4.7 Guarantee and Insurance

Participants must stake DKA tokens as a guarantee for their service.For collaboration-based logistics service to be possible, all participants must faithfully perform their tasks. If participants fail to carry out their tasks, they must take responsibility for any costs that occurred. dKargo participants must stake a certain amount of tokens as a deposit, which will be used as compensation when a problem occurs.

The tokens that each participant staked is a guarantee of that participant’s service. To receive more contracts on dKargo’s platform, participants must stake more tokens that are proportionate to the number of contracts they signed. The amount of tokens each participant must stake is calculated based on their ratio of risk, which is based on their transaction history. Token staking provides participants a reason to faithfully carry out their contract. Participants can increase the amount of staked tokens per contract, which will help to raise the participant’s credibility. It will also put them in a more favorable position to earn more contracts on the platform.

If the participant wishes to sign more contracts than the amount that their staked tokens guarantee, an insurance company can step in to provide a guarantee for the new contracts. Participants will pay the premium via tokens, and the insurance company will pay a portion of their earnings to dKargo as a transaction fee.