3. Rewarding Impact with Hypercerts.xyz - Bogota 2022

all right this is going to be a a fun talk to give um I'm not sure how many of you caught me at the main stage about a half hour ago but I am in my my post getcoin Journey just announced a thing called super modular which is a venture Studio that's building on top of and adjacent to getcoins protocols and hypers search is is a collaboration between uh super modular and and protocol labs and really excited to unveil the work that we've done on on hypers Sears with to you all today all right so it looks like we've got the slides let's let's roll so we want to reward impact with with hypers certs the format of this talk will be the opportunity the solution that we've put together why is it better than existing Solutions and then what's next how you can get involved so basically uh there are trillions of dollars of capital available for public goods whether that's administered through NOS local governments state governments National governments or even International type institutions our Legacy institutions spend a lot of money and time and resources creating impact in the world and one of the things that we're really looking at in the regen web 3 space of course is how to take that impact and do it better faster cheaper on web3 Rails and that is the category that the web 3 the region web 3 ecosystem is and just so confident that this will be a breakout category of web 3 in the next Market cycle because if you look at how much money there is available for public goods it's 11x the current crypto market cap so there's just a ton of upside in creating impact and getting rewarded for that impact and we want to do uh we want to launch hypers Sears enable to do that so um one of the things that we were looking at as we were looking at uh hypers seerz is is pre hypers seerz how a lot of different impact entrepreneurs are spending their Time spoiler alert they have to run these complicated sophisticated and uh sometimes costly on their own dial for dollars type of operations where at least half of their budget goes to just raising the next funding cycle and um one of the things that we're looking to do with hypers certs is create an ecosystem in which people are creating impact and just getting rewarded for creating that impact thus eliminating the need to have a complicated and sophisticated funding ecosystem built around them and so um impact entrepreneurs are uh the people who are creating impact in their work in creating a dow that can either be a primary State admission of their work or it can be a secondary externality of of of the work that they're doing and our Target customer with hypers certs is impact certificate uh with is is impact entrepreneurs and expanding The Tam of of of of impact entrepreneurs we want to take it from this like Lefty like ponytail having guy to like every entrepreneur across the world is excited about creating impact because that's where you can build a venture scalable business and that's some of the bring in some of the most sharpest shrewdest entrepreneurs that we're working on uh that are working on entrepreneurship in order to work on impact certificates so um how many people in the audience are familiar with carbon credits all right pulse check on the audience you're still and paying attention so carbon checks is uh carbon carbon credits are basically a use case in which you remove a certain amount of tons of carbon from the atmosphere and then you get uh a certain amount of credits and those why credit and those credits are expected to have a certain market value associated with that so carbon credits are exciting because what they do is they take like kind of like the paperclip maximizer of capitalism and they create a systemic reason why people across the world will want to get will want to remove carbon from the atmosphere that can now get paid for having impact in their local community and across the global community and so um you know hypers certs are kind of built on top of uh carbon credits in a in a way intellectually and let's note their downfalls 99% of sales of carbon credits from come from cap and trade type mandates from government and only 1% of them come from from people who are volunteering to create carbon credits and there's a varying degree of quality of carbon credits many of them are on Legacy with rails but there are many people here who are working to bring them onto web 3 rails where they can have the benefits of a global credibly neutral transparent and programmable monetary system and uh carbon credits are not a perfect system but they create powerful incentives what what are hypers certs hypers certs are just carbon credits but on any impact Vector so we're taking the progress and the systemic changing of incentives that come from carbon credits and we are allowing that to happen on any imp Vector so you can imagine a carbon removal hypers cert so we've taken carbon credits and created a vehicle that is a superet of what carbon credits are by allowing them to be on any impact vector and then we've just baked in carbon credits back into this so you can you can see this hypers cert design right here for carbon removal in which 10 tons of carbon have been removed from the atmosphere and there's been an impact evaluation by different impact evaluators that have rated this as at a certain impact rating and have verified that it has happened at a certain time scale so you can then expand this forward into my first love which was growing in sustaining open source software what if we could issue a hypers cert when you contribute on gitcoin grants or if you use radical drips to F support your favorite open source project this is a module that we can build back into getcoin grants or into radical or into giveth or any of the plurality of mechanisms that are being used to support public goods in order to track that impact and in evaluate it and hopefully if we're successful in tracking that impact we can create buy pressure for the hypers certs and make it profitable just to have to to create impact for a lot of these organizations open source hypers certs really close to my heart with gitcoin journalism funding hypers certs journalism has suffered from a glut of fund uh a lack of funding since Craigslist decimated their business model in web one and we've gotten this place where journalis a lot of newspapers across the country are closing down and we've got more of like an infotainment kind of media environment that's evolving because of that what if you broke a major story and that that changed the game in a local community or in a political situation and you got a hypers CER for supporting that work all right so I think I'm going to hand it off to hul at this point so hul take us away oh quicker there you go all right give it a hand for Hoka right this working perfect so basically what we see here is uh an onchain SVG um that is generated from the data from the hypers but importantly not only from the hypers but actually also from the evaluation part and um this is important that we actually like um distinguish these two parts from each other um because the hypers in itself just accounts for an action that we expect to be um impactful so a hypers CER really defines um who did what when um and what kind of um impact area does this hyperset really touch us and um in what time frame and then in addition to that we have the rights that says like whoever owns this hypers um can do like something with it or some sometimes it's just like oh it's like you can publicly display that you supported this course um and then in addition to that we have um the evaluation part and we separate that in order to make the the system more flexible um and this um includes kind of the self evaluation part but also the independent evaluations from others um so that they can actually develop their own evaluations that then point to the hyperon itself um what we have done so far is uh that we have developed uh a pilot um where you can uh actually test it right now on hyperset doxyz we developed that with r shout out to them really fun to work with them um and so the hypers certs vzero basically um you can just create them currently on girly test net um and we implemented the EIP 3525 I think it's one of the first implementation of that um and why we did that is because often times when you actually create impact it is about collaborating and cooperating towards this impact and that's why with uh this EIP we can U basically with Kevin and me um do a project together and Kevin did a little bit more work then he can own 70% of this hypers sear and I own 30% of this and let's say Evan supported us as well then Kevin and me can actually agree that Evan also owns like 10% for his support of the project um so and that's um what we have done so far and like we want to expand it now also to add the evaluation part and to bring this um into use in different use cases um so a use case where we think or like mechan m a potential dynamic between the actors who would use hypers certs um would look something like this or actually um how it looks today is that often times just like a funer um funds with a grant um some contributors that create some public good and um then create um some impact and we kind of hope that the grand money um then really results in impact and often times um it doesn't unfortunately but in some cases of course it does so the this this system does work sometimes but I think we can improve it and we improve it by um basically the uh contributors first creating a hypers um defining what they uh set out to do um if they need funding initial funding to um make this uh project um to create this this uh public good then they can fund get funding through the hypers um and the funer actually gets awarded part of the hypers for this funding um and then it looks very much the same they create a public good they create an impact but the incentives actually changed quite a bit um the um incentives change because afterwards now we have an evaluation and this EV evaluation is not just like an impact report as it is often today where like everybody wants that it looks kind of good and looks um looks like everybody um created impact and everybody is happy about it but actually um it is an impact evaluation that signals to retrospective funders um if the impact was actually created and what what projects were more impactful than others because that is the signal that the funders really care about um and then retrospectively the funders now fund the hyper hypers cert again um which then uh leads into um more upside for for the contributors so that's why the contributors when creating the public good and the impact have an incentives from from the start to really um create as as much impact as they as they can um the hypers prospective and retrospective funders can also exchange um the hypers Sears and evaluators can also be used as kind of Scouts for prospective funders um to um to see where the next best team is to create public goods that are impactful um so why is this actually better um Kevin already pointed towards some of those things um so one like if we reward um impact afterwards it is much easier to actually increase the um the rewards based on the impact that we observe and that leads to the situation that you can just go out there and create um a public good and create impact and um you can take the risk that it fails because you also gain an upside if you're are successful um second that might actually lead to attracting more talent because the more Talent creates more impact and you um share some of the upside um third classic brants are often times quite restricting so the retrospective uh funding opens up the solution space more because whenever you actually um go out and make a decision where to take your project you can um you can make the best decision based on the retrospective evation that comes afterwards and not just on the previous Grant uh that you wrote maybe 6 months ago um as long as you create impact you can create hypers and get funding for that so we have like also recurring income streams um for retrospective funders the upside is that it's much easier to actually uh fund something after you see the impact so in uh especially when you see um uh public goods that are nonlinear so basically the impact is only created if the project is finished for example a bridge half a bridge um shouldn't get funded and with like retrospective funding um the risk wouldn't be on the retrospective funer and overall if we have really good evaluations um contributors actually learn from previous um iterations which hyps got got uh rewarded and can learn from um the impact and the evaluations so um over time we create more more and more um learnings uh what kind of public goods um are um should be implemented here um so overall if the hypers becomes like really A Primitive um for a lot of funders and uh projects then it also creates a dynamic funding environment where it's easy for funders to uh corporate uh it's easy for uh projects to also um share because they all use the same primitive of a hypur um that can be shared between project between funders um last advantage of this hyps um I talked about using this for retrospective funding but it's not only limited to that because it can also be used for bounties for Grants and for other things um because it is just describing the action that um is supposed to be um impactful so uh what's next um what's next is that we want to like um put this into into practice uh we want to build um on top of that um there are ideas about retrospective funding pools um about like how do we really implement the evaluators um how do we prototype on hypers certs different decision mechanisms what grants or retrospective um uh hypers search should get um funded um so there's a lot of things that can be done on top of the hypers Sears and where hypers Sears can be used for and um as Kevin um introduced there's a large opportunity to um create mechanisms create um structures in order to um allocate a lot of money more efficiently than it is uh allocated today and with that um um I hope I can welcome you to the uh public good hyperspace um welcome you to the telegram group to discuss it more or to try it out on hypers search. XYZ