"Topology 5... value is indexed not to one sovereign but to a fluid basket of reference assets: digital and physical commodities, sovereign debt, tokenised credit and infrastructure, and who knows what else. Pegging becomes endogenous. Value is anchored internally, via dynamic equilibrium across the basket, not externally against a central source. Legitimacy comes not from state backing, but from embedded resilience and global usability. While it might take decades to achieve this, the outcome is in my opinion the most likely."
100%.
- Pegging IS endogenous precisely when Transactional utility is protocolized away from Holding utility and constraints. Transactional utility is frictionless and a flash - a formality of pricing denomination which itself is already automated away into dozens of denominations.
- " Value is anchored internally, via dynamic equilibrium across the basket"
the fundamental Value utility is "Real Yield". At some point (before and during Topology 5) various methodology BASKETS of Top N REAL YIELD FX currencies wins. But obviously, once you build the basket infra, you can created dozens of Top N real yield flavors with add'l asset types for diversification purposes. And Diversification is intrinsically not a function of Basket size, but rather the Various future scenario stresses (left and right tail) that can and should be "hedged to".
The US$ is hardly in the top 20 of top real-yielding FX, btw. But of course, the US administration is trying to Weaken the dollar while preserving "THE" reserve currency status - an oxy-Moron or perhaps a little trojan horse.
It sounds to me like a complementary analysis that would live on top of the graph is understanding information dynamics. Cybernetic instead of topological analysis.
In essence, you are defining the graph, but you should add rules for transition and flow on top of that graph and investigate the dynamics of flow through the graph instead of just positing certain topologies correspond with certain final steady states.
An example would be defining some graph and then a Markov process on top of it and studying the master equation (or approximate Fokker-Planck equation) of that graph.
This would give timescales for information to propagate, and timescales for credit expansion/contraction.
Such a great idea! I wrote this over a lazy weekend, will definitely take you up for the next chapter as soon as I have time to breathe. Wonderful suggestion.
in reference to:
"Topology 5... value is indexed not to one sovereign but to a fluid basket of reference assets: digital and physical commodities, sovereign debt, tokenised credit and infrastructure, and who knows what else. Pegging becomes endogenous. Value is anchored internally, via dynamic equilibrium across the basket, not externally against a central source. Legitimacy comes not from state backing, but from embedded resilience and global usability. While it might take decades to achieve this, the outcome is in my opinion the most likely."
100%.
- Pegging IS endogenous precisely when Transactional utility is protocolized away from Holding utility and constraints. Transactional utility is frictionless and a flash - a formality of pricing denomination which itself is already automated away into dozens of denominations.
- " Value is anchored internally, via dynamic equilibrium across the basket"
the fundamental Value utility is "Real Yield". At some point (before and during Topology 5) various methodology BASKETS of Top N REAL YIELD FX currencies wins. But obviously, once you build the basket infra, you can created dozens of Top N real yield flavors with add'l asset types for diversification purposes. And Diversification is intrinsically not a function of Basket size, but rather the Various future scenario stresses (left and right tail) that can and should be "hedged to".
The US$ is hardly in the top 20 of top real-yielding FX, btw. But of course, the US administration is trying to Weaken the dollar while preserving "THE" reserve currency status - an oxy-Moron or perhaps a little trojan horse.
Brilliant post. thank you.
It sounds to me like a complementary analysis that would live on top of the graph is understanding information dynamics. Cybernetic instead of topological analysis.
In essence, you are defining the graph, but you should add rules for transition and flow on top of that graph and investigate the dynamics of flow through the graph instead of just positing certain topologies correspond with certain final steady states.
An example would be defining some graph and then a Markov process on top of it and studying the master equation (or approximate Fokker-Planck equation) of that graph.
This would give timescales for information to propagate, and timescales for credit expansion/contraction.
Sounds fun to look at in a toy context!
Such a great idea! I wrote this over a lazy weekend, will definitely take you up for the next chapter as soon as I have time to breathe. Wonderful suggestion.
Ya, happy to chat in more depth about this!
Love this!
thank you it's dirt
Ultimately, it feels like the presence of deep liquidity pools will drive this future. Therefore, suggest that topology 3 is the natural state