Insights from a Gitcoin Grants Citizens Round Project: Archimedes' Lever

In my Gitcoin Grants Citizens Round application, I wrote how we could use design principles from Elastic Decentralized Finance to promote funding of Public Goods by creating a #DeSci or Gitcoin Allo specific “stablecoin.” This post elaborates a bit more on that suggestion.

On the introductory Gitcoin Citizens Round Twitter Space, I had the opportunity to thank the many valued members of our community for your contributions. 254 donors at the time of this posting! :pray: thank you all very much. And as I was about to be given the mic to talk about my project, the notice to limit a 2-minute pitch was announced :sweat_smile: So I had to scramble, and I decided to ramble while verbalizing the word “Rotation” as much as possible because the rotating conveyor belt design is at the Heart of the Archimedes’ Lever.

What I should have said is this:

the Archimedes’ Lever is a Coordination Game that leverages Triple Entry Accounting for the aims of onboarding new users to web3 while simultaneously Decentralizing Science by Decentralizing Governance over the Scientific Process.

With respect to “Rotations,” describing the metaphor of a 4-stroke engine or the flow of Dopamine through Cortical-Striatal-Thalamic loops in the Nervous System doesn’t exactly articulate the concept in a manner that is receptive and easy to process (image below). America (1920s) is associated with the Roaring 20s arc which is likely to rhyme this decade.

So I have summarized the ideas in this article titled Split, Stack & Churn: Stabilizing Value with Rebase, Tranche, & Rotations in Decentralized Finance.

I believe that if & when we grasp these concepts and the engineering first principles of this system design, we can extend the inputs from the center (presently AMPL) out to the periphery (e.g., BTC, ETH, GTC, NFTs like Hypercerts).

The Traditional Finance System can be conceptualized as a game of hot potato which is passed around until the music stops, and the bag-holders of this hot potato (risk) are wiped out. It’s a Zero-Sum Game. When this happens on-chain, Information Asymmetry is minimized and we can effect Collective Non-Zero-Sum Outcomes. Pragmatically, for instance, we can tranche GTC & Hypercerts (Proof-of-Work of Positive Impact) together and design such a rotational system. So long as we can configure inputs in a timely manner to sustain the momentum of the rotating collateral set of tranches (e.g., with each Gitcoin Round), this system can output assets that minimize value loss. This is how SPOT is engineered from AMPL.

Once these concepts are integrated by our collective psyche, we can discuss further about growing the ecosystem together (e.g., pairing our tranches with AMPL Z-Tranches to foster market liquidity and related win-win outcomes). Reference.

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hmm, so an ELI5 is that you want to pair GTC and Hypercerts into something predictable (ie, predicatble accumulation or output) based on carefully selected inputs?

to what end?

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Correct. And other useful claims on work can be potentially lumped together into this as well, such as a Hypercert type NFT for each stamp refresh that goes towards proving one’s unique humanity.

This process can output a relatively stable asset worth $1; let’s call it G-Stable for now. G-Stable will be Liquidation-Free and De-Peg Resilient. So long as G-Stable is used within Gitcoin Ecosystem and beyond (Demand is sustained), Supply must also remain sustained for Equilibrium to be attained (GTC, Hypercerts, and so forth must be fed into this process in a timely manner).

Inputs must remain commensurate with Outputs.They can be configured to the same ends as the Nervous System - ensuring stability by minimizing prediction errors for all nodes that operate inside the Markov Blanket of the system’s confines.

I’m not sure there is an end(point) per se, but certainly we can navigate in the direction of transforming traditional work/labor into Public Good. Predictable monetary inflows and outflows at the individual & aggregate scale can reliably facilitate Public Good with limited interruptions.