Resilience - game theory of incentive-based basic income using Taxemes and branching schemes
For interactive demos of Resilience, see the bottom of this article
In the Resilience wealth sharing system, the game theory is that when consuming from a node in the network, you inherit their Taxeme and enter a "branching scheme" which a kin to a pyramid scheme promises you profit if it continues to grow.
Pyramid schemes could be viewed as a voluntary and decentralized wealth transfer system, where each person that joins is driven by the promise of profit. They tap into genetic imperatives to seek out wealth, and are attractors to both the winners and the losers.
Could the same motivational drive be used as an engine for an incentive-based basic income system ?
In branching schemes, each branch behaves like its own wealth transfer system. Branching schemes mimic the motivational drive of pyramid schemes, but in contrast to pyramid schemes, the Resilience protocol and its branching schemes is ever-growing, ever-branching, and old nodes are pruned away as their dividend pathways are used up.
Like a pyramid scheme, the network effect of these branching schemes lead to high rewards for the costumer, as long as the network keeps being used. Taxemes incentivize people to "infect others to join", leading to new branching schemes, which bud off horizontally.
The branching process in the Resilience protocol is chronological. Each node will grow a branch from every point in time when they inherit a Taxeme. In the example transaction from P to R, P will inherit a Taxeme from R, and grow a dividend pathway (which remains closed until the Taxeme is destroyed). Any transactions made by R after that point in time will draw dividend pathways that grow on top of the one that was created from P to R, and tax that is collected will flow down the dividend pathway branch to which P is connected.
From the perspective of the Resilience protocol, pyramid schemes could be viewed as a primitive motif which harnesses incentive drives to induce action. Looking back at how we domesticated fire and electricity, could we harness this drive and domesticate it into a stable, self-sustaining, perpetuum mobile wealth sharing network ?
Try it out
Live version of dividend pathways, using Ripple.com as the back end for transactions, http://graph.basicincome.com (2014)
Demo of Taxemes running on the Ethereum network,