🎤 If regen Wagmi; otherwise ngmi - Juan Benet

[Applause] [Music] so without further ado juan welcome back and excited to have you again thank you so much uh really excited to be here uh in the third hack fest right this is so awesome uh i can't wait for uh so many to have so many more uh really great to be here with everybody um what i'm gonna talk about today is um why uh being regen matters uh in in our space and i wanna suggest a bunch of strategies uh for how to do that and how to build uh tooling that can uh solve extremely large scale planetary problems uh by breaking down some um large swath of of things into smaller and smaller and smaller problems than how to use uh measuring of the world to derive some data and then use that data to put it into things like ipfs how to then use that use a smart contracts to incentivize positive action and therefore creating a regen loop to a solve that problem and b create value that can then help solve more problems so i'm going to share my screen let's see so the the title of the sockets in general um if regen whack me else ngmi and i'll go into detail as to kind of why that why that matters um and i'm gonna be talking about uh these concepts around uh regenerative cryptoeconomics and prioritopia and a lot of the the the ideas and memes um from the green pill movement um and so here's a the cover of the greenfield um uh book from kevin owaki uh who will join us um a little bit later and uh you know i'll be using a lot of illustrations from uh from that book to go through uh some of these concepts and then i'm gonna go through um and kind of make it really practical in terms of um what are the how to sort of approach building a region application or regen system um that can solve some large problem in in the world and uh uh as we bring a lot of that will have to do with you know how we grab data from from the world and we feed it into uh into these systems and how we create um incentive structures to cause those actions uh so um this roughly the the outline of the talk um we're going to go through regional crypto econ we're going to talk about how to achieve prior utopia first of all what it is and why we want to achieve it and then how to um we're going to go through a few examples uh one is around climate change another about kind of how to accelerate progress um and then going to leave you with some ideas and um you kind of how to um uh how to get involved in the region movement uh like i mentioned before uh you know highly recommend um checking out uh the greenfield book and checking out the podcasters but there's a lot of really really good uh conversations uh happening um this uh uh super uh promising movement um and i think it's it uh basically as excited about regen crypto econ as um as i was excited about crypto in the very beginning of like 2011 2012. um so i think this is going to grow into something super powerful uh long term and you know this is still uh very early uh and we're already seeing some some really promising things so uh uh and a huge kudos to to um uh the book uh to kevin and the uh the amazing designer i uh forget their name but uh amazing designer who who um uh created these amazing illustrations uh or rather i don't know their name i need to find out their name so i can create them properly uh because these illustrations very much help convey the message so let's take the green pedal together um the tldr of the of the book is that you know first and foremost humanity is faced with this massive scale uh set of coordination failures and these coordination failures create massive risks to our um to our society and our lives and and pretty much everything we care about so it's all about coordination at the end of the day and it's coordination failures that cause these problems so when you think about things like climate change or things like um uh just hunger these days or lack of shelter in in for many people around the world um or just certain problems not being solved fast enough like um not having cures for certain diseases and so on all of these problems always come down to some kind of coordination failure um because we have this enormous amount of potential and capability um as a species and it's just how do we coordinate our species to cause significant action against those problems and how to coordinate our solutions so um the kind of general broader macro thinking about all these issues is that everything's broken and everything sucks and it's basically kind of a dumeris perspective and in the region movement we sort of reject those narratives and instead replace that with a super grounded and optimistic um and really kind of um uh thoughtful perspective that if you break those problems down into smaller and smaller bits you can often solve them and coordinate groups of people at the relevant scale to solve those problems and you can bootstrap those solutions into larger and larger uh solutions so the broader web3 world and especially blockchains and and crypto economics and so on can be tremendously powerful to be able to to coordinate groups of people of arbitrary sizes you could coordinate small groups of people you can coordinate large groups of people you can coordinate groups of organizations you can coordinate entire large-scale communities you can coordinate uh across many companies or organizations you can coordinate nation states uh potentially like we can probably get to you know a kind of scale like that and because of that you you this moment is super special that me this means that you have a tremendous uh opportunity as you're um learning about all these systems uh as you're learning about um how to build uh crypto economic structures and how to build um systems to incentivize action and by of again people in small groups or large groups or organizations so on and so your opportunities to be able to take these tremendously powerful primitives and use them to create um uh regenerative structures that can have positive externalities that can create that can solve those problems and create value for uh people around around the world in all kinds of um kinds of ways and and so usually you'll sort of orient towards some problem that you really care about and if you um think about that problem in terms of a coordination problem and how to coordinate the relevant people involved to solve the problem um you can use region crypto economics and data gathering and so on to incentivize collective action against those problems so in the long term if we can do this right we could create a tremendously powerful movement that can solve planetary scale problems and i think it's it's a it's a super exciting um set of possibilities uh and it's i think one of the best uh ranges of applications in that all of the web3 tech and all of the cryptogon um that we've built over the last um decade or so can can really give so at the end of the day it's all about coordination so let's uh so let's now define a lot of these things kind of more completely so what is crypto economics economics is a kind of blend of different fields of study across many different disciplines so think of things like economics and game theory and law and ethics think of computer science and cryptography think of optimization and control theory think of systems engineering think of all of these pieces um together with which are often like highly technical subjects with the kind of social sciences of governance and political science and community management and commerce management and so on and bring bring all these things together into a field of study that can blend uh important technical mechanism design with achieving some social or economic or or group goal and and the goal is to kind of build these structures by you know think of being able to create these mechanisms and deploy them out into the world and have them as sort of free-standing structures uh then people can interact with or groups can interact with or organizations can interact with and be coordinated um coordinate with other parties through uh the medium of these these mechanisms that we deploy into into the world uh and so you know to be to be able to kind of create crypto economic systems you that this means uh you're designing economies you're about but those economies are social systems and they're highly complex systems and so on uh so there's there's a kind of a lot of um this involves it it is fundamentally multi-disciplinary um and it touches a lot of things and uh the the uh the bad news is that they're we're not sitting on kind of decades of um thought about these subjects so there's no like tons of textbooks yet that kind of rigorously describe everything but we're building those now and and we're a lot of the knowledge about crypto economic systems is findable on the web it's fine finable through blog posts it's findable through talks uh through books like this one um and so on but but just bear in mind that uh this is a super green field and uh not just green in terms of regen but also green in terms of um it's very new and and that means there's a lot of theory to to figure out still and a lot of theory to put into practice and and so on it's a great time to enter the field uh but it'll be a lot of kind of um relating across what many people are doing and staying abreast of a lot of a lot of changes and so on um so think of uh curved economics as kind of not being directed in any way you you can think of that you know different economic structures that you might make might be extractive or or might be um just sustainable or something like that or you often we talk in economic structures about building resilient systems systems that can absorb shocks and recover but but now there's a there's a another kind of kind of system there which is which can be regenerative that over time um the particip the actions of the system uh coordinate the participants to create more value that over time build more and more resources and this is a key distinction that i think a lot of people often miss about these kinds of economic systems you hear a lot of a lot of the world be very focused on sustainability and and that tends to be about you know moving away from extractive or or extractive systems or depletive systems that are just kind of uh destroying things over basically spending resources down um and instead there's an emphasis on on getting to a sustainable point where uh you can re you you can create um as many resources back into the system so you kind of um find a good equilibrium but we're talking about here is creating systems that are not just uh sustainable in terms of um being in that in that spot and i'm not just resilient in terms of being able to absorb shocks but instead systems that um are able to to take some fraction of those resources and generate more resources over time that means that there's some economic activity that is creating value over time um and this is a super key point that you'll see again and again which which is what enables this um this amazing scalability if you can if you can build a system that solves some problem and over time is generating more value along the way um you can then scale that solution uh to solve larger and larger and larger problems uh so what one worth uh one thing worth describing is you know think of um the the coordination failures and and as the sort of like great bill of hey everything is kind of uh messed up and it's really difficult to fix and and these problems are so big that nobody can um can solve them and what not and just um remember that humanity is tremendously powerful in terms of our capabilities and when we work together against these problems and we coordinate well um we can achieve tremendously amazing things and so really every kind of amazing human achievement over the last um you know thousands tens of thousands of years and so on you can break down into some large-scale coordination often involving lots of people often involving people across centuries or thousands of years um but at the end of the day it's all kind of broken down into systems of of action that um coordinate sometimes down at the the level of a single individual so you can take on these tremendously complex very difficult sys problems and create coordination structures that organizes to to solve these problems uh and so this is this is a there's a a meme around moloch uh i won't go into detail here but uh somebody more on mark which is sort of like the demon uh uh of coordination failures and so on it's useful to kind of visualize the the coordination failures as a specific uh enemy that you have to fight and you can think of using cryptogenomics as sort of like the weapon that you're using to to fight molok this is part of the the uh narrative of of the regen uh movement which is uh hey like there's a very concrete uh enemy in mind here like coordination failures are not just um uh abstract things like think of them as like a concrete thing that you're gonna fight uh and then your um your tool of choice your weapon of choice is this uh regional crypto econ that that you can use to organize lots of people solve those problems uh there's also this like really awesome part of the um of the kind of um broader like greenfield movement which is that um we have there's like this amazing loop where uh that kevin has pointed out in it by the way all of what i've said so far in like all the pages here um huge uh credit to kevin um and you can hear it from him in a little bit because i'm probably getting some of this this stuff wrong but um there's like this there's amazing kind of feedback loop where uh as um people come into web3 and crypto the volatility and the system and the the booms and busts in the crypto world with like the summers and the winters and so on create this structure where the um the volatility sort of ends up drawing a lot of people which initially started in the degen camp uh where people are just kind of very focused on uh financialized use cases and or overly financialized structures and kind of the potential and ability to to make a lot of money draws a lot of people into into into the community but then over time as the volatility plays out and so on especially in downturns um uh those people are now have learned a lot about about crypto they've gone through the activation um uh problem of having to spend a lot of time and effort to learn about crypto and but now they're in the community they start interacting with a lot of other people in the space um they uh learn about a bunch of other problems and they start realizing that they can coordinate with each other to solve those problems and usually there's this kind of pathway of going from being a dj all the way to to becoming a regen and it eventually you get to the the wacme uh perspective that you know wagner for those of you who don't know it is we're all gonna make it and here's uh how we're gonna get it get there uh so the the uh going to pick a piece here uh because now that i've sort of established the core concepts i want to get to um you know very practical but very practically how we how we work on these systems um but a few more a few more slights of concepts so think of um think of classifying the the the range of of problems that you interact with and so on either as an individual in general there's many ways of classifying these things or as groups and and societies and the whole planet as being about ultimately some some set of uh ultimately being able to build the structures that um can support you as an individual or support you as a group um and and create value for you as an individual or you as a group and so on and a lot of times you end up with these these structures that are shared resources from communities often that are um fundamental to achieving uh many of the critical things that people need so think of physiological needs uh from like the traditional masters hierarchy uh as relating very closely to a set of public infrastructure that we think um all people in the world should have things like shelter uh things like food and water things like um being able to just exist and and survive and um and thrive and and so on and then you can think of even things like uh safety and um being able to have access to resources to be able to do things or being able to um uh orient towards uh working on problems that you care about and so on uh as being uh also reliant on on many kinds of public infrastructure uh and so on and you can keep keep going but at the end of the day there are individual kind of private goods that that matter here uh but when you kind of zoom and which often get talked about a lot uh because usually private goods have to be sold in a market and so they tend to relate to um marketing departments and usually you there's all kinds of private goods that um have lots of people involved kind of marketing their their use but when you zoom way out like most of the things that you interact with on a day-to-day basis and that yield your current state and that have created value for you are actually public goods they're goods that you have access to because civilization has created fundamental infrastructure to enable you uh to enjoy the benefits of those goods things like roads things like access to water things like um clean air things like um a supply chain for food and and so on so these kinds of systems at the end of the day uh end up being these these broad-based civilizational scale infrastructure that is that there are probably goods but in general public goods tend to not have a kind of group that is um benefiting or profiting or incentivized to to kind of grow their their access and so you end up with in a world where public goods don't have a marketing department and so you don't you don't end up not thinking about them as much uh and they don't even show up often in measures like gdp and so on but but in general most of the value that humanity has um has gotten to and has been able to create is tied up in in public goods it is about um republicans so i uh the the world of startups is often so focused on private goods because that's the easiest and most straightforward way to get to get to a market but i really encourage you to to take that regional perspective to take the um the the view that um creating value for um a broad swath of society and for uh civilizational scale often relates more to the creation of public goods as opposed to the creation of private goods uh so uh what is the distinction here so think of private goods and public goods as you know um private goods are things like things that you might buy in that are um on a store or something like that and the goods that are uh usually the definition tends to be around being excludable excludable and rivalrous so things excludable means that when you use it um uh somebody else uh uh so sorry uh exploitable is that there's a structure where um you can exclude whether or not people can uh can use a thing so think of um being able to um get a specific piece of clothing and and you have it and somebody else uh does not have access to it um think of also as intellectual property intellectual property of ip is also kind of um is a way of creating excludability and non-excludability in in the use of ideas and that was a very intentional mechanism that was created centuries ago for a for a purpose um and uh uh and then think of rivalries and non-rival as just dividing whether or not um uh having the thing prevents somebody else from having the thing right so if you eat a piece of food or something like that that means that somebody else can't eat eat that food uh but that's not the case for say uh parks or air or or information and so on uh now of course like there's ultimately matter and information involved and so on so there is some like capacity constraints but for the most part there is just so um you kind of end up in this plentiful bountiful spot where just um you can generally see something as just not really rivalrous because everybody can have uh can have some of it or or or all they need without kind of infringing on somebody else's need for that thing so we kind of want to be in the in the in the bottom right right quadrant where you you're in the kind of non-bridal or non-excludable environment where you can create something that everybody can benefit from and where you can't quite you can you can't it's not oriented towards excluding people from from use uh the problem though is that this non-excludability makes it really difficult to jet to create um value capture loops or not capture but value harnessing loops that enable the value creation in that quadrant to flow back to that quadrant so to give an example um when you create a private good uh you can go and sell that in the market and you can uh charge money for it and somebody can pay you money and so on and you as the creator of that good can now take that money and if you made some margin you can deploy that margin into making more of that good so you have a very straightforward feedback loop between creating a thing selling it in a marketing market making a profit and being able to sell more of that over time and it's really difficult to do that for public goods um public goods tend to be paid for by communities or governments or things like that because there isn't a straightforward way to create a um a regenerative loop in there or is there and that's the key point is like can you create economic structures around public goods that by using those goods and buy um by participating in those communities you can create a positive reinforcing feedback loop of value creation within that good itself and if you can kind of create a self-sustaining system like that um then you can just create a public good uh create a financial structure around it that then um enables the greater production of that open good uh that probably could so think of it as kind of being able to um uh using regenerative crypto economic structures can um work around public goods in a way that creates a financial structure that allows them to succeed and over time create more and more and more value for more people so i mentioned ip or intellectual property in a moment and so this is where centuries ago people realized that it was actually quite difficult to incentivize the creation of knowledge and the creation of devices and so on or or even um the the creation of like creative food it turns out that one of the earliest uh notions of intellectual property was around uh being able to prepare uh food dishes so that in in greece in a specific city i forgot which one um they had like a rule that if a if a if a cook came up with a very like delicious dish uh that like the community um uh thought was like worthy enough uh that they could get an exclusive license to just uh to be the only people to be able to serve that dish for at least one year um and then you know eventually after that everybody could make it and so that was an incentive to cause people to um have that one extra year of being able to profit from the creation and the invention of that of that knowledge and then share it with everybody describe how to use it and so on um uh and so but that license was a a mechanism that that community came up with in order to be able to create a profit loop or a kind of um uh self-reinforcing uh uh structure to enable creative uh uh people to be able to uh make that creative uh food uh the problem though is that that shift is something that could be a public good which is the recipe of how to make that thing uh and shifted that into um added excludability it created it turned it into sort of a club good where um uh only the the person only the inventor of that food uh was able to sort of profit from knowing that recipe for a period of time in a sense this is kind of how patents work if you create a patent around some piece of knowledge so think of the piece of knowledge as a public good and if you create a pattern you your shift over the uh that public good into a club good only if you have the license um afforded by the patent or whatever do you get to use uh the technology and so this kind of way patents are really like bad for knowledge and bad for um creative distribution and so on it's because um they exclude the broader broad use and and that excludability means that it's difficult to build with them and so on uh now there could be alternatives to these kinds of structures we could find an economic structure around knowledge generation and invention and so on that is not excludable that anybody can use the invention um but it's not um and it has a built-in financial structure that enables the regeneration of that of that uh good but it it um it doesn't shift it over to this club good structure that suddenly becomes excludable uh so that's possible um there's you know so many yes a lot of other people have proposed um potential mechanisms for this uh but this is kind of like an unsolved problem in general this there's no good solution for this sort of thing yet um however maybe you will come up with something like this um and if you uh want to explore things like that uh this this this hackathon and many others uh to come our our greyed out great avenues for this kind of thing uh cool so um the the last thing i want to leave you here with and in this section is that at the end of the day um web 3 is a a shelling point for hopeful people who see the potential to solve all these problems and want to use um uh mechanism design to solve those issues and web3 has sort of attracted a lot of people from from many walks of life to um build with these super powerful uh components and tools uh to be able to you know tackle these problems uh so uh great i'm gonna uh move forward through through some of these uh here let me uh the one thing i wanna wanna um have as well as one thing i wanna mention is is we i mentioned mechanism designed multiple times uh at the end of the day um this is the so this is a concept that comes from economics and game theory and so on uh a mechanism is a um structure that changes a sort of financial or economic mechanism is a is a structure that changes the nature of some game uh and so think of a game as um so the word game isn't it's not ideal but uh like the sort of like intricate game theory here is that um we use the word game to describe a system where there are agents that are participating um in in a structure with some resources and they have some set of actions they can take and when they take those actions they either get more resources or lose resources so that's a very general definition but you can think of that as a as a game of chess or where uh each there are two agents and the agents are playing pieces and deciding what they move and so on and they either get more points uh because they capture pieces or they might actually win the game uh by by um kind of uh checking uh checkmating the other player or something like that that's an example of a game but you can also think of a game as the participation of group groups in around a uh a commons you can think of um being able to access a public park um and having to to do some work to be able to access it and there's a mechanism in place that sort of maybe measures who is working uh working to maintain help maintain the maintain the park and who gets therefore to enjoy the park and so think of the economic structure of the participants uh around the park in working on the park to make sure that the value of that park uh stays stays high and so on um and they each player spends some resources um in doing that maintenance work um and the other day you can aggregate all the uh expenditures of all of all parties and and what they're putting into the park to make sure that the park is flourishing over time and so on so you can think of designing mechanisms that can that can uh coordinate the the activity of those of those participants um towards you know producing that that that good outcome uh and so think of like um at the end of the day you're dealing with agents that are coordinating in some large large-scale resource landscape and you can use mechanisms to orient their activity and orient their actions and to get them to a spot where they can coordinate and arrive at better better outcomes so all these kinds of games tend to suffer from uh from potential failures where the structure of the game can yield um uh defection as like the the equilibrium spot um as opposed to collaboration and so the classic example um is the personal dilemma where you have a case where um i won't go into detail here like you have a case where uh there are two potential prisoners that could either um uh tell on each other or um and so they could cooperate and like stay silent uh or they can betray each other and kind of um uh accuse each other and if they coordinate they both get a little bit of a punishment um but but not too much if they betray the other party then they get no punishment but the other party uh suffers a lot now however if both betray each other they both end up doing worse and so the point here is that the the unfortunate equilibrium is in um in the case when both parties betray however you can use contracts and structures too and mechanisms to uh achieve coordination um so think think of um uh think about mechanism design and using mechanisms to to be able to coordinate groups out of situations like that where you end up in this kind of coordination failure and this is the coordination failure that i was describing before at the end of the day it the the macro scale coordination failures like climate change all boil down to some some kinds of games like this and usually again you end up with games that are stacked on top of each other and so you games that are very small scale and games that are very large scale and they end up all kind of relating to each other in this kind of very large dimensional surface and and so on however but you can use mechanism design to sort of warp the incentives of these structures to arrive at higher and higher coordination so you can end up in in better spots um one of the concept i want to introduce here is the the difference between zero sum games and positive sum games so zero sum games are the um idea is the idea that like there are some kind of fixed set of resources and either when one agent um uh gets more resources that necessarily means that other people get less resources that's not the case for all games um so uh that may be true about like things like chess and so on but there are positive some games like um uh when you think about like um playing a uh playing in the park or something like that that could be a um a case where people are coming together they're having fun together uh they're spending time with each other and though all parties are kind of spending some of the resources by going there by spending their time by maybe um uh eating some food together or whatever and like they're losing some resources they're actually creating a lot of value together and for each other um and they end up in this like highly positive game dynamic where um they're creating much more value than than everyone brought in now there are like very concrete uh positive some games here which include things like education and things like invention and so on like when people invent things and invent uh solutions they end up benefiting tremendously from those solutions but so does everybody else so think of the the broader research program of the world in in science uh as a massively positive some game where everybody's trying to learn as much as possible about the world and as we derive um solutions and and so on to various problems we can all benefit from those solutions and we can scale the the scale the broader broad utility um there's a so at the end of that you can use kind of these crypto economic um analyses of the world like where you can think of the the game dynamics and the game theory and so on you can think of you know all these kind of um incentive structures and and you can think of like the different um surfaces uh to to optimize and you can think of many different systems of sort of stacking together and superimposing and so you end up with like highly complex landscapes where um sometimes it's not even clear clear or obvious what an agent should should be doing um but but but often you can sort of like warp the incentive structure so so much in one direction you can make it super clear that that's the action that everybody should take so so think of like all particular interactions around um modern systems as being like just this highly nested environment where there's just so many different incentive structures all stacked at any one moment in time and if you want to kind of cause significant action you sometimes have to have very very powerful mechanisms that just cause action despite you know the presence of games that you can't you don't even know are there in some cases uh cool i'm gonna um move forward from here one second switch over to a different uh structure uh cool so um there was a lot of introduction but but but i think it's it's valuable because um often you uh things like game theory and things like crypto economics and things like mechanism design design can feel very intractable or or unapproachable or difficult and so on and so i hope that that introduction um helped many of you who have maybe never never heard about game theory never heard about crypto economics or things like or maybe have heard about it but don't know what it is um hopefully that was kind of like a like a smooth introduction um and can maybe inspire you to uh learn more about it and and so on now i want to kind of describe one concept that that uh i think is really crucial to think about it and it relates to this positive some dynamic that i just described which is part of topia um think of an environment um you you can think of like the the broad world as as kind of in general getting dramatically better over time like the past few centuries um have uh seen this just tremendous broad global improvement uh almost on almost any every single measure that we can think of in terms of human the human condition so things like things like mortality or child mortality or the prevalence of disease or literacy or access to shelter or food and so on like basically being living out of poverty along almost every metric that we can think of humanity has has been broadly improving over the last few centuries at the same time this in this century we have extremely difficult challenges to solve so there are now existential risks of which human uh cost existential risks are perhaps like the most pressing um where we really have to coordinate extremely well at massive scales to be able to kind of to to be able to survive so um the species is now at a at a point where what we know how to do in our capabilities plus the the the things that we now know were there all along but we just weren't aware of so things like super volcanoes and asteroids and so on which which are kind of you know could cause extinction events too um we now have the knowledge to be able to survive events like that um so uh it might be surprising to many of you to hear but like the the species of sorry the the planet has gone through about seven uh massive extinction events that wiped out most of the species on the planet um and so uh hopefully or maybe where the seventh actually i think like humanity human cost um uh disasters uh or like the human cost um the human cost extinction event for for most other species in the planet is i think going to become the seventh biggest case now it would be great if like we don't cause our own extinction and it'll be great to kind of avert that disaster and stop um causing the extinction of so much other life uh and it'd be great to get a spot where we and so many other living systems can survive and thrive now in order to do that we're going to have to coordinate extremely well we're going to have to make it through through by continuing to avoid nuclear war we're going to have to solve climate change we're gonna have to make sure that uh humanity doesn't end up engineering a bunch of pandemics that that wipe us out and we're gonna have to do things like align agi and so on and these are all extremely difficult problems however you can use uh coordination systems to to solve these things at the end of the day all of these problems come down to coordination failures and this entry is made even like trickier because we have this kind of computing phase transition problem in the picture where uh ever since we kind of invented computers very early on um we they've been in this kind of um uh compounding set of technological revolutions where uh in kind of every decade there's just this greater and greater set of capabilities afforded by by computing uh to the point where we we now have these we will work around with supercomputers in our pockets and we have the internet and so on um and we're now going to be able to make things like large-scale robotic systems and we'll have things like um virtual worlds and we'll have things like brain computer interfaces and eventually things like agi systems and whatnot and all of those things um represent a huge transition for for the species and for for other other living systems um and this kind of phase transition that we're hitting as a species is one of the the hardest things to uh make sure uh make sure it goes right um and so the the um we're gonna have to like coordinate very well uh against this now now one broader picture here is that um the macroeconomic systems that we have in the world are not very well set up to solve these kinds of problems in in general kind of the broader macro coordination structures are breaking down in a bunch of ways and they're not coordinating well against these kinds of problems so we're left with the the requirement that we have to use other solutions to to solve these kinds of problems now there's this really useful concept um called paradotopia um that is due to eric drexler and mark miller uh who are kind of some of the first people that talked about also um tangentially smart contracts and things like that um and and the concept that i kind of want to describe is that it normally we talk about like uh seriously on games as as games and structures where um you have that so it's not like this line of resource expenditure between the two agents uh so here's the simplified model of a game where there's two agents and they can either um uh take resources from each other or or um or potentially grow the pie and so this this transition from one line to the next is the idea of like growing the pie for other parties and so the predatory concept comes from the realization that um the technology that we create the inventions that we make and so on grow the pie for everybody like grow the amount of value and the and the grow the utility for everybody so much that in reality it's kind of creating orders of magnitude more value and so at that point um it is it is totally obvious for all parties that we should all really be doing is like stop fighting about anything and just coordinate as much as possible to get to that amazing spot where we're creating just tremendous levels of value for for all for everybody involved um and so part of it's kind of the idea of like how do you um coordinate people to land on that spot how do you coordinate people to um using things like mechanisms and so on to um end up in in that in that area where we are just creating an enormous amount of value for everyone involved now i think that we can use cryptoeconomics and we can use uh mechanism design to vault ourselves from where we are now um over there now um i think that uh everybody here is kind of familiar with things like bitcoin and ethereum and so on where um just a few simple rules and a few simple structures ended up causing this massive impact in the world so you think about bitcoin as the result of just a single um impact evaluator i'm going to define that what that is in a moment but think of a single mechanism that has a reward structure that causes an enormous amount of machines to be dedicated to just the problem of maintaining the bitcoin blockchain so all of the bitcoin miners that are out there processing all the transactions and devoting an enormous amount of hash power just to maintain the blockchain are all coordinated primarily by a single mechanism which is the the block reward the block reward of bitcoin creates this auction that allows parties to to introduce whatever um uh uh hash rate they they want into the system and out of that um the in a given period uh the block award is going to measure the the the uh the hash rate uh and then is going to reward uh all the the participants proportionately based on the the hash rate they provided now the actual way that this is implemented in bitcoin is used using probabilities and it's using uh you know single reward for a single miner in a given block uh but but that ends up creating this this larger mechanism that uh over time miners are proportionally rewarded for the hash rate that they provide and that single mechanism cause caused this like crazy run of equilibrium where suddenly you have more and more and more people at contributing hash power to maintain the bitcoin blockchain and everyone is rewarded for doing so um and it's creating one of the the largest energy consuming processes that the species has ever built um and it's kind of this runoff process that we don't quite know what to do with um and and the problem is like all of that energy is basically being wasted because uh it's adding security to the network but there are way better ways to do this with things like proof of stake or or using uh work uh that is actually useful so so in fact when we have this this concept of actually using that work to do some other useful um work as opposed to it just being wasted uh so in fact we use the exact same structure we use the exact same um block reward concept the exact same impact evaluator to amass an enormous amount of of storage around the world and all of this is yielded out of a single single mechanism now in in our case uh so in the in the in the bitcoin case that's a degenerate mechanism that is well um and it's a super fair to call it entirely degenerate because it is providing the useful thing of um maintaining a blockchain but in general it's just um causing and and destroying tons of value relative to a much more regent mechanism that is creating some some uh positive externality out of that mechanism which is the useful storage which you can then provide and and to other parties for uh for extremely low cost or for free uh so so think of um productivity and mechanism design as the idea of using mechanism design and economics to solve like planetary scale problems by um thinking about the incentive structures of some problems and breaking those down and and thinking about the the equilibrium states that various different participants are in and trying to warp the incentive structure to get from one one spot to another so if you sort of think of like being stuck in one valley and you want to get to the other spot where everything is better for everybody and you can think of using mechanism design and um and crypto economics to coordinate their way from one spot to the other and so i think here is i have like a like a tunnel boring machine as the example of like the the crypto economics being used to kind of bore a hole through that that um that barrier in between and so you can you can keep using the same kind of idea and keep getting to a better and better and better states of value over time so it's kind of like how i think you know we should use uh mechanism design to to arrive uh into this kind of part of scopion outcome um uh use crypto economics to go from where we are today to this amazing place of you know creating drastically more and more and more value for for everybody involved uh and so that's kind of like why the the way you tend to think about this in terms of um if regen whack me else on gmail because uh we're faced with in this critical century we're faced with such ridiculously powerful um uh problems in terms of the existential risk that we're that we're facing and we can either all make it or not make it but but if we're gonna make it we're gonna have we're gonna require um extremely uh sophisticated coordination systems that can help us all get there that can they can coordinate our action both at an individual level and at a civilizational scale level to be able to tackle these these macro scale problems now that sounds like a lot like let me give you some like super concrete examples um and you know thank you thank you in the interest of time i'll um kind of wrap it up very closely because i think we're uh gotta get you uh can i get to the panel um but so i wanted to just kind of ground this in like very concrete examples that you can then think about in terms of the hacks that you're gonna work on for the next uh for the next few weeks so first off like think of climate change um as this problem where you want to kind of coordinate all actions from all participants to arrive at kind of like a green planet and you can think of breaking that down to first like you you just need like one super green industry that is solving some massive scale problem you know it's maybe like handling five to ten percent of the of the activity in the world to be able to point you and then kind of um can convince the world that is totally possible to to decarbonize completely and not only decarbonize completely but really become um climate positive or you know carbon negative uh get to a point where we're decarbonizing that industry is carbonizing much more than every other industry like it's not just zero it's not just carbon neutral it is carbon negative and actually uh fixing uh carbon from the planet sorry from the atmosphere into the planet and if we can do that in one industry we can then convince all other industries and show that it is definitely achievable and and kind of take that solution to that problem and scale it to to cover all industries and like likewise we can go from um kind of uh solving kind of one industry to kind of maybe thinking of even a a subset also so think of like computing crypto computing platforms or something like that and say just in this smaller industry it's not you know as big as one large fraction of all the industry on the planet but in this smaller industry we can maybe completely greenify that industry we can make it decarbonize relative to everybody else in in in that industry um and so we can then cause that by gratifying one single system or one single blockchain so so the sort of the goal of uh of falcon green as a pro as a project is specifically to just show that this can be done with one system like take one system and make it not just carbon neutral but carbon negative get it to a point where it is like actively fixing carbon from the atmosphere into the ground um much more than it um emits uh and then show that you can do it in one full system and if you do that and then you can sort of sort all blockchains by how green they are and you can show that like it can be done that can become an incentive structure that causes and if people start choosing that those those those systems that are greener over those that are not then that you know on its own will become an incentive structure that will cause many other blockchains to become fully green uh there's really exciting now that there are many blockchain systems that are that are taking this very seriously and they're all kind of competing with each other to try and become more green and like that's a fantastic move if we do keep doing this like this kind of like at the stage that we're at if we keep doing this then we can get to a full green crypto and then from there green industry and from there every planet but hey how do you do this on a the scale of a system like that seems pretty hard well just how you can you can break that problem down into something even simpler so within falcon you can think of just um uh taking the activity and the of all the all the storage providers in falcon and making sure that that activity is fully green and then from that you can then scale up to other other parts and so and so um i'll describe like a mechanism in detail here so what you can do is um look at all the computers that are working around um providing the the uh the storage and falcoin you can estimate their uh energy use and so this is kind of done through a set of um by looking at the at the power directly in the chain by looking at all the common hardware that people use and you can create a set of estimates that describe how much power they're actually using and then you can um offset all of that power use by buying renewable energy pumped into those grades the specific grades that they're drawing it out of at precisely the exact times that people are um are using the power so think of um directly associating the energy that somebody's drawing out of the grid to help maintain the blockchain with energy that at the very same time is being pumped into the grid from renewable energy plans um and you can do this entirely with crypto primitives you can think of the um information that people are um think of the plants and and the the outputs uh they're producing like all the energy they're pumping in and reports about that and and put that into uh information that you can track and associate with a smart contract on the blockchain and then think of the energy that is being drawn out as also being trackable from within a blockchain and you can link these two things together and create a renewable energy purchase around um for for that energy at precisely the relevant uh moment in time uh now you can do this at not just a scale of a single pro computer or some single provider but you can do this at the scale of the entire protocol you can do this with the scale of all providers in the network and and that um motivating that kind of um protocol choice uh you can get started by breaking the problem down into something even simpler at the very beginning you can just estimate things outside of the blockchain you can run some rigorous analysis and estimate things out create some dashboards that show the community what's going on and then manually at the beginning start doing some renewal purchases to get falcon to be um uh net neutral and and eventually later not just net neutral but but but carbon negative and so climate positive um and once you show that this is working you can show that this is working at large scale then you can propose the protocol to actually change the entire structure of the system to do this automatically so this is kind of where where the green product is at now um it's uh measured the the uh the energy consumption it's done those estimates um it's put all that information on ipfs and and make it accessible for everybody to look at um it's also proved out the renewable energy credit purchases through um blockchain primitives um and now what certainly remains is to scale this into into a whole protocol uh level activity where ideally you can have this happening automatically from the protocol so you can create smart contracts and structures that would have the the protocol itself um measuring the use in the particular relevant grids in the specific countries involved and buying renewable energy directly from renewable energy plans um by creating these these um economic structures so this is an example of like a a regen set of mechanisms that together arrive at it at a region system where the whole system as a whole is not just um offsetting its own energy use but eventually it's gonna start pulling out more carbon from the from the atmosphere then uh by a multiple like that's sort of like the goal and you can break out that entire large problem into a problem where you're measuring the activity of participants in the in the network you're then associating um some kind of transaction with a with a contract ideally something you can do directly in the smart contract but you can usually take a regular human pdf oriented contract and and wrap that into a smart contract and then you you want a an ongoing system that will continue doing this over long periods of time and like that that way you can create a you can coordinate massive scale action in a very large scale system out of those um individual mechanisms and individual primitives uh so cool i'm gonna um yeah here let me look at chat cool i think uh we're getting um uh close to the end so i i will um say this hopefully like this was a useful example on on how we can use um information gathering and associate put all put all that information into a system where you can start using uh smart contracts to cause um uh interactions to be uh uh to to cause coordination and become um uh positive and become regenerative um and yeah if you're interested in this particular project i recommend uh following them on twitter and participating and so on um there's a i think there's a set of events that are that are happening um uh there's a sustainable blockchain summit i think happening next week which which you can um uh uh uh check out and um yeah beyond that i would say you know take take this example as a as a case where you can go from solving a specific concrete problem um uh in the small scale and then scaling that into like a whole system and going from there to uh all of crypto then going from that to scalar to compare it against all industry and eventually solve a planetary scale problem uh great i'm gonna stop here and uh welcome uh kartik thank you so much i think there's a that was a lot in terms of like you set up a base for a handful of interesting things so it was moderating the or monitoring the the chat here and uh so i mean the one common thing is i think a lot of people want to see what the presentation is so if you can send us that link after i'll just share this thing with all the attendees and also on the live stream but uh the kind of theme here that's happening at least on the live stream is that a lot of people are of course they understand the goal here they understand kind of the purpose of what this can do if we can achieve the ultimate sort of outcome but how do you actually get people excited um how do they uh essentially coordinate themselves at scale how do they kind of associate themselves with these larger problems that i guess ellen from collectively can agree on the value or the value prop or the actual outcome those are obviously pretty hard challenges on their own like how do you motivate people to actually be part of this movement how do you actually make sure that what they're doing is actually the best outcome um that you can achieve and that kind of goes into coordination goes into canada we think about incentivization of public goods or just in general like should something be public or private good which you all touched on and uh that's kind of the base which instead of answering those specific questions from the chat i think we can make this the actual discussion for the panel and uh what i'm going to do is i'm going to obviously invite kevin from bitcoindao uh to kind of be on stage and turn the video on and uh jacob from the global team to also help kind of moderate a lot of this discussion both of you uh have enough for all three of you in this case i have enough context on uh these common themes that were obviously uh uh in the mix of but um maybe let's start off with like how do we actually start incentivizing this coordination and i'll let jacob take it from here