Building upon the concept of the OSE Bank, a robust cryptocurrency - which we would like to create with OSE Crypto - must have these properties.
All economic systems have gone awry by moving away from physical backing. Some may argue that current financial systems are more sophisticated - but it can't be argued that they aren't stable. Instability comes from veering away from physical backing - a direct means of substantiating the coining of money. Thus, one innovation of a future society's money system remains a mechanism for moving towards physical, distributed backing. One such proposal is 'productive potential backing'. Which may be executed on any scale including microscale. Inclusion of microscale means this constitutes a Decent mechanism, lending itself to a just economic system which does not suffer from a huge concentration of capital. Concentration of capital is a leading enabler of wars, which are by and large founded on material ambition of imperialism. Imperialism and poverty are opposite sides of the same coin, and these continue throughout the world. Physical potential backing capital - the 10th form of capital (see 9 Forms of Capital) could help solve this - assuming that such a mechanism can be executed on a small scale - and governance must be designed such that anyone can gain access to such capital. The blockchain brings forward the capacity for transparent tracking of a 'productive potential backing' mechanism.
- It is digito-phisically backed by productive potential. This is a lesser requirement than backing by actual production (not requiring inventory or non-stop production), while remaining very close to actual production. This is different - and much more substantial - than virtual backing of proofs of work or stake - which are just figments in lieu of real asset backing. Productive potential backing is used to avoid inventory, to remain digital and non-scarce thus avoiding artificial scarcity. Remaining scalable because the productive potential is infinite, or at the very minimum 1000x what we have today. Based on solar energy Kardashev scale.
- While actual product is sound backing, product does not necessarily satisfy longevity (ex, strawberries), and can thus be poor backing for a currency.
- Flexible Digital Fabrication, such as reified in Open Source Microfactories backed by Collaborative Design, affords infinite productive potential, and is thus scalable. Digital fabrication represents robust productive potential - and with the availability of Open Design and Open Source Materials Production (or Truly Replicable Materials Production) - are almost as good as backing by physical capital.
- Local PV + materials production facilities are the ultimate backing, at a value of $400k/acre. If they cover cement, steel, hydrogen, aluminum, silicon, and biomass - then these form 80% of the entire material economy.
- Calculation: steel per acre is $1/lb, and 1kWhr/kg - 5000 lb/day minimum - or $2M value generation per year with minimum capital depreciation afforded by Modular Design.
- If this is silicon, 11kwhr/kg  - and this is sufficient purity for transistors  - then we have a 1 milligram per 1 kW transistors (1MW/gram easily  at $1 each. For silicon, we can produce about 40 tons of silicon with the PV array. At $1/kW, we have thus $40B revenue from silicon production per acre, a high value crop.
- As such, it contains Limited Digitality or is Digitally Responsible. Meaning that it enjoys a large measure of digital scalability, but has a check-and-balance of providing material needs. The 'responsible' part comes from the system producing essential (material) as opposed to digital needs. Ie, it has a component of firm grounding in reality, which is useful in today's (2022) world.
- It must avoid the artificial scarcity of traditional proof of work or stake algorithms
- On-chain verified productive capacity would be key. Thus, the Open Source Microfactory Standard becomes of prime importance as the next evolution human-created-systems transparency: an agreed-upon standard of decentralized production (few thousand square feet, up to home lot size, or the size of the Tower of Wisdom
Open Source Microfactory Standard
Phase narrative is being developed at Technological Recursion
- Amish with Power Tools
- Basic workshop - steel or wood.
- Basic Advanced Workshop
- Replicable Open Source Microfactory for the Open Source Everything Store. 80-100% of consumer goods made from external feedstocks but closed loop circular economy due to local manufacturing/repair infrastructure.
- Advanced production - this means precision machining, air bearings, semiconductors, and what is generally considered to be high tech. However, because it is open source collaborative, it is Appropriate High Tech.