The Peoples coin ideal,
1. why fiat circular money system cant separate qualify from quantity -
2. why implementing gold standard in the digital domain can restore quality
3. what is spacemesh and what novel about it
2. THE WESTERN DISEASE
● Short-term thinking can lead to future
● Individualism leads to more prisoner's
dilemmas, excusing divisive behavior.
● Our era is marked by deceit, with trust
perceived as weakness.
● Media uses language as a control tool, and
campaigners fabricate realities on TV.
● The Economic Story:
To boost growth, the U.S. fueled overconsumption and
subprime loans, leading to the 2008 crisis. Excessive
capital profits widened the wealth-income gap.
● The Logic Formalization Story: The 20th century aimed
to ground Natural Language in axiomatic science,
endorsing the "Perfect Language" that validates
science as our moral and ethical guide.
CHRONICLE OF A FAILURE FORETOLD
A picture held us captive. And we could not get outside
it, for it lay in our language and language seemed to
repeat it to us inexorably
- Ludwig Wittgenstein
4. COLLECTIVE ILLUSIONS
Beliefs shape perception, guiding us to see a
reality that confirms them.
Collective illusions arise when people adopt
views they don't genuinely agree with, assuming
widespread support. Egos and groups maintain
false self-images, unaware of realities outside
their privileged lives and constructed
5. HOW DOES MONEY GET ITS VALUE?
Fiat Money have value from social convention: “money has value because it is accepted, and why
is it accepted? because it is accepted!” Obviously this is not a good explanation - We are
seemingly caught here in a circular trap, for the purchasing power of money is explained by
the demand for money while the demand for money is explained by its purchasing power.
Money VS other Goods - Demand for good derived from its perceived benefit, Money is not useful
in itself, but because it has an exchange value, it is exchangeable in terms of other goods
and services. Money is demanded because the benefit it offers is its purchasing power, i.e.,
The issue with money
Fiat money of the sort we use today could not and would not come
about in a market setting. What the market created—gold-based
money—the government had to destroy before leaving us with paper
money whose value as a currency depends on the management
practices of the central bank.
6. FIX THE MONEY, FIX THE WORLD
Money coordinates human action but also divides
us, driving fierce competition and environmental
damage. We must account for externalities and
find consensus on their nature. To address these
challenges, we need to slay Moloch, separate
quality from quantity, and repair the flaws in
the monetary system. This shift requires complex
wisdom and holistic approaches for sustainability
and balancing human needs with environmental
NOT Platonic Scale NOR Relativistic Scale
Then What Scale???
7. CRYPTOCURRENCY IS THE SOLUTION
In Satoshi’s vision of magic internet money anyone can join via mining from home,
there lies a proposition for a new global social order; by purging us from fake
fiat money, we can begin to untangle some of the damage modern positivism has done.
We believe in this vision: in handing power to the people, to art, and ultimately
to collective consciousness.
Cryptocurrencies offer an elegant and enhanced solution by providing a digital
resource with indisputable value that cannot be manipulated or misrepresented. Re
introducing material-logic in the digital domain, separating “digital commodity”
from “digital money” represents gigantic hope for a fair-money system not
controlled by the government, where all of us able to see clearly in real time, how
people are doing and what they care about.
THE OLD “GOLD STANDARD” ON NEW DIGITAL FRONTIERS
Why Crypto even
8. PART II - THE PEOPLE'S COIN
Foundational to our ability to fix incentive landscape
- is the idea of PEOPLE’S COIN - the 8 billion that we
are using cryptographic technology to actively
inference beliefs and minimize free energy
1. Non Rivalrous
2. Minimizing Free Energy - State Transitions
3. Commons (permission to manipulate payoff function
on all our belah)
9. THE STATE OF THE PROMISE
Where is Crypto?
Permissionless Decentralization stands at the heart of a promise to reintroduce a
global, free, open and neutral playing field, where bottom-up solutions can emerge
without the possibility of being censored.
More than a decade after inception, Bitcoin has scaled up, but this has come at the
cost of high energy consumption. Its promise of decentralized home mining is now a
Proof of Stake (PoS)-based chains, such as ETH, offer scalability as far as energy
consumption, but at some cost to decentralization. They are also, by definition,
permissioned. This too puts the promise in jeopardy.
Permissionless-ness is the next major challenge the industry has yet to achieve: an
industry-wide pain that only Spacemesh can solve.
The importance of the underlying asset: Goldilocks & the Three Bears
PoW PoS PoST
Too Hot Too Cold Just Right
Too much at stake:
Wasteful and costly
Circular, Not enough
Just the right stake:
Storage space is a
physical asset with a
real cost, but is
mostly a sunk cost
with finite supply:
installed base, 50%
mechanisms are based
asset, to ensure they
have ‘skin in the
game’ and are
incentivized to act
● Underlying asset
being contributed has
11. PoW vs PoStake vs PoST
Ever-increasing cost of mining +
decentralization = secure
Coin balance Storage space & time
● CPU race is costly & wasteful
● Concentration driven by
mining farms & pools
● Compromised security due to
● Built-in centralization, especially
when token distribution is overly
● Security concerns due to problematic
assumptions & lack of reliance on a
finite, physical asset
● Incentivizes hoarding
Yet to be proven in market
CPU / GPU power
No cost to validate + decentralization
= scalable & efficient transactions
No cost to validate + actual
decentralization + no incentive to hoard =
scalable, efficient & secure transactions
This shows the different technologies applied to crypto currency and how Proof of Space-Time is
superior to existing technologies
12. THE PEOPLE’S COIN
To be truly regarded as the people's coin, distribution is essential. Our main focus is
on improving how resources are shared, creating a large and sustainable group of
individuals mining from home.
1. Fairness First: Fairness is at the heart of money, so Spacemesh prioritizes fairness
by ensuring equal treatment for even the smallest miners.
2. Lowest Barrier of Entry: Spacemesh aims to enable anyone, regardless of their
location, without the need for specialized equipment or prior knowledge, to join the
network, mine from home, and receive a monthly allowance of Smesh coin.
3. Collaboration Focused: In response to the prevailing extreme individualism, Spacemesh
promotes collaboration via incentive compatibility. For home miners, working together
becomes the most practical way to achieve economic independence, transforming a modest
monthly allowance into sustainable earnings.
Read more on the qualitative aspect of money systems (7 Min read).
13. THE SUPERIOR SOLUTION
● Race-based protocols encourage malicious
behavior, especially at steady-state when all
protocol subsidies have been exhausted.
● Mesh structure prevents winner-takes-all
outcome, because many participate in block
● Consequently, no leader needs to be elected
which is qualitatively superior to existing
● Honest blocks are guaranteed to remain valid as
Tortoise protocol ensures irreversibility.
● Protocol remains race-free even after block
Existing protocols are not incentive-compatible,
which means that:
● A rational actor has an incentive to act
dishonestly in some cases.
● Acting honestly does not always maximize
payouts due to the costs involved.
Spacemesh reassures honest actors that:
● Payout will not be affected by dishonest
● Acting honestly will maximize their payout.
Spacemesh resolves some of the key challenges associated with legacy protocols.
14. THE BLINDSPOT PARADOX
We can’t see our own blinspots, we need an
external index. In the case of economy, this index
was gold, and now it’s nothing.
Having no external guide, make it virtually
impossible to separate facts from beliefs.
15. CHESTERTON’S FENCE
Understanding past decisions is vital for
making good choices. Differentiating situations
where there is no clear right or wrong from
cases with fundamental truth can be
challenging. Robust evidence of fitness impacts
can help distinguish between them.
17. Additional Ideas worth exploring
Money to value like ruler to object of measurement
Global order (natural numbers) vs partial order (family tree)
Open System (The Universe) vs Closed System (Mathematics, Fiat Money)
Social Evolution via State Transitions
Minimization of free energy, the healthy part of speculation