FOAF Whitepaper

Introduction

The FOAF Foundation is building a trust-based trading network that helps communities meet their needs without relying on cash or centralized systems. Using mutual credit, social trust paths, and transparent value routing, FOAF empowers people to exchange goods and services directly. This paper outlines the philosophy, architecture, token model, and roadmap behind the project.

Vision

Most people have something to offer, but lack easy ways to trade what they have for what they need. FOAF bridges that gap by replacing the need for cash with social credit and trust. Participants can grow food, fix tools, share skills, and support each other, even when money is tight.

Many past projects have explored similar ideas - systems like Local Exchange Trading Systems (LETS), Community Exchange Systems (CES), and more recently, blockchain-based attempts at peer-to-peer credit and trust. These efforts helped define the space but often failed to scale because of complex interfaces, lack of incentives, or a missing social fabric. FOAF builds on what they introduced, grounding it in real-world relationships and a model where value flows automatically through trust paths.

We are not inventing these ideas from scratch. Mutual credit, community exchange, and reputation-based trust have been explored before. FOAF builds on these insights with tools that are simple, scalable, and rooted in everyday relationships.

GrowOperative and the First Use Case

GrowOperative is the first application built on the FOAF protocol. It helps neighbors share surplus food using the same trust-based credit system that will eventually power a much broader range of local economies.

The app allows users to list garden produce, request what they need, and fulfill orders through personal contact networks. While the MVP supports listing and delivery, upcoming releases will integrate mutual credit tracking and allow participants to earn and spend credit directly inside the app.

This first use case was chosen intentionally. Food is immediate, tangible, and deeply local. By starting with a need that is universal and recurring, FOAF can demonstrate real utility while building the social graph that will later support tools, services, and more complex exchanges.

GrowOperative is not the end goal. It is the on-ramp to a larger system that empowers communities to trade across every area of life, without depending on fiat currency or centralized platforms.

How FOAF Works

FOAF is designed to make trust-based trade as seamless as possible, even in the absence of money. The system follows a simple flow:

• Post - A user lists something they need or want to offer (e.g., help fixing a fence, extra garden produce, language tutoring).
• Propagate - That listing spreads only through the user's contact network, appearing as if it came directly from each contact who shares it. This preserves privacy and relevance.
• Settle - When a match is made, the system routes value through the shortest trust path between participants. Settlement can happen in mutual credit, cash, or in-kind agreements - all recorded transparently in the ledger.

This model depends on trust paths: chains of verified relationships where credit and obligations can flow. These paths allow users to transact confidently even when they don't know each other directly.

Each transaction strengthens the underlying network and creates a visible trail of how value moved through the system. FOAF’s credit layer works quietly behind the scenes, enabling fluid exchange without requiring traditional payment rails.

Token Architecture

FOAF uses a two-token model that separates governance and utility. This makes the system both sustainable and simple for everyday users.

FOAF is a fixed-supply token for governance and staking. It is not used for payments, but instead enables holders to generate RHEO and participate in decisions about protocol rules, upgrades, and funding.

RHEO is a flexible-use utility token that powers transactions and credit routing. Most users never hold it directly. Fees are passed through social trust paths and ultimately originate from FOAF holders who earn a small premium.

• Trades can happen without cash or wallets
• Contributors are rewarded automatically
• FOAF remains accessible while being economically self-sustaining

Governance and DAO Transition

FOAF begins with centralized coordination to launch and stabilize the ecosystem, but is designed from the ground up for decentralized governance.

The long-term goal is to transition all critical protocol functions - rule-setting, fee management, credit parameters, and treasury spending - to a DAO governed by FOAF token holders.

• FOAF holders can stake tokens to participate in voting
• Proposals can be submitted for system upgrades, economic changes, or funding allocations
• Voting weight corresponds to staked FOAF and is recorded on-chain
• DAO tools will be phased in as the user base and ecosystem mature

This model allows the community to evolve the protocol transparently while ensuring those most invested have a meaningful voice.

Roadmap

The FOAF protocol has moved from vision to working prototype. GrowOperative, our first application, is live and supports listing, requesting, and fulfillment through contact-based networks. While financial settlement is not yet live in the app, this next layer is under active development alongside full mobile deployment.

• MVP deployed with live networked listings and propagation logic
• Smart contracts drafted for FOAF and RHEO token mechanics
• DAO and staking framework in design
• Implement mutual credit tracking and transaction settlement inside the app
• Launch native apps for iOS and Android
• Expand pilot programs with early adopter communities
• Complete and launch decentralized governance features

Why It Matters

Traditional systems of exchange - from local currencies to volunteer-run barter networks - have struggled to scale or survive long-term. Centralized platforms extract value, fiat currencies restrict who can participate, and burnout is built into most community-led systems.

FOAF offers a new path.

By rooting exchange in trust, automating settlement, and rewarding contributors through built-in incentives, FOAF creates an economic layer that is accessible, resilient, and adaptable.

This isn't just about software - it's about creating infrastructure for a post-capitalist future, where people can meet needs locally without waiting for permission or liquidity from above.