Proof-of-Merit: A Reputation-Weighted VRF-PoA Consensus and Governance for Educational Blockchains

Abstract

Permissioned blockchains using Proof-ofAuthority (PoA) deliver high throughput but face issues of predictability and centralization, while token-weighted governance risks plutocracy that undermines fairness. This paper proposes Proof-of-Merit (PoM), a consensus and governance framework that integrates PoA with Verifiable Random Functions (VRFs) and a dual-token model. PoM selects validators through a weighted combination of transferable stake (UIT-Coin) and non-transferable academic reputation (UIT-Rep), earned via verifiable onchain learning activities. Governance follows the same principle, anchoring voting rights in Sybil-resistant merit rather than pure capital. To ensure sustainability, PoM introduces reputation decay, preventing long-term power concentration and promoting continuous participation. We implement PoM on Hyperledger Besu and evaluate it with Hyperledger Caliper. Results show PoM achieves strong performance while significantly improving fairness, with a much lower Gini coefficient and higher Nakamoto coefficient compared to IBFT 2.0. Sensitivity analysis further highlights the need for dynamic reputation mechanisms to avoid saturation. These contributions establish PoM as a scalable, equitable, and sustainable foundation for Learn-to-Earn ecosystems, where influence derives from ongoing educational engagement instead of wealth accumulation.