RFC 57: Safecoin Revised

Unfortunately I do not currently have the skill set (or the time to acquire it), but quite a few people here who are grappling in depth with trying to model a higher order stable Safe Network may be better positioned to do so.

I would just add how well this problem is suited to complexity modeling. I highly encourage a quick read of Why Economists Have to Embrace Complexity to Avoid Disaster by Aussie professor Steve Keen, the brains behind the Minsky software. A quote (of a quote):

The discovery that higher order phenomena cannot be directly extrapolated from lower order systems is a commonplace conclusion in genuine sciences today: it’s known as the “emergence” issue in complex systems (Nicolis and Prigogine, 1971, Ramos-Martin, 2003). The dominant characteristics of a complex system come from the interactions between its entities, rather than from the properties of a single entity considered in isolation.

We want to reach our goal of a highly stable self regulating higher order Safe Network ecosystem based on simple interactions (Safe Network space, coin issuance push/pull supply demand control parameters/algorithms). As Keen’s article highlights from complexity modeling, in an economic system like the Safe Network it is perfectly reasonable for storage space to become very scarce at the same time that bidding prices fall significantly, and that "pushing and “pulling” supply falsely assumes the ecosystem will be fluctuating around a stable equilibrium.

The failure of economics to develop anything like the same capacity [of accurate weather forecasting] is partly because the economy is far less predictable than the weather, given human agency, as Hayekian economists justifiably argue. But it is also due to the insistence of mainstream economists on the false modelling strategies of deriving macroeconomics by extrapolation from microeconomics, and of assuming that the economy is a stable system that always returns to equilibrium after a disturbance.

[edit] I will just end on a quote that possibly shows the way forward to designing a complex stable Safe Network ecosystem:

to derive a decent macroeconomics, we have to start at the level of the macroeconomy itself . This is the approach of complex systems theorists: to work from the structure of the system they are analysing, since this structure, properly laid out, will contain the interactions between the system’s entities that give it its dominant characteristics.

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