Add Promotional Proof Transactions (PPT) documentation

docs/tokenomics/karmic-tokenomics.md

@@ -24,6 +24,8 @@ Karma is minted through six primary mechanisms and cannot be acquired, ensuring
 
 6. **Direct Donations** – Anyone contributing directly to the public funding pool receives Karma.
 
+7. **Promotional Proof Transactions** – New users can earn initial Karma by submitting cryptographic proofs of external blockchain activity, enabling frictionless onboarding without requiring existing tokens or gas fees. For more details, see [Promotional Proof Transactions (PPT)](./promotional-proof-transactions.md).
+
 The initialization parameters of Karma minting allocations will be announced soon. In the future, Karma holders will be able to modify those parameters through a vote if needed. The ultimate objective is to maximize alignment among stakeholders for a more sustainable growth of the network.
 
 ## Utility of Karma

docs/tokenomics/promotional-proof-transactions.md

@@ -0,0 +1,77 @@
+---
+title: Promotional Proof Transactions (PPT)
+description: Discover how Status Network's Promotional Proof Transactions enable new users to join the network and receive initial Karma without requiring existing tokens or gas fees.
+keywords: [Promotional Proof Transactions, PPT, Status Network onboarding, zero-gas onboarding, cryptographic proofs, Karma allocation, gasless transactions, blockchain verification]
+---
+
+# Promotional Proof Transactions (PPT)
+
+Promotional Proof Transactions (PPT) represent a novel solution to the cold-start problem faced by new users attempting to join Status Network. By allowing users to submit cryptographic proofs of their external blockchain activity, PPT creates a frictionless onboarding experience that rewards prior web3 engagement without requiring users to already possess tokens or pay gas fees.
+
+## The Onboarding Challenge
+
+A common challenge for Layer 2 networks is how to enable new users to participate without requiring them to already have tokens for transaction fees. Status Network's Karma system governs transaction rights and network influence, but new users face a paradox: they need Karma to perform transactions, yet traditionally would need transactions to earn Karma.
+
+PPT solves this critical onboarding challenge by creating a gasless entry point for users who can demonstrate value through their existing blockchain activities.
+
+## How PPT Works
+
+The PPT system operates through a streamlined verification process:
+
+1. **Proof Submission** – New users submit cryptographic proofs of their external blockchain activity, such as ownership of tokens on other chains, participation in governance systems, or contributions to other protocols.
+
+2. **Verification** – A system smart contract validates these proofs through cryptographic verification, ensuring that only legitimate blockchain activity receives rewards.
+
+3. **Karma Allocation** – Upon validation, the user's address receives an initial allocation of Karma, granting them transaction rights and governance power within the network.
+
+4. **Governance Parameters** – The types of proofs accepted, verification methods, and reward values are determined by the network's governance system, allowing the community to adjust the onboarding process as needed.
+
+## Benefits of PPT
+
+- **Zero-Cost Entry** – New users can join the network without already possessing tokens or paying gas fees.
+
+- **Meritocratic Onboarding** – Users with demonstrated blockchain experience receive recognition proportional to their prior contributions.
+
+- **Sybil Resistance** – The cryptographic verification process ensures that only genuine blockchain activity is rewarded, preventing exploitation.
+
+- **Ecosystem Growth** – By reducing barriers to entry, PPT accelerates network adoption and community expansion.
+
+- **Targeted Acquisition** – The network can prioritize specific user behaviors or communities by adjusting which proofs receive higher Karma rewards.
+
+## Use Cases
+
+PPT enables multiple pathways for new users to enter the Status Network ecosystem:
+
+### Cross-Chain Experience Recognition
+
+Users who have built reputation on other chains can transfer some of that standing to Status Network, creating continuity in the web3 experience. For example, a governance participant on Ethereum can receive initial Karma based on their voting history.
+
+### Protocol-Specific Incentives
+
+Status Network can establish targeted onboarding campaigns for users of specific protocols or applications. For instance, users of decentralized social networks might receive PPT rewards to encourage migration to Status Network applications.
+
+### Community Activations
+
+Web3 communities can coordinate collective migrations to Status Network, with PPT ensuring their members maintain appropriate standing and privileges in the new ecosystem.
+
+## Integration with Karma System
+
+PPT works as a foundational element of the broader Karma tokenomics:
+
+- **Initial Allocation** – PPT provides new users with their first Karma, enabling them to perform gasless transactions and participate in governance.
+
+- **Onboarding Tier** – The amount of Karma received through PPT determines a user's initial transaction limits and governance power.
+
+- **Complementary Mechanisms** – Once onboarded, users can continue earning Karma through traditional methods like staking SNT, providing liquidity, and using applications.
+
+## Governance and Evolution
+
+The PPT system is designed to evolve through community governance:
+
+- **Parameter Adjustments** – Karma holders can vote to modify which proofs are accepted and their relative reward values.
+
+- **Verification Methods** – As zero-knowledge proof technology advances, the verification process can be updated to improve security and efficiency.
+
+- **Incentive Alignment** – The reward structure can be adjusted to target specific user behaviors that benefit the network's growth and sustainability.
+
+Through community governance, PPT will continue to evolve as an essential component of Status Network's mission to create an accessible, community-owned Layer 2 ecosystem.