Principles
Diagrams | Matrices | Thinkers
What are the first principles of transforming, distributing and exchanging value?
Leverage Force Multipliers
The ability to amplify your output without corresponding increases in effort.
The most successful people of any era are not those that work the hardest but those who use leverage most effectively.
Distribution
Distribution is the hardest and most important problem to solve.
Agency: What are the most important forces to be capable of leveraging?
- Proprietary Data expertly combined with Compute Power
- Standards: Standards are a magical thing, cutting across both atoms and bits.
- Thought Energy (Expertise) / AI Agents: All that we are is a state of mind.
- Stories (Narratives): Form beliefs and influence behaviour.
- Financial Capital: The ability to ride through the storm, whilst seizing opportunities as the arise.
- Technology: The organisation that is not using a tool that it needs is already paying for it.
- Physical (Skilled) Labour / Robotics: The ability to enact physical changes of state.
- Products (Digital, Physical, Phygital): Produce products at optimum cost, fair value and maximum distribution.
- Trusted Connections: Life is a social game.
- Systems that sell.
Memes and Narratives
The most powerful form of leverage. Strong storytelling is foundational to the capability to generate leverage.
Everyone feels the call to adventure, sell stories that others want to take part in and retell and you are on the path to infinite leverage.
Drawings, Memes, and Journeys of Discovery.
Physical Labour
Engineer systems to guide other people's/agent's time and energy to create a greater a surface area for achieving more.
AI and automation are replacing human labour. We need greater fluidity to capital formation to run experiments that discover innovative business models to unlock the full potential of humanity's time and attention.
Financial Capital
Borrow capital for projects where sure profits are greater than the interest payable.
- Capital formation is the process of building up the capital stock of a country through investing in productive plants and equipments.
- Learn to use financial instruments to gain a financial advantage.
- Managing leverage in Crypto
Technology
The surest way to gain a competitive advantage is to understand how gain maximum benefit from emerging technology before the masses catch on.
- Using tools to amplify your output. In the AI and Blockchain age, the opportunity for borderless leverage is unprecedented.
- Constantly invest in tools that provide maximum advantage.
Checklist
Consideration checklist for gaining and applying leverage.
- Permissionless: Use tools and platforms that don't require someone else's permission, like coding, writing, recording. Hyperstructures enable shared possession of a universal platform for creating and distributing value.
- Compound Interest: The concept of compound interest, both in finance and in learning, is seen as a powerful form of leverage.
- Judgement: Good judgment is critical when applying leverage, as leverage amplifies both gains and losses. Apply leverage based on solid understanding of risks of using established standards vs unproven innovation.
- Timeframe: Decisions should be made considering their leveraged impact over the long term.
- Knowledge: The power of continuous learning and self-education as forms of intellectual leverage.
Value System
What is most important to living a good life?
- Culture
- Trust
- Speed
- Data
Business Principles
What is most important to least relevant for your business model?
| CONCEPT | MiQ | SYSTEMS AUDIT |
|---|---|---|
| Virtuous Feedback Loop | Have you engineered positive feedback loops? | ?/5 |
| Snowball Effect | How much free cashflow required to focus on growth strategy? | ?/5 |
| Antifragile | Do you create systems that get stronger when attacked? | ?/5 |
| Critical Path | Have you charted the best coarse towards success? | ?/5 |
| Innovator's Dilemma | How would you beat you? | ?/5 |
| Market Forces | What forces influence changes in market behaviour? | ?/5 |
| Moat | How defensible is your operating model and deep your culture? | ?/5 |
| Opportunity Cost | What is inaction costing you? How bad could it get? | ?/5 |
| Profitability | Are you maximizing your potential? | ?/5 |
| Zero to One | How quickly and effectively can you convert ideas into valuable outcomes? | ?/5 |
Web3 Principles
| PRINCIPLE | VALUE TO HUMANITY | IMPORTANCE FOR AI PROGRESS | OBSTACLES |
|---|---|---|---|
| Censorship Resistance | Essential for preserving democracy against authoritarian overreach. | Prevents centralized control of AI training data | Corporate/governmental control of infrastructure |
| Composability | Enables communities to combine tools to solve local problems | Facilitates open-source AI ecosystems | Lack of module standardization |
| Data Privacy | Maintain privacy of important records stored on public blockchains | Protects sensitive AI training data | Privacy/transparency balance |
| Interoperability | Cross-border and boundary collaboration | Enables multi-chain AI verification | Protocol fragmentation |
| Permissionless | Everyone can innovate and participate | Prevents AI capability gatekeeping | Computational costs |
| Self-Sovereign Identity | Proof of Personhood (Counter Deepfakes) and Cross-borders Identity (Human trafficking) | Enables provable data provenance | SSI adoption rates |
| Verifiable Truth | Replace trust with predictable outcomes. | Provides AI decision audit trails | Verification overhead |
Weight each principle depending on the type of business and your trading environment.
Context
- Business Models
- Microeconomics
- Storytelling
- Platform
- Investing