Introducing Value Physics

Punia Viision
Punia Viision
0x421f
October 25th, 2021

Authors: BlockchainJames [James Waugh], nintynick [Nick Naraghi], Cryptnotiq [Ian], Metadreamer, Puniaviison [Punia]

Why

We believe that the nexus of web3 technology, self-enlightenment, and environmental-economic conditions places humankind in the midst of a radical point in human evolution that can alter societies for millennia to come.

Our mission is to build models which can aid individuals from any background, socioeconomic class, or location to help build a global collective consciousness that can never be brought down by any ‘corrupt’ centralized power.

We fundamentally believe that each one of us has a light within us. When that light is recognized and aligned with the world we are able to produce our life’s work, and humanity as a whole evolves.

Making that ascension into our higher selves is an internal journey that can be influenced by external conditions. Meeting a spiritual guide, finding people you love working with, or devoting yourself to cause you deeply believe in are all examples of things we’re able to achieve when we have that alignment.

Achieving that for every human in the world is the end game for human coordination.

How

This is done by stacking humans that are on the same wavelength in specific environments that stimulate a collective consciousness.

The metaverse brings people together like never before and allows the free flow of information and thought; however, we believe that there is a major missing factor here which is the physical environment. Even if a group is on the same wavelength, in their remote discussions they have different external stimuli affecting them subliminally which prevents them from truly reaching a collective conscious.

We hypothesize that bringing a similar group to a specific geographic location for short periods of time enables them to reach a new level of groupthink which can have exponential returns compared to remote communication. These can be short-lived experiences of a few days at a time to reach this new state of mind, then the ideas can be implemented remotely in-home locations until the time arises where another group thinks the session is required to push forward.

Just how like SF grew to be a collective of minds, capital, all stacked in one location to advance technology across the world like never before, we are envisioning creating a decentralized version of this for spreading web3 technology at an even faster rate, where we can stack the required humans in locations (even if only temporarily) to create the same effect but on a highly global and integrated level where there are very low barriers to entry and anyone can participate.

What

Value physics is a weird phrase, what does it mean?

Value physics seeks to define the relationship between people and how they coordinate - with “value” being the elementary particle by which this coordination happens. Drawing parallels with physics - similar to how the photon is the elementary particle that carries the electromagnetic force.

Outside of making us seem way smarter than we actually are, we find that the analogy with physics is useful in helping us create a mental model for how value works and how to explore it.

Something we have to work on to create a common understanding of is what we mean when we talk about “value”. A provisional definition we are playing with is: Value is the emergent benefit that emerges out of action.

An example being: a woodcutter chopping down a tree to create wood. Extra value is created by the action that is greater than the tree or the person by itself.

As societies and economies emerge and grow more complex, we find the locus of value not being in the direct interaction between a person and a resource, but rather in the interaction between people.**
**

We think about coordination as the set of underlying values, stories, principles, and institutions that support our ability to work together. All of which create our equivalent to the laws of physics that govern the material world.

Coordination

Coordination between people to accomplish shared goals is the largest creator and driver of value that we have today. As such, improvements in coordination are incredibly high leverage and massively important as they ripple to every corner of the modern economy.

In the economic sense, the idea of value is mostly abstracted by “the market” and exists as much more of a theoretical concept to most people. As economies grow more complex and global, this effect will only continue.

The market is a beautiful thing. Though flawed, through a mostly decentralized structure, it is able to aggregate the opinions, preferences, and beliefs of a wide swath of economic participants into a unit of account that is able to be relationally compared to other prices to understand relative value. Super dope!

Currently, most of the market is represented by stocks [and their associated derivatives] that embody the corporation. While those that trade and invest in stocks are ngmi, they represented a huge step function improvement with how we coordinated together. They enabled enterprising individuals to explore [and *cough* colonize *cough*] and map the world to eventually usher in an era of unprecedented globalization.

The issue with stocks though is that they are rigid. They exist as paper certificates that are digitally represented in silos within comatose and obscure institutions that literally no one has ever heard of [DTCC]. As such, they can’t really interact with the rest of society.

There's no way for Communities/Humans to truly get behind these projects more than simply buying x amount of stock. As an example, it is impossible for Coca-Cola to give a fractionalized share of their company back to a customer when they buy a drink. The cultural gap is also a large chasm to cross - AirBnB proposed giving shares to super hosts, but the proposal was shot down.

Ethereum, ERC20 Tokens, and the Internet of Value

With ERC20 tokens, we see the coordination mechanisms of the joint-stock, open market era becoming digital. This means these mechanisms become orders of magnitude more fluid, flexible, and impactful. Another step-function improvement in coordination.

Understanding this as simply something that takes a physical representation and turns it digital is accurate, but understated. When information became digital with the internet, we rapidly moved from newspapers to social networks within 10 years. Such is the profound level of change we can expect to come to coordinating value with the wider adoption of tokens.

In studying Value Physics, within the new paradigm of the ERC20 token, we want to describe the underpinnings of token economies and what they are capable of doing. One way we approach describing this theoretical framework is by doing value experiments. In a similar vein to how aspects of physics are understood and described.

Value Experiments

We aren’t really the first ones to propose the idea of doing value experiments. Though, it may never have previously been described as such.

There is a long legacy of experiments we can look at in the crypto space:

  1. Tokens as a fundraising mechanism.
    1. Pioneered through the ICO in the 2017-ish era.
  2. Token games leveraging human psychology to produce emergent effects.
    1. Pioneered by Team JUST most famously through FOMO 3D.
      1. Attempting to define an AI that builds itself by coordinating the people creating the game. Some trippy shit!.
  3. Liquidity mining.
    1. Pioneered by Synthetix and Compound.
      1. Kicking of DeFi summer!
  4. Targeted Airdrops.
    1. Unclear who really pioneered it, but Handshake and Uniswap were the early, prominent examples.
  5. DAO coordination.
    1. What was first described by ‘The DAO’ coordinating as a community means social capital & financial capital can be combined to create exponential organizations.
    2. Tangible examples of this are MetaCartel, MetaCartel Ventures, etc.
  6. Web3 development.
    1. Value incentives for more meta coordination. Pioneered by MetaFactory.
      1. Giving back tokens to those that buy their products, to contractors that they work with, etc.
      2. DamagedGoods’/MF idea of giving tokens to those that RETURN damaged, stained, no longer fitting MetaFactory clothes.

The scale of experimentation we are able to conduct on the idea of value through tokens and related pieces of blockchain infrastructure vastly exceeds anything we were able to do in the past. For that reason alone we can’t help but feel incredibly bullish on our collective future here.

There is so much to be learned by experimenting and understanding the experiments that came before us!

Conclusion

We seek to understand Value Physics so that we may improve the way by which we coordinate. We do this so that builders may use this information to coordinate to solve all of our current most pressing issues. Coordinating humans and ideas is the single most important way to drive forward a brighter future - now we have digital value to do this.

Things like:

  1. Global Warming
  2. Natural Resource Depletion
  3. Degradation of Institutions
  4. Monopolization of Power

For that, we are excited!

Arweave TX
Ej_3ZbMy4FACD5OyZYlfMkZzhYV-v5evCE8Eu5oEbGw
Ethereum Address
0x421f223e19877D9765Ecd6e8EC4812457229B36A
Content Digest
mfQHjcr1Ealb4CGQCOQe5hIMZWzoj5v5suIagYTWaT0