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| 1 | +--- |
| 2 | +title: "Consensys Network State Constitution" |
| 3 | +description: "The constitution governing the consensys network state. " |
| 4 | +author: "Mike Norman" |
| 5 | +date: "2024-12-03" |
| 6 | +tags: ["Network State", "Constitution", "Governance"] |
| 7 | +--- |
| 8 | + |
| 9 | +# Network State Constitution |
| 10 | + |
| 11 | +This document outlines the constitution governing the network state. |
| 12 | + |
| 13 | +## Preamble |
| 14 | + |
| 15 | +We, the members of the network state, establish this constitution to ensure justice, promote the general welfare, and secure the blessings of liberty. |
| 16 | + |
| 17 | +## Content |
| 18 | + |
| 19 | +### Vision |
| 20 | +Product perspective: If the prototype described herein is successful, we productize the entire end-to-end system for CONS Collectives to use to launch their own instantiations with customization options; many opportunities for recurring revenue arise. |
| 21 | +—---------- |
| 22 | + |
| 23 | +The core of a resilient democratic State (geographic or network) is the establishment of the rules of agent interaction, enabling an emergent complex adaptive system to continuously evolve. These rules govern not only how established ontological system components interact, but also how that ontology is empowered to change itself – a complex system which is able to adapt itself is known as Autopoetic. Encoding the rules of Autopoetic Evolution is critical to ensure the system is safeguarded against short-termism. These constructive boundaries are far removed from an architectural prescription – top-down approaches to system development often stifle the emergent properties that drive true systemic resilience. |
| 24 | + |
| 25 | +Ethereum offers an incredible starting set of agent-based interaction rules by providing the transactional and property ownership sovereignty required; emergent properties that are necessary but not sufficient for establishing an opt-in Network State. The full set of rules for agent interaction that will enable Network State growth and value creation are an open question – one that CONStitution will answer via a tapestry of adaptive mechanisms. These adaptive mechanisms will provide incentives for builders to voluntarily launch State-aligned Collectives, and for users to feel compelled to become Netizens of the State. |
| 26 | + |
| 27 | +The gap in these core rules of agent interaction is a self-organized Network State Constitution which encodes these agent-level constructive boundaries as Constitutional Values. |
| 28 | + |
| 29 | +A note about agents: agents are founder-builders, users, AI entities, validator operators, etc.; any system node which is imbued with the ability to make decisions and possesses a non-deterministic approach to doing so. The reader should keep in mind that the properties of rationality and non-determinism are not mutually exclusive, e.g., a consensus client operator is rationally incentivized to avoid slashing, but is not deterministically guaranteed to do so. The embodied perspectives held by agents in a complex adaptive system do not provide the top-down properties of synchronized global information – all perspectives are necessarily local, thus the need for adaptive mechanisms. One of the emergent properties of Ethereum is that it is able to produce a synchronized historical global state out of the networked set of non-synchronized participants; however, during the construction of that history, information is anything but global. This chaos-to-order pattern will only become more nuanced as innovations such as Multiple Concurrent Proposers (MCP) are adopted by the network. We should embrace and harness the power of the ‘adaptive agent’-based view of the universe to move forward. |
| 30 | + |
| 31 | +### Approach |
| 32 | + |
| 33 | +Growing the Consensys Open Network State (CONS) means onboarding both builders and users. Onboarding builders and users requires compelling Collective launches. In order for Collectives to launch as CONS-aligned, they must be incentivized to do so. Via the orchestration of interconnected but independent elements, we will kickstart a sustainable bottom-up flywheel for growth and adoption. The pattern described herein, if successful, should be productized and evolved for all future Collective/Proto-Network State usage. |
| 34 | + |
| 35 | +#### Mechanisms |
| 36 | +Mechanism details are subcategorized as either Short-term Experiments or Long-term Systems, implying an approximate roadmap for development. |
| 37 | + |
| 38 | +(TODO: Diagram of inter-mechanism interactions) |
| 39 | +CONS Agreement Engine |
| 40 | +On-chain Master Services Agreement (OMSA) |
| 41 | +[Long-term System] Establishes bilateral token agreements |
| 42 | +Work Token Allocation System (WTAS) |
| 43 | +[Short-term Experiment] Execution of token-based agreements |
| 44 | +Build.fun |
| 45 | +Pump.fun for tokenized CONS Collectives/Proto-Network States which integrates WTAS + OMSA |
| 46 | +[Short-term Experiment] Enables pre-templated Collective agreements to be established |
| 47 | +[Long-term System] Toolbox for novel Collective agreement template creation / protocol design |
| 48 | +CONStitutional Value Staking |
| 49 | +Modified 0xIntuition Staking – Collectives which raise capital (i.e., ETH) from CONS Agreement Engine may choose to stake some portion of their capital against the Constitutional Values of CONS – the yield from this stake will be directed to the CONStitution DAO, rather back to the originating Collective itself |
| 50 | +[Short-term Experiment] Values Experiment |
| 51 | +Individuals or self-organized collectives define and stake ETH to Ethereum North Star Values |
| 52 | +Staking yield directed to North Star DAO |
| 53 | +North Star DAO uses WTAS to mint North Star memecoins as incentive to Ethereum North Star values stakers proportional to amount of ETH staked |
| 54 | +North Star tokens eventually (Surprise! Utility wrapped in a meme) grant access to North Star AI and enable the selection of further training data |
| 55 | +Dumping North Star tokens or gaming the 0xIntution mechanism (i.e., staking, then unstaking once North Star tokens received) will have negative consequences |
| 56 | +Potentially, participation/membership is gated by both the stake remaining and the North Star tokens being held in full |
| 57 | +[Long-term System] Part of Build.fun Collective launch flow |
| 58 | +[Long-term System] Incentives for Build.fun Collectives to become Netizen Collectives |
| 59 | +Membership in CONS – staking some %age should be required for a Netizen Collective to obtain CONS membership, but this should be optional, not required (otherwise someone else will fork the idea and remove the rent) |
| 60 | +Membership will be encoded on-chain as CONS token distribution to the Collective |
| 61 | +Influencing the fundamental values and subsequent training runs on those values, which influences the AI decision-making |
| 62 | +[CONSIDER] PoW-framed AI training/hosting |
| 63 | +Given other aligned behaviors are demonstrated (i.e., no dumping of Collective tokens), eligible for Risk Sharing via the CONStitution AI’s deployment of CONStitution DAO’s protocol-controlled value to market purchase Netizen Collective tokens which are undervalued |
| 64 | +Ability to interact with CONStitution AI via Discord |
| 65 | +[CONSIDER] Netizen Collective native tokens are only accumulated by the AI/DAO and never sold – all other tokens are considered tradable by the AI |
| 66 | +CONStitution DAO |
| 67 | +[Short-term Experiment] North Star DAO which selects training data for North Star AI |
| 68 | +[Long-term System] North Star DAO evolves into CONStitution DAO |
| 69 | +CONS DAO token holders get access to AI to present investment ideas, buying opportunities for Netizen Collective tokens which have underperformed relative to peers, etc. |
| 70 | +CONS DAO token holders have ownership of protocol-controlled value; i.e., AI16Z-type exposure |
| 71 | +North Star AI [Short-term Experiment] -> CONStitution AI [Long-term System] |
| 72 | +[Short-term Experiment] North Star AI will be first instantiation (aka Joe LubAIn ;) ) |
| 73 | +Initially trained on emergent North Star values |
| 74 | +[CONSIDER] Initial training on writings of Joe/Vitalik/etc. |
| 75 | +North Star memecoin holders will be granted ability to select further training data either via DAO vote or North Star Token-enabled 0xIntuition mechanism (i.e., staking of North Star memecoins rather than ETH) |
| 76 | +North Star memecoin holders will be granted Discord access to engage with North Star AI |
| 77 | +[Long-term System] Via combination of democratically selected training data, makes decisions to purchase Netizen Collective tokens on the open market (this is the Risk-Sharing instantiation) when market is undervaluing them (unless Netizen Collective token performance is a result of Collective or Collective-adjacent dumping) |
| 78 | +Joe/Vitalik corpus |
| 79 | +Weighting of economic gravity of staked Constitutional Values Opacity & AI Decision-making autonomy by design: Critical that these decisions are actually made with opacity by the AI so the DAO does not get front run (non-deterministic) |
| 80 | +[Long-term System] Executes trading strategies around buy and hold positions in order to increase size of insurance pool and general protocol-controlled value |
| 81 | +Conflict of interest possible if Netizen Collectives believe that the AI may sell their native token on the open market |
| 82 | +[Long-term System] Crowd sources information (with significant guardrails) from verified Netizen community via Discord |
| 83 | +Open Questions for Short-term Experiment(s) |
| 84 | +To be whiteboarded next week w/ team |
| 85 | +Open Questions for Long-term System(s) |
| 86 | +Adoption levels required to achieve meaningful DAO-controlled value accrual via Values Staking alone |
| 87 | +Static Analyses: how much ETH needs to be staked to drive $1M in fees to DAO? $10M? $100M? |
| 88 | +Will 0xIntuition mechanism be enough to propel DAO forward once CONStitutional value staking has reached a certain saturation point amongst interested parties? |
| 89 | +Does endless growth of those values seem like a sustainable Risk Sharing capital generation mechanism? |
| 90 | +Rules around AI trading strategies |
| 91 | +Netizen Collective Tokens off limits? Accrual only of those tokens? |
| 92 | +Rules around AI generally |
| 93 | +Making suggestions <-> empowered to take action without any human in the loop |
| 94 | +If humans are in the loop, how to decentralize without being front-runnable? |
| 95 | +Trained on data beyond values experiment |
| 96 | +Separate next step to do intuition experiment to curate training data |
| 97 | +How can we allow existing Collectives to emigrate to Netizen Collectives? |
| 98 | +Especially challenging if they did not use build.fun workflow to establish Collective |
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