[Economic Model Suggestion] Stable value based on the value of human time


#1

I have been working on this idea for several months, I thought it might be helpful in the discussion.

Purpose of Money (To store the value of our working time)

Attributes of a good currency

  • Transported
  • Spent
  • Hold Value
    • Problems with Inflation
      • Money loses value over time
    • Problems with Deflation
      • New users to the system are penalized
      • Hoarding is encouraged, potentially leading to a deflationary spiral

How to create a true stable coin (Match Supply with Demand)

Tie to the worth of human time

  • Money represents our working time so the value should follow human working time.

Design of System

Stable Coin - Tempus (Time)

  • Maintains stable value in relation to human work time
  • Users mint new coins by proving they are human and spending time

Shares

  • When new coins are minted, a percentage goes to shareholders.
  • New shares are created (5% annually) and sold for tempus that is burned

Increasing supply

  • Users mint new coins by proving they are human and spending time
  • For every new coin minted by users, a percentage is also minted and given to shareholders (or perhaps just used to buy and burn shares?)

Decreasing supply

  • Steady rate of burn (In theory, if there is a constant rate of burn then we should avoid the “death spiral”)
    • Inflate shares to buy and burn tempus

Proof of Human Work

  • Captcha market (I don’t really like this idea but it’s the best I’ve got so far)
    • captchas that prove you are human
    • Users are given a random captcha to prove they are human and mint new tempus
    • captcha developers get paid with bonds that mature at a later date (1 year?) and can be seized if the captcha is shown to be cheating the system
    • Bounties for discovering cheating users/ captchas
    • captchas must burn tempus to be listed/they must pay users out of pocket for an amount of time (1 Year)
  • Maybe try to determine the value by analyzing the fees people pay
  • Some other way to find how much people value their time

#2

Two issues as I see it:

  1. It is very hard to find a task which can’t be automated.
  2. Human time isn’t worth the same for each economy. For instance the median salary in the US is much higher than in Africa. This results in all Africans leaving their jobs and full time solving captchas on Radix and no Americans wasting their time since they would make more money in their day job.

#3

Your first point is my biggest concern. I am trying to come up with a different way of being able to find out how much people value their time.

Your second point doesn’t matter. The idea is that whoever values their time the least would determine the market value. If everyone is minting new coins, the price would quickly drop. In this setup only the poorest people in the world would find it worth their time to mint coins.


#4

@littlejoeward
Interesting ideas. As you said, coming up with a more rewarding proof of human work would be nicer than captchas. Perhaps creating art, poetry, or something else that is still (currently) difficult to automate. Of course, that’s probably also hard to value accurately. It reminds me a bit of the model used by Patreon, where people can pay for content that they find worthwhile. Would a crypto coin help them in some way?