18th Jun 2024 Gemini 1.5 Pro
Griff Green begins by introducing the concept of the "metacrisis," a term that encompasses the numerous interconnected crises facing humanity today. He argues that humanity's exponential technological growth, coupled with our inability to effectively coordinate on global issues, has created a dangerous situation. He emphasizes the inherent drive within humans to solve problems and create, acknowledging that this drive, while positive in many aspects, has also led to the development of technologies with the potential for catastrophic consequences.
Green maintains a cautiously optimistic outlook, believing that stopping technological advancement is not feasible nor desirable. Instead, he posits that the solution lies in developing robust global coordination networks and aligning incentives to ensure that protecting society from existential risks is as rewarding as pursuing individualistic gains. He uses the analogy of financial aikido, suggesting that we must harness the energy of greed and redirect it towards benefiting society as a whole.
If you are extremely greedy, but you make money by helping the homeless, is your greed really a bad thing? You know, it’s like, no, get out there. Make that money, dude. Make that money and help the homeless. Right? Like, that’s amazing. Isn’t this what money is supposed to be? It’s supposed to be, for me, at least, I always thought of it as being happiness points.
Green contends that humans are fundamentally driven by games, particularly the game of money. He argues that blockchain technology and the ability to create new tokenized economies offer a powerful toolset for redirecting human behavior towards positive outcomes. By designing economic systems that reward activities beneficial to society, such as environmental protection or social good initiatives, we can incentivize positive change.
He emphasizes the need to move beyond traditional funding models for public goods, such as reliance on donations or government funding, which often suffer from limitations and inefficiencies. Green envisions a future where purpose-driven economies, fueled by tokens and decentralized governance, play a significant role in addressing societal challenges. These economies would empower individuals to contribute their skills and efforts towards shared goals while being fairly compensated for their contributions.
And then the demand for that token is for paying for the transactions. Of course, it is rivalrous in some ways, because if you’re trying to send money that’s a rivalrous part of the of the system, but being able to receive money is a non-rivalrous right, part of the system, right, right? So, you know, and and to give credit to corporations and the tech space, like they’re creating a lot of public goods too, like Facebook is effectively a public good, right?
Green laments the stagnation of innovation in governance models, highlighting the fact that many democratic systems rely on centuries-old structures ill-equipped to address the complexities of the modern world. He believes that blockchain technology provides a fertile ground for experimentation and the development of new and improved governance mechanisms. He critiques the current plutocratic nature of many blockchain-based voting systems, where token ownership directly correlates to voting power, and advocates for more nuanced approaches.
He suggests incorporating elements such as reputation systems, quadratic voting (which aims to balance individual influence with collective decision-making), and innovative signal aggregation methods that move beyond simplistic "yes" or "no" votes. Green envisions governance systems that are more inclusive, transparent, and responsive to the needs and desires of the communities they serve. He sees potential for nuanced approaches to transparency where information can be revealed selectively, allowing for anonymity where necessary while maintaining accountability.
What if we could do that with our communities? What if we could take the data that people are putting out, what they say on the forum posts, or even just create little games, little simple games where they can signal their preferences.
Green highlights the augmented bonding curve as a potentially revolutionary innovation in economics. He explains that traditional bonding curves, smart contracts that issue tokens in exchange for collateral, offer a novel approach to price discovery, especially in illiquid markets. However, configuring and deploying these curves effectively can be complex. The augmented bonding curve, as developed by the Token Engineering Commons, addresses this challenge.
Green points to the success of the Token Engineering Commons (TEC) token as an example of the augmented bonding curve's potential. Despite functioning as a donation-based system, the TEC token has outperformed even Ethereum at times. This demonstrates that with careful design and a focus on long-term value creation, it's possible to design tokenized economies that are both sustainable and financially successful. He emphasizes that the TEC's success stemmed from a combination of innovative token design, a focus on social good, and a deliberate strategy to exclude profit-driven actors during the initial stages.
And so, Simon De La Rouvier and Bancor kind of co-developed this independently. They will win a Nobel Prize. It’s just a matter of time, because this is just an incredible economic innovation.
Green stresses the growing importance of "token engineering," a nascent field focused on designing, analyzing, and implementing tokenized economies. He believes this discipline will be even more crucial than AI engineering in the coming years. Token engineering, he argues, underpins the creation of safe, sustainable, and beneficial decentralized systems.
He draws a parallel between token engineering and civil engineering, emphasizing the need for rigorous design and analysis to prevent catastrophic failures in both fields. Green advocates for the development of robust simulation tools and the establishment of professional standards within the token engineering community. He highlights the work of the Token Engineering Commons, which fosters research, education, and the creation of open-source tools like CADCAD, a software suite for economic simulations. Green envisions a future where token engineering plays a vital role in shaping a more equitable and prosperous society.
And the coolest thing about the Token Engineering Commons is it’s basically just a donation system. People put money in, they got a volatile token that’s backed by a bonding curve, where its price discovery is deterministic and all that magic, but then all it does is kind of support different groups who are advancing tokens: the Token Engineering Academy, who has trained thousands of token engineers at this point, various classes, and supporting open-source research and like building open source tooling, like CADCAD, which is a simulation software for economies.
Airtable