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Cyber Economy

March 15, 2021

People use the word 'cryptoeconomy' or 'cyber economy' a lot. What does it mean? Is it a buzzword, or something big?


I think its big. In fact, if we personified it, would forsure be a real g moving in silence.


With crypto, you're essentially creating a level playing field. This switches up the rules of the game, and 90% of folks haven't realized this. Think Runescape, but with real money involved. This is big, and probably the pillars of what crypto establishes in the next ten years.


The coolest thing? We don't know the 'who, what, why, and when' this happens, but when it does, things are going to get real intersting.


Wtf is the Cryptoeconomy?


The cryptoeconomy is one, global, digital marketplace for everything that you can think of.

  1. Steam secondary markets: CSGO skins, LOL, WoW ...
  2. Online forums: build reputation tagged to an account.

Steam markets are highly illiquid, prone to impersonations and hacks, and hard to appraise. The solution? Built a tiny ecosystem around traders.

  • BitSkins.com / OPSkins manage a fleet of steam accounts (bots) to accept deposit of skins
  • Gives rise to a managed marketplace, with payouts in fiat and crypto
  • Find a medium of exchange. CS:GO doesn't have anything that can be pegged to $1 in a user's inventory. This led to bots where you could buy keys for $1.95- $2.05. A nice arb loop there.
  • Steam reputation systems. Users commented on their counterparts

Rough consensus on how to measure reputation

  • Reddit threads with confirmed buys/sells on r/GOTrade
  • Steam profile '+reps', although spammable
  • Escrow's / middlemen
  • in game swag (??)
Core Components
  1. Reputation
  2. Identity
  3. Marketplace
  4. Slashing mechanism
  5. Self fulfilling feedback loop
  6. Unified payment rails

Reputation

Trades made by a user on a platform slowly increment their reputation.

Identity

Ethereum addresses / ENS names

Marketplace

Smart contract suite (exclusively on L2?)

Slashing mechanism

agreed upon means of documenting a fradulent trade + reporting it. Proper consensus on who moderates disputes, and how they're resolved. Can we create a list of 'banned' addresses? Probably

Self fulfilling feedback loop

Obvious choices are to introduce a token and a DAO, align interests through them. However. I'd prefer starting off without a token and focus on PMF.

Unified payment rails

Ethereum, stablecoins.

Conclusion

The cyber economy has been around for a while, in a fragmented state. Crypto has the opportunity to unify all of the cyber economy.

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