The Narrative Behind Hypercerts v2

[holkexyz]

Draft. This version is from May 2025. It's all work-in-progress. Implementation details tbd. Comments welcome.

Hypercerts v2: A New Foundation for Recognizing and Funding Valuable Work

1. Rethinking Value

The dominant narrative of the past century has been simple but limiting: value is measured by profit. This framing—while effective for certain economic goals—has failed to capture the full spectrum of valuable work in society, from R&D and ecological restoration to community organizing and open-source development. If we want to build systems that truly recognize and reward meaningful contributions, we must begin with a more accurate understanding of value itself.

2. Making Work Legible

To realign value with societal priorities, we must first make the supposedly valuable work legible. Who did what, when, and where? A hypercert is a digital artifact that begins by capturing this: a record of work, as defined by the people or organizations who created it.

This record is not static. The contributors to the work and others—experts, institutions, technical systems, or communities—can contribute additional data about the work. These contributions may include contextual information, usage data, endorsements, or evidence of outcomes. The trustworthiness of this data depends on its source: a well-respected institution, a peer-reviewed process, or a verified algorithm all carry different weight.

3. From Work to Verified Impact Claims

With rich, structured, and multi-source data attached to the original record, the hypercert evolves. Evaluations can be added—ranging from AI-assisted analysis of satellite data to community reviews and peer recognition. To allow comparisons within domains, standardized evaluation frameworks are applied wherever possible.

The result is not just a digital record of effort, but a verified impact claim: a comprehensive, evaluated representation of a contribution to the collective good. These claims form the foundation for a new generation of funding instruments—ones that allocate resources based on verified impact, rather than promise, hype, or marketing.

⚙️ Implementation: Ethereum Attestation Service (EAS)

An EAS registry will record each hypercert. Large data files—such as images, geolocations, and full descriptions—are stored on IPFS and referenced in the EAS record. Additional data and evaluations are also recorded on EAS.

The EAS records can be revoked and replaced with updated versions, ensuring that the changes are tracked onchain.

4. Tokenization of Impact

Initially, impact claims exist solely as onchain records. Tokenizing these claims marks a significant shift, transforming them into transferable and ownable digital assets. Once tokenized, a hypercert can be bought, sold, or transferred much like other forms of property. This process allows creators to directly monetize their impact, while enabling funders, organizations, and communities to acquire stakes in verified outcomes.

The transparent, onchain record of ownership and provenance ensures that value is directed to those who generate impact. Simultaneously, it creates new opportunities for collaboration, investment, and the emergence of secondary markets for public goods. In short, tokenization bridges the gap between recognition and reward, making impact not only visible but also actionable and tradable.

⚙️ Implementation: SuperchainERC20 in a Factory Contract

A SuperchainERC20 token will encapsulate a hypercert’s metadata, establishing a bidirectional link between the token and the EAS record. The hypercert creator can choose either a fixed or flexible supply and, if desired, restrict transferability through a composable module—for example, by specifying who may purchase the hypercert or limiting the number of times it can be traded.

SuperchainERC20 tokens are deployed via a token factory contract. This method streamlines deployment and enables the future addition of new token standards for hypercerts, ensuring long-term flexibility and adaptability.

5. A Github for Impact

To support this ecosystem, we need a shared infrastructure: a versioned, permissionless registry where all hypercerts can be discovered, updated, and referenced. Think of it as a GitHub for impact claims—where every hypercert has a canonical location, every update is tracked, and every transfer of ownership is visible. This makes it easier for funders to find and evaluate work, and for evaluators to attach trusted signals to the right artifacts.

6. Funding Platforms as Interoperable Apps

The introduction of hypercerts as standardized, composable impact assets marks a transformative shift for funding platforms—one characterized by interoperability and modularity. Instead of relying on siloed, monolithic grant programs or isolated crowdfunding sites, we envision a network of funding applications operating as interoperable apps built on a shared hypercert infrastructure. Each platform—whether dedicated to quadratic funding, milestone-based grants, retroactive rewards, or collective investment—can seamlessly discover, reference, and transact with hypercerts issued anywhere within the ecosystem.

This interoperability enables funders to curate impact portfolios that span multiple projects, platforms, and impact domains. At the same time, it allows creators to access a diverse array of funding sources without duplicating their efforts or fragmenting their impact records. Funding applications can differentiate themselves by specializing, innovating, and competing on user experience, evaluation models, or incentive design, all while remaining connected through the universal framework of hypercerts. Additionally, shared tools can be developed—for example, embedding hypercerts on organizations’ websites, sharing them on social media, or displaying funders' impact portfolios—further enhancing visibility and collaboration across the ecosystem.

7. Cross-Platform Profiles and Badges for Organizations

Beyond assessing impact claims, the reputation and trustworthiness of organizations are essential factors in funding decisions. To enhance accountability and support informed choices, we assign each organization a cross-application identity and profile. This unique identifier enables organizations to receive endorsements and badges from users and other organizations across the ecosystem. Any participant can signal trust in an organization, enriching its public profile with reputational signals.

This open, interoperable approach ensures that any funding platform can access key information—including badges, hypercerts, and metadata such as the organization's name, description, and associated wallets. By aggregating these signals onchain, organizations build persistent, portable reputations that reduce fragmentation and empower seamless participation across multiple funding environments. As a result, funders can make more informed decisions, and organizations are incentivized to uphold high standards and foster trust over time.

⚙️ Implementation: Decentralized Identifiers (DIDs) and Ethereum Attestation Service (EAS)

Each organization will be assigned a Decentralized Identifier (DID). The corresponding DID document contains essential information, including the organization's name and a brief description. Additional elements, such as a logo or banner image, can be linked to the document. It also lists the wallet addresses that hold the organization's hypercerts and other digital assets, as well as the wallet addresses authorized to act on the organization's behalf.

Badges will be stored using the Ethereum Attestation Service (EAS). A basic badge consists of an endorsement, which may include a brief comment and an image. By default, this image is the profile picture of the badge issuer. More advanced badges can be developed in the future.

8. Example Use Cases

8.1 Crowdfunding Platform with Non-tokenized Hypercerts

Not all impactful work requires tokenization to benefit from transparent, structured funding. A crowdfunding platform designed for non-tokenized hypercerts allows organizations and individuals to raise resources for projects while maintaining a clear, auditable record of intent, progress, and outcomes.

In this model, projects are drafted and published as hypercert attestations, anchored onchain via the Ethereum Attestation Service (EAS), but without issuing a token (yet). Contributors fund projects directly, with each contribution logged as an attestation, ensuring traceability and accountability. These records can be used, for example, to distribute matching funds on the platform. Funders can reference the evolving project record, assess progress through transparent updates, and review evaluations.

Upon project completion, the final state is immutably recorded, providing durable proof of impact for future funders, evaluators, or partners. If the organization later wishes to enable transferability or broader recognition, the attestation can be wrapped in a token at any point after completion, unlocking new funding mechanisms and secondary market opportunities.

This approach preserves the benefits of the hypercerts standard—such as standardized metadata, versioned updates, and the ability to attach evaluations or endorsements—while avoiding some complexities and regulatory challenges of tokenization. It is particularly well-suited for early-stage initiatives, community-driven efforts, or situations where liquidity and transferability are not primary concerns, but trust, transparency, and verifiable outcomes remain essential.

Process Overview

1. The organization creates an onchain hypercert attestation.
2. Funding is received and recorded through an EAS attestation, capturing both offchain and onchain transactions. The funder’s identity may remain anonymous if desired.
3. Hypercert attestations are updated to reflect the project's progress.
4. Upon project completion, the attestation is finalized and can no longer be modified.
5. Supplementary data and evaluations are published; this may occur before or after project completion.
6. Optional: The hypercert is tokenized and distributed to both financial and non-financial contributors.

8.2 Retrofunding: Aligning Incentives for Early Contributors

The core innovation of retrofunding platforms built on hypercerts is that retroactive rewards flow directly to the current owners of the hypercerts representing a project's impact. Early funders as well as non-financial contributors acquire or receive hypercerts as they contribute, knowing that if the project later receives retrofunding—whether from philanthropic programs, DAOs, or institutional backers—the proceeds will be distributed proportionally to hypercert holders. This transforms early support into a transparent, auditable claim on future retrofunding, aligning incentives for risk-taking and enabling a liquid, permissionless market for impact. These markets can be shaped to restrict unproductive speculation (see variations below).

By making hypercert ownership the foundation for retroactive value distribution, the system ensures that those who believed in and backed a project from the start are automatically rewarded if and when its impact is recognized. This not only encourages early participation and experimentation but also creates a dynamic ecosystem where impact can be valued, traded, and supported at every stage—from inception to broad societal recognition.

Process Overview

1. The organization issues an onchain hypercert attestation using a hypercert token.
2. Non-financial contributors receive fractions of hypercerts based on their contributions.
3. Early funders purchase fractions of hypercerts.
4. The work is completed, and the organization applies for retrofunding.
5. The work is evaluated, and retrofunding is allocated.
6. Funding is distributed directly and proportionally to the owners of the hypercert.

Variations

1. Dilutive vs. Non-dilutive: If the hypercert is dilutive, it becomes easier to recognize both financial and non-financial contributions as the process continues. However, contributors may be uncertain about the amount of retrofunding they will ultimately receive, since their fraction can be diluted over time. A compromise is to allow dilution only up to a specified total number of units.
2. Buying hypercerts retroactively: Rather than distributing funding solely based on ownership, retrofunders could offer to purchase fractions from each owner. This approach enables retrofunders to acquire hypercert fractions and build their impact portfolios. If multiple retrofunding mechanisms are in place, this method helps prevent contributors from being recognized multiple times for the same contribution and allows them to choose whether to sell their fraction at the offered price.
3. Limited returns: Retrofunding could be distributed only up to a certain threshold—for example, no profits beyond the original funding amount, or profits capped at 5% per year.

8.3 Traditional Grants: Transparent Funding and Impact Verification

Traditional grants continue to serve as a foundational mechanism for public goods funding, offering upfront resources to organizations or individuals based on their proposals and projected outcomes–without any expected financial return. The introduction of the hypercerts framework enhances this process by increasing transparency and accountability. Grant recipients issue hypercert attestations—with or without an accompanying hypercert token—that clearly define the project’s scope, milestones, and intended impact. As the project advances, recipients can append updates, supplementary data, and evaluations to the hypercert, creating a dynamic, ongoing public record of both commitments and results.

This transparent approach not only strengthens public trust in the grants program but also paves the way for a more dynamic and integrated funding ecosystem. For example, it enables the combination of traditional grants with retroactive rewards or the development of secondary markets.

Ultimately, we believe that any funding mechanism can use hypercerts to track funding flows and leverage the same evaluation ecosystem. This approach also allows grantors to build a comprehensive impact portfolio that includes all the funding mechanisms they employ.

9. Funding Infrastructure Ready for AI Agents

AI is increasingly shaping the drafting, review, and analysis of grant applications—not only for applicants, but also for organizations evaluating submissions. As this trend accelerates, with AI agents beginning to autonomously apply for and distribute funding (a development already underway in experimental settings), the need for verified and trustworthy data becomes paramount. Provenance, comparability, and auditability of claims will be essential requirements.

The hypercerts infrastructure offers a transparent, machine-readable data layer that facilitates deeper integration with AI agents. Crucially, this data layer remains accessible to humans, allowing us to ask AI agents to explain their actions and intervene when necessary.

Looking ahead to an optimistic scenario—though others are possible—as AI agents take on greater responsibility for managing funding processes on both sides, verified data will become the decisive factor. Marketing narratives, without supporting evidence, will no longer suffice.

10. Toward a More Value-Driven and Aligned Economy

By embedding digital records of work, trusted data, and evaluative insight into a composable, interoperable system, hypercerts offer a way to bridge the gap between impact and funding. They facilitate the core discussion about what we as societies value, and make this value legible—allowing us to reward the work that matters most, regardless of whether it fits within traditional markets.

This is not just a new technology. It is the operationalization of a new paradigm about value—one that invites everyone to participate in shaping what we recognize, reward, and invest in as a society.

Interested in shaping Hypercerts v2?

We’d love to hear from you—whether you have feedback, want to support the effort, or are excited to contribute directly.