random cryptocurrency / cryptoeconomics thoughts 3

The below is ungroomed, thinking out loud, a collection of thought bubbles written as a messy tangle. It has not been processed for concision/to make it easier to read. Patience and indulgence is required. There is not a sequential flow, paragraphs are ordered randomly. No effort was made to format for easier reading/viewing.

tl;dr I know you just want the money shot:

Crypto seems set not only to cause the abstraction of value (anything humans value can have a token to track it), but perhaps in a recursive loop crypto might cause the abstraction of all human social interactions. There seem to be few aspects of human social interaction which don’t use, require or exploit cryptoeconomic foundations such as game theory and behavioural economics. Humans constantly run accounts/ledgers in their heads which keep running tallies of their social capital: how much do I still love my spouse, who do I want to spend my time with, can I be bothered to spend the time to attend my gossip group’s brunch. Humans mentally calculate their social interactions, there is a mental ledger that gets tabulated as part of the decisional loop. If Beyoncé launches a token that her fanbase can trade so as to express their economic preferences around their admiration of her, then perhaps all human social interactions will become ensnared and mediated by a tracking token. If money is a socially constructed reality, then social constructed interactions might all be vulnerable to being enumerated by tracking tokens. Token ecologies might then perform a reverse takeover: rather than reflecting our social choices they may end up dictating them to us in the first instance. You have no spare CloseFriendTokens in your purse just now? Then you can’t afford me as a friend this afternoon. It will be interesting to observe all human social structures and behaviours get remodelled, renovated, enumerated, taxonomised or replaced as such social tokenisation economics sweep in and cause a profound redefinition of the heuristics and mores that previously underpinned and defined all such social actions and patterns. Humans spend the majority of their lives pursuing acts that result in social outcomes that benefit them or that are expressions of their innate preferences, is this robust/antifragile to being turned inside out via the tokenisation of previously unstated social rules?
Pricing all aspects of human affairs will of course lead to the nightmare horror end state where we know the price of everything, but the value of nothing. In an ecology where everything is cryptotokenised and cryptoeconomics infects all social actions, the role of cryptoeconomist/market maker becomes primarily important. Society will need heuristics, markets and brokers who reliably and adaptively support entities who trade social tokens so as to conduct social transactional business and determine price/do resource allocation/do preference discovery. Society might one day be composed, driven by and signalled by its social token marketspace and its horse whisperers. Reverse parasitism: blockchain and cryptotech is not a parasite that feeds of human affairs: rather, human affairs will likely rearchitect themselves and bend across to become parasites of the various bounties that blockchain tech naturally offers: meritocracy, decentralised organisation, cryptotokenisation as revealer, staking as skin in the game, onchain governance loops that mutate as need arises, et al. The inner archetypes that emerge from blockchain tech are too useful and will backwards infect us due to their usefulness. Humans will mould and change their current political and social workings to mimic the way such matters are solved and enacted in the blockchain dev/mainnet cycle. To decide what laws rule your tribe, sometimes you UASF, sometimes you hard fork like Ethereum Classic. Humans will co-opt this model and retrofit it to our existing social and political engine rooms. We won’t vote in presidential or party elections, instead we will carbon vote and commit the rollout through a UASF, see your twitter feed for instructions on how to activate this latest social fork regarding new gay marriage laws or gun laws. Disagree with your boss, spouse, city, military? Exit and leave to join a different forked version, else fork it yourself and create your own crypto-mediated tribe. Cryptoeconomic principles start informing humans on how to mediate, share, disperse and optimise their social behaviours. The current human notion of what factoids go together to constitute a truth will be displaced by the blockchain notion of what a truth statement is. Unless a factoid is encoded and buried down in the past block depths of a canonical chain (finality), then humans won’t accept it as truth/immutably sure. Blockchain works so well to record immutable factoids that it will become the gold (and only trustable) standard of what is a past, established, recorded truth. Humans record keeping systems are fallible; blockchain records are nigh impossible to post-dict. I trust a past confirmed block and its coded bytes more than I trust the government’s tax database. Crypto consensus science becomes human legal process; blockchain archive explorers replace newswebsites/Wikipedia; longest chain repo’s replace your municipal library. Cryptoeconomics seems destined to generate and formalise a new taxonomy of incentives and disincentives — for example: whereas a dog will chase a frisbee if you reward him with a doggie biscuit for doing so, a noobie will buy an ICO if she thinks it will 10x in two weeks flat. A studied listing of observed actions that betray our ‘incentives and disincentives inner daemon’ (in other words, the science of economics) will get codified and exposed as a taxonomy as dev teams strive/keep on writing and refining their ongoing releases of cryptocurrency issuances, chasing functional purity to best capture, reflect and enable the monetary needs of the userbase. Cryptocoin codebases will increasingly discover, encode and then manage the lifecycle of this taxonomy. Over time, increasingly, crypto codebases will capture, ingest then encode which axioms are revealed by use to best reflect how the userbase does or does not respond to a particular incentive or disincentive inherent in economic use of a cryptocoin. The cryptotaxonomy will become our ontology, the landmass and edge boundary of what we can know and consider as being the revealed ‘truth rules’ that best axiomatise our behaviour around the incentives and disincentives we express/encounter as we act. Cryptocurrency is a petri dish where we input our behavioural economics ideations and heuristics, and then see what colonies grow in the agar culture there. There is not a logical association between what economic thoughts we impose into the culture dish, and what actually grows as a response — Dogecoin shouldn’t survive/flourish, according to (otherwise-reliable) orthodox economic science prelates. Crypto is the way we test drive unorthodox, heretical ideas about what we think we know about homo economicus . Expect a circus, not a scripted tv show. Cryptoeconomics ingests classical notions derived from the corpus of economic thought and recasts such axioms as statements that can be executed in a sharded state model : cryptoeconomics is eating the classical economics canon and spitting it out as a cryptoconsensus codebase. Disclaimers: just my ideas about possible scenarios for near-term future. This is not investment advice. I’m ego-driven, clueless and biased, so do your own thinking. I’m not qualified, I have no special privileged position to drive my insight, I’m a nobody, is what you should assume about me and what I say here. My ZenCash address = znk9GjfbzRHwDiMWmq2xeTi5FNkgnzQXthg