Game Theory and Governance of Scalable Blockchains for use in Digital Network States

Chapter 1 - Pre-word

What follows is the basis of what we hope will become a book and set a standard in the industry for what true decentralisation is. No premines, ICO's, companies, CEO's or early Venture Capital. Just community backed freedom for all participants.

Over the coming weeks we will publish a series of video blogs for you to tear apart, where we discuss systematically, in order of necessity, what the essential ingredients are to decentralisation. We go deep, discussing at length the game theory of what happens during attacks, attack vectors, the principles to follow, a vision for the future, the best tech stack required, reputation, governance, censorship resistance, tokenomics, immutable communities, DAO's and new funding models, future implications of the technology and finally, we provide some examples of this technology applied, in use in the real world.

We ask for the input of the community to correct us where we are wrong, debate us in the comments where it adds value and help us write this book. In this way, we can evolve a truly open source, free, community driven, work that passes on sacred knowledge of how to decentralise a community properly, what is required to achieve it and what the implications for the future are.

If any community has the knowledge and ability to do this, its us, here, now.

There is a certain way to achieve true decentralisation. The knowledge, we believe, holds the key to freedom and ultimately an improved path to spirituality on earth. A world free from the influence of today's centralised, corrupt power brokers who at this point, clearly are not going to support truly decentralised systems

This knowledge must therefore be documented, contested and cast into stone on the best text based storage blockchain of them all, Hive.

The community on Hive is amongst the most principled, and demonstrably battle hardened in the decentralised movement. By virtue of this, we can reflect on our experiences of war, revolution, successful defense against attack and evolution over the last 8 years in an attempt to document what a truly decentrlaised community needs in place in order to stand the best chance of succeeding, remaining decentralised and even thriving.

We are not the best writers, and have kindly received interest from the likes of @trostparadox who, with his standing in academia at Oklahoma State University may be able to help us transform parts or all of this book into an academic work, and from @taskmaster4450 who has offered to help turn parts of these videos into a well written text. We have also had kind offers of help from @mightpossibly to use his AI skills to turn much of what we are saying in the videos into comprehensible text.

Thanks to @thedeltron for helping with the filming of the latter part of the videos, to somewhat improve the quality for the listener / viewer.

We are always looking for others to contribute to transforming the following set of video discussions into a well written text document.

The following 24 chapters (you are currently reading chapter 1) have been filmed over the course of over 14 months. A tremendous amount of thought, experience and planning has gone into the order and structure of what is being said. We ask that you listen to what we are saying and give your thoughts constructively, maybe you can help us evolve too!

It is long past time to document and spread this knowledge so that others can use the same model to decentralise properly and give themselves the best chance of achieving it possible.

In freedom, and defense of it,

@starkerz, @theycallmedan

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Table of contents:

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Securing Digital Rights for Communities

(Game Theory and Governance of Scalable Blockchains for use in Digital Network States)

1. Pre-word (This blog)

2. Vision and Implications of Decentralisation for Network States - View Chapter

• Voluntary migration to alternative economy
• Communities have their own sovereignty
• Communities create their own sovereign economies
• Communities form network states that are recognised by governments

3. The Underlying Principles - View Chapter

Difficulties in arriving at true decentralisation. Arriving at the theory was a freak event that is incredibly difficult to arrive at theorising logically forwards, but possible for us to arrive at by using the system by mistake and then, at a later date realising that it has all of the correct theory built in by default without even the builder reaslising they had built it in

• Petri dish cultivation model
• Universal Digital Human Rights (UDHR)
• Everyone did it wrong

4. What Layer I Should Do - View Chapter

Data availability (text based data only)

State Recall

• Historical State recall (long form text storage)
• Table of truth, custom json (a way to put non standard data on the table of truth), indexing layer
• Accounts
• Communities/followers list
• On chain actions such as posting/commenting
• Governance voting (what is governance later)
• Infrastrucutre incentivisation (ability for micro payments)
• Transactions / Trasnfers
• What this means / implications

5. Fees - View Chapter

• Spam limitation & resource credit systems
• Incentivising community run nodes and infrastructure
• High fee layer I bad
• Low fee layer I good

6. What Layer II Should Do - View Chapter

• Application operation and services
• Rely on security and account system of layer I
• If done correctly, layer II should not need layer I security
• Smart contracts / heavy data (non text) & computational based data
• Tokens
• Wrapping
• Decentralised Finance
• What this means / implications
• Escrow & Liquidity pools

7. Sustainable Economy & Decentralized Coin Distribution - View Chapter

• Distribution types
• Incentivised Stake Holder Distribution (ISHD, AKA Proof of Brain (PoB))
• Social distribution as a Trojan Horse
• Distribution to multiple parties
• Ongoing distribution
• The importance of earning your tokens
• Keeping inflation in check
• What you want to see
• What you don't want to see
• Application of Semi Centralised Models
• No compromise for free speech & censorship resistance
• "Founder" stake size / major stakeholder dominance

8. Reputation - View Chapter

Hive has intangible re-putation as well as on-chain reputation via tangible digital recordables. This is unique to decentralised systems, where you have a digital reputation and an intangible human to human readable, non numeric reputation that adds a subjective value to the account of a user. It is important to note that this is on top of the intangible reputation that you have in normal reality with your friends.

• Building reputation
• Reputation based trust
• Reputation based account value + escrow
• Reputation based delegation for voting

9. Why Free Open Source Software (FOSS) is Needed for Security - View Chapter

10. Bridge to Governance - View Chapter

• What is governance
• Why you need governance
• Data availability layer run by multiple people around the world, how do they come to an agreement on historical data and updates

11. De-Governance - View Chapter

• PoW - infrastructure voting
• POS - un-parameted coin voting
• DPOS - Delegated Proof of Stake - Parametered Coin Voting
• Difference between DPOS and POS
• What PoW can't do
• PoS limitations
• Why an additional model is needed for UDHR
• Web2.5 vs True Web3
• No founder, No ICO, No VC, No company, No CEo, no Pre-seed / Pre mine
• Alignment of incentives between all players
• Community built & ownerless
• The problems with Founders
• Voting models
• Everything is some form of voting
• Why delegating is important
• Community accountability
• Why community should vote on protocol variables
• Avoiding AI takeovers
• Why Big Tech conglomerates will dominate web2.5
• Conflicts of interest with web2 business model
• Ensuring a large Voting demographic
• Methods to incentivise community voting
• Witness voting decay
• POS for collateral provision
• Counter balance to "code is law" maximalists by adding a human element to the eco system operation
• Tomorrows politicians
• Delegating to politicians
• Other Semi - DPOS models

12. Coin Voting Parameters - View Chapter

• Importance of long lock ups for governance participation
• 1 month voting delay
• 3 month lock up
• Stable coin security
• Hair cut rules
• time delay on bulk token swap
• Inflation control
• Importance of transaction taxes
• Backing the token with community interactions
• Rewards for holding and locking in
• Dapps and Services as holders of last resort
• Anonymous accounts vs known accounts
• Importance of locally run Desktop apps for censorship resistance

13. Attack Vectors and What to Do - View Chapter

• Direct 50% attack
• Indirect slow accumulation attacks
• How to defend against attacks
• Achieving circular economies
• You cant buy a community
• The community is layer 0
• Distribution as security
• Forking holds the rich to account
• Reputation building & trust
• Reputation damage
• NFTs for reputation building
• Infrastructure operation
• Voted as community member of the month
• Benevolent acts create resilient communities and security
• Its hard to attack a system that is helping people
• Bringing the government into the ecosystem with bonds

14. Balancing Scalability and Censorship Resistance (Disproving the Scalability Trilemma) - View Chapter

15. Censorship, and Morality of Pre-Mines - View Chapter

16. 3 Pillars of Decentralisation - View Chapter

17. Algorithmic Stable Coins on Layer I - View Chapter

• Bond System, Pristine collateral & Lending

18. Off-chain Data Availability Layer for (Non Text Data) - View Chapter

• Off-chain Storage
• SPK Network
• Incentivising Peer to Peer Offchain Media and file storage

19. Service Infrastructure Pools (SIP) - View Chapter

20. Open Source Makes IP Valueless - View Chapter

• IP valueless, Gov tokens and influence valuable
• OS Iteration of FOSS IP adding value to base layer token as the new business model

21. Importance of Decentralised, Immutable Communities as Network States - View Chapter

• Decentralised token distribution for communities on Layer II
• Power of truly sovereign communities
• Sustainable token value & staking incentives
• Liquidity pools for each community
• Community Self regulation of content and rewards distribution
• Content gateways
• Stake-weighted tag forcing
• Content validators
• Platform / validator Content policies
• Content watchers / regulators
• Reward disputes

22. DAOs & Community Proposals for Self Funding - View Chapter

• Decentralised / neutral funding
• What is a DAO
• Decentraliesd vs VC backed DAO's
• Returning value to DAO's
• Alternative to "no strings attached"

23. A New Model for Start up Funding - View Chapter

• DAO / Mining token / fix Gov token supply model / self funding with DAO's
• Purchasing from the chain
• Liquidity and value through miner token purchasing, staking and infra operation
• Starting a new decentralised project
• Things you want to see in the funding of a project
• Team
• Go under the radar, low value tokens at the beginning
• Easy to distribute tokens (by delegating or ISHD)
• Aligning everyone's incentives
• No initial founder tokens
• Equal opportunity mining
• Rebel against vested founders
• Who do you give the tokens to and who decides?
• Choice of community
• Token Drops vs GPU mining
• Founders don't end up with majority of supply
• Community supports founders
• Monitoring the decentralisation of the project in the early days

24. Future Implications - View Chapter

• Impossible to manipulate history
• Impossible to shut down
• Money attacks makes the community stronger and richer
• Holding abusive oligarchs to account
• Digital self sovereignty
• Network State communities and Governments
• Fee-less De-Fi (Decentralised Finance)

25. Examples of Self funded Communities and Initiatives - View Chapter

• Ghana borehole projects
• Ghana health checks
• Venezuela Street acrobatics infrastructure funding
• Pay utility bills by creating content in Cuba, Mexico