Steps to calculate Socious Impact Points

STEP1: Calculate Impact Points Money

• Diagram

  

• Logic

  1. Calculate total amount of donation for a user
     • On “donation_transaction” table, sum all amount of donation by a user and calculate “Donation Amount”
  2. Calculate total amount of purchase for a user
     • On “money_transaction” table, sum all amount of purchase by a user and calculate “Purchase Amount”.
  3. Calculate total amount of lending
     • On “lending_transaction” table, sum all amount of lending by a user and get “Lending Amount”.
  4. Calculate total amount of interest paid
     • On “lending_transaction” table, sum all amount of interest paid by a user and get “Interest Paid Amount”.
  5. Calculate total amount for investing for a user
     • On “investing_transaction” table, sum all amount of investing by a user and get “Investing Amount”
  6. Calculate weighted sum of impacts of purchase, donation, and lending
     • “Donation Amount”, “Purchase Amount”, “Lending Amount” “Interest Paid Amount” and “Investing Amount” are weighted with the ratio of 1 : 0.1 : 0.1 : 1.0 : 1.0. In other words, donation is highly weighted * and get “Impact Dollars Money”
     • Round the value above.

  For example,

  Lender lends $100 -> 10 impact points

  Borrower pays back $116 ($100 principal + $16 interest) -> 16 impact points

  <aside> 💡 NOTE

  • We put more weight on donation than purchase, lending and investing. Purchase is less weighted because a purchase provides a user some goods or service in return but donation does not. Likewise, Iending and investment are less weighted because they are expecting either interest payment or shares/tokens.

  </aside>

STEP2: Calculate Impact Points Time

• Diagram

  

• Logic

  1. Create “Job Multiplier Lookup” * [only once]

     • In reference to Upwork, manually search the minimum and maximum hourly wage for each job name (ex. developer, designer, marketer …etc). Calculate average hourly wage by taking the mean wage between the minimum and the maximum.

     https://docs.google.com/spreadsheets/d/1ll8tJtfp_7AmdEKBMTW8Tmd2mkFrm4WLrFDI7lq90RI/edit?usp=sharing (job_multiplier (short)_lookup)

  2. Calculate total amount of hours per a user and a job name

     • On “time transaction” table, sum working time in minutes with the granularity of a user and a job name, and get “Minutes Worked”.
     • Multiply “Minutes Worked” by 60 and get “Hours Worked”.

  3. Transform time to value in dollars

     • Get hourly wage (“Job Multiplier”) from “Job Multiplier Lookup” table and represent “Hours Worked” in dollars by multiplying hours with hourly wage for each job name.
     • For a user, sum all dollars across job names and get “Hours Value”.

  4. Adjust “Hours Value” by seniority of the contributor

     • Searching “user_skill” table, confirm user’s seniority
     • Adjust “Hours Value” with the following rules:
       • Expert → 10% increase
       • Intermediate → no change
       • Entry → 10 % decrease
       • No experience → 30% decrease
       • Have relevant certification → 10 % increase

  5. Calculate total amount of payment

     • On “payment transaction” table, sum payments per a user and get “Amount Paid”

  6. Calculate a donation ratio

     • “Donation Ratio” is calculated by the following logic:
       • IF “Hours Values” = 0 THEN 0
       • ELSE IF Amount Paid is greater than Hours Value THEN 0
       • ELSE (1 - Amount Paid / Hours Value)

  7. Adjust a donation ratio ****** → NOT IMPLEMENT THIS NOW

     • If the donation ratio is less than 0.1, modify it as 0.1. In the remaining case, leave it as it is.

  8. Calculate a time impact in dollars

     • Multiply “Hours Value” by “Donation Ratio”
     • Round the value

  9. Adjust a time impact for organizations’ review (feedback)

     • Follow this rule:
       • Satisfactory + 10%
       • Not Satisfactory - 10% → change it to 0

  <aside> 💡 NOTE

  • “Job Multiplier Lookup” Table was created in reference to Upwork at first. We plan to update the table with transactions in Socious App in the future.

  ** “Impact Score Ratio” is set as 0.1, meaning we count 10% of the amount worked for the hours that are paid the amount which is equal to the value of the hours. For instance, if the value is $30 per hour and they worked for 1 hour for $30, then they get 3 impact points.

  *** Volunteer work: 10% premium on volunteer work, so if a user works as a volunteer for a job that is worth $30 per hour, then the user receives 33 impact points.

  </aside>

  Furthermore, individuals can accumulate impact points through participation in dispute resolution. Each juror involved in the process is awarded 100 impact points, regardless of the dispute resolution's outcome.

STEP3: Calculate Socious Impact Score

• Diagram

  

• Logic

  1. Transform money impact dollars to money impact score
     • Take the fourth root of “Impact Dollars Money” * and get “Money Impact Score”
  2. Transform time impact dollars to time impact score
     • Take the fourth root of “Time Impact Score” * and get “Time Impact Score”
  3. Sum money and time impact score
     • Sum “Money Impact Score” and “Time Impact Score”, and get “Total Impact Score”
  4. Cap the total impact score
     • Cap “Total Impact Score” by the 99.9 percentile value of the simulated distribution **, that is 52.83.
  5. Scale a value between 300 and 850 **
     • Scale by the following formula
       • Variables
         • v_min: the minimum value of “Total Impact Score”, that is 0
         • v_max: the maximum value of “Total Impact Score”, that is the value of capping.
         • r_original: the range between v_min and v_max
         • v_min_new: the minimum value of the target range, that is 300
         • v_max_new: the maximum value of the target range, that is 850
         • r_new: the range between v_min_new and v_max_new, that is 550
       • Formula

  <aside> 💡 NOTE

  • By this transformation, we adjust the difficulty to acquire more socious scores along with current money/time impact dollars. In other words, for a lower impact dollars holders, it is relatively easy to increase impact scores. For a higher impact dollars holders, it is relatively difficult to increase impact scores.

  ** We conducted a brief simulation of how these logic work and get distributions of “Total Impact Score”. The simulation depends on some assumption and may not perfectly match the real distribution, but we think it is enough to decide the cap value.

  *** Socious impact score takes the range between 300 and 850 as it looks like a credit score. Reference: Credit Score - Investopedia

  </aside>

Note:

• Transactions mentioned above can be recognized on Socious even when they occur outside the platform. To prevent fraudulent claims, users must provide verifiable credentials to receive impact points. However, external transactions only earn 20% of the points compared to transactions made directly through Socious.
• The following Google Sheet was created to demonstrate the calculation of Socious Impact Score. However, the calculation logic written here does not match perfectly that on the sheet. It is because:
• New Simulation with the logic above