TauNet Ethical-Eco Compounder (TEEC)/Tau Net Ethical Ecosystem Enhancer (TNEEE)

[danaedwards(OP)]

The Tau Net Ethical Eco Compounder or Tau Net Ethical Ecosystem Enhancer is a tokenomic mechanism that aims to align the Tau Net "pumpamentals" with Tau Net social utility.

Tau Net Ethical Ecosystem Enhancer (TNEEE) is an AI-driven reward system designed to encourage ethical and beneficial behavior on the Tau Network. Here's a simplified explanation of the main points:

Core Concept

TNEEE motivates users to align their actions with community-agreed standards of ethics, legality, and benefit. It achieves this through account rankings and rewards, all managed by AI and guided by community governance.

Core Components:

   

Smart Constitution

-  A "living" document that defines what is ethical and beneficial.
  Continuously updated by community votes to reflect collective values.

 
Goodness Rank System

      - AI evaluates user actions based on the smart constitution.
      - Assign a rank (Goodness Rank) to each user transparently.

Time-Locked Reward Assets
      - Rewards are issued to high-ranking users.
      - These rewards grow over time and are gradually released, similar to how stock options vest.

AI Profitability Agent

        - Generates profits for the network.
        - Enhances the value of rewards through a "buy-and-burn" mechanism, which reduces supply and increases demand.

    Decentralized Governance
        - The community decides on updates to the smart constitution.
        - Transparent and adjustable rules for ranking and rewards.

How It Works

    1. Users perform actions on the Tau Network.
    2. AI evaluates these actions and assigns ranks.
    3. High-ranking user actions get rewards that increase over time.
    4. Profits from the AI agent strengthen the reward system.
    5. The community updates the ethical standards as needed.
    6. The system evolves to meet the network's needs.

Benefits

- Encourages users to follow ethical and beneficial practices.
- Motivates long-term participation via growing rewards.
- Dynamically adapts to changing community values.
- Uses AI for fair ranking and efficient operation.
- Allows the community to shape the system's direction.

I have more to add to this, which is intended to be developed over Tau Net in Tau Language. It is presented to the forum for discussion and suggestions for improvements.  The main purpose of TEEC/TNEEE is to help solve the "AI alignment problem" by creating using market based solutions to encourage increased alignment. The more aligned the behavior is, the more it's rewarded by the network, and in a manner which compounds over time.

The Google doc where the sketch is elaborated in more detail is here.

The compounding works in such a manner that the earliest longest holders get the biggest rewards in the rewarding system. The rewards are earned by doing good deeds for the Tau Network, and "good" is constantly and continuously defined by the users of the network, so whatever behaviors best align with Tau. This is a work in progress and will be fleshed out over time as more is understood about how Tau works.

[IsarF]

This is a great concept and an innovative way to encourage ethical behavior across the Tau Network, Dana.

I assume the TNEEE would function as a separate token?

Additionally, could this mechanism be initially deployed on the testnet? If the answer depends on the specifics of how the testnet will be structured, perhaps it would be worth asking the team to incorporate the necessary specifications (assuming it's feasible) so you can develop and test it there.

[danaedwards(OP)]

It does not require a separate token, but what could be done if a second token is desired, is to simply extend the AGRS token by mirroring it and Ethical Agoras (eAGRS), and using that. My guess though is most Agoras holders will want alignment, and will want ethics, but yes there may be other tokens.

So how would someone get EAGRS? Stake or time lock the AGRS, based on meeting the requirements to do so, and then it generates the EAGRS. You could even burn or lock forever the AGRS 1:1 to generate eAGRS, and have eAGRS function as an extended AGRS. It really is up to the community how many tokens they need or how to do it, but you need composability, you need derivatives market, you need the sort of features you see on Ethereum where you have wrapped tokens, or Hex, or buy and burn functions.

An intelligent agent can do something economically useful. It can collect fees or a profit from the economically useful activity. This would fuel the buy and burn either for AGRS or if preferred for eAGRS. For the most part all of this has been done before on other blockchains except for the intelligent agent part which can only be done on Tau Net. So we just can look at how other blockchains have done buy and burn, or derivatives, or lock up the original tokens to create the new tokens, to know exactly what can be done here.

Compounding can be achieved by rewarding the holders who locked up earliest for longest. Their share percentage of the rewards would increase based on a sort of ranking or ladder based on how early, how big, and how long they locked up. The lock up removes AGRS from the circulating supply which is good for tokenomics.

The development team would need to implement the opinion map feature, the ability to let the community agree on what an ethical vs unethical transaction is. The ability of the community to determine whether a transaction is beneficial for Tau Net or not. The discussion scaling capabilities should allow this. And we need an ability of an intelligent agent to do economic transactions, such as buy and burn or buy and hold forever which essentially is a buy and burn. The bot would buy tokens and simply never sell them, and with derivatives, it can borrow against them in the future, think of an intelligent agent which acts similarly to Microstrategy.  Think of the shareholders of this as holding eAGRS or AGRS.