The Token Buyback Mechanism

Proof of Impact: The Token Buyback Mechanism

1. Philosophy: Aligning Value with Good At the core of the Socious ecosystem is our mission to "Give everyone a chance to make a difference”. We believe that financial value should directly correlate with social utility. To realize this, Socious DAO is implementing a Proof of Impact Buyback Mechanism, ensuring that the value of the SOCIO token is intrinsically linked to the tangible positive change created by our community.

2. The Mechanism Socious DAO will utilize its treasury funds to execute market buybacks of Socious Tokens (SOCIO) on an annual basis. Unlike traditional corporate buybacks driven by profit, our buybacks are driven by impact data.

The process functions as follows:

• Step 1: Deployment. The Socious Fund deploys capital to impact entrepreneurs and projects selected through our community-powered decentralized voting system.

• Step 2: Impact Accounting. At the end of the fiscal year, portfolio companies undergo rigorous impact accounting. Their social and environmental contributions are quantified and converted into a specific dollar value (e.g., carbon sequestered, lives improved, educational outcomes).

• Step 3: Verification. To ensure integrity, these impact metrics are validated, adhering to the same principles of trust found in our Socious Verify credentialing platform.

• Step 4: The Buyback. Socious DAO aggregates the total dollar value of the verified impact generated by the portfolio. The DAO then uses treasury funds equivalent to this dollar amount to purchase SOCIO tokens from the open market.

3. The Result: An Impact-Backed Economy By using the aggregate impact value to dictate buy pressure, we create a direct economic feedback loop: as our ecosystem projects succeed in solving social problems, demand for the SOCIO token increases. This effectively turns social impact into a store of value, fulfilling our promise to help users and organizations "fuel innovation" while ensuring that those who back the ecosystem are rewarded for the actual good achieved.