Tag: money

A Monetary System Backed by Innovation

On November 17, 2024

A monetary system backed by innovation represents a revolutionary approach to value creation in our modern economy. Unlike traditional systems anchored to physical commodities like gold or oil, or the current debt-based fiat system, an innovation-backed currency derives its worth from humanity’s capacity to solve problems and create new solutions.

Core Mechanics

The foundation of this system rests on measuring and tokenizing innovative output across society. Value is created when two or more people get together and build something useful. In Boomspace, the single innovation unit is a node comprised of a claim and a validation of fact. Many innovation units combined may result in patents filed, research breakthroughs, or innovative solutions to problems – but it all starts and ends with validated claims of factual events. This creates a direct link between human ingenuity and monetary value.

Advantages

Economic Growth Alignment

This system naturally promotes sustainable economic growth by rewarding activities that advance human knowledge and capabilities. Rather than encouraging debt accumulation or resource extraction, it incentivizes education, research, and creative problem-solving.

Dynamic Valuation

The currency’s value appreciates as society’s innovative capacity expands, creating a naturally progressive monetary system. This stands in stark contrast to traditional commodities, which are finite and can lead to artificial scarcity.

Distributed Opportunity

Innovation-backed currency democratizes value creation, as anyone with ideas and problem-solving abilities can contribute to the monetary base. This system rewards merit and creativity rather than existing wealth or resource control.

Implementation Framework

The practical deployment would involve establishing clear metrics for measuring innovation impact, creating transparent verification systems, and developing smart contracts to automatically mint currency when verified innovations occur. Advanced AI systems could help evaluate the quality and impact of innovations, ensuring fair and objective value assessment.

This monetary system fundamentally redefines wealth as the capacity to improve the human condition. It creates a positive feedback loop where financial incentives align perfectly with societal progress, potentially ushering in an unprecedented era of human advancement and prosperity. By making innovation the backbone of our monetary system, we create an economy that naturally evolves toward greater efficiency, sustainability, and shared prosperity.

Video Transcript:

The Dividends of Innovation

Innovation is not linear Modern civilization did not begin 10,000 years ago with 250 Trillion dollars sitting in a box somewhere in the desert.

Money was measured into existence as a function of the things that scientists, engineers, and technologists built. Innovations such as the wheel, wedge, and lever came long before the invention of International Trade Agreements Innovations in machinery, transportation and energy enabled advances in sanitation, healthcare, and computers

Yet, the wheel, wedge, and lever are more important and more widely applied than ever. Wouldn’t it make more sense if we developed a monetary system backed by the dividends of innovation rather than the gravity of debt?

The Ingenesist Project uses game theory, blockchain, and artificial intelligence to measure the true economic contribution of engineers, scientists, and technologists.

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Analysis

A Massive New Asset Class

By danr

On November 8, 2024

In Ingenesist

The hidden economy of risk mitigation represents one of the largest untapped asset classes in modern finance. This revelation becomes particularly striking when we examine how value is created but not properly captured in our current economic system.

The Invisible Value Creator

Engineers, scientists, and technologists consistently generate massive economic value through risk prevention and mitigation, yet this value remains largely invisible in traditional financial metrics

Consider a fire protection engineer who designs thousands of buildings that never burn – their contribution to society far exceeds their compensation, creating an enormous gap between value creation and value capture.

Converting Intangible to Tangible

The key to unlocking this massive new asset class lies in our ability to measure and monetize risk prevention. When we can quantify the value of disasters that never happened, we can begin to properly value the intellectual capital that prevents them. This creates an entirely new financial framework where:

Risk Prevention Becomes Measurable
The true economic impact of preventative measures can be calculated and converted into tangible assets.

Knowledge Workers Gain Recognition
Engineers, scientists, and technologists can receive compensation more closely aligned with their actual value contribution.

Market Inefficiencies Surface
The current system’s dramatic undervaluation of preventative expertise becomes apparent and correctable.

Economic Implications

This transformation has profound implications for the global economy. Currently, technical professionals typically receive only 2-20% of the value they create

By properly measuring and monetizing risk prevention, we can:

Create new financial instruments based on risk mitigation
Develop more accurate valuation models for intellectual capital
Enable fair compensation for knowledge workers

The current economic system captures this value through banking arbitrage, but a more equitable distribution would drive innovation and attract more talent to critical fields. This represents not just an opportunity for wealth creation, but a necessary evolution in how we value and compensate intellectual capital.

Rewrite

An Invisible Economy: The Ingenesist Project

A firefighter is worth millions of dollars per hour preserving lives and property…but only when there is a fire. A Fire Protection Engineer can design thousands of buildings that will never burn.

In the absence of a fire, the true value of the Scientists, Engineers, and Technologists is invisible. But the value of their economic contribution continues to persist.

What if we could measure the true value of intangible assets into present value existence. A massive new asset class would be unlocked.

The Ingenesist Project uses Game Theory, Blockchain, and Artificial Intelligence to convert intangible assets into tangible form, at scale. There is no shortage of money, only a shortage of imagination.

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Analysis

The purpose of this video is to demonstrate how engineers, scientists, and technologists remove RISK from complex systems. Risk is directly correlated to “return” and, therefore, profits.

So what happens to all of that value that a single diligent engineer creates when they remove all of the risk? Is it paid to the engineer? no. Is it returned to the non-victims of the calamity averted? no. Is captured by the the banking system as some form of arbitrage? Yes, absolutely, yes.

This is the deep dark secrets of finance. Don’t let the engineers, scientists, and technologists know that they are paid 2-20% of what they are worth. They may want free stuff like healthcare, job security, or royalties, or else they’ll go build something else that pays better social dividends. Can’t have that.

Obviously the question becomes, what happens when there are no more engineers to eliminate risk? There is a tipping point and we are dangerously close to approaching it. These things are easy to measure, assess, and resolve but there needs to be an institution able to secure material facts and assert the economics of those facts.

The Definition of Innovation, Finally

By danr

On November 4, 2024

In Ingenesist

The traditional understanding of innovation has been shrouded in ambiguity, often reduced to: “you know it when you see it”- followed with a shrug. However, by viewing innovation through the lens of knowledge acceleration, we can develop a more precise, predictive, and actionable framework for identifying transformative opportunities

Knowledge Acceleration as Innovation’s Core

Innovation can be precisely measured as the rate of change of knowledge with respect to time. This mathematical approach transforms the nebulous concept of innovation into a quantifiable metric

When we understand that each significant innovation comprises numerous smaller knowledge breakthroughs, we can better identify where true value creation occurs.

Breaking Free from Traditional Metrics

The current innovation ecosystem suffers from a fundamental flaw – it’s predominantly denominated in monetary terms. This narrow view has created a system where innovation recognition is often limited to those with significant financial backing, particularly venture capitalists

This limitation severely restricts our ability to identify, prioritize, and nurture breakthrough solutions to pressing global challenges.

A New Framework for Innovation Assessment

By focusing on measuring knowledge acceleration rather than just financial metrics, we can identify promising innovations in their earliest stages. This approach allows us to:

Detect emerging knowledge clusters before they become obvious investment opportunities
Track the velocity of knowledge development across different domains
Identify genuine innovation separate from market hype

Implications for Future Investment

The ability to measure innovation through knowledge acceleration provides investors with a powerful tool for portfolio optimization. Instead of relying solely on traditional metrics, investors can now evaluate opportunities based on their contribution to knowledge growth and problem-solving capacity

This framework particularly shines when addressing urgent global challenges, as it helps identify solutions that create genuine progress rather than just market value. By understanding innovation as a measurable rate of knowledge change, we can direct capital more effectively toward transformative solutions that drive sustainable progress.

An Algorithm For Innovation; The Ingenesist Project

A useful definition allows people to identify, replicate, or measure the subject being defined. Yet the best definition we have for Innovation is basically, “You know it when you see it”.

How can we sustain our world if we cannot even define the sole instrument of change?

Have you ever had an epiphany? That ah-ha moment that comes from deep within… …when suddenly your knowledge about something grows exponentially within a very short period of time? Let’s call that “innovation”, where one large innovation is comprised of many smaller innovations.

In order to measure innovation, all you need to do is measure the rate of change of knowledge with respect to time. You don’t need Calculus to recognize this as an algorithm for innovation … but it helps.

If that idea doesn’t change the world, nothing will.

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Analysis

Innovation is a great mystery that does not need to be. Everyone innovates – it is necessary for survival. Yet the magic and mystique of the innovator is a cultural phenomenon that forms the foundation of tech social status. Innovation is denominated in money – if you are not flush with cash, then you are not an innovator. Only VC can be innovators due to their ability to navigate financial markets. It almost seems that the more difficult it is to identify something, greater scarcity can be assigned to it. The false impression is that with greater scarcity come greater value. Again, when we become vested in our own misery, progress grinds to a halt.

This is all quite counter productive.

The problems of the future will require innovation, creation, new ideas, and vast execution at an astonishing scale. In order to achieve true economic sustainability, we need to a metric to denominate true value, not propped up scarcity value.

It is relatively easy to create and measure where high rates of change are occurring in a community or society. It is then relatively easy to observe what innovations take place as a result. This isn’t exactly a unicorn farm, but you probably can’t have a unicorn without these conditions in the first place. It is then only a matter of memorializing these conditions in a tangible form.

Intangible is the New Tangible

By danr

On October 23, 2024

In Ingenesist

In today’s innovation-driven economy, intangible assets have become the primary source of business value. These assets—ranging from intellectual property and brand equity to scientific knowledge and technological advancements—now account for nearly 90% of all business value and almost half of the world’s stock market capitalization.

This shift reflects a broader economic transformation where the drivers of growth are no longer physical goods or resources but the intellectual contributions of engineers, scientists, and technologists. These professionals are responsible for up to 80% of new economic growth, yet traditional accounting systems fail to adequately capture their contributions because they focus predominantly on tangible assets.

The inadequacy of conventional economic measures like Gross Domestic Product (GDP), which only accounts for physical goods, underscores the need for a new framework that recognizes the value of intangible assets.

A Graph Neural Network (GNN) composed of engineers, scientists, and technologists offers a revolutionary solution. By leveraging advanced technologies such as game theory, blockchain, and artificial intelligence, this network can precisely quantify and track the contributions made by these professionals. Unlike traditional accounting systems that rely on static measurements of physical assets, a GNN dynamically maps relationships and interactions within a knowledge-based economy, providing real-time insights into how innovation drives value.

This approach democratizes the recognition of intellectual contributions, ensuring that those who create value in the modern economy are properly rewarded. As intangible assets continue to dominate business landscapes, implementing a GNN as an accounting and inventory system will not only provide more accurate valuations but also foster a more equitable distribution of wealth in the innovation economy

Video Transcript

A tangible asset can be directly measured in physical space.

An intangible asset cannot.

Nearly 90% of all business value and 48% of the World’s stock market value is derived from intangible assets.

Up to 80% of new economic growth can be attributed to engineers, scientists, and technologists.

Yet, the determination of tangibility is made by accountants.

As a result, Gross Domestic Product only includes tangible assets – this has an impact on money supply.

Engineers, scientists, and technologists have developed methods to measure intangible assets with great precision.

The Ingenesist Project uses game theory, blockchain, and artificial intelligence to measure the true value of engineering, science, and technology

Help us reveal the intrinsic economy from which all people can profit.

Join The Ingenesist Project