
Dylan LeClair|Jul 09, 2025 01:32
Monetary orders once rested on trust layered over scarce reserves—difficult to move, impossible to verify. As global scale advanced, fragility emerged: leverage, opacity, broken convertibility. Scarcity gave way to trust; trust gave rise to inflation. Fiat emerged.
For centuries, starting from first principles and freed from the constraints of physical settlement, one could only theorize the architecture of an ideal monetary foundation—anchored not in trust, but in absolute scarcity: independently verifiable, programmatic supply issuance, trivially portable across space, and increasingly costly to produce as human industrial and technological capacity advanced.
With a theoretically perfected base layer, the design surface shifts to the liability side. Gold standard banking models failed not just from leverage, but from structural flaws: short-term, redeemable liabilities and assets composed of credit rather than base money itself. A systems engineer, reasoning from first principles, would imagine a reversal of each failure—assets independent of counterparty risk, with liabilities that are perpetual and non-callable, denominated in a currency with no terminal supply cap.
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