Embodiment of Decentralized Incentive and Decentralized Identity
Is money, a preordainment of value, the greatest hack or greatest invention in human history? Well, that doesn’t matter now. Being quite the thrill to mint illusion out of thin blue ether, Money is the greatest pill ever and our whole race is duped. The pitfall that trapped us is our differential mind[31] – just up the dose a bit more each time⁸², and you’ve got the formula for the endemic of addiction⁸³. But the problem is bigger than just addiction – when our point of view, our volition, got twisted and trapped in an illusion, we lost the true grip of value – lies
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⁷⁸ Arrow of time.
⁷⁹ E.g., Proof-of-space family.
⁸⁰ Global synchronization log.
⁸¹ User experience.
⁸² What is a recursive formula for a geometric sequence? And a bigger print.
⁸³ Divergent geometric series.
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beget bigger lies and we end up with bubbles⁸⁴. The conjurers must always strive to lure in more victims to sustain and live off the bubbles, that’s why they build the pyramids⁸⁵ for themselves as the foundation of this duping empire. This empire, founded on the pill of money, is to keep an ever tighter stranglehold on us – thus the regime of centralization is born. To sustain a regime of illusion over millennia, coercion must be enforced, much like any drug cartel. Only this is the syndicate of money – the most powerful of all. Money and power is reciprocal. Money itself is also power – a terrifying one – the power that corrupts, drives, and enslaves the mind. It is called economic incentive, or money incentive (for simplicity sake in some later context we would also just call it incentive).
If we want to repatch blockchain as a device of real value, we must deal with the ledger part of old blockchain. By biding itself as a ledger, old blockchain carries the gene of the impostor of value – money, and all the problems with it – the most egregious part being that the economic incentives are from the centralized regime[33].
Our new insight into the difference between impostor of value, money, and the real value, process, might shed some light into our perennial quest in solving the conflict between security and openness of blockchain mechanism design. The key is to look at economic incentives from the angle of value, especially the angle via money vs. process (impostor vs. real value).
Money’s power to drive or pull, a.k.a. economic incentives[33], its ways to exert influence on the human mind, is very similar to the ways of addictive drugs on the human brain – by disrupting its reward and anti-reward pathways⁸⁶. What else could make someone fall for the stand-in instead of the real thing? For the pretender of value, as well as for drugs, the consequences of their effects on human lives are sometimes quite devastating⁸⁷. The egosyntonic⁸⁸ overdose of economic incentives in the blockchain world is also quite prevalent⁸⁹.
As discussed earlier, value is the mental device of the mind to assess and communicate[31]. Thus as a communication device, value is very sensitive to its signal spectrum composition or distribution, signal to noise ratio, etc. – due to its addictive effect on the differential human mind[31], economic incentives as power of money has become an easily divergent term in the value spectrum, which means if mixed together with the real value, as is often the case, a divergent economic incentive could easily drown out the real value in the composition series of a broad value spectrum. That is why when divergent economic incentives exceed certain threshold, every mind involved looks like getting high in a psychedelic orgy⁹⁰.
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⁸⁶ Addiction and Brain Reward and Anti-Reward Pathways.
⁸⁷ Financial crisis of 2007-2008.
⁸⁸ Obsessive–compulsive personality disorder.
⁸⁹ The Death of FCoin: A Tale of Bad Token Design.
⁹⁰ Tulip mania.
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But you can’t have a pyramid if everyone is at the apex and every stone is a pyramidion⁹¹. In the empire of centralization, an effective regime must be able to both stoke and quench minds’ desires. The purpose of a centralized regime is to reap and keep the loot of the business of illusion – to accomplish that, an accomplice (though an unwilling one) to economic incentives must be put in place as an anchor and a frame. It is called identity.
From a personal perspective, identity is the skin we wear over our individual volition – it is who we are in the eyes of others – a facet of reflection of collective minds. Unfortunately we have lost our control of it – the greatest tragedy in human history is the capture and surrender of identity to the centralized power of money. Fused with economic incentives, the power of money, identity has been turned from proud skin over our volition to cordyceps latched onto and then burrowed deep into our mind⁹² – this is how we lost our free will to the syndicate of centralization. Identity hijacked by centralization turned us into the walking-dead. It had segregated the human race into warring tribes fighting a perpetual zero-sum civil war – brothers and sisters against each other – because our true identity had been smeared by this alien shell. It is a prison cell for our mind. The purpose of this alienated identity, the accomplice of centralized economic incentives, is to solidify the distorted spectrum of value distribution after stirring up the bubbles – to cement the steal. It blocks self-balancing and free flow of value – signal and information – and petrifies the collective human mind from water to a constipated dump. The compartmentation of value (in order to solidify value distortion) under the identity regime is called ownership. Ownership is identity. Incentive[33], identity and ownership form another trinity[15] regime under centralized power – we call it the 2nd trinity.
It is now clear that the 2nd trinity of incentive, identity and ownership is what caused the conflict between security and openness in blockchain mechanism design – and why stronger identity always improves security. With this crucial understanding we can design a new mechanism regime to thwart this conflict (or render it irrelevant) – we call it decentralized identity.
Decentralized identity would shake off the alien shell of identity (it can be called centralized identity) forced on the individual volition by breaking it off from economic incentives under the centralized regime – by doing this we also break the chains on free will. The alien shell of identity, through the 2nd trinity, binds our individual volition (free will) to the big engine of centralization (to be its slave labor or another brick in the chamber wall⁹³) – thus by breaking this bondage we would be freeing and restoring our individual agency to the small dissipative cycles[29] of the Metis Way. The small dissipative cycles of the Metis Way is the natural cycle of (true) value[31], safety, and decentralized identity as new skin over our individual volition. As the counterpart to the pretended value (money)’s power – centralized economic incentive, we call our true value’s effect in the small dissipative cycle – decentralized incentive. And safety is decentralized security[28]. Now we see that the small cycle of the Metis Way is comprised of decentralized incentive, decentralized identity and decentralized security – we call it the 2nd unity[16]. This shall be a decentralized system where the conflict between security and openness is irrelevant.
So how do we reconstruct (centralized) identity into decentralized identity? The karma⁹⁴ is to shatter (centralized) identity and recollect and replace some of the pieces into a new entity called – yes, you guess it right again – DAC. DAC is the embodiment of decentralized identity. In our new decentralized regime – DAC economy, there is no identity in the traditional sense, only DAC – DAC replaces identity as a more fundamental entity. The essence is that we first decouple identity from volition, then shatter it and rearrange some of the pieces into DAC – those pieces become attributes of DAC.
Now let’s summarize the general mechanism pattern of DAC economy. It is cultivated by the 2nd unity where:
(a) decentralized identity is a DAC (also a seed for the small dissipative cycle[29]); (b) decentralized incentive, the effect of true value, is a process[31]; (c) decentralized security, safety, is primed through a cycle (small dissipative cycle) – this
cycle can be understood as a decentralized business[29] (powered by on-chain mechanism).
Such is the karma of DAC economy, the Metis Way.
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⁹¹ Pyramidion.
⁹² 'Zombie' Parasite Takes Over Insects Through Mind Control.
⁹³ Pink Floyd - Another Brick in the Wall.
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