Book - Securing Digital Rights for Communities | Chapter 3

https://3speak.tv/watch?v=networkstate/vhmiecyh Game Theory and Governance of Scalable Blockchains for Use in Digital Network States ### Chapter 3 - The Underlying Principles  --- =============================================================== # Table of contents: ------------------ # Securing Digital Rights for Communities _(Game Theory and Governance of Scalable Blockchains for use in Digital Network States)_ # 1. [Pre-word](https://peakd.com/hive-129940/@networkstate/zrpgwekn) # 2. [Vision and Implications of Decentralisation for Network States](https://peakd.com/hive-129940/@networkstate/dbrbrhgl) - Voluntary migration to alternative economy - Communities have their own sovereignty - Communities create their own sovereign economies - Communities form network states that are recognised by governments # 3. The Underlying Principles - (This blog) Difficulties in arriving at true decentralisation. Arriving at the theory was a freak event that is incredibly difficult to arrive at theorising logically forwards, but possible for us to arrive at by using the system by mistake and then, at a later date realising that it has all of the correct theory built in by default without even the builder reaslising they had built it in - Petri dish cultivation model - Universal Digital Human Rights (UDHR) - Everyone did it wrong # 4. What Layer I Should Do ## Data availability (text based data only) ### State Recall - Historical State recall (long form text storage) - Table of truth, custom json (a way to put non standard data on the table of truth), indexing layer - Accounts - Communities/followers list - On chain actions such as posting/commenting - Governance voting (what is governance later) - Infrastrucutre incentivisation (ability for micro payments) - Transactions / Trasnfers - What this means / implications # 5. Fees - Spam limitation & resource credit systems - Incentivising community run nodes and infrastructure - High fee layer I bad - Low fee layer I good # 6. What Layer II Should Do - Application operation and services - Rely on security and account system of layer I - If done correctly, layer II should not need layer I security - Smart contracts / heavy data (non text) & computational based data - Tokens - Wrapping - Decentralised Finance - What this means / implications - Escrow & Liquidity pools # 7. Sustainable Economy & Decentralized Coin Distribution - Distribution types - Incentivised Stake Holder Distribution (ISHD, AKA Proof of Brain (PoB)) - Social distribution as a Trojan Horse - Distribution to multiple parties - Ongoing distribution - The importance of earning your tokens - Keeping inflation in check - What you want to see - What you don't want to see - Application of Semi Centralised Models - No compromise for free speech & censorship resistance - "Founder" stake size / major stakeholder dominance # 8. Reputation Hive has intangible re-putation as well as on-chain reputation via tangible digital recordables. This is unique to decentralised systems, where you have a digital reputation and an intangible human to human readable, non numeric reputation that adds a subjective value to the account of a user. It is important to note that this is on top of the intangible reputation that you have in normal reality with your friends. - Building reputation - Reputation based trust - Reputation based account value + escrow - Reputation based delegation for voting # 9. Why Free Open Source Software (FOSS) is Needed for Security # 10. Bridge to Governance - What is governance - Why you need governance - Data availability layer run by multiple people around the world, how do they come to an agreement on historical data and updates # 11. De-Governance - PoW - infrastructure voting - POS - un-parameted coin voting - DPOS - Delegated Proof of Stake - Parametered Coin Voting - Difference between DPOS and POS - What PoW can't do - PoS limitations - Why an additional model is needed for UDHR - Web2.5 vs True Web3 - No founder, No ICO, No VC, No company, No CEo, no Pre-seed / Pre mine - Alignment of incentives between all players - Community built & ownerless - The problems with Founders - Voting models - Everything is some form of voting - Why delegating is important - Community accountability - Why community should vote on protocol variables - Avoiding AI takeovers - Why Big Tech conglomerates will dominate web2.5 - Conflicts of interest with web2 business model - Ensuring a large Voting demographic - Methods to incentivise community voting - Witness voting decay - POS for collateral provision - Counter balance to "code is law" maximalists by adding a human element to the eco system operation - Tomorrows politicians - Delegating to politicians - Other Semi - DPOS models # 12. Coin Voting Parameters - Importance of long lock ups for governance participation - 1 month voting delay - 3 month lock up - Stable coin security - Hair cut rules - time delay on bulk token swap - Inflation control - Importance of transaction taxes - Backing the token with community interactions - Rewards for holding and locking in - Dapps and Services as holders of last resort - Anonymous accounts vs known accounts - Importance of locally run Desktop apps for censorship resistance # 13. Attack Vectors and What to Do - Direct 50% attack - Indirect slow accumulation attacks - How to defend against attacks - Achieving circular economies - You cant buy a community - The community is layer 0 - Distribution as security - Forking holds the rich to account - Reputation building & trust - Reputation damage - NFTs for reputation building - Infrastructure operation - Voted as community member of the month - Benevolent acts create resilient communities and security - Its hard to attack a system that is helping people - Bringing the government into the ecosystem with bonds # 14. Balancing Scalability and Censorship Resistance (Disproving the Scalability Trilemma) # 15. Censorship, and Morality of Pre-Mines # 16. 3 Pillars of Decentralisation # 17. Algorithmic Stable Coins on Layer I - Bond System, Pristine collateral & Lending # 18. Off-chain Data Availability Layer for (Non Text Data) - Off-chain Storage - SPK Network - Incentivising Peer to Peer Offchain Media and file storage # 19. Service Infrastructure Pools (SIP) # 20. Open Source Makes IP Valueless - IP valueless, Gov tokens and influence valuable - OS Iteration of FOSS IP adding value to base layer token as the new business model # 21. Importance of Decentralised, Immutable Communities as Network States - Decentralised token distribution for communities on Layer II - Power of truly sovereign communities - Sustainable token value & staking incentives - Liquidity pools for each community - Community Self regulation of content and rewards distribution - Content gateways - Stake-weighted tag forcing - Content validators - Platform / validator Content policies - Content watchers / regulators - Reward disputes # 22. DAOs & Community Proposals for Self Funding - Decentralised / neutral funding - What is a DAO - Decentraliesd vs VC backed DAO's - Returning value to DAO's - Alternative to "no strings attached" # 23. A New Model for Start up Funding - DAO / Mining token / fix Gov token supply model / self funding with DAO's - Purchasing from the chain - Liquidity and value through miner token purchasing, staking and infra operation - Starting a new decentralised project - Things you want to see in the funding of a project - Team - Go under the radar, low value tokens at the beginning - Easy to distribute tokens (by delegating or ISHD) - Aligning everyone's incentives - No initial founder tokens - Equal opportunity mining - Rebel against vested founders - Who do you give the tokens to and who decides? - Choice of community - Token Drops vs GPU mining - Founders don't end up with majority of supply - Community supports founders - Monitoring the decentralisation of the project in the early days # 24. Future Implications - Impossible to manipulate history - Impossible to shut down - Money attacks makes the community stronger and richer - Holding abusive oligarchs to account - Digital self-sovereignty - Network State communities and Governments - Fee-less De-Fi (Decentralised Finance) # 25. Examples of Self-funded Communities and Initiatives - Ghana borehole projects - Ghana health checks - Venezuela Street acrobatics infrastructure funding - Pay utility bills by creating content in Cuba, Mexico --- - [Chapter 1](https://peakd.com/hive-129940/@networkstate/zrpgwekn) - [Chapter 2](https://peakd.com/hive-129940/@networkstate/dbrbrhgl)