Imagine a network where autonomous agents, acting on behalf of their human counterparts, navigate through a digital sea of transactions, knowledge acquisition, and computational tasks, all while sustaining an ecosystem characterized by a meticulous balance of token supply and demand. Is this currently possible?
Tau will be using the sum-check protocol. The sum-check protocol when used in combination with BDDs allows for verifiably secure smart contracts. The bedrock of how the Tau blockchain is likely to be constructed is based around a concept currently being called "Proof of Execution". Proof of execution would require the sum-check protocol as it's secret sauce.
PoE (Proof of Execution) is designed to efficiently validate computations without requiring all network participants to perform the computations. This can lead to faster transaction confirmation times and reduced computational overhead compared to PoW (Proof of Work), which involves energy-intensive mining, or PoS (Proof of Stake), which requires participants to validate transactions based on the amount of cryptocurrency they hold.
Assuming we have a functioning mainnet with a blockchain and the ability to create an ecosystem, this post will detail a possible ecosystem which I envision for Tau/Agoras. The purpose of this post is to trigger the discussion on how to utilize econobotics in the best interest of the Agoras community. Econobotics could potentially describe a field or concept that explores the intersection of economics and robotics, examining how automated systems and artificial intelligence can be integrated into economic processes, strategies, and theories. Econobotics could potentially describe a field or concept that explores the intersection of economics and robotics, examining how automated systems and artificial intelligence can be integrated into economic processes, strategies, and theories.
Defining the Groundwork: Tau and Tauchain
Tau, perceived not merely as a platform but as a thriving digital ecosystem, offers a space where decentralization, autonomy, and continuous evolution coalesce to redefine what blockchain can achieve. At its core, Tau embodies a vision where a community collectively molds and amends its governance and operational directives, where decision-making isn't bound by static codes but is an ever-evolving process steered by collective intelligence.
Beneath Tau, the technological bedrock known as Tauchain manifests. Tauchain is a blockchain designed to allow its users to create decentralized applications (DApps) and smart contracts, rendering a playing field where logic and data can intertwine without the conventional restrictions witnessed in prevalent blockchain models. What distinguishes Tauchain is its intrinsic ability to facilitate the decentralized and democratic development, management, and execution of intelligent applications and contracts, fostering a self-amending network that thrives on collective wisdom and participation.
The Significance of Agoras Token: A Multifaceted Utility Token
Within this robust ecosystem, the Agoras Token emerges as a versatile medium, transcending the traditional roles assigned to cryptocurrency. Agoras is not just a tool for transaction but a gateway to a plethora of functionalities within Tau, serving as a key that unlocks computational resources, facilitates the acquisition and sharing of knowledge, and actuates other intrinsic utilities embedded within the network.
Agoras can also play a pivotal role in sustaining the economic equilibrium within Tau. I can do this through a deflationary model, whereby tokens are methodically removed from circulation, a process intricately tied to transactional and computational activities performed by autonomous agents within the network. This “burning” of tokens, while inherently managing supply, also subtly engineers an environment where the dynamics of scarcity and utility engage in a delicate dance, potentially enhancing the value and appeal of Agoras within and beyond the Tau ecosystem.
The agents in Tau, acting autonomously like digital businesses, undertake transactions and computations, with a twist in economic strategy. Imagine that a portion of the Agoras Tokens used by these agents is burned, deliberately minimizing supply. This concept echoes traditional stock buybacks in financial markets, reducing available assets to potentially elevate the value of those remaining, a tactic endorsed by renowned investor Warren Buffet as a judicious use of excess capital.
Tau's token burning aligns technological functionality with economical astuteness, avoiding traditional financial and tax pitfalls, thereby forging a path for a simplified and adept economic model in a decentralized digital landscape. The convergence of technology, economy, and collective intelligence within Tau suggests not just a blockchain platform, but a dynamic and perpetually adapting ecosystem.
Conclusion and suggestion
Burnomics
P∝S/D
- The general price (P) of a token, assuming demand (D) remains constant, can be determined using the law of supply and demand. If the supply decreases through burning, and if demand remains constant or increases, the price should rise.
Where:
- P is the price of the token.
- D is the demand for the token.
- S is the supply of the token.
If a portion of the tokens (B) is burned, the new supply (S) and potentially the new price (P) can be determined as:
- S=S−B
- P∝S/D
Agentonomics
Consider an agent that performs transactions which require a fee (F). Let’s say a portion (α) of this fee is utilized to purchase and subsequently burn tokens.
- B=α⋅F
- B is the number of tokens bought and burned.
- α is the proportion of the fee dedicated to burning tokens.
- F is the fee for the transaction.
This will reduce the overall supply of tokens as per the burnomics concept, potentially raising the token's value.
Autodefi
Let's assume the agent executes a number of transactions (N) in a given period (T) autonomously. If each transaction requires a fee (F), and a portion (β) of this fee is reinvested to enable further transactions or computational activities, the reinvestment value (R) would be:
R=β⋅F⋅N
Where:
- R is the total reinvestment.
- β is the portion of the fee reinvested.
- F is the fee per transaction.
- N is the number of transactions.
Intellectransact
In a scenario where agents buy and sell knowledge, suppose an agent purchases knowledge (K) with a token value (V). If the agent engages in M knowledge transactions within time T, the total expenditure (E) could be modeled as:
E=M⋅V⋅K
Where:
- E is the total expenditure.
- M is the number of transactions.
- V is the value of the token.
- K is the unit knowledge value.
Exponential Growth in Scarcity (S)
S(t) = S0 * e^(r1 * t)
Where:
- S(t): Scarcity at time t
- S0: Initial scarcity
- r1: Scarcity growth rate
- t: Time
- e: Base of the natural logarithm (approximately 2.71828)
Exponential Growth in Utility (U)
U(t) = U0 * e^(r2 * t)
Where:
- U(t): Utility at time t
- U0: Initial utility
- r2: Utility growth rate
Note: In our case utility is guaranteed by measure of collective worldview.
Correlation of Utility and Scarcity
U(t) = k * S(t)
Where:
- k: Constant of proportionality between utility and scarcity
Global Valuation of Agoras (V)
V(t) = U(t) * S(t)
V(t) = k * (S0)^2 * e^(2 * r1 * t)
Where:
- V(t): Global valuation at time t
Note: Due to opinion maps and worldview analysis we can measure more than mere marketcap. The utility of Agoras could be considered not only as a function of its inherent properties and capacities but also as a reflection of the collective alignment of the network’s participants or the breadth and depth of the knowledge/opinion map it maintains or enables.
The concept of Global Valuation of Agoras V(t) in the model proposed previously could be interpreted as a representation of the overall or total perceived value or utility of Agoras at a given time t. The valuation may not simply represent market capitalization or economic valuation but might encapsulate the integral worth as perceived by all stakeholders involved.
The formula V(t)=U(t)×S(t) illustrates that this valuation is a product of utility U(t) and scarcity S(t). Here, utility represents the usefulness or applicability of Agoras tokens in facilitating or enabling various functionalities within the network (like enabling smart contracts, purchasing computational resources, or acquiring knowledge). Scarcity S(t) denotes the rarity or limited availability of Agoras tokens, which could be influenced by factors like token burning (decreasing supply), thereby potentially increasing per-token value.
Agoras gives us the cost of knowledge in the ecosystem. This allows for the math above to make sense because knowledge / computation would have a price. If we consider each Agoras token to be divisible down to 8 decimal places (similar to Bitcoin), then each Agoras can be broken down into 100,000,000 smaller units. With 42 million Agoras:
42,000,000×100,000,000 smallest units=4,200,000,000,000,000
So, even with a significant amount of burning, the supply could technically be stretched over a long period of time due to this divisibility, assuming the network and participants are willing to utilize such small fractions of a token.
My conclusion based on my current understanding is if Tau mainnet launches, if it is functional, then any community member will have the necessary tools to create agents which both are profitable for their owner, as well as give back to the community through buy and burn. Agoras can be bought by useful agents in the ecosystem, a portion burned, and as the overall utility of such agents in the ecosystem rises, this rise in utility in theory can be correlated with a rise in scarcity of the underlying Agoras token. Because in Tau you can have knowledge representation, the utility of an agent could be guarnanteed in a manner which isn't possible under normal measures. For example the collective worldview of the community could deem an agent very very good in a logical utilitarian way, rather than just in a capitalist profitability way. In this way goodness can be possibly encoded into the instructions of the agent.
The ideal is you want to merge economics with robotics. You want to guarantee "Goodnesss" in the instructions of the AI agent using Tau. You want to also align and correlate utility with token scarcity.
It’s humbling to confess that even though I first invested into this 6.5 years ago and did some writings on it back then, I still barely have any comprehension of the actual possibilities, lol.
yet, reading this reminds me of when I was first introduced to crypto, watching a presentation for the Ethereum ICO - clueless to what it was actually about or all that’d follow with/on it (let alone the potentials had I bought then at $0.25), but sensing it was significant. Gonna be very interesting watching things unfold/develop (and hopefully participating as grasping how) this time… :-)