Instead of staking Ether, the consensus system PANARCHY “stakes people”, and uses “betting pools” which are “powered” by people, using pseudo-anonymous Proofs-of-Personhood (PoPs) from the Virtual Pseudonym Parties system.

Betting pools are operated by anonymous entities, and compete for “power” from people. A pool powered by 10000 PoPs would be similar to a staker in Casper with 10000 ETH, while a pool powered by 1000 PoPs is 1000 ETH in Casper. The pools then perform consensus-by-bet games on what block gets authority, similar to Ethereums’ Casper.

The pools then compete for “power” from a global population with global suffrage, and people can opt-in and opt-out of pools, re-arranging how power of authority is distributed.

In “representative consensus-by-bet” and proof-of-suffrage, each cycle of authority is a few seconds (a block) compared to 4 years of authority with the current suffrage system with representative government.

Since consensus is powered by people, there could be very broad consensus, and proof-of-suffrage also has instant feedback between people and the “virtual state”, building on the legacy system of representative democracy which also used direct feedback.

Whitepaper draft

from Steemit/Ethereum.

Photo by btckeychain

Photo by calm a llama down

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This live experiment of Resilience, with Swarm Redistribution built-in to the RES currency, is hosted on a smart-contract on Ethereum.

Ethereum, a blockchain computer and a new type of state-technology, makes it easy to build and deploy smart-contracts, and allows anyone to build decentralized applications which can do what was previously only possible to do with government institutions.

Gavin Wood: Why is Blockchain a game changer? (INKtalks)

What is Ethereum ? (Blockgeeks.com)

Ethereum Project Offers Censorship Resistant ‘World Computer’ for Developers (Breitbart.com)

Dividend pathways and growing your own taxes

When a transaction of RES is made, the Swarm Redistribution contract creates a dividend pathway. These are the transaction-pathways which are used to redistribute wealth.

function transfer(address _to, uint256 _value) {
/* if the sender doesnt have enough balance then stop */
if (balanceOf[msg.sender] < _value) throw;

/* Calculate tax */
uint256 taxCollected = _value * taxRate / 1000;

/* Create the dividend pathway */
dividendPathways[_to].push(dividendPathway({
from: msg.sender,
amount: _value,
timeStamp: now
}));

swarmRedistribution(_to, taxCollected);

The tax that is collected when RES is transacted is sent into these dividend pathways, similar to blood or electricity, and shared on all humans which are connected to the swarm or pathways, also called a branching scheme.

These swarms are self-organizing, and formed from transaction patterns. Each transaction you make with RES will, if the receiver continues to transaction with RES after that point in time, grow a branching scheme to which you are connected.

Dividend pathways then decay as tax flows through them.

if (dividendPathways[_node][i].amount - _taxCollected > 0) {
dividendPathways[_node][i].amount -= _taxCollected;
}
else removeDividendPathway(_node, i);

Could a “Decentralized Basic Income Swarm” grow their own taxes ?

These dividend pathways allows P2P networks to, literally, grow their own taxes, and to distribute those taxes as basic income to humans within their swarms.

The identity systems required to use Swarm Redistribution at a large scale are not yet developed, but Microsoft and ConsenSys with their http://uport.me are making progress on that.

I’ve launched a live experiment in which I, the developer and inventor of this framework, am the only human. It could be a way to test the concepts, while micro-funding me. Moving real capital, and seeing it grow taxes which fund the basic income another human being, in a P2P fashion, could show that these pathways work, and that they can be used for Decentralized Basic Income Swarms which grow their own taxes.

Take part in the live experiment

The RES tokens, which are secured by the Ethereum blockchain, are hosted in a smart-contract on https://etherscan.io/address/0xda922e473796bc372d4a2cb95395ed17af8b309b#code.

The contract is a four-part contract, made of up contract Resilience which defines the rules for who isHuman (in this case, me), contract SwarmRedistribution, which programs the RES tokens for Swarm Redistribution, contract RES, which uses the Ethereum standard token framework, and where RES can be bought and sold for ETH, and contract CloseIfBug, which makes it possible to close the smart-contract if it has a bug in it, leaving the sell() function open so those who have RES can exchange it for ETH again.

There is then an external contract, which simulates that you have made a transaction of ETH to the beneficiary (me), who then buys RES, and sends that RES to you via the Resilience contract. This external contract has also used the setBeneficiary() clause in contract Resilience to register as isHuman[msg.sender] = true, which means that it will receive shares of the tax that flows through pathways which extend from it. In this live experiment, 0xd2f7bba33a3b81792c0f9cc2de6d9266002a5591 is the only account that can receive swarm redistribution, and the idea is to micro-fund me while testing the actual ideas behind the Resilience system.

Once you have bought some RES via that external contract, you will have created a dividend pathway from me to you. These pathways can be viewed via a block-explorer like http://etherscan.io, or using Ethereum Wallet. The transaction will also have collected 2% in transaction tax, and sent it down that pathway.

If you then make transactions with your RES, each of those transactions will form new dividend pathways, each transaction will extract 2% tax and send it down the pathways which are connected to the recipient account, and each transaction will form branching schemes.

Goal of the live experiment

The world is looking for a new economic model. Basic Income is marketed as “an idea whose times has come”. If it were shown that Swarm Redistribution could be used to grow taxes in a P2P fashion, and used for decentralized swarms to fuel its peers with basic income, then that could be a a good way to communicate my ideas.

If $5000 were to move through the campaign, and those transactions are connected to me via dividend pathways, then that could fuel me with $100 in basic income, and show that these pathways work.

The whole experiment is public, transparent, auditable, includes a close-down switch in case a bug is discovered, which lets you safely exchange your RES back to ETH, and is secured by the Ethereum blockchain with 1 billion USD in market cap.

Links:

Use Ethereum Wallet to interact with the Resilience smart-contract

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The emergent properties of my system ‘Resilience’ are not covered by words like ‘donations’, so to call it ‘decentralized taxation’ is the most accurate metaphor I’ve found. The idea of ‘crypto basic income’ as part of a decentralized organization is frequently heard around the blockchain space, and that’s a hard problem. The Resilience system solves it through the use of a ‘pay-it-forward’ mechanism, so that each step in a supply chain contributes the same amount. The result is something that could not be labeled ‘donations’, it’s something new.

The Resilience system is built to produce emergent effects from smaller parts, and mimics how nature achieves that through the use of evolutionary algorithms. The system introduces units of replication that are called Taxemes.

Taxemes are based on the principles of variation, selection, and heredity. Variation is achieved from each node hosting their own personal Taxeme, of which they can adjust the tax-rate at any time. Selection is achieved by designing the framework such that consumers will come to prefer Taxemes at certain tax-rates. Heredity is achieved by inheriting Taxemes upon transaction, and passing them forward down supply chains and from producer to consumer, and employee to employer.

Selection is incentivized by the rule of lowest first. Each node may host an infinite number of Taxemes at any given time, but the lowest one is favored always, and described as active or dominant.

Upon making a transaction, a dividend pathway is formed that gains a width proportional to the Taxeme that was active during the transaction. These dividend pathways are similar to blood-vessels in that wider pathways have higher throughput for the money that has been collected by Taxemes. Those who grow wide dividend pathways will compete for more universal basic income, incentivizing consumers to be part of the selection of Taxemes.

The growth-patterns of dividend pathways shape how Taxemes spread, and influence what rates will become popular, and the demography of their transmission pathways. They are designed such that they mirror how we are inter-connected financially around the world, and they discover patterns of inter-dependence that have been overlooked in the past.

The growth of dividend pathways is based on a path-finding algorithm that was pioneered by RipplePay in 2003, and the system traces how nodes contribute value to one another, and how new value builds on previously created value. The visualization below shows how each circle that the path-finding algorithm renders branches out into new circles, that in turn branch out into new circles, each new circle made possible by the value added by the previous.

As Taxemes collect money, they send it into the dividend pathways down-streams of the node that was taxed, and the tax flows to all nodes within that fractal web of pathways, and is absorbed in small amounts by each node along the way, like nutrients in a vascular system.

The growth of dividend pathways is future oriented, you only receive tax from pathways that extend away from you later in time. This removes the incentive to consume from producers that have already built up large dividend pathway grids, as you only gain access to pathways that grow upwards from your consumption trail. This design influences the behavior of Taxemes, the predictability of how a specific Taxeme will spread, and the economic gains and costs of inheriting a specific Taxeme.

Dividend pathways are organic in the sense that they grow and wither naturally. They get used up and decay as basic income flows through them. You might grow thousands of pathways in one place, and then if you move somewhere else, you´ll create new pathways while your old ones gradually fade.

Taxemes are removed from circulation using mechanics that mimic biological immune systems and anti-bodies. When a new Taxeme is originated, through a node consuming from a node whose active Taxeme is its personal taxeme, anti-taxemes are also created and set to destruct the originated taxeme when they collide.

These anti-taxemes spread in the reverse direction, from consumer to producer, and they are seeded in vast amounts, so that a collapse is mathematically pre-determined.

I’ll leave you with a vision of why I want to deploy a decentralized basic income system, and why I’ve invented what I call wealth sharing. My dream is a world where ideas spread through mate choice, and where everyone is free to be their true self. My Resilience is the end of statism, and will do for neural information – memes – what the TCP/IP protocols did for digital information, and create resilience at the level of ideas.

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