On-chain reputation systems, designed to mirror real-world social dynamics, often replicate algorithmic biases that perpetuate discrimination. For instance, decentralized platforms like blockchain-based social networks assign reputation scores based on user interactions, wealth, or token holdings. These metrics can disproportionately favor early adopters or those with greater resources, marginalizing underrepresented groups. Historical data used to train such systems may embed existing societal biases, like racial or economic disparities, into smart contracts. A 2023 study on blockchain governance showed that reputation algorithms often amplify wealth-based influence, sidelining low-income users. Similarly, tokenized voting systems can exclude non-token holders, echoing real-world voter suppression. Without deliberate bias mitigation, on-chain systems risk entrenching digital discrimination under the guise of decentralization.