Strangecoin: a proposal for a nonlinear currency

In any case, John von Neumann proved a long time ago that any nonzero sum game with n players can be modeled as a zero sum game with n+1 players, where the n+1 player represents the global state. TUA is simply an implementation of this proof.

http://en.wikipedia.org/wiki/Zero-sum_game#Extensions

I tried to explain inhibition in another comment in this thread. https://news.ycombinator.com/item?id=7496858

I give an an analogy in the proposal of the popularity of a celebrity couple being a nonlinear relationship to the popularity of each celebrity individually. I think our intuitive understanding of our social relationships is nonlinear in this way generally, and I think Strangecoin can model those nonlinear relationships well.

So, for instance, I'm imagining a family, spouses, close friends, and so on entering into extended coupling transactions, so that as a community their prosperity rises and falls together. I might also enter into such transactions with certain business with whom I want to couple my activities, and these coupling transactions might serve in lieu of direct billing or payment. A coupling relationship with a business is effectively a contract, but with traditional currency you need the whole legal framework of contracts to support the transaction, and with Strangecoin the transaction is built directly into the currency, and the interface looks almost exactly like a point-of-sale cash transaction.

And I can enter into less serious relationships of varying degrees with other parties. The effect is a way of managing not just financial transactions, but also reputation, investment, and other dynamics social constraints on the economy via the currency itself. Money is memory (http://www.minneapolisfed.org/research/sr/sr218.pdf), but our existing currencies only represent some aspects of our economic activity, and therefore put limits on the memory stored in the economy. A nonlinear coin like Strangecoin can embed that social knowledge in the currency itself, providing a more robust memory framework on which we can conduct our economic transactions.

I only hint at this in the proposal, but I suspect a system like this is required to resolve the twisted legal artifice the corporate veil, because it quantifies explicitly the role individuals have in collective economic activity, and thereby gives a method for explicitly holding persons proportionally responsible (in both credit and blame) for their contributions to that activity.

But I think that's a much more radical proposal than the one I've offered for Strangecoin, and I should probably only be defending that here. =)

To create a viable Strangecoin network, you'll need to demonstrate how a more cooperative economy can come into being and retain value within a more predatory, zero-sum society, where corrupting your network and exploiting it may yield rewards in US dollars.

I think these empirical questions can be resolved prior to implementation, by modeling the incentive structure of employees operating under traditional payment schemes, and employees operating under coupling transactions under Strangecoin, and then running simulations of the two models. I suspect traditional currencies will perform well under certain assumptions, but also that Strangecoin will perform well under similar assumptions, and may even outperform traditional currencies.

In particular, I suspect that an employee with a coupled Scoin transaction with a business will have a closer relationship with that business, partly because the transaction has direct consequences on every other transaction the user engages in, and (by extension) has a closer association with that employee's identity than another business offering only a weekly paycheck.

Businesses spend lots of money cultivating employee cultures so that they identify with the business, and these aspects of the culture can be more influential on employee motivation and job satisfaction than financial compensation. Strangecoin builds these relationships directly into the transaction, so we might expect it to have similar consequences.

But as I said, I think these are empirical questions that can only be solved from the armchair if that armchair is in front of a computer model simulation.