Autonomics: an autonomous and intelligent economic platform and next generation money tool
AAutonomics: an autonomous and intelligent economicplatform and next generation money tool
Benjamin Munro and Julia McLachlanMarch 23rd 2015 a r X i v : . [ q -f i n . E C ] J un || autonomics DESIGN SPECIFICATION FOR A NEXT GENERATION GLOBAL ECONOMYONE – Ontologically Networked ExchangeVersion 1.2THE HUMAN BLOCK CHAIN PROJECT – A SUSTAINABLE ECONOMYA PROPOSAL FOR AN AUTOMATIC, ALGORITHMICALLY COMPUTATIONALAND INTEGRATED CONSENSUS, TRUST AND DIGITAL MONEY ENGINEComprising Proof-of-Autonomy (PoA) digital money, ‘mined’ by human consensus andtrust within an ontologically unified contract stack, and; an oracle machine (superrecursive algorithm) for a trustable global artificial intelligence and Autonomy of Things. “If we try to run the economy for the benefit of a single group or class, we shall injure ordestroy all groups, including the members of the very class for whose benefit we have beentrying to run it. We must run the economy for everybody.” Henry Hazlitt ‘Economics in one lesson’ ontents X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 x -flation . . . . . . . . . . . . . . . . 425.1.6 Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435.1.7 Efficiency - competition, scarcity and monopoly . . . . . . . . . . . . 43 Any-context system-wide graphs . . . . . . . . . . . . . . . . . . . . . . . . 477.3
Big data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487.4 Web 3.0 and the end of ‘search’ . . . . . . . . . . . . . . . . . . . . . . . . . 487.5 The Autonomy of Things . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.6 The new labour and leisure . . . . . . . . . . . . . . . . . . . . . . . . . . . 497.7 The new corporation and profit . . . . . . . . . . . . . . . . . . . . . . . . . 497.7.1 Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507.7.2 Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507.8 The end of monopoly, advertising and competition as we know it . . . . . . 507.9 The law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517.10 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517.11 News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527.12 The stock market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527.13 Insurance and assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527.14 Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537.15 The social network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537.16 Gaming, forecasting and modelling . . . . . . . . . . . . . . . . . . . . . . . 53
List of Figures bstract
We propose a high-level network architecture for an economic system that integratesmoney, governance and reputation. With this system we introduce a method for issu-ing, and redeeming a digital coin using a mechanism that solves large scale economicchallenges and aims to create a sustainable global economy and a free market.To maintain a currency ' s value over time, and therefore be money proper, we claimit must be issued by the buyer and backed for value by the seller, exchanging theproducts of labour, in a free market. We also claim that a free market and sustainableeconomy cannot be maintained using economically arbitrary creation and allocation ofmoney.Nakamoto[5], with Bitcoin, introduced a new technology called the cryptographicblockchain to operate a decentralised and distributed accounts ledger without the needfor an untrusted third party. This blockchain technology creates and allocates newdigital currency as a reward for ‘proof-of-work’, or ‘mining’, to secure the network.However, no currency, digital or otherwise, has solved how to create and allocatemoney in an economically non-arbitrary way, or how to govern and trust a world-scalefree enterprise money system.We propose an ‘Ontologically Networked Exchange’ (ONE) that is organised withpurpose as its highest order domain. Each purpose is defined in a contract, and theentire economy of contracts is structured in a unified ontology. This unified ontologycomprises just one of each contract type. As the mechanism issues money for labourtransactions, governance is ensured by the economic imperative to collaborate in con-sensus, and in common purpose. Each transaction completed in the unified ontology ofunique contract blocks is also unique, solving the double spending problem. We definethis very many block chained network as the ‘blockcloud’. This forms the foundationof an economic operating system.Unlike current blockchain platforms such as Bitcoin, whose networks are securedusing economically arbitrary cryptographic proof-of-X (PoX) systems, we claim to se-cure the ONE network using economically non-arbitrary methodologies and reasonableeconomically incented human behaviour. We define trust as transactions completedreliably over time in a given context or purpose. By offering market participants con-textualised transactional trust data, economic decisions are made based on reputationand reliability. Decisions influenced by trust and reputation help to secure the networkwithout an untrusted third party. These properties combine in a unique way to solvethe majority attack problem.The stack of contracts, organised in a unified ontology, functions as a super recur-sive algorithm, with individual use programming the algorithm, acting as the ‘oracle’.The state of the algorithm becomes the ‘memory’ of a scalable and trustable artificialintelligence (AI). This AI offers a new platform for what we call the ‘Autonomy ofThings (AoT)’. “The art of progress is to preserve order amid change and to preserve change amidorder.” Alfred North Whitehead Introduction
Fiat currencies are based on confidence and inevitably return to their intrinsic value of zero.Rising prices are a symptom of an expanding currency supply, issued by capitalising non-value, and to non-producers thereby eroding market efficiency and destroying purchasingpower. Humanity needs a money mechanism that accounts for a dynamic money supplyand maintains purchasing power.True wealth can be ensured, protected and sustained economically. Money is a tradingtool that stores this wealth whereas currencies leak it away.We propose a new digital money tool, ‘PoAcoin’ which facilitates a truly free marketand a sustainable economy. This new money tool functionally integrates money, governanceand reputation to enable a globally unified accounting system. Unlike any economic modelbefore in history, this model aims to provide the ideal mechanism for issuing real moneyinto existence to capitalise those industrial endeavours that profit the common good. Itmotivates participants by agreement, transparency and wealth.Currently the money tool and accounting system is being operated by governmentsand private banks. The problem with issuing money as credit is that interest on this debtincreasingly drains value from the economy back to the issuers. The way banks create andallocate capital fails to meet free market needs. No currency to date, including gold, fiat ordigital, has solved fundamental problems of creation, allocation, backing and redemption,or security of value.Governments must issue money by spending, and inevitably will either spend on non-productive enterprise creating both inflation and the depreciation of money, or on produc-tive enterprise – and erode the competitive free market mechanism.So, important questions are; how do we create and allocate money in a way that liber-ates both government and banking from a task which could be run by the free enterprisesystem itself? How do we reorganise human ecology, placing trust and consensus as havingthe highest value, and motivate all of humanity to be more transparent and collaborative,in projects that maximise profit and minimise plunder, nuisance and harm? And, how dowe systemically end the externalisation of costs throughout the entire economy?We define a free market as one where producers and consumers are free to trade vol-untarily, and the market itself is responsible for the issuing and backing of money in ademocratic process. Within the free market exchange mechanism, money is issued by thebuyer and backed for value by the seller. The challenge is how to extend this two partyexchange platform to a global scale.Until now, the solution to the challenge of successfully integrating governance, moneyand trust hasn ' t been possible, however, with the evolution of the Internet and the emer-gence of block-chain type technologies, a world-scale economic mechanism is now possibleand is proposed herein. 7 Orthodox economics has never yet been anything but the class economics of the ownersof debts.” [8, page 7]
In many ways, the current financial mechanism, which has evolved over hundreds of years,has been very successful in capitalising industry and expanding the global marketplace.We ' ve seen the industrial age, the information age, and new technologies in every field ofscience that have been of immense benefit to humanity.However, because banks create money as credit (debt), current banking practice hasalso lead to massive wealth disparity through charging interest on this debt, and, by in-creasingly allocating new money, as debt, to the holders of capital and assets to reducebank lending risk, rather than to the productive working economy. “New money is principally created by commercial banks when they extend or createcredit, either through making loans, including overdrafts, or buying existing assets.” [2,page 6]As we ' ve discussed, in addition to the failure of modern banking to create and allocatemoney in a way that creates a sustainable economy and a free market, over the courseof history we ' ve built an artificially competitive and fragmented marketplace, with verymany separate money, government and reputation systems. It seems almost impossible toredesign the whole system from the ground up. Even digital currencies, and associatedblockchain technologies, of which many claim to be a solution of sorts, are subject to manyof the same challenges.“ How can a government, however well disposed, possibly provide money for private en-terprise since, as we know, it cannot issue it without buying, and the more it buys the moreit invades private enterprise and develops state ownership? ... Why must our genius forincreasing production be forever thwarted by man’s inability to requisition his productioninto consumption? ”[6, page 28]With increasing tension between the benefits of expanding the marketplace, and theill-fitted nature of incumbent mechanisms, it has become obvious our current systems areunder duress. As the world looks to existing establishments for an answer to how to operatean increasingly globalised economy, we argue that is critically important, from a systemdesign perspective, to re-think money at a fundamental level. How do we do this in a waythat doesn’t arbitrarily allocate power and that is governed in a transparent and trustableway?“
Money power is the very essence of sovereignty and the failure by the citizen to assert t renders democracy futile. ”[6, page 30] Being functionally relevant to one another, money, governance and reputation systemsmust be integrated successfully to cause a democratic, free enterprise system. We cannotarbitrarily join disparate system parts together to create a functionally integrated whole. “We cannot solve our problems with the same thinking we used when we created them” And, therefore, our challenges are; how do we;1. Build and operate a world-scale economic system that is stable and sustainable?2. Intelligently create, allocate, back and redeem money within the free enterprise sys-tem itself?3. Build an integrated system, so that the free market can adequately, democraticallyand scientifically both govern and trust itself?4. Have all prices bear only, and all their costs, and organise production and consump-tion in a unified global system, to avoid externalising costs?The main problems with the current financial mechanism are:1. “It permits money to be issued privately, only by a limited number of persons andcorporations who have bank credit, and makes such credit subject to fee. Thusit establishes credit as a privilege rather than a right, and makes it an object ofprofit rather than a utility to further the production and distribution of wealth. Itdenies to producers generally the right to issue money, thus making it impossible toexpand buying power to potential producing power. This results in defeating themass production system.2. It permits the government to issue unbacked money. The only way the governmentcould back its money issues would be to go into the production of goods and services;and this would compete with private business. Thus the problem offers the two hornsof a dilemma, both of which lead to socialisation. If it backs its money issues withgoods and services (and there is no other way it can be backed), it executes a frontalattack on private enterprise. If it issues money without backing it (as it is doing), itexecutes a flank attack on private business through inflation - since to issue moneywithout creating equivalent values is to inflate. Albert Einstein
9. It permits ambitious or designing or fanatical men who are in control of governmentto light the fires of war, threatening the lives and fortunes of untold millions. Thisterrible power lies solely in the political money system since armaments spring frommoney and money springs from government fiat, whereas it should spring only fromthe fiat of the people who would thus hold the veto power.”[6, page 9]From the
New Economics Foundation , the main problems of the current system are:1. “Although possibly useful in other ways, capital adequacy requirements have not anddo not constrain money creation and therefore do not necessarily serve to restrict theexpansion of banks ' balance sheets in aggregate. In other words, they are mainlyineffective in preventing credit booms and their associated asset price bubbles.2. In a world of imperfect information, credit is rationed by banks and the primarydeterminant of how much they lend is not interest rates, but confidence that the loanwill be repaid and confidence in the liquidity and solvency of other banks and thesystem as a whole.3. Banks decide where to allocate credit in the economy. The incentives that they faceoften lead them to favour lending against collateral, or existing assets, rather thanlending for investment in production. As a result, new money is often more likely tobe channelled into property and financial speculation than to small businesses andmanufacturing, with associated profound economic consequences for society.4. Fiscal policy does not in itself result in an expansion of the money supply. Indeed, inpractice the Government has no direct involvement in the money creation and allo-cation process. This is little known but has an important impact on the effectivenessof fiscal policy and the role of the Government in the economy.”[2, page 7]According to Riegel, a sound money system must be separate from the political system,otherwise a corrupted profit motive will result. “We must first of all assume responsibility for the solution of our primary problem ofprospering ourselves. To do this we must master money ... Government must be governedby a principle that defines the separate spheres of business and politics. When we take themoney power out of politics, and allocate it to its natural sphere in private enterprise, weestablish a proper coordination between the profit and non-profit motives of society. With-out this allocation the two spheres are in constant conflict, breeding all manner of pressuregroups and isms that seek to reconcile the irreconcilable. Money is an instrumentality ofthe profit motive and must be issued and backed only by private enterprisers.” [6, page 7]10he volume of money in an economy should be commensurate with productivity, ratherthan being controlled by private interests or politics. “Our research finds that the amount of money created by commercial banks is currentlynot actively determined by regulation, reserve ratios, the Government or the bank of Eng-land, but largely by the confidence of the banks at any particular period in time.” [2, page 23]By designing a money tool that inherently reflects and values the relationship betweencreditor and debtor, ONE is able to re-establish the proper role of money in an economy. “We have seen that the roots of an unstable money and banking system may lie in amistaken understanding of money’s nature by successive sovereigns and governments. ...The misunderstanding of money as a commodity rather than a creditor/debtor relationshiphas so dominated the imagination of our leaders and economists that they have allowed thedevelopment of a monetary policy regime that, despite repeated crises, remains steadfast.” [2, page 141]The private enterprise system itself could operate the money system. This allows pro-duction and consumption to operate effectively without being manipulated by non-marketforces. “The very essence of the principle of private enterprise is the power to acquire anddispose of property. Since to acquire or dispose of property requires exchange and sincethe government or its creature, the banker, may veto exchange by withholding the exchangemedia, it can be seen that there is no private enterprise system in the full sense. Ours is,and has been from the beginning of political money, a political enterprise system, completelydominated by government directly or through its satellite, the banking system.” [6, page27] “Banks create ‘money’ by book entries which are an equivalent of debt against the com-munity. The specific function of the banking system is the creation of debt, or “negativemoney.” [7, page 104]Debt as money makes the current system perpetually dependant on ‘growth’. How cana system that is dependent on perpetual, and not necessarily productive, ‘growth’ create asustainable economy? Perpetual growth and sustainability are fundamentally incompatible. “This debt is automatically self-cumulative and irredeemable.” [7, page 185]11 ebt engine [wealth contractive] Debt $Exploitation E x p l o i t a t i o n D e b t F o ll o w s Lead s F o ll o w s Lead s FollowsLeads I ss ue c r ed i t t o an y l o w r i sk en t e r p r i s e D o an y t h i ng t o ge t c u rr en cy / c r ed i t Economic incentive to plunder
Figure 1: The debt based money engine - arbitrary issuance and incentives “Thus modern capitalism gave birth to a hierarchical form of regulatory control, with thecentral bank at the apex of the hierarchy ... The hope was that the central bank could controlthe quantity of commercial bank money ... however, deregulation and developments intechnology have brought us to a situation where commercial banks now completely dominatethe creation of credit and, hence, the money supply.” [2, page 137-138] “Historical evidence suggests that left unregulated, banks will prefer to create credit fornon-productive, financial or speculative credit, which often maximises short-term profits.” [2, page 24]The current money system, creates a wealth gap, increasingly favouring larger, wealth-ier, companies and asset holders. As the big get bigger, and the rich get richer, labour isincreasingly forced to work for these ever bigger companies. “The political money system cannot help but operate adversely to the small enterpriserbecause his capital resources, on which banking credit is based, entitles him to such a smallcredit that the process of qualifying involves an expense far out of proportion to the pos-sible interest income for the banker, and his profit possibilities are too limited to excite in he banker desire for participation. Therefore, probably 95% of all enterprises are belowthe banking line. The usury laws are, in effect, laws against loaning to small enterprisesbecause they confine loans to sums that are profitable at the maximum rate stipulated ...While the little fellows must engage in cut-throat competition, the big fellows have onlya modified competition. To get from the nether to the upper level, the investment bankeroffers to smaller units the escape of amalgamation and thus he sits in on the profits andmanagement of the new aristocratic corporation which thus acquires a competitively priv-ileged position over the remaining nether group. Thus the political money system forcesbigness as a means of survival. To be little is to be excluded from money power.” [6, page27] We need a money system that funds enterprise at any level, regardless of size. “Unless we find a method whereby each enterpriser shall be able to create exchangepower commensurate with his size, we practice only sham competition and make a mockeryof so-called free enterprise.” [6, page 27] Money must be backed for value to avoid inevitable debasement, and to form the basisof a sustainable economy. Without the economically non-arbitrary backing of a money ' svalue, the money tool itself won ' t function over a long time, or be part of a functionalaccounting system. By the very nature of the money tool itself, money must be backed forvalue in a free market exchange, that is, by the seller. The current financial mechanismand its money tool, fiat currency, attempts to back value, but using economically arbitrarymethodologies. Money forms the basis of a creditor/debtor relationship, as a promise to pay (later) forgoods received now. Unless that promise to pay is eventually honoured, or redeemed, by theissuer, for other products in the marketplace, the promise becomes, inevitably, worthless.The fiat currency mechanism fails to redeem its money, and it therefore fails to operate asa proper money tool.
This mechanism aims to mitigate the systemic risk inherent in the modern financial system.13 .3 Mechanism “ Those who use mechanisms subserve the ends inherent in the mechanism.” [7, page 13]The money mechanism must generate only beneficial aggregate effects for the wholegroup, when used by reasonable individuals optimising for their own good. This is thefoundation of a sustainable economy.“ ... if such a thing were done, little else in the way of arbitrary interference with andgovernment control over the essential activities of men in the pursuit of their livelihoodwould be required. Indeed, just as now not one in a thousand understands why the existingmoney system has such power to hurt him, so, if it were corrected as here outlined, notone in a thousand would need to know or, indeed, would know, except by the consequences,either that it had been rectified or how it had been rectified.” [8, page 3]We claim that;1. The design of the economic system causes all subsequent effects that we refer to asour society and culture.“ ... it is the obsolete and dangerous monetary system that, primarily, is at fault. ”[8,page 1]2. A next-generation money tool is our most essential need.We need a new money tool that is designed to systemically create very many, newand beneficial effects, both locally and globally.“
Nothing useful can be done unless and until a scientific money system takes the placeof the one now always breaking down. ”[8, page 3] “The new concept of money is that, to be sound and stable, and in adequate supply, it mustspring solely from the same source from which all wealth springs, namely - the people, andthat, to effectively coordinate with our mass production system, the people must issue themoney necessary, to buy their production.” [6, page 8] “Either the people must have the money issuing power or the democratic power is lost.No power can transcend the political money power, once we accept its dominion, becausemoney is a license to buy and a license to buy is a license to live. We are dependent upon oney; and when any power outside ourselves controls money we are dependent upon thatpower.” [6, page 44]The ONE economy provides the economic incentive, and the mechanism, to organise alllabour in production to meet all market consumer demand. The mechanism itself creates,allocates, backs and redeems its own money, PoAcoin, in these free market transactions. “Indeed, a major source of objection to a free economy is precisely that it ... gives peoplewhat they want instead of what a particular group thinks they ought to want. Underlyingmost arguments against the free market is a lack of belief in freedom itself.”
1. The economy, society, community and culture are so interrelated as to be one thing.2. Individuals naturally form groups for common purposes. By providing economicincentive to group in consensus we aim to organise the economy by common purposeas the highest order context or domain.3. The specialisation of labour, of individuals and groups, creates economic productionefficiency.4. Individuals and groups will naturally relate economically to trade the products oftheir specialised labour.5. The function of a marketplace is to exploit the efficacy of the specialisation of labour,and to provide an effective method for trading the products of labour. Without amarketplace we wouldn’t be able to trade the products of our individual labour, andenjoy the wealth that this mechanism creates.6. The function of money is to facilitate trade, and therefore the marketplace, by split-ting barter so that any two parties can trade easily at any time. Money must beissued by the buyer and backed for value by the seller.7. Money is a tool comprising an accounting system. The role of the accounting systemis to expand the marketplace by standardising this issuance and redemption processusing a common account ledger and a common money.8. To maintain its value and ultimately its usefulness, the money instrument must beboth issued and redeemed for value. Milton Friedman
15. Money is issued for labour, and redeemed by the products of labour. This ensuresmoney maintains high order value over long periods of time. Sustainable money valueis key to a sustainable economy and a free market.10. This market must be free - that is, operated by free people. Free people have rights– to life, liberty and property, and the right to voluntary, informed, private, anony-mous contract. For the two party exchange to honour human rights, and form thefoundation of a democracy, it must be voluntary and voluntarily public. There mustbe a mechanism that economically incents transparency of transactions and rich trustdata to build reputation.11. The money tool is a mechanism, in which individual use causes aggregate groupeffects, these aggregate effects will be significant for a world-scale mechanism. Wemust build a money mechanism that maximises beneficial effects, and minimisesharmful effects when used by many reasonable individuals. The mechanism mustminimise the externalisation of costs to achieve this. This ensures that individualsacting independently and rationally according to each ' s self-interest maintain thebest interests of the whole group.Prices must bear only, and all their costs. Costs are ultimately derived from labour.12. We must have one integrated money system that operates as a single world-scalemechanism. This is essential to avoid externalising costs.13. The money tool must functionally include governance and trust. That is, the toolitself must comprise an economy-wide governance mechanism and reputation system.Money, governance and trust must be integrated as they are functionally relevant toone another.14. Scaling must be achieved without design or function compromise.15. We aim to integrate money, governance and trust in a unified ontology of purposes. The desire for purchasing power is at least derived from the evolutionary imperative to besafe. Individual safety is assured through purchasing power, and group safety is assured byan economic mechanism that causes beneficial group effects and doesn ' t create the ‘tragedyof the commons’. Purchasing power provides opportunity to participate in the marketplaceof all products, to meet our individual needs. Purchasing power and the marketplace areour freedom to realise the value gained from the specialisation of labour, and collaboration.It is assumed that a reasonable person will tend to follow basic economic incentives.These are; 16. Labour for money to increase purchasing power, in order to participate in the freemarket place.2. Use this purchasing power to consume products of the marketplace.3. Work more, and leisure less as purchasing power decreases and wages increase.4. Work less, and leisure more as purchasing power increases and wages decrease.5. Compete for wages in the free market.6. Be willing to pay higher prices for more trustable labour, and lower prices for lesstrustable labour. Tools influence the behaviour of those that use them, particularly the money tool. Com-pared to fiat currency, a new money tool could be as different as an abacus and a super-computer. “The four cardinal truths of money practice are: The Purpose of Money, The Source ofMoney, The Backing of Money, and The Democracy of Money.
The purpose of money is to facilitate barter by splitting each transaction in halves,obviating the delivery of value by one trader (the buyer) and permitting the othertrader (the seller) to make requisition for his half upon any trader at any time. Thisis the sole purpose of money. Any effort to employ it to influence prices or controltrade is perversive.
The source of money is the trader (the buyer) who receives his half of the barter. Sinceit arises out of the buying process, and is based upon the evaluation of the acquiredvalue made by the buyer, it is obvious that it can have no other source, and is createdonly by the act of paying for a purchase.
The backing of money
Money is given its material backing by the seller through accep-tance in exchange for value. Its moral backing is the buyer’s pledge to accept it forequivalent value in free exchange.
The democracy of money
Since trade is democratic, and since money is an instrumentfor facilitating trade, and since it can arise only from a trader in the act of buying,and be backed only by a trader in the act of selling, it is obvious that money isan instrument of democracy and the essence of man’s sovereignty over business andgovernment.”[6, page 56] 17 .5 Specialisation of labour
By incenting each individual with wages to contribute some specialised part of total pro-duction, a functional economy is able to organise all labour to produce all products for themarketplace. This ‘everyone doing their small part’ is the foundation of wealth generationfor the group. “It must be obvious to any thinking person that our progress from primitive to modernstandards is due entirely to the specialisation of labour and that specialisation of labourimplies the efficient producing of commodities that are not directly usable by the producer.This implies the necessity of facile exchange of products between producers, and that pro-duction can only be as profitable as exchange is facile. Therefore; whatever limits thefacility of exchange limits the efficiency of production since production beyond the capacityof exchange is waste.” [6, page 27]Optimally, money, as wages, should not only incent labour to work, but also incentlabour to work on those aspects of production that generate wealth for the group, and notharm. “Man has learned that he can maintain a bare but precarious existence if he devoteshis thought and labour to garnering or producing only those things that he consumes. Torise above this level of life he must become efficient in some occupation that produces ex-changeable wealth. This specialisation of labour could yield no profit unless there be othermen who likewise specialise; and it is further necessary that they meet to exchange theirproducts. This implies a meeting or market place. Thus we see that three attitudes arebasic to man’s rise and continued progress, to wit: (a) the profit motive, (b) specialisationof labour to gratify the profit motive, and (c) exchange to realise the profit. [6, page 48]Individuals acting in the capacity of producers, earn wages, that then enables thoseindividuals, acting in the capacity of consumers, to use their purchasing power to consumespecific products of all labour.
The profit, or progress motive presses man toward means of greater production and hefinds it in specialisation of labour. Greater production necessitates more exchange to realisethe profit; and thus exchange becomes the neck of the bottle of production and consumption.Exchange, then, is the measure of human progress and limits or expands production becauseproduction (beyond subsistence) is purposeless without it. Therefore man can be only aswealthy as his exchange is facile.” [6, page 48] “Before you finish eating breakfast this morning, you ' ve depended on more than half he world.” An accounting system requires a ledger that reliably credits and debits accounts, creatingnew balances. A common accounting ledger provides the backbone of an expanded mar-ketplace. The expansion of the marketplace creates massive economic and social wealththrough enabling the exchange of products derived from the specialisation of labour. “Money is the mathematics of value and is valueless in the same sense that mathemat-ics is valueless. No amount of value can create money, but when men form a compact totrade with each other by means of accounting, in terms of a value unit, a money system isformed, and money springs into existence when any of them, by means of the act of payingfor a purchase, incurs a debit in the accounting system. Conversely, money is destroyedby the process of selling in which a credit is earned against the previously incurred debit.Yet value is neither created nor destroyed by the process of creating and destroying moneybecause money is but a concept.” [6, page 48-49]The money instrument is the exchangeable token that is used to debit the buyers ac-count and credit the sellers account. The money token would be of no use and no valuewithout an accounting system. It ' s this ledger that enables a common money in an ex-panded marketplace. ONE is designed to allow each user the ability to establish and maintain voluntary privacy,ownership and control of their own data, accounts and contracts.Freedom of the individual and the marketplace must be sustainable. So, we mustdesign an economy that avoids depletion of some common resource when individuals actindependently and rationally according to each ' s self-interest, otherwise we will becomedecreasingly free without understanding why.Without a mechanism that includes effective group consensus, and collaboration, wecan’t have individual freedom. It is natural that in creating value, making a profit will incur costs. If however, the totalcosts are greater than the total value created, the result is a loss, not a profit. When costsare externalised, by having someone, or something else bear the costs, then it is likely Martin Luther King “Profit is any increase in happiness acquired by moral means.” and “Morally actingman seeks to profit; immorally acting man seeks to plunder.” [3]However, if the economic mechanism that we all use systemically externalises costs,and incents its users to externalise costs, then the system itself is acting to overall plunder,regardless of the morality of its users, who may seem to be individually, albeit temporarily,profiting. The only way to solve this, is to have one global economic accounting system,that uses a unified ontology to account for everything. This is successful when no transac-tion coerces another party. “Rather, I am attacking an idea which I believe to be false; a system which appears tome to be unjust; an injustice so independent of personal intentions that each of us profitsfrom it without wishing to do so, and suffers from it without knowing the cause of thesuffering.” [1, page 18] “This is because all men seek happiness, and, when they achieve it, without coercinganyone else, they will find they have gained a profit.” [3]
A free market enterprise system requires that all regulation is provided by, and within, themechanism itself. To eliminate potential bias or corruption, any, and all, economically ar-bitrary external influence must be avoided by design. However, to achieve this, the moneymechanism itself must be incapable of harm. “If we can coordinate consumption with production we may develop our mass productionto the point where the fullness of production will itself bring about the diminishment of hoursof labour, the abolishment of child labour and the labour of the aged, and give us less workand more leisure, until the ideal balance between work and leisure is attained.” [6, page 57]20 .10 Labour, wages, prices - purchasing power
As purchasing power is ultimately the relationship between wages and prices, it is imper-ative that wage prices and product prices are related in a economically non-arbitrary way.ONE ensures that wages are commensurate with prices and vice versa.If money is allocated to non-productive participants, normal wealth distribution willartificially skew. As wealth artificially re-distributes, so does relative purchasing power.This money system puts an end to artificial, relative wealth, as a result of arbitrarymoney allocation which skews money distribution, and restores real general wealth of thecommon good, distributed normally.
Unemployment isn ' t necessarily a ‘bad’ thing. What matters is that consumers have enoughpurchasing power to buy the products of all labour, and that their needs are efficientlymet. In a very efficient economy, that maximally utilises the specialisation of labour, andmaintains the right amount of high quality money, lower levels of unemployment, andmore leisure, are actually desirable. One of the core requirements of a functional economy, is to provide sufficient economic in-centives, wages, to labour, in order to encourage people to participate in production for themarket’s benefit. Participation, contribution and collaboration should be fundamentallyincented for.
The three aspects we discuss in the context of the money tool ' s evolution are;1. Its creation, allocation, backing and redemption2. Its governance and regulation3. Its accounts ledgerHere we compare these three aspects changing with time over 4 distinct money types -which we call Money 1 through 4. see later section .1 Money 1.0 Commodity money, I.O.U’s, scarce metals
Without common money or ledger ofaccounts, these small private and fragmented marketplaces, allowed local trade based onlocal reputation. However, these systems were limited geographically, and subject to inher-ent instability. These systems were unable to fund large scale enterprise and the expansionof industry and the marketplace.
Fiat currencies, central and commercial banking
With well organised private, cen-tralised money, the state-and-bank-operated accounting system enabled the expansion ofindustry and the marketplace, with a common ledger and a common money. However, thesystem still suffers from arbitrary creation and allocation of credit as unbacked debt, andarbitrary political regulation. These systems have proven to be unstable and unsustainable.
Crypto-currencies
With a paradigm shift in decentralised ledger technology, cryptocur-rencies have proven the possibility of a public, transparent accounting system withoutthe need for an untrusted third party. However, these systems suffer from economi-cally arbitrary creation, allocation, backing and redemption of currency though Proof-of-Xblockchain rewards, and are still subject to the political regulatory environment. Thesecrypto-currency systems are still entirely divorced from large scale economic concerns andhow they capitalise industry. Many digital currencies are still subject to the Money 2.0domain regulatory authority.
Autonomics and PoAcoin
Proof-of-Autonomy (PoA) coin, is a digital money, ‘mined’by human consensus and trust within an ontologically unified contract stack of commonpurposes. With a fundamentally integrated system, PoAcoin is able to create, allocate,back and redeem money within the free enterprise system itself.The ONE economy is self-regulating because its functions are centralised, decentralisedand distributed by contextualisation.
We define Autonomics as the science of a self-determining group. And we define thestructure on which the system operates as the blockcloud.The ONE mechanism has potential to organise the global free market to generate ‘broadand deep’ wealth, and the more people that use it, the more it will realise its potential.22rom the ONE Engine point of view, it is buying the products of industry to increase thecommon good, as agreed on in consensus. It has unlimited money to do this.
Our goal is to, with as few assumptions as possible, design a mechanism that will createall necessary effects for a next-generation global economy. We claim that under reasonablehuman use using economic incentives, this mechanism logically causes a free market andsustainable economy.More specifically, we aim to: “The True Democracy, then, is the free, unhampered market economy.” [3, page 43]The only way to have a free market, is to fundamentally integrate money, governanceand reputation, so that the free enterprise system can be self-determining.
The ONE mechanism aims to bring external costs to as close to zero as possible. “In economics, an externality is the cost or benefit that affects a party who did notchoose to incur that cost or benefit.” Our aim is to motivate labour, with economic incentives, while mechanistically benefitingthe group without harm, to optimise for profit of the common good; and to, providea mechanism by which the sound purpose, issuance, backing and democratic nature ofmoney can be scaled globally without corruption of the money tool itself.
PoAcoin ' s value is inherently secured by directly representing how the economy valuesworking in consensus and trust. PoAcoin would not be debased. Its value is backed by itsexchange for labour, and the products of labour. It could only be debased by the majorityof working, collaborating people debasing their own worth. Wikipedia ‘ Externality’ .1.5 Maintain one global accounting system ONE works the same way everywhere. That is, its fundamental function scales iterativelyand reliably across all contexts, including the geographical context. Consistency of func-tion maintains the ‘level playing field’ required for an effective and ‘fair’ system. “If we try to run the economy for the benefit of a single group or class, we shall injureor destroy all groups, including the members of the very class for whose benefit we havebeen trying to run it. We must run the economy for everybody.” “For many things that seem to be true when we concentrate on a single economic groupare seen to be illusions when the interests of everyone, as consumer no less than as pro-ducer, are considered. To see the problem as a whole, and not in fragments: that is thegoal of economic science.” [4, page 183] “Economics, as we have now seen again and again, is a science of recognising secondaryconsequences. It is also a science of seeing general consequences. It is the science of tracingthe effects of some proposed or existing policy not only on some special interest in the shortrun, but on the general interest in the long run.” [4, page 175]and, in the context of a sustainable economy, we would to expect to see:1. wages raised to the highest possible level,2. sufficient purchasing power to meet needs while effectively balancing labour andleisure for everyone,3. steady price levels and no inflation or deflation,4. decreased bureaucracy and centralisation of government,5. the assurance of real freedom, prosperity and democracy,6. the preservation of peace, and to prevent injustice. It is up to the public to decide what is good for the public. However, to be effective, thepublic must operate within a mechanism that provides: Henry Hazlitt ‘Economics in one lesson’
24. Trust data so that everyone has the ability to measure and see what is happeningeverywhere globally,2. Consensus that offers fair and contextualised representation for everyone and3. Money that capitalises industrial activities, and makes producers and consumerswealthy.Without the right organisational mechanism, the common good is limited to libraries,hospitals and roads etc. However, the ONE engine framework is able to contextualise allcontracts and transactions (issuance), so that the common good can increasingly, and intel-ligently, include specific aspects of people ' s individual lives. In other words, this mechanismcan increasingly fund individual good as well, because we ' re able to define the commongood as highly contextualised aggregates of all people ' s individual good. In this way, itenables all individuals to ‘compute’ the common good as a function of individual good.For the purpose of this paper, these terms can be replaced with the idea of collabo-rative profit of a highly contextualised common purpose in which all people voluntarilyparticipate. Centralisation is not ‘bad’, and decentralisation ‘good’. It ' s important to distinguish whatis centralised, decentralised or distributed and by what mechanism, and in what context.For example; in the ONE economy, individuals can centralise by purpose in a con-tracting group, while different contracts are distributed contextually throughout the econ-omy. Governance is centralised within each group, however, it is decentralised by contextthroughout all groups. In physics, power is the rate of doing work. It is equivalent to an amount of energyconsumed per unit time. In ONE, work is defined in transactions, which are contextualisedand centralised by purpose defined in contracts. Purpose is the reason for which somethingis done or created or for which something exists.In physics, a force is any external effort that causes an object to undergo a certainchange, concerning its movement, direction or construction. Force, in law, is unlawfulviolence threatened or committed against persons or property.Power should not be able to force. It must be decentralised without losing its abilityto be effective in its own context. Therefore, ONE decentralises power and distributes itthroughout the economy by context, so that power remains effective within each group.The unified ontology of contextualised groups are able to collaborate via the mechanism.25aving centralised purpose (in a group) will allow for an increase in power far greaterthan the sum of its (individual) parts. It is how we connect that makes us great.Ultimately, it will be economic incentives that will motivate for common purpose, suc-cessfully out-competing any nuisance force.
Work is defined as any transaction that occurs in consensus within the ONE Engine contractstack. Completed transactions, work, is rewarded with PoAcoin, as a credit. Work can becompleted by individuals, groups, robots and autonomous agents.For the purpose of this mechanism, it is not enough for trust to be based on a feeling,opinion, guessing, religion or myth. Trust must be known, and specifically contextualised,not generalised or abstracted. Therefore for the purposes of the ONE system trust isdefined and measured as transactions completed reliably in context (contract) over time.It is specific, measured data organised contextually in a unified ontology of purposes. Themore any participant (human, robot or autonomous agent) transacts transparently, themore contextualised trust will be generated. This naturally, and intelligently resolves asan integrated reputation system.The system offers reliable, system-wide, fully-contextualised trust data so that thefree market is able to contract quickly and efficiently. Trust becomes a valuable aspect,because the free market will pay more for it and economically incents all labour to beeffective, transparent, honest and reliable.Trust is the primary influencer of wage rates, and therefore economically valuable.Labour will be incented by trust and for money. Trust ' s value is agreed on in the freemarket, setting wage rates, within every context. The market will aggregate around,and value trust. Therefore the market will aggregate around and value PoAcoin, andincreasingly, securing its value.By economically incenting trustable behaviour we allow participants to earn their wayinto trust and reputation, motivated financially within the free market. This is the rightmechanism to motivate for trustable behaviour, and therefore build the foundation of an‘ethical’ economy and an economically restorative justice system. ONE acts as an impartial, mechanistic intermediary, or clearing system, that organisesproduction (labour) and consumption (products) contextually in a unified ontology. Pro-ducers and consumers are the same set of all people. An individual acting in the capacityof specific producer, labours to earn purchasing power and is paid PoAcoin, a claim ongeneral products. When acting in the capacity of consumer the individual redeems theirclaim for specific products of general labour. This ensures that money maintains its valueover time. 26
NE engine [wealth expansive]
Consensus PoAcoinTrust R e p u t a t i o n A g r ee m e n t F o ll o w s Lead s F o ll o w s Lead s FollowsLeads I ss uan c e / c apa t a li s a t i on E c ono m i c i n c en t i v e t o c o ll abo r a t e Economic incentive to be trustable
Figure 2: The ONE Engine - integrating money, governance and reputationProof of Autonomy is an aggregate of many ‘proofs’, which comprise work (as labour),stake (as reputation), and redemption (as consuming) in trust and consensus. This, overall,reflects the degree of common purpose.ONE, essentially, gets labour production for nothing when it issues PoAcoin as moneyclaims. ONE then, technically, owes all labour, all the products that labour has produced.then redeems PoAcoin for products it returns back to the marketplace.Labour, and production is held in trust by the ONE system, and exchanged for PoAcoinin the market place. The PoAcoin received, or redeemed, is then used to redeem wage coststhroughout the economy.
Contracts define purposes that fulfil and define higher order contracts (HOCs), and com-prise and define lower order contracts (LOCs). That is; HOCs comprise and define LOCs.LOCs aggregate to fulfil and define HOCs. Of course these are relative terms. The HOCis an LOC relative to its own HOC. The LOCs are HOCs relative to their own LOCs.This structure naturally supports the principle of the specialisation of labour. That27
OCLOC LOC LOC H O C s c o m p r i s e a n d d e fi n e L O C s L O C s g r o u p t o f u l fi l a n d d e fi n e H O C s Figure 3: Higher order, and lower order contractsis; LOCs are specialised contracts that aggregate to fulfil HOCs, or specifically, LOCs arespecialised contracts fulfilling relatively general HOC contracts.This contract stack structure organised in a unified ontology forces contract common-ality, and therefore contextualised consensus.All transactions occur within, and are defined by contracts.This iterative structure forms the contract ‘stack’ or contract ‘state tree.’This takes the traditional producer-consumer model and uses an economy-wide recur-sive model.The term ‘chain’ describes a lineage of contract fulfilment, or a chain path of descendingstacked contracts and component contracts.
In the ONE economy, the idea of companies and corporations is replaced with dynamicgroups organising in common purpose.Contracts are inevitably complex, yet mechanically simple, natural subsets of eachother. All contracts (and therefore groups) stack for completeness (supersets-subsets), anyincompleteness is represented automatically as a call-put in the marketplace. An expandedcontract calling for completeness from LOCs, and an expanded contract ‘putting’ to anHOC, these would be accepted in relevant consensus.Any incompleteness indicates a call and/or put for contract changes. All contracts arestacked and aggregated throughout the entire nodal tree. So, looking ‘down’ the nodal tree,towards any sub-groups (LOCs), one can ‘see’ any incompletion in contract fulfilment - that28 OC HOC LOC LOC n Related by shared context (common contract)Common contract / group
Figure 4: LOCs share a common context in the HOCis, if the purpose of the group is being fulfilled or not will naturally ‘call’ for support inthat field, effectively being the new ‘job’ market. Looking ‘up’ the nodal tree, into a super-group (HOCs), one can ‘see’ what needs doing, and offer labour, for contract fulfilment.Dynamic reporting and custom ‘views’ onto the dataset become trivially easy. This createsa dynamic requirements-fulfilment mechanism.As long as the contract stack exists in completeness, or reveals puts and calls where it isincomplete, the ONE Engine ecosystem is a computational economic engine that capitalisesindustry.In this dynamic system contracts, groups, are being created, modified and dissolvedconstantly.Transparency allows for trust, which provides context for meaningful consensus deci-sions. Projects which humanity agrees are valuable to the common good are fully funded.
ONE provides the public a useful tool to allow all people to organise by consensus to profitthe common good, and to have trust data to inform transaction decisions. By capitalisingindustry that achieves this, an entire global economy can efficiently satisfy the needs of thecommon good.From the ONE Engine point of view, it is buying the products of industry for the global29
OC1LOC1LOC2 LOCnLOCn LOCnLOC1 LOCnLOC2 LOCn C o n t e x t u a li s e d p r o d u c t i o n C o n t e x t u a li s e d c o n s u m p t i o n HOCn
LaborConsumersProductsWagesMoneyProducers
Figure 5: The Autonomic Economy - Ontologically Networked Exchange (ONE)30ublic to increase the common good, as agreed on in consensus. Money is issued debt free,without interest. The ONE engine has unlimited money to do this.There ' s a time and space aspect to each transaction chain. The space aspect is thepath through the consensus tree state, and each transaction is time stamped, in the timeaspect. The state of any aspect changes constantly both in time and space through use.The time aspect is synonymous with trust. That is, trust data builds over time in everyaspect, deriving historical records in the blockcloud time domain. PoAcoin is part trust intime, and part consensus in space, time stamped unique transactions in a consensus treeontology. Trust and consensus are integrated aspects of PoAcoin. “First of all, let us understand the problem. The purpose of bitcoin mining is to create adecentralised time stamping system, using what is essentially a majority vote mechanism todetermine in which order certain transactions came as a way of solving the double-spendingproblem.” To prevent debasement of PoAcoin, through counterfeiting, we must ensure that doubleissuance, when purchasing labour, and double redemption, when purchasing goods andservices is mechanistically impossible. The only way to ensure that each coin is unique, is toensure that each coin issues or is redeemed through a unique transaction chain. We ensuretransaction chain uniqueness by structuring all transactions, and all contracts in a unifiedontology. This way, there is just one of each contract type, and any transaction withinthis structure is therefore a unique chain. Within this very-many-chained blockcloud, eachcontext forms its own ‘blockchain’ ensuring each transaction is unique, solving the doublespending problem.
The unified ontology comprises just one of each contract type, optimally exploiting theprinciple of specialisation of labour, which fulfils one of the requirements of a free marketeconomy. The contract stack dynamic forces contracts into aggregate commonality, solvingfor consensus governance.By operating within a unified ontology, the contract stack will organise free marketlabour in common purpose, driving consensus and issuing labour money for completedtransactions. The system is ‘programmed’ dynamically, and constantly through humaneconomic use.It ' s the contextualisation of consensus, trust and money issuance/redemption, main-tained in an unified ontology that maintains the blockcloud in purposeful state. Vitalik Buterin on ‘mining’, from the ‘Ethereum Whitepaper’ / HOC / HOC is the same path as;HOC / HOC / HOC is the same path as;HOC / HOC / HOC etc.The pre-approved contract component perspective:The network can be viewed from each library contract perspective. For example, thecommon good might likely agree on a high-level transport contract. That is, how best canall of humanity organise transport from a global perspective, and by what rules? Once ap-proved, why not have many sub-order groups use the transport contract, thereby meetingthe common good criteria, and collaborating with all the public for good. This mechanismwould operate mechanistically throughout the ecosystem, and scale iteratively to high lev-els of complexity.A difference engine;Looking at Figure 6 on page 33, each node/contract/context/purpose is comprised oftwo parts:1. the common component - the ‘position’ not defined locally but within the unifiedontology (algorithm), and,2. the unique component - defined locally and included in the unified ontology (algo-rithm). 32 tandardised (in-consensus) contract componentsContracts derived from components Figure 6: Pre-approved and standardised contract componentsThe entire contract stack is formed as a result of the contract differences in the overallontology.
ONE Engine is a fully distributed money issuance computational engine that capitalisesindustry. All industry that reaches consensus approval by the public, for the common goodis fully funded. All members of the public can ‘see’ trusted providers and by contextualisedconsensus buy products that inherently increase the wealth of the common good.Labour makes a claim on ONE and is paid with PoAcoin, which exists as a claim.ONE is effectively in debt to labour, until it settles the debt, by redeeming the PoAcoin(a promise) with products in a voluntary exchange. In this two part process, labour isissued PoAcoin (as a claim) and backs its value with free market competitive wage prices,and consumers issue PoAcoin (as redemption) and ONE backs its value with products, atprices that bear all and only their own costs.When both parties are transacting in the ONE Engine domain (reliably in the consensusstate tree) then the free market sets the value of the transaction (and contracts). PoAcoinis the proof of transacting in common purpose, an actual record of the unique transactionthe coin issued into at a specific time.The ONE Engine contract can ‘see’ any next order contract calling it. Transparencyis achieved by making contracts visible to higher and lower order contracts. Trust is33
OC1LOC1LOC2 LOCn LOCnLOCnLOC3LOC4LOCn
PoAcoin as a payment in consensus transactions Issued as a claim in production and as redemption in consumption
Figure 7: Issuance and redemption at the transactional edge34efined as a measure (audited) of transactions completed within ONE Engine contractstack. As this free market organises to optimise for trust and consensus, network widetrust data is trivially easy to see, and model. It becomes obvious that making data relevant(contextualised by contract) and consumable (modelled and visualised effectively) is ofhigh value to everyone. Any contract that meets the consensus requirement of the ONEEngine contract (which is reached increasingly effectively as trust data is generated) isissued PoAcoin. The ONE Engine contract issues PoAcoin into the contract in which thetransaction is defined.PoAcoin is issued at the transactional ‘edge’, where goods and services are sold to thecontract buying them. Although, typically, issued throughout the contract stack as labour,value added services, tooling and innovation are added to the value chain.When HOC has reached consensus approval, it will look to HOC contracts to fulfilit, which will look to HOC contracts and so on. Each contract in each chain will requireconsensus to be approved for PoAcoin issuance. In Figure 7 on page 34, if the contractHOC needs products and-or services to fulfil its obligations to HOC , and is approved,PoAcoin is issued into transactions to buy those goods and/or services. From the buyer ' sperspective, the onus is on them to find trusted parties and upper order approval, andwhen this is achieved the buyer is issued money for the transaction, which is spent at thesame time. From the seller ' s perspective, the onus is on them to serve approved upperorder contracts, be transparent and sell approved goods and services. This mechanism canfunction in great detail, and scale anywhere. Money is pre-issued as credit down through the stack chain, until it converts and issues,or is redeemed, as money proper at the transactional edge.
As groups are formed in the stack, they can be issued ‘credit’ for budget to completethe group ' s purpose. The credit notes issued to each group in a chain simply representwhat the current price is for fulfilling the contract. As the group sub-contracts to fulfil itspurpose, it would pass on a part of its credit or budget to the next LOC, and so on. Thesecredit notes automatically convert into money, PoAcoin, as the final aspect of the creditnote chain reaches its natural conclusion of eventually paying for labour and/or capitalgoods. At that point, in a final transaction, the ONE engine issues the lowest order aspectof that chain of credit, money, in a pre-approved (pre-mined) transaction. Ultimately, thecredit note is converted to money, and distributed to a person. In this way, no individ-ual or group is ‘given’ money first to then subsequently spend; instead, these credit notesare distributed according to the contract stack, to convert to money when completing apre-approved transaction. Individuals form groups to collaborate on projects to fulfil onprofiting the common good. This is achieved by design-science lead consensus and trust sothat, credit follows consensus and trust, and then issues as money only when transactionsare completed. In this way there remains an automatic money issuance for industry.35 his pre-mines each coin as a contextualised credit note that flows through each chain,until it finally issues. Each coin is a record of its chain path, all the contractual contextspreceding and composing it, both transactional parties and the time of transaction and is-suance. Each coin is a transaction record of the entire production chain-aggregate. Coin datacould be analysed and modelled providing requisite data for a genuine computational ma-chine programmed by use, ‘the world-around accounting system’ proposed by R. Buckmin-ster Fuller.The actual completion of any transaction chain (that is the transaction) happens in-stantaneously through the stack (both ‘up’ and ‘down’), at the time of the transaction.Until then, it is represented as a ‘most probable’ (weighted by consensus) contender.Roughly the same process happens, in reverse, in PoAcoin redemption. All PoAcoins inconsumer control exist as potential redemption tokens, and at the moment of purchase, be-come money proper, and transact to redeem the promise made by ONE for the productionit has held in trust. On redemption, coins are ‘burned’, that is, lose their transactionalface value, although still function to provide system wide accounting data. We discussredemption in more detail throughout the document. Given enough accurate global transactional data, fair representation, and the opportunityto be rewarded fairly, the majority of people will be economically incented to use evidencein making decisions in consensus, rather than using guessing, opinion, religion or myth.In other words, the majority of stakeholders in any given context, given the tools, willtend towards agreement based on evidence, particularly when it is seen clearly that thisapproach produces optimal results.Every transaction ‘votes’ for each relevant contract in the stack chain. Consensusaggregates automatically in stacked contracts. Reasonable use of the system organises thesystem itself, entirely replacing the idea of government based regulation. “How I choose to live my life is my vote.”
Consensus becomes more probable, simply because, in a system where labour willprefer economic incentives, and the system pays in consensus, people will agree. Themarket is economically incented to agree, and transact in agreement. And consumers areeconomically incented to buy consensus products.
As trust is contextualised throughout the entire economic system, the reputation systemorganises data in the same unified ontology, creating ‘shared throughout all relevant con-36exts’ profiles for every one and every thing.
In order to maintain integrity between the network and the real world, auditing in ONEwill become an entire industry, and an important one. Trusted auditors will be well paidfor the essential value they provide the economy.ONE is a tool, designed to optimally represent humanity, and its purpose. It is anabstracted-world-view of our real world. Where, and how these two worlds meet is impor-tant. Into every field, in every aspect of this new economy, the industry of auditing wouldbe infused, simply tasked with reporting on how well the on-network view of the worldrepresents the ‘real’ world off-network, and vice versa.
By only issuing and redeeming PoAcoin in unique transaction chains, and by structuringall contracts in a unified ontology, all prices reflect all, and only their costs. This optimisesfor the avoidance of the externalisation of costs.
People, groups, robots and agents will live as contracts on the network, relating withincommunities defined by context groups.
Each on-network account (actor) representsone real off-network person (or ‘thing’), and vice versa, and the ONE Engine contractrepresents, optimally, all people on Earth.The ONE platform offers a radically different method to authenticate participants onthe network. Rather than forcing authentication, persistence and authenticity of contractsis economically incented for. This will tend towards an ever increasing defence againstSybil or majority attack scenarios. Persistent contract images contribute to securing thenetwork.
Security, persistent Digital Identity Spectrum image
Each person, using the net-work as a tool for organising his or her life, will live as a contract on the network. Eachcontract will have contextualised public and private aspects, one ' s digital identity spec-trum (DIS). Each DIS is maintained as an ‘image’ by way of the transparent contractshe or she is in. The ONE mechanism can audit the validity of any DIS as a result ofthe complex, yet exact, multi-way contracts each one maintains. Any corruption of a DIS37ould immediately generate an integrity error. Each DIS comprises an aggregation of allcontracts each person is in. In a way, it represents their own personal transaction ledger,as all transactions completed over time in any contract can be seen from a person ' s uniqueperspective. Each person ' s community of contractual relationships that co-form one ' s DISis what authenticates each person in a fully contextualised peer way. The more transpar-ent contracts any person maintains on the network, the more persistent and secure theiridentity becomes.As the entire ONE contract exists as a unified ontology, that is, is comprised of justone of each type of contract, it is ensured that there be just one of each persons DIS. The‘identity’ of non-human contracts (things, robots etc) would function in a similar way. X The contracts themselves are the functional equivalent of the block, and transactions areactual transactions within these ‘blocks’. However, rather than requiring cryptographicsecuring of the network using economically arbitrary techniques of cryptographic hashing,the blockcloud allows human use of the mechanism to secure the network, where PoW isactual work transactions, PoS is actual reputation stake and so on. We go on to makedistinctions of Proof-of-Identity, Proof-of-Common-Purpose etc.Rather than being just another blockchain crypto-coin, PoAcoin aims to evolve theblockchain paradigm into what we call ‘the blockcloud’, a new kind of very-many-chainedblockchain. Each block, or contract, is sustained in consensus state, transacted in by proof-of-work as labour, and each block is unique in a unified ontology of blocks. This becomesa fully contextualised, unified ’cloud’ of blocks. Using mechanism and contextualisation,we propose the functional equivalent of a number of ‘proofs’.It is the economically non-arbitrary PoW (actual labour work), PoS (actual reputation)that secures the network in a non-arbitrary way, therefore, ultimately, making it valuableand meaningful economically. This allows money to be issued and redeemed meaningfully,and for all labour, production and consumption to be organised successfully.Fundamentally, economically arbitrary PoW, PoS or Po‘X’ systems will always, inher-ently, fall short of meeting both technical and economic criteria, and, money is far tooimportant a tool to allow for arbitrariness of any kind.
Proof-of-Work is actual labour, and is key to the creation and allocation of PoAcoin.
Proof-of-Stake is performed by economic participants reliably performing transactionsin contextualised contexts / contracts over time. People naturally allocate more trustto actions performed reliably over more time. Thus, just as in current cryptographicPoS systems, where coins ‘age’ the trust aspect of our mechanism ‘ages’ and becomesmore valuable, naturally.
Proof-of-Identity (Proof-of-Persistence) A real person may wish to trade anonymouslyas another identity or contract on the network. People are economically incented38o ultimately identify themselves authentically on the network. Reputation quicklybecomes one ' s most valuable asset, and to allocate trust gained from work as labourto another identity becomes prohibitively expensive. Software robots, or autonomousagents can earn trust, and money, on the network, however, they will not be confusedwith real people doing labour, and ultimately the profit from robots will naturallybe allocated to relevant stakeholders. This forms the foundation of the Autonomy ofThings, and the digital identity spectrum and authentication system. Proof-of-Redemption (Proof-of-Burn) PoAcoin is redeemed in consumer transactions,fulfilling the life-cycle of money proper.
Proof-of-Common-Purpose
PoCP is derived from the integrated nature of the ONEeconomy. PoAcoin is only issued and redeemed in common purpose.
Proof-of-Autonomy
The PoAcoin system mechanistically integrates many proofs, intowhat we call Proof-of-Autonomy.
Certain aspects of an autonomous economy must be automatically governed, as they can-not, and should not be regulated politically or by special interest groups. Automaticallyregulating certain aspects of the mechanism is key to providing freedom to individuals andthe market.All participants choose to participate in specific production, leisure, or consumptioncontexts at the free market ' s rates associated with those contexts.Contextualised representative leadership in each group is organised based on consensusand reputation. “Concentrated power (force) is not rendered harmless by the good intentions of thosewho create it.” The ONE governor operates two restorative, negative feedback, systems acting in twospecific directions.These serve to incent participants to:1. Collaborate in consensus Milton Friedman
39. Act reputably and transparently3. Work more or less as required by the whole system4. Leisure more or less as required by the whole system
Looking at Figure 8 on page 41, plotting wealth or purchasing power against voluntarytime spent either in labour (earning) or leisure (spending), we observe;1. As an individual becomes increasingly wealthy, it is probable that time will be spentin leisure rather than labour, to utilise purchasing power. As labour is increasingly‘under’ supplied, wealth will decrease but wage rates will increase and thus leisurewill be incented back to labour. Less labour will produce less products, increasingprices, and decreasing purchasing power also incenting leisure back to labour.And vice versa;2. As an individual becomes decreasingly wealthy, it is probable that time will be spentin labour rather than leisure, to increase purchasing power. As labour is increasingly‘over’ supplied, wealth will increase but wage rates will decrease and thus labour willbe incented back to leisure. More labour will produce more products, decreasingprices, and increasing purchasing power also incenting labour back to leisure.
Saving money (voluntarily not consuming) flattens the leisure curve, and saving time (vol-untarily not labouring) flattens the labour curve. The governor still functions in both cases,yet at different rates.
Issuing money for and to labour, and redeeming money for products of labour naturallymaintains the purchasing power of the PoAcoin.
Low quality money can ' t afford trust, privacy or justice. “The value of money, as we have seen, depends upon the subjective valuations of thepeople who hold it. And those valuations do not depend solely on the quantity of it that ealth / purchasing power LabourLeisure I n ce n t i v e t o l a b o u r I n ce n t i v e t o l e i s u r e T i m e ( l a b o u r : l e i s u r e r a t i o ) Figure 8: Incentives to labour and leisure each person holds. They depend also on the quality of the money.” [4, page 151]PoAcoin maintains its value over a long time and is assured by the nature of the issuanceand redemption mechanism. The ONE economy tends towards enriching the common good,and by default the individual good. PoAcoin’s inherent quality is maximised by virtue of itsdesign, founded on consensus agreement, trust, and economically non-arbitrary creation,allocation, backing and redemption.As labour decreases, driving wage and product prices up, there is less production ca-pacity to make products. An under supply of labour and products increases prices. Thetendency will be to return to labour as our more essential needs are under supplied, de-creasing production capacity of less essential needs.And vice versa;As labour increases, driving wage and product prices down, there is more productioncapacity to make products. An over supply of labour and products decreases prices. Thetendency will be to return to leisure as our more essential needs are over supplied, increas-ing production capacity of less essential needs.41s the market will work earlier and more to meet more essential needs, and later andless to meet less essential needs, this mechanism will find a balance between productionand consumption of more and less essential products. x -flation Inflation is the debasement of a currency’s value by it being issued for unproductive indus-try, increasingly failing to back its value, and/or being allocated to non-producers, biasingpurchasing power.In ONE, labour earns money (as a claim) into the economy, consuming spends money(as a redemption) out of the economy. The volume of total money increases or decreasesautomatically as a function of these two amounts.Total labour production earns and maintains purchasing power, so that total consumershave enough money to pay total prices. Total prices are derived from total costs, which,ultimately is a total cost of labour.As the change in money volume is commensurate with real value (free market labour),and with real production (products of free market labour), inflation and deflation are nat-urally avoided. “All that is necessary is to have a system of creating new money if the price-level tendsto fall and unsaleable goods to stack up, and to destroy it if they get scarcer and pricestend to rise. This is quite impossible under the existing banking system, but quite possibleunder a rational, scientific, and national system, designed in accordance with the physicalrealities to which the production and consumption of wealth must conform.” [8, page 158]Ultimately this economy is disinflationary, as we all become wealthier, we don ' t needto produce or consume as much. This is the goal of a sustainable and efficient economy.As the total demand for goods and services deflates over time, the free market will havea disinflationary total money supply to buy disinflationary total prices, until they reach aconsensus stasis of maintenance and innovation. Then the quality of money is maximised,and the quantity of money stabilises to a merely useful level, yet remains natively dynamic. “Inflation means the creation of money units without commensurate creation of wealth.” [6, page 32]Overall, as individuals become wealthier, and want or need to work less, the rateof increasing wealth will slow. This is good. ONE requires less labour as it becomesmore efficient and achieves its goals. Wealthier people will enjoy more leisure and morepurchasing power to consume. As people work less, and spend more, less money is issued,and more is burned, thus the over all currency supply decreases, and in dynamic response tothese movements. As currency supply decreases, and wealth begins to drop, contributions42o the common good (ONE) also slows and cost of living will increase. Thus overallincentive to work again will rise.The ONE mechanism has all coin accounting data for money issued, and for moneyredeemed. Money issuance and allocation follows a normal probability distribution. If there is an ‘over’ supply of labour, supply and demand in free market wages will decreasewage rates, and subsequent prices, however, more labour, and less consumption will tendto increase overall money supply, which will push prices up.And vice versa;If there is an ‘under’ supply of labour, supply and demand in free market wages will in-crease wage rates, and subsequent prices, however, less labour, and more consumption willtend to decrease overall money supply, which will pull prices down.This mechanism, will tend to maintain steady price levels, that are commensurate withfree market production and consumption.
There are two distinct types of competition. We shall call them useful or constructive com-petition, and non-useful or destructive competition. Constructive competition compriseslabour competing for wage prices, and consumers competing for product prices. This sim-ple mechanism maintains ‘a level playing field’ or ‘keeps things honest’. It ' s a way ofletting the group of all producers set wage rates, and consumers ‘clear’ the marketplace ofproducts across all contexts and trust ratings. It ' s natural and effective.In contrast, having similar producers making similar things compete with each otheris destructive competition, and is inherently inefficient, as it pitches common purposesagainst one another. “Therefore, though I wish to see abundance in everything else, it is in my interest forscarcity to exist in the very thing that it is my business to supply. The greater the scarcity,compared to everything else, in this one thing that I supply, the higher will be the rewardthat I can get for my efforts.” [4, page 179]By unifying each contract, and therefore each producer, there is ‘scarcity’ in the thingproduced relative to everything else so that the efficacy of the specialisation of labour ismaximised. 43o each production centre, or group becomes maximally unique, and maximally ‘scarce’and therefore maximally valuable relative to every other group. The ONE structure re-engineers the ideas of competition, scarcity and monopoly. Technically, the mechanismkeeps competition constructively at the free market edge, while maximising the efficiencyof the specialisation of labour through scarcity and allowing each group to be a unique spe-cialist without having monopolistic force, and within system-wide, democratic, consensusgovernance.Over-all market efficiency is further enhanced as follows;Money isn ' t so much a ‘thing’, it ' s a process. It is issued as a credit note, a promise topay, and is redeemed for products later. Without its use in this complete process, ‘money’as such doesn ' t exist. It ' s a tool, that, when used enables people to collaborate to buildproducts everyone can use, and enables all costs of production labour to be distributed toall consumers.When PoAcoin is redeemed, by being exchanged for products, it settles the claimthroughout the production chain. If there is a difference in the amount the product costand how much it is redeemed for, the price paid, then;If the market won ' t pay the cost-price, and products are sold at below cost, total moneysupply increases, tending to increase prices, correcting for the inefficiency of making prod-ucts that the market isn ' t willing to pay for. When there is a subsequent decrease in labourwilling to work to make the product, the work could only be done by raising the price oflabour, further driving up the cost of the product, for which there is below market valuedemand. This further dis-incents its production. In this way, the market ' s willingness topay for products, at market costs-prices, drives natural labour demand for each product ' sproduction.That is; unredeemed coins indicate an inefficiency in the market, and will naturally callfor a redistribution of labour and production. This has the effect of creating, modifyingand dissolving contracts dynamically. Our goal is to provide a mechanism that is enabled by free market activity to dynamicallybalance factors such as money supply, stable prices, purchasing power, wealth, incentivesto work, incentives to leisure, and overall employment.Incenting profitable behaviour and disincenting plunderous behaviour is one goal of asustainable economy. The only way to ‘get rich’ individually in ONE is to benefit fairly44 apid growth of the common goodHigh collaborative employmentCapitalizing and building phase 'Wobble' to steady state + innovation + maintenanceHigh creative, collaborative leisure.High use of robots and automation. ‘Wobble' to steady state + innovation + maintenanceHigh creative, collaborative leisure.High use of robots and automation. P r o d u c t i o n Time
Figure 9: Towards a sustainable economythrough participating in consensus to increase the wealth of the common good.Although the ONE economy will produce products for individual use, it will bias pro-duction for the common good, as PoAcoin pays in consensus agreement. As the ratio ofprovision for the common good to individual good increases, the general cost of living de-creases, benefiting all participants. An economy that produces the valuable, rather thanbeing arbitrarily busy allows for eventual true economic stability, and the end of a senseless‘growth’ economy. It offers an end to the waste and loss of human and Earth ' s resources,until humanity, and the earth are wealthy and operating in a dynamic economic balance. “The art of economics consists in looking not merely at the immediate but at the longereffects of any act or policy; it consists in tracing the consequences of that policy not merelyfor one group but for all groups.” [4, page 5] Initially, there would be high collaborative employment, as ONE funds industry to growthe common good, in a building phase, until global society reaches a consensus level ofgeneral, and individual well-being. Then the economy would ‘wobble’ towards a stable andsustainable level of production and consumption.Efficiency and organisation will outperform the need to externalise costs. This creates45uality in preference to quantity. Or more specifically, a higher quantity of the ‘higher’quality, and a lower quantity of the ‘lower’ quality things.The current model disproportionately centralises wealth to company owners, by aggre-gating ‘profits’ into corporations. In the ONE economy, money is distributed fairly to allstakeholders automatically. The ‘wealthiest’ (by a relatively small margin) will be thosethat are trusted most to lead, to take the most responsibility, offer the most value. The‘poorest’ (by a relatively small margin) will be those who only wish to work enough toget by, and enjoy more leisure. However, the distribution of wealth will be approximatelynormal in the mathematical sense, ending the ‘wealth gap’. In other words, it’s fair, and itwill end class-ism. The ONE mechanism generates the right amount of high quality money,distributed intelligently.The idea of nation states and countries may change significantly over time in the ONEsystem. In the context ‘geography’ the ONE platform will enable incredibly efficient man-agement of resources and activity contextualised by geographical area, so that each place onEarth would participate intelligently and uniquely given its unique features and resources.People may move to the place that is central to a common purpose. In fact, the economicAI, might pay to move people around the Earth as required for optimal common good.As real world effects of this mechanism enrich the common and individual good, it willbecome decreasingly important to measure economic success in terms of jobs, employment,GDP and so on. As this economy, and those participating in it become ever increasinglywealthy, it is obvious and right that employment should drop as low as possible, increasingleisure and the use of hardware and software robots. The economy will tend towards sus-tainable levels of maintenance, plus consensus-approved innovation. Waste, nuisance andharm will be minimised. This will ensure the restoration and safety of the environmentand well-being of other species.
The ONE system will (at least);1. Decrease the need to work, and increase the freedom to work.2. Lower the cost of living.3. Enable everyone to do what they love with like-minded people.4. Enable everyone to become ‘wealthy’.5. Enable everyone to live in a rich, safe, sustainable culture.“
We should do away with the absolutely specious notion that everybody has to earn aliving. It is a fact today that one in ten thousand of us can make a technological breakthrough apable of supporting all the rest. The youth of today are absolutely right in recognisingthis nonsense of earning a living. We keep inventing jobs because of this false idea thateverybody has to be employed at some kind of drudgery because, according to MalthusianDarwinian theory he must justify his right to exist. So we have inspectors of inspectorsand people making instruments for inspectors to inspect inspectors. The true business ofpeople should be to go back to school and think about whatever it was they were thinkingabout before somebody came along and told them they had to earn a living. ” Current artificial intelligence research focuses on mimicking the brain, using quantum orsuper computing, and/or ‘neural’ networks. We assert that a meaningful AI must beprogrammed by global human economic activity. The ONE network allows for the ‘every-person in every-moment’ programming of the system.The ONE Engine is an algorithmic money issuance machine, forming a contract stackas a continually changing algorithm, and each coin issues through the algorithm in specificcontexts and times. The algorithm is ‘programmed’ by human consensus and trust. In thissense, humanity ' s use of the mechanism fulfils the role of the ‘oracle’ for a meaningful AI.The blockcloud is a ‘process fractal’ within which a meaningful and rich informationset is operating. The operator, or oracle, is all people processing it. It probabilisticallyorganises a whole and unified free market. Consensus, trust and money comprise an infor-mation set that ' s fundamentally useful to human society.This creates a globally unified body of shared knowledge, transforming the way human-ity benefits from research and science.The expanded, unified ONE contract becomes the memory of the AI. Hardware deviceswill be neutral viewers onto the network. Any-context system-wide graphs
The ‘social graph’ is only a small part of the data available in the ONE network. The any-context graph becomes trivially available, so that graphs from the education, individual,economic, production and consumption contexts, for example, provide rich, economicallyand socially meaningful, data. R. Buckminster Fuller A term coined by Thomas Campbell .3 Big data
An ontology represents knowledge as a set of concepts within a domain and the relation-ships between those concepts. “Knowledge representation and knowledge engineering are central to AI research. Manyof the problems machines are expected to solve will require extensive knowledge about theworld. Among the things that AI needs to represent are: objects, properties, categoriesand relations between objects - situations, events, states and time; causes and effects -knowledge about knowledge (what we know about what other people know) and many other,less well researched domains. A representation of “what exists” is an ontology: the set ofobjects, relations, concepts and so on that the machine knows about. The most general arecalled upper ontologies, which attempt to provide a foundation for all other knowledge.” Currently, ‘big data’ is owned and controlled by corporations. Non-voluntary thirdparty use of personal information creates low quality data under the illusion that it can bemade valuable through complex modelling and then sold back to its rightful owners underduress.The data available within the ONE ecosystem will be rich and meaningful, as trustenables high quality data. Information shared in trust is far more honest, valuable, andmeaningful than data shared in not-trust. The ONE mechanism intrinsically generates aglobal, structured, rich data set. All participants are in voluntary control of personal dataand contracts.The future is not ‘big data’. The future is big trust and collaboration.
An upper level ontology of common purpose infused with a global economic system willallow for the foundation of a new kind of Web. We believe that it is the ONE structurethat will enable a functional Web 3.0.The economically organised data-set means that any contract (individual or group) can‘look out’ through its related contracts to the whole system. This enables anyone to see areal-time view of his or her own contract ecosystem, or from any other context. Therefore,search is replaced with ‘contextualised view’. By changing the order of filtering, one canexplore increasing contextualisation. This replaces search as we know it with intelligentfindability. Wikipedia .5 The Autonomy of Things The Internet of Things is a transitional idea, that must be evolved to create a platformthat operates intelligently, and safely. To do this sufficiently well, it must be built onan intelligent economic mechanism. The ONE platform forms the foundation of a neweconomic operating system, on which ‘things’ can operate.Software and hardware robots, as contracts on the network, are subject to the samebehavioural economics as people. They will come in and out of economic existence, bybecoming more or less trustable (transacting in consensus agreement) through their use tothe free market.Any person, thing, device or robot (hardware and software) will have a correspondingcontract identity on the network. These would transact within contracts trivially fulfillingreporting and maintenance requirements etc.This is the only way the Internet of things will work without nuisance. We call it the‘Autonomy of Things’.
When ONE is mature, and has a sufficiently large proportion of all people using it, the jobmarket as we now know it will change profoundly. As the cost of living decreases, wagesremain high, and production is organised efficiently ... the need to work to survive willshift to the freedom to work and to be wealthy in a wealthy culture. Labour demographicswill increasingly reflect the alignment of enjoyment and skill relevant to each purpose.Intelligent, collaborative leisure will become commonplace.The ONE economy, rather than plundering by power over labor, and by externalisingcosts, will group by common purpose, so that the purpose itself is where power is aggre-gated, and then labor consents to contribute to that purpose, and is rewarded at the freemarket rate. Individuals in the group maintain position through consensus and reputation.No person or group has ‘power over labor.’ Labor is governed by purpose and the freemarket, as it should be. All individuals are free to consent to labor roles, and in fact, poweris returned to labor, because the free market allows labor to choose freely where it willconsent to contribute. Labor then, is free to follow greatest free market rewards, purposesthat most suit it, and groups that function most efficiently to reward in trust and wages.
In today ' s economy, if you want to hire people to make products, you form a company,and raise capital or debt, and work through business plans and financial budgets, and thenhire labour to make things, and sell it all, to pay all the debt back and keep as much profitas the market will bear. 49y comparison, within the ONE economy the old idea of corporations and companies isentirely replaced with collaborative groups organised within the unified ontology of purpose.These groups seek consensus ‘up’ and ‘down’, that is, pursue consensus in HOCs andgenerate it in LOCs. With consensus they can hire labour knowing that ONE pays, bearingits costs. This funds industry. So instead of getting financial budget, groups seek consensus‘budget’, economically incented, knowing that ONE has unlimited money. That ' s what thecoin issues as, a free market valued labour transaction in common purpose.The goal is to provide a sensible way to allow the ONE production economy, to dy-namically produce goods and services for both the common good, and consumers, anddynamically balance both money supply and purchasing power. The idea that anyone needs to own ‘companies’ will shift entirely. Private or individualownership remains, but group ownership will be contextually distributed to all group stake-holders. That is, as an individual stakeholder of the global water infrastructure group, youmight own a very small, contextualised by where you live, part of all global water infras-tructure. Ownership of all infrastructure, is contextually distributed to all people. Thatis, you would likely own a small part of education, food, transport, housing etc.While the ONE mechanism can contextually share assets and capital equipment, weretain private and individual ownership of the products of industry, and protection ofprivate property.
In the current economy, producers sell products at cost plus as much margin as the mar-ket, and competition will bear, and that ' s called ‘making money’. However, there ' s noaccounting for externalisation of costs, or the fact that it ' s been capitalised by debt, andthe aggregate global affect of interest. This fragments production, and consumption intoarbitrary priorities rather than organising both by consensus and trust, and ultimatelyvalue.The way ONE is structured ‘profit’ does not exist in the traditional sense, that is, interms of corporate ‘profit’. Groups produce wealth for the common good, and yet thegroup itself doesn’t charge the marketplace more than its costs. Group profit in ONE issimply the gain in wealth of the common good. Individual profit is gained through earningwages and increasing reputation. We maintain the ‘profit motive’ to incent labour. When very-many companies compete with each other to produce the same products forthe same markets, the economy becomes inefficient and fragmented. We define this as non-useful competition. The debt based economy forces success through ‘bigness’ effectively50ncouraging monopolies, and growth through acquisition. Monopolies ‘grow’ through anunfair advantage over their ‘competition’.In contrast, within the ONE system, ‘companies’ are replaced with unique groups eachdefined by their purpose. Each unique group doesn’t compete directly with any other group,they compete for overall consensus, and seek to earn trust for reputation. This completelyredefines the way industry and the marketplace operate. Each group is a ‘monopoly’ , butnot beyond its context.So, we define useful competition as labour competing for free market wages. Highlyefficient groups each fulfil unique purposes, and are intelligently findable within the en-tire economic system. This systemic dynamic resolves as a highly-efficient, and organisedproduction mechanism.This renders advertising obsolete.
All participants in the ONE economy would have a legal AI at their disposal. “Life, liberty, and property do not exist because men have made laws. On the contrary,it was the fact that life, liberty, and property existed beforehand that caused men to makelaws in the first place.” [1, page 2]The ONE mechanism forms a democratically governed, economically driven, legal andjustice system. Directly, by preventing plunder and avoiding the externalisation of costs,and indirectly, by economically incenting everyone to wealth through cooperation and con-sensus. By making consensus and reputation more valuable than money, people becomeincreasingly self-regulating. “No legal plunder: This is the principle of justice, peace, order, stability, harmony, andlogic. Until the day of my death, I shall proclaim this principle with all the force of mylungs.” [1, page 15] “Peace cannot be kept by force; it can only be achieved by understanding.” All participants in the ONE economy would have an education AI at their disposal.The education aspect will exist in every context creating a fully contextualised learningsystem. This allows for contextualised knowledge and skill sharing throughout the global Albert Einstein
All participants in the ONE economy would have a news AI at their disposal.With every transaction in every context being visible to everyone it becomes triviallyeasy to provide a system-wide service that allows any user or group to filter the world’sactivities in any contextually useful way. News reflects actual global economic activity, andcan be viewed without bias of any special interest group.
It has become evident that the stock-market model, is an extremely inefficient way to fundindustry and distribute its profits to stakeholders. It is based on economically arbitraryprice and trading incentives, and it systematically externalises costs, and functions withnear endless arbitrary economic properties.Ideally, the stock market as we know it now, won ' t exist in the ONE Engine frame-work. Instead of the share model for company ownership, asset ownership and control iscontextually distributed throughout each group’s stakeholders.Successful groups will display upward ‘trust-trending’ indicative of an investable group.However, rather than investing capital, the market would invest consensus and trust, whichwould naturally convert to capital, and higher wages. Successful groups benefit all stake-holders contextually. The reverse would be the case for downward trust-trending groups.This naturally causes groups to be created, modified, or dissolved according to economicuse. The current insurance industry model makes no sense in the ONE economy. Moderninsurance relies on information asymmetry, and pools risk on behalf of its customers. Riskin ONE becomes trivially easy to model, and reparations assurable. Risk could be largelymitigated through design. Why pay for billions of dollars in damages and reparations forcar accidents, for example, when we could build a safe, global public transport system thatlargely replaces cars? The ONE mechanism itself becomes the assurance system.The ONE model minimises ‘moral hazard’ by having all transactional data available From Wikipedia - “Moral Hazard : In economics, moral hazard occurs when one person takes morerisks because someone else bears the burden of those risks. A moral hazard may occur where the actionsof one party may change to the detriment of another after a financial transaction has taken place.Moral hazard occurs under a type of information asymmetry where the risk-taking party to a transactionknows more about its intentions than the party paying the consequences of the risk. More broadly, moral
All participants in the ONE economy would have a health AI at their disposal.Healthcare is a fundamental aspect of the common good. Global consensus would likelydictate that an effective healthcare system would be available, and ONE would fund it asrequired. No-one would be excluded, or would need health insurance. The ONE healthcaresystem would attract the most reputable labour, and organise a world-scale health caresystem like we’ve never seen before.
The ONE mechanism naturally causes a next-generation ‘social network’. Although, by itsnature it is significantly more meaningful, and functional than the social networks of today.Not only is privacy inherently protected, technically and economically, but the social aspectof the ONE network is simply an aspect of the full ecosystem. The contextualised views,and inherently meaningful economic nature of this system would be vastly superior thancurrent fragmented, corporate owned and controlled platforms.
Running as an API at the edge, any aspect of the computational network can be given a‘view’ through an app. These apps will be designed to provide a game type scenario formodelling aspects of the network using global real-world data. ‘Winning’ game scenarios(those that solve challenges, or better fulfil contracts) can be seen by the ONE mechanismand adopted automatically. This allows a gaming type ecosystem to model mankind ' sfuture in real-time. It becomes the innovative edge of the marketplace, and assigns newchampions active, respected, and well-paid roles in the marketplace. Gaming, or modellingusing the global economy data-set would be available through the system AI, that is, everycontext could have a gaming or modelling aspect. hazard occurs when the party with more information about its actions or intentions has a tendency orincentive to behave inappropriately from the perspective of the party with less information.” Discussion
We expect interest and investment in superior systems to grow. When ONE is operational,we would expect a transition from one system to the next to occur reasonably naturally,person by person and group by group, as they become interested in a new economy.
We believe that Autonomics is the science of human evolution. Without optimising money,governance and reputation systems, we, as a species, are severely limited in our abilityto produce, organise, relate and expand. Without an efficient and effective money tool,humanity can ' t optimise for survival. To prove the function and efficacy of the system, and to build a stable and un-exploitableplatform, we suggest;
We suggest agent based modelling and ‘dynamic program analysis’ to ensure the systembe built correctly and suitably analysed. Following a modelling phase, we ' d expect a technical build followed by a test deployment,probably as a country specific ‘mine’. This would start PoAcoin in one country in the‘geography’ aspect of the network. As an ‘open source’ project, developed by very many people collaborating together, weexpect to see the ONE platform reach significant and sustainable development. We believethe inherent benefits that this economy offers, will draw sufficient numbers to develop aproject of this scope and vision. From Wikipedia - “Dynamic program analysis is the analysis of computer software that is performedby executing programs on a real or virtual processor. For dynamic program analysis to be effective, thetarget program must be executed with sufficient test inputs to produce interesting behaviour.” eferences [1] Frederic Bastiat. The Law . Self published, 1850.[2] Josh Ryan-Collins et al.
Where does money come from? A guide to the UK monetaryand banking system . new economics foundation, 2nd edition, 2012.[3] Andrew J. Galambos.
Thrust For Freedom - An Introduction to Volitional Science . TheUniversal Scientific Publications Company, Inc., 1999.[4] Henry Hazlitt.
Economics in one lesson . Harper and Brothers, 1946.[5] Satoshi Nakamoto. Bitcoin: A peer-to-peer electronic cash system. online , 2008.[6] E.C Riegel.
Private Enterprise Money . Public domain, 1944.[7] Thomas Robertson.
Human Ecology , volume 1. Gordon Press, New York, reprint (1948)edition, 1976.[8] Frederick Soddy.