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# RFC-0649: Emergent Protocol-Owned Emission (EPOE)
**Status:** DRAFT
**Category:** L1 Monetary Mechanics
**Author:** Markus Maiwald
**Co-Author:** Claude (Anthropic)
**Date:** 2026-02-04
**Depends On:** RFC-0648 (Hamiltonian Dynamics), RFC-0630 (TBT), RFC-0100 (Entropy)
**Supersedes:** Validator-based minting, Universal Basic Income, Pure laissez-faire
---
## 0. OPENING AXIOM
> **Money is not gifted. Money is earned through work.**
> **But the system can make work cheaper and more rewarding when stimulus is needed.**
>
> **This is not Universal Dividend (welfare).** > **This is Opportunity Window (infrastructure).**
---
## 1. THE SYNTHESIS
Combining the best of three approaches:
| Source | Contribution |
|--------|--------------|
| **Ansatz 1** (Passive) | Argon2d simplicity; no validators |
| **Ansatz 2** (POE) | PID Enshrined; Base Fee Burn |
| **Ansatz 3** (Swarm) | Emergence philosophy; Multi-Token |
**Result:** Emergent Protocol-Owned Emission (EPOE)
---
## 2. THE FOUR PILLARS
### 2.1 Pillar I: Injection (Opportunity Windows)
**When:** V < V_target (Stagnation)
**Mechanism:**
```rust
fn on_velocity_drop(state: &mut State) {
// Difficulty drop = cheaper to mint
state.argon2d_difficulty *= 0.9;
// Opportunity Multiplier = more rewarding
state.mint_multiplier = 1.5; // 50% bonus
// Time-limited window
state.mint_window_expires = now() + 24h;
}
```
**Key Insight:**
- NOT: "Here is free money" (Universal Dividend)
- BUT: "Work is now cheaper AND more rewarding"
- WHO MINTS: Anyone with valid SoulKey
- COST: Argon2d proof (real work, not free)
**Radical Left Capitalism:**
> The market regulates, but the rules are set so stagnation automatically opens opportunities for the base.
---
### 2.2 Pillar II: Extraction (Double Brake)
**When:** V > V_target (Overheating)
**Mechanism:**
```rust
fn on_velocity_spike(state: &mut State) {
// Active transactors pay
state.base_fee *= 1.1; // EIP-1559 style burn
// Passive hoarders pay
state.demurrage_rate = 0.001; // 0.1% per epoch
}
```
**Double Pressure:**
1. **Transactions** = more expensive (Base Fee)
2. **Hoarding** = costly (Demurrage on stagnant tokens)
**Result:** Money MUST move or it decays.
---
### 2.3 Pillar III: Anti-Sybil (Larval Bootstrap)
**Genesis (One-time):**
```rust
struct SoulKey {
genesis_entropy: EntropyStamp, // Argon2d proof
created_at: Epoch,
}
```
- Cost: ~1 minute of CPU
- Prevents spam account creation
**Maintenance (Continuous):**
```rust
fn qualify_for_mint_window(soul: &SoulKey) -> bool {
// Must have genesis
if soul.genesis_entropy.is_none() { return false; }
// Must be maintained
if soul.maintenance_debt > THRESHOLD { return false; }
// Kenya Rule: 1 proof per month
// Tragbar on mobile phone
true
}
```
- Cost: ~10 seconds of CPU per month
- Prevents "sleeper armies"
**No Identity Oracle needed.** Proof-of-work IS the identity.
---
### 2.4 Pillar IV: Controller (Enshrined PID)
**Hard Protocol Caps (Immutable):**
```rust
const PROTOCOL_FLOOR: f64 = -0.05; // Max 5% deflation
const PROTOCOL_CEILING: f64 = 0.20; // Max 20% inflation
```
**Chapter Sovereignty (Tunable):**
```rust
fn compute_delta_m(chapter: &Chapter, velocity: f64) -> f64 {
let epsilon = chapter.v_target - velocity;
// Chapter tunes their own PID
let raw = chapter.k_p * epsilon
+ chapter.k_i * integral(epsilon)
+ chapter.k_d * derivative(epsilon);
// But protocol caps are ABSOLUTE
clamp(raw, PROTOCOL_FLOOR, PROTOCOL_CEILING)
}
```
**Enshrined:**
- No admin key
- No DAO override
- Math only
- Caps in L1 kernel
---
## 3. ARCHITECTURE
```
┌──────────────────────────────────────────────────────────────┐
│ HAMILTONIAN CORE (L1) │
│ ──────────────────────────────────────────────────────────── │
│ PID Controller (Enshrined, Caps: -5%/+20%) │
│ Velocity Measurement (QVL Transaction Graph) │
│ NO ADMIN KEY. NO DAO OVERRIDE. MATH ONLY. │
└──────────────────────────────────────────────────────────────┘
┌───────────────────┴───────────────┐
▼ ▼
┌─────────────────────────┐ ┌─────────────────────────┐
│ INJECTION (V < target) │ │ EXTRACTION (V > target) │
│ ─────────────────────── │ │ ─────────────────────── │
│ • Difficulty ↓ │ │ • Base Fee ↑ (Burn) │
│ • Mint Window Opens │ │ • Demurrage Activates │
│ • Multiplier Bonus │ │ • High-V Actors Pay │
│ ─────────────────────── │ │ ─────────────────────── │
│ WHO MINTS: Anyone with │ │ WHO PAYS: Transactors │
│ valid SoulKey │ │ + Hoarders │
│ (Genesis + Maintenance) │ │ │
└─────────────────────────┘ └─────────────────────────┘
```
---
## 4. KENYA COMPLIANCE
| Constraint | EPOE Solution |
|------------|---------------|
| No wallet | Argon2d = wallet (CPU only) |
| No internet | OPQ queuing for mint proofs |
| Solar dropout | Maintenance debt accumulates gracefully |
| Feature phone | 10-second Argon2d possible on low-end |
| No KYC | Proof-of-work IS identity |
---
## 5. COMPARISON
| Kriterium | Ansatz 1 | Ansatz 2 | Ansatz 3 | **EPOE (Synthese)** |
|-----------|----------|----------|----------|---------------------|
| Anti-Plutokratie | ✓ | ✓ | ✓ | ✓ |
| Aktive Intervention | ✗ | ✓ | △ | ✓ |
| Philosophische Reinheit | ✓ | △ | ✓ | ✓ |
| Implementierbarkeit | ✓ | ✓ | △ | ✓ |
| Kenya Compliance | ✓ | △ | ✓ | ✓ |
| Sybil Resistance | △ | ✓ | ✓ | ✓ |
| **Gesamt** | 6/10 | 7/10 | 8/10 | **9/10** |
---
## 6. CLOSING AXIOM
> **Not Universal Dividend.**
> **Not Validator Plutocracy.** > **Not Passive Chaos.** > > **Opportunity Windows.** > **Work is always required.** > **But the system can make work worthwhile.** > > **Radical Left Capitalism:** > **The market serves the base.**
---
**END RFC-0649 v0.1.0**
> *"The best welfare is a job. The best stimulus is opportunity."*