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Principles

Fundamental truths that guide decisions when everything else is uncertain. First principles are the bedrock assumptions that cannot be deduced from other propositions. When complexity overwhelms, return to principles. When options multiply, let principles filter. When stakes are high, principles provide clarity.

"I think it's important to reason from first principles rather than by analogy." — Elon Musk

Why Principles Matter

Without PrinciplesWith Principles
React to eventsRespond from values
Optimize locallyOptimize systemically
Follow trendsLead with conviction
Paralyzed by optionsClear decision filters
Inconsistent actionsCoherent strategy

Categories of Principles

Principles operate at different levels. Prioritize based on your context:

CategoryGovernsKey Question
Life & ValuesWhat mattersWhat do I truly value?
BusinessHow to winWhat creates durable advantage?
Web3/CryptoHow systems workWhat enables trustless coordination?

Life & Value Principles

What is worth living for? What deserves your finite time and attention?

PrincipleCore QuestionSelf-Assessment
Time & AttentionWhere does your energy go??/5
TruthDo you seek or avoid hard truths??/5
TrustAre you trustworthy? Do you trust well??/5
PrivacyWhat boundaries do you maintain??/5
SecurityWhat do you protect??/5
SimplicityDo you complicate or clarify??/5
SpeedFast enough to matter??/5
DataWhat do you measure??/5

Deep Dive: Value System — Framework for defining what you value and why, bridging objective measurement with subjective meaning.


Business Principles

What creates durable competitive advantage?

PrincipleCore QuestionSelf-Assessment
Virtuous Feedback LoopHave you engineered positive feedback loops??/5
Snowball EffectDoes success compound automatically??/5
AntifragileDo you get stronger from stress??/5
Critical PathWhat's the shortest path to value??/5
Innovator's DilemmaHow would you disrupt yourself??/5
Market ForcesWhat forces shape your market??/5
MoatHow defensible is your position??/5
Opportunity CostWhat is inaction costing you??/5
LeverageHow much output per unit input??/5
DistributionCan you reach customers??/5
Zero to OneAre you creating or copying??/5

Deep Dive: Business Principles — Leverage, force multipliers, and the systems that create durable advantage.


Web3/Crypto Principles

What enables trustless coordination at scale?

PrincipleValue to HumanityObstacles
Censorship ResistancePreserves democracy against authoritarian overreachInfrastructure control
ComposabilityCombine tools to solve local problemsLack of standards
Data PrivacyMaintain privacy on public ledgersPrivacy/transparency balance
InteroperabilityCross-border collaborationProtocol fragmentation
PermissionlessEveryone can innovate and participateComputational costs
Self-Sovereign IdentityProof of personhood, counter deepfakesAdoption rates
Verifiable TruthReplace trust with predictable outcomesVerification overhead

Deep Dive: Web3 Principles — Decentralization principles for AI-resistant, trustless systems.


Applying Principles

The Prioritization Exercise

Not all principles matter equally for your situation. Rank them:

  1. Must Have — Non-negotiable for your context
  2. Should Have — Important but flexible
  3. Nice to Have — Valuable when resources allow
  4. Not Relevant — Doesn't apply to your situation

Decision Filter

When facing a decision:

1. What principles apply here?
2. Do any principles conflict?
3. Which principle takes precedence in this context?
4. What would strict adherence look like?
5. What's the minimum viable compromise?

Principle Audit Questions

  • Can I articulate my top 5 principles?
  • Do my actions align with my stated principles?
  • When did I last violate a principle? Why?
  • Which principle needs strengthening?
  • What principle am I avoiding?

Principles connect to deeper frameworks:

DisciplineWhat It ProvidesLink
First Principles ThinkingReasoning from fundamentalsSystems Thinking
Mental ModelsFrameworks for understandingSystems
MicroeconomicsIncentive structuresEconomics
StorytellingCommunicating principlesCapabilities
InvestingApplying principles to capitalPredictions