechanisms.

Q3

Tako user: @zhaixingxing Mechanisms like voting and slashing require staking ETH. So, if someone excessively slashes others, could it disrupt system stability?

Serpin Taxt: Currently, we have some rules: the same person can only slash once every 10 days, and a slashed individual can only be slashed once every 10 days.

These regulations are still exploratory and may not be correct at once. Most importantly, everything is recorded on-chain—if you misuse slash, you are actually risking damaging your own social capital. How would others view you if they see you tagging randomly every day? They might even slash you in return.

Q4

Tako user: @sheabao, your invitation system tied to a 90-day period is quite interesting. Why was it designed this way? Have there been any unexpected phenomena in actual operation?

Serpin Taxt: The main purpose is to prevent Sybil attacks and encourage everyone to be more cautious when inviting newcomers. Sometimes users feel a headache: afraid that inviting the wrong person might hold back their scores.

Actually, don't overthink it, just invite people you trust. Some people look back and complain, "The person I invited did nothing back then, my score didn't change, it feels like a waste," but I think everyone is a bit too concerned.

Q5

Tako user: @johndoe0505, you have adopted the "slashing" concept from PoS, saying "This is a social-level slash that can greatly damage someone's reputation." How is it actually working?

Serpin Taxt: It looks quite interesting at the moment. Most people are not yet used to publicly calling out who has "crossed the line," but there have been some cases (including myself, who just issued a slash today), sparking quite a lot of positive discussions.

The purpose of slash is to encourage everyone to discuss and reach a consensus: whether this person has done something out of bounds, such as a rug pull, or today's case of excessively posting meaningless comments.

https://app.ethos.network/activity/slash/21/abusing-ethos-review-system-with-ai-generated-reviews-for-others

Q6

Tako user: @noahblake, I haven't figured out why some people are willing to continue to spend money to support/challenge others. Isn't this behavior very infrequent? Is this a truly marketable feature?

Serpin Taxt: To become a "trusted" individual, cooperation and endorsement are required.

Although there is currently no DeFi yield, we are referencing the PoS model. It was indeed challenging to convince everyone early on that "in the future, you will stake ETH to maintain network security," but at some point, everyone will do it for the security of the "social layer."

Comparison to X

Q1

Julie: You mentioned that Twitter rewards "attention," while Ethos rewards "reputation." How can these two approaches coexist in social media?

Serpin Taxt: That's a good question and is often confused. Influence = Attention + Reputation. Some can earn attention through fake news or sensationalism but may not have a good reputation. In the crypto field, the focus now is only on who can attract more attention, not on measuring "credibility." In the long run, such attention can easily be manipulated by hacking methods.

This article provides further elaboration:

https://www.ethos.network/post/credibility-is-cheap-in-web3

Q2

Tako user: @edisonchen fully agrees with @serpintaxt that effective influence = attention + reputation because without reputation, consensus cannot be generated. The Ethos Network product is well polished; you can give feedback to a person and even stake ETH to endorse your friend (conversely, if you are convinced that this person has done something wrong, you can stake real money to expose them, indicating you are not making baseless claims). I'm certain that in a new type of social network like @tako, ethos is needed as the foundation of trust infrastructure. I have a question: how do you think Tako can integrate Ethos's reputation data and scenarios?

Serpin Taxt: In Tako, you can see who is trending, but it would be more intuitive if you could hover over with the mouse to see this person's ratings and credibility directly. This is essential for OTC trading, private placements, and more. Further integration may be possible, such as "leave a comment" and store it in the other party's file. In any case, knowing whether the other party is trustworthy is valuable on any platform.

Q3

Tako User: @johndoe0505 You mentioned that "attention is hackable," and we have also seen cases of botting, extreme topics, fake engagement, etc. Which metrics on Ethos are the least susceptible to gaming? Has anyone tried to game the system yet?

Serpin Taxt: Currently, the invite system should be the most cheat-resistant. In the future, the entire score will be based on time and money investment (e.g., someone endorsing you with ETH) to improve it. However, only after the launch and observation of real data and social behavior will we gradually understand areas that need improvement.

Ethos Growth Strategy

Q1

Julie: I know you have many growth ideas. What are the key growth metrics you are currently focusing on?

Serpin Taxt: I have previously grown a product from 30,000 to 3 million users. The most important thing is not to let the "funnel" leak in vain: in Web3, attention is very precious, and once it's gone, it's unlikely to come back. I use the "AAARRR" or "Pirate Metrics" framework: Awareness, Acquisition, Activation, Retention, Revenue, Referral.

We are also looking at:

· DAU/MAU, currently around 55%

· 7-day retention rate of 27%

· K-factor around 3.5

Q2

Julie: You mentioned that in this bull-bear cycle, many people have lost sight of the "project" and "roadmap" and are only interested in hype and speculation. How do you create something meaningful in this environment? Do you see this as an opportunity or a challenge?

Serpin Taxt: The issue is that most projects have not actually solved real problems. You can ask yourself, "If this product were taken away, would I be uncomfortable?" If the answer is "yes," then it does indeed have value. I believe the market will eventually return to valuing the essence of "solving problems."

Q3

Tako user: @0xdealerbao Are you prioritizing expanding developers/contracts first, or expanding users? When is a good time to transition to focusing more on contracts?

Serpin Taxt: Developing contracts is time-consuming and costly... Currently, we are focusing on increasing user adoption. When we feel the timing is right, we will proceed with significant upgrades.

Q4

Tako user: @tamagotchi I see you have even invited @jessepollak, are there any other noteworthy users worth mentioning?

Serpin Taxt: There are many big names, but what attracts me most to Ethos is: you don't need to be famous, you can build reputation through actual behavior. I'm currently thinking of ways to invite ZachXBT, haha.

Trust Graph

Q1

Julie: You mentioned "We are collecting a very fresh set of data: who trusts whom." How do you think this trust graph will evolve, and what benefits do you think it can bring in the future?

Serpin Taxt: In crypto, every interaction has an economic factor, so "who trusts whom" is particularly important. For example, checking the background of a KOL, looking at the founder's reputation in the industry, observing a group of wallets that trust each other all buying the same thing... It's still early, but the potential is significant.

Q2

Tako user: @javaw.eth Each scenario may correspond to different metrics, what kind of use case will you focus on in the near future?

Serpin Taxt: We don't look at metrics like "follower quality" or "transaction records" because they don't necessarily reflect a person's character. We mainly rely on on-chain reputation data in Ethos.

Ethos Vision

Q1

Julie: In your podcast, you mentioned the "centralization vs. decentralization pendulum." What will be the next swing? What role does Ethos play in this?

Serpin Taxt: Ethos has always wanted to lead with decentralization. As we continue to find product-market fit, we will further decentralize to make the system more stable and interference-resistant.

Q2

Tako user: @whalepizs How can genuine contributors receive positive rewards instead of allowing resource-rich individuals to take advantage?

Serpin Taxt: Having resources may indeed make one more easily recognized, but reputation is not a zero-sum game where your high status means my low status. Instead, we aim to raise the overall bar to make it more difficult for bots and fake accounts to infiltrate.

Ethos Use Cases

Q1

Julie: We have discussed many ideas about applying Ethos to social networks. How do you think it will play a role in DeFi, NFTs, or other on-chain activities in the future?

Serpin Taxt: If everyone transacts with a public identity, there can be an additional layer of "credit insurance." For example, OpenSea can only see who bought what but does not know the buyer's history. With Ethos, this gap can be bridged.

Q2

Tako user: @gink In scenarios like uncollateralized lending, how do you think Ethos can expand?

Serpin Taxt: Ethos can incentivize people to value their social reputation, but uncollateralized lending is quite challenging and requires more support. If a protocol can keep a negative record of defaulters on-chain, it can better compel individuals to be accountable.

Q3

Tako user: @whalepizs In the long run, how do you plan to integrate Ethos' score with other projects on Base to collectively enhance on-chain trust?

Serpin Taxt: We aim for Ethos' score to be universally applicable—usable for project launches, lending rates, VC due diligence, OTC trades, and more.

Why Base?

Q1

Julie: Tako and I have been nurturing the Base ecosystem for about a year and a half. Why did you choose to build Ethos on Base?

Serpin Taxt: My co-founder and I sat down and thought, "Which L2 is most likely to stand tall in 5 years?" The answer was clear. Without Base/L2, Ethos' high-frequency on-chain needs cannot be met.

Q2

Tako user: @sheabao How has your experience been using Base? What support have they provided? Has it helped with your market expansion?

Serpin Taxt: Honestly, if you don't have a close relationship with the Base team, you need to first deliver something substantial to show them results. Once you have user traction, they will be very supportive.

Role of XPs

Q1

Julie: What role do "XPs" play in Ethos? What can the community do if they want to help or contribute?

Serpin Taxt: XPs are somewhat like Reddit's "karma." They are recognition for active contributors and also help us explore how to incentivize everyone.

Ethos Roadmap

Q1

Julie: What new features or upgrades does Ethos have coming up? By 2025, what level of achievement are you aiming for?

Serpin Taxt: We may work on a leaderboard, data analysis, improving Slash, and also ethos.markets. We might explore zkReviews or anonymous reviews, but it's not yet certain if they can truly help assess reputation. I usually only share a brief roadmap externally, as there are many situations to adapt to post-launch.

Q2

Tako user: @johndoe Regarding anonymous reviews, why do you think anonymity is necessary?

Serpin Taxt: I'm not sure if it can enhance trustworthiness assessment. Perhaps there are other ways to substitute for anonymity.

Q3

Tako user: @babyyyyyy How large is your team now? Are you planning to hire more?

Serpin Taxt: Our team is very lean: myself, CTO Ben, three developers, one designer, and some customer support. We will scale up as needed in the future.

Founder Insights

Q1

Julie: How do you balance the long-term vision in the crypto space with short-term growth?

Serpin Taxt:

· Quickly adapt to current "hot topics"

· Establish in advance the ratio of short-term and long-term investment

· Addressing real problems is the core

High Tech High Life

Q1

Julie: Tako advocates for "high-tech + high-quality living." How do you maintain your physical and mental health?

Serpin Taxt: I am currently doing Bulgarian split squats while responding to you. Although it's quite tiring, I do this for 45 minutes every day, 5 days a week, and it's very beneficial for both my physical and mental well-being.

Additional Community Questions

Q1

Tako user: @cryptovin Hello, Serpin! Some social platforms have already proven the feasibility of SocialFi. I have installed your Google extension, but there aren't many highly rated individuals yet. Will you adjust the registration threshold in the future? Do you think Ethos is more like a prediction platform based on KOL reputation, or more like social infrastructure?

Serpin Taxt: We currently have around 25,000 comments, with an incremental increase of about 500 comments per day. We are still in the early stages and have not yet reached all social circles. We also have an ethos.markets, which is more like a reputation "trading floor" with speculative attributes.

Q2

Tako user: @johndoe0505 How do you balance subjective human judgment and on-chain objective data to evaluate reputation scores?

Serpin Taxt: In reality, there is no "perfect balance." Evaluation and endorsement are quantitative data, but they also contain qualitative content, and both are important.

Q3

Tako user: @julian-allen How do you avoid people spending money to buy reputation?

Serpin Taxt: We refer to the economic security logic of PoS and use a similar S-curve function to ensure that the difference between staking 10 ETH and 1 ETH is not too large, along with the balance of social capital. If someone is found to be cheating, it will backfire.

Q4

Tako User: @sheabao Is there any incentive for stakers during the staking period? Do you have any measures in place to prevent issues like the cross-chain bridge being compromised?

Serpin Taxt: Currently, we only award them XP, similar to Reddit's karma points. As for the security of the cross-chain bridge, it is not directly within our control.

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