Liquid Capitalism (2018)
IdeaFoundry 2018 Concepts
Chris Banbury
2018
Liquid Capitalism – The global social contract as a public distributed ledger platform, overseen by a three-branch governance structure, and powered by a highly liquid socioeconomic ecosystem
By continually "re-decentralizing" the web, we will unleash the next generation of technology, business and social innovators.
Tim Berners-Lee
Today’s world is run by archaic systems unable or unwilling to help people adapt to accelerating change. For many work, education, and life in general are a frustration; with existence becoming a hopeless burden. What is relevant today rapidly becomes irrelevant tomorrow as people struggle to keep up.
Hope demands a modern reimagining of the social contract as an agile system that is both practical and empathic. One where opportunity in an exponentially changing world is defined not only in the economic and technological senses but also in the human sense.
Hope exists with Liquid Capitalism as the modern social contract.
With Liquid Capitalism, people can choose to tokenize and transact things like human capital, fiat, physical assets, oracles, debt, supply chain invoices, or excess storage/processing power as Liquid Capitalism Tokens. Enabling people to maximize the utility of their existing assets and abilities allows greater socioeconomic opportunities through p2p secondary markets where each variation of the LC Token is a liquid, scalable market itself.
Baskets of LC Tokens scale from local to global, culminating in a reasonable balance of tangible overall socioeconomic value in the Liquid Capitalism Coin. The intrinsic value and collateral of the LC Coin is a combination of the trust, supply and demand of material and immaterial LC Tokens within the LC ecosystem. Liquidity is powered by users pooling assets together to provide on demand fungibility between variable markets and ecosystems.
Liquid Capitalism is not redistribution of capital, it is the potential for re-decentralization of power configurations to even the playing field and help people remain relevant. It is the fair use and compensation of capital, spread amongst the people who own and generate. Class and significant personal ownership exist, but with more fluidity.
Liquid Capitalism leverages both Directed Acyclic Graph (DAG) and Proof of Stake (PoS) distributed ledger technologies for Liquid Capitalism ecosystem distributed management and execution. LC DAGs act to process transactions quickly as sidechains. LC PoS acts as a masterchain and generally guides transactions by allocating to DAG sidechains. The PoS masterchain represents the state of the overall ecosystem through time stamped audits of DAG sidechain transactions. PoS nodes are generated from memberships in borderless communities with similar socioeconomic goals. Those communal nodes are combined with other communal nodes to form masternodes. Validators consist of masternode pairings determined through lottery, matching masternodes of varying LC Token and LC Coin wealth to share rewards. Either LC Tokens or LC Coins can be staked. Stochastically matched lottery-based reward benefits initiate constant states of re-decentralization through a real system of trickle-down economics.
Registering LC Tokens additionally gives people the right to vote collectively in the guidance of ecosystem governance to ensure community is on equal footing with Liquid Capitalism when making decisions. Governance is loosely based on Democratic Capitalism combined with polycentrism, mediated by a human guided artificially intelligent noocracy, and with Confucian Harmonious Society representing base values and motivations for participation. Governance is run generally by a system of agreed upon smart contracts derived from people submitting user generated content to then be ranked and certified by 2/3 greater Liquid Capitalism ecosystem communal vote for use. Conflicts are arbitraged via the aforementioned AI assisted noocracy.
A series of milestones below detail the development of Liquid Capitalism as described through MUSE (Multi-User Serendipity Engine). MUSE is fundamentally a highly scalable operating system and protocol that powers Liquid Capitalism.
The Roadmap to Liquid Capitalism
A series of milestones below detail the development of MUSE (Multi-User Serendipity Engine) as the operating system and protocol for Liquid Capitalism. MUSE is fundamentally a highly liquid socioeconomic marketplace of tokenized ideas, goods, and services.
The First Milestone is Search, leveraging Polya’s Urn with Innovation Triggering[1] to deliver novel search results and help people understand how they interact with ideas, how those interactions influence existing ideas, and then lead to divergent thinking. MUSE needs to fundamentally learn how to best answer people’s questions to help them understand deeper meanings and foster originality to remain relevant. Initial search and ranking algorithm training data is thousands of iterations of this document in conjunction with a user’s social media profiles and search engine history, all if they choose. Search is performed through web portals with a MUSE private ledger used for timestamping and recording search terms, with results stored in a basic text file using the IPFS protocol.
The Second Milestone is Chat, where two people, matched based upon Polya’s Urn and having similar interests, but slightly differing perspectives, communicate understanding. Chat is run within the MUSE search web portal and basic voting decisions trees between parties are stored using IPFS, pointing to a distributed ledger shared between the two users. The ledger is updated through voting as transaction, where “each new transaction confirms one or more previous transactions”[2]; acting as the genesis for DAG based sidechains.
The Third Milestone is Community. It takes chat between two people in milestone two and opens the system up to group chats. People gather around similar interests – manually or through Polya’s Urn – and think outside the box through collective input in communities called Hubs. With more diverse input, echo chambers are less likely to take hold and divergent ideas flourish. As genesis for the PoS masterchain, each user in a Hub acts as a validator node, with consensus requirement set at 66% or 2/3. Zero value tokens are staked as simulation and consensus.
The Fourth Milestone is Greater Community. Hubs are matched with other Hubs to form Alliances as the basis for multi-community masternodes. BBS functionality is introduced where users can vote and comment on topics. Taking conversation from chat to initial stages of action through discourse, Alliances form the backbone of largescale projects where many Hubs of diverse abilities and geographies come together to reach common goals. Both chat and BBS are containerized and run via existing cloud infrastructure as the genesis for the MUSE content management system and content delivery network.
The Fifth Milestone is Permissioned Distributed Ledger. Fundamentally, MUSE permissioned distributed ledger oversees a content management system and delivery network and is run via multichain architecture. MUSE CMS/CDN is overseen by a MUSE PoS masterchain with validators being an initial lottery based select group of Alliances. The PoS masterchain manages DAG based sidechains and oversees the state of the whole ecosystem through audits. MUSE CMS/CDN includes trust-based frameworks for thing such as operating quorum based multi-party computation, oracles, edge-based computation, and container orchestration. MUSE CMS/CDS functions with data redundantly chunked out over simulated member devices, delivered torrent style, and rooted in the IPFS protocol. Staking rewards are given as credit towards use at Milestone 8.
The Sixth Milestone is Credibility. Without trust in oneself, others, or in data, ideas cannot spread, limiting opportunity and understanding on multiple levels. MUSE interactions populate a privacy driven public facing profile. Users can remain anonymous and work only within the MUSE ecosystem or can integrate a Credibility based alternative to KYC/AML for future localized on/offramps of assets and ideas. External sources of data are ranked via Credibility as genesis for trusted Oracles and are added to as data points for comingling in Polya’s Urn search.
The Seventh Milestone is Tokenization. MUSE produced smart contract templates enable token minting, burning, and settlement functionality for generation and exchange of LC Tokens. LC Tokens are generated from assets like excess smartphone processing power or storage, Oracles, vehicles, Credibility, security or utility tokens, fiat, or any traditional or alternative asset class that has a potentially liquid p2p marketplace. Baskets of LC Tokens represent scalable economics from local needs to global demand and culminate as intrinsic socioeconomic value for LC Coin as an overall fungible medium of exchange. The ecosystem genesis token is my human capital as quantified through profits generated via Phase 3 of Liquid Capitalism LLC as mentioned in this paper’s introduction.
The Eighth Milestone is the Social Marketplace. The LC Token Secondary Exchange is established and is integrated with Credibility and its social aspects to establish the backbone of the AC economy of assets and ideas. Presented through a social network GUI, LC Tokens are traded seamlessly across scalable whitelisted greater MUSE communities. LC Coin is the reward paid out to validators via staking on the PoS masterchain.
The Ninth Milestone is Distributed High Performance Computing. In preparation for MUSE permissionless, MUSE permissioned validator membership opens up to globally diverse, global volunteer beta testers beyond the lottery system detailed in Milestone 5. MUSE CMS/CDN moves out of the simulated environment and is distributed across user devices. MUSE DHPC is generally based upon variations of edge computing and mesh networks where physical proximity, proximity of membership in Hubs and Alliances, and proximity of time/latency and space constitute edges. DHPC is itself an LC Token and available on the Social Marketplace.
The Tenth Milestone is Governance and the release of MUSE permissionless chain 1.0. MUSE governance is defined as governance over groups of people, economics, and rules of the greater ecosystem, fundamentally built to allow fluidity of leadership, benefits, and opportunity emergent through both merit and contribution. The MUSE Development Kit is a scalable smart contract based no-code development kit. It allows people to author or leverage smart contracts to do things like create, containerize and tokenize software or assets, import existing software into MUSE, for governing people and organized communities, or edge computing with scalable cost dependent on both physical and virtual proximity. Either LC Tokens or LC Coins can be used for counterparty agreements and transactions.
The Eleventh Milestone is Liquidity. Some nodes or masternodes are incentivized liquidity pools, sharing resources for mutual gain. In collateralized liquidity pools, node members put up any asset of choice as potential collateral for P2P liquidity and localized on/off ramps for LC Coin. Checks and balances are determined through MUSE governance to avoid inflation or deflation of LC Coin. These collateralized liquidity pools integrate MUSE Credibility as KYC/AML and allow people LC Coin ecosystem off ramps to their asset or currency of choice.
The Twelfth Milestone is Exponential Growth. Individuals and groups within the MUSE ecosystem can raise capital from each other. Any LC Token or Coin is considered capital, providing a highly liquid system where the barrier to economic entry is significantly lowered by allowing people to fully leverage their assets. Credibility is extended to cover credibility of Hubs and Alliances within MUSE as rating system to determine risk of investment of capital. Whether high risk high reward or slow and steady, more ideas have a chance to flourish because MUSE unleashes the true value of capital by enabling high liquidity of both material and immaterial capital and labor.
Chris Banbury
[1] https://www.technologyreview.com/s/603366/mathematical-model-reveals-the-patterns-of-how-innovations-arise/
[2] http://cryptowiki.net/index.php?title=Blockchain-free_cryptocurrencies