A proposal for backing stablecoins with verified energy production rather than fiat or algorithms.
Core thesis: All economic value is fundamentally energy transformation. Labor is biological energy, manufacturing is energy applied to materials, computation is energy converted to information processing. Rather than backing currency with arbitrary proxies, we could back it with energy itself, the physical substrate of all economic activity.
Practical implementation involves using Renewable Energy Credits (RECs), which certify renewable energy production, as initial collateral, expanding over time to all energy types and eventually direct producer commitments with hardware verification.
The linked pamphlet explores both the philosophical case (energy as a universal measure of value) and basic design mechanism (how REC-backed minting/redemption would work, oracle verification, phased roadmap).
I would be interested in critical feedback, especially regarding:
Thermodynamic/economic assumptions
Coordination problems in implementation
Oracle and verification mechanism flaws
Why this might fail
It’s a three-page read, so don’t expect anything too detailed just yet. The current aim is to spark discussion which may lead to a clearer crystallization of these ideas as well as steps towards practical implementation.
The Kardashev Standard: Backing Currency with Energy Production
Link post
A proposal for backing stablecoins with verified energy production rather than fiat or algorithms.
Core thesis: All economic value is fundamentally energy transformation. Labor is biological energy, manufacturing is energy applied to materials, computation is energy converted to information processing. Rather than backing currency with arbitrary proxies, we could back it with energy itself, the physical substrate of all economic activity.
Practical implementation involves using Renewable Energy Credits (RECs), which certify renewable energy production, as initial collateral, expanding over time to all energy types and eventually direct producer commitments with hardware verification.
The linked pamphlet explores both the philosophical case (energy as a universal measure of value) and basic design mechanism (how REC-backed minting/redemption would work, oracle verification, phased roadmap).
I would be interested in critical feedback, especially regarding:
Thermodynamic/economic assumptions
Coordination problems in implementation
Oracle and verification mechanism flaws
Why this might fail
It’s a three-page read, so don’t expect anything too detailed just yet. The current aim is to spark discussion which may lead to a clearer crystallization of these ideas as well as steps towards practical implementation.