Rico

The Rico project has a number of cultural differences from earlier iterations of the system, which have been distilled into a set of principles. Respect incentives as natural law. In a system that is open for the whole world to interact with, incentives are not just a suggestion. An incentive is more like a physical law such as gravity or entropy. If there is some aspect of the system that is not incentive-compatible, it is only a matter of time until it is exploited. In this sense “gradual decentralization” is a strategic error, it is like “gradually” fixing a crack in the foundation. The longer you wait, the longer the risk of irreperable damage. To bootstrap a system like this, the designers have to believe that the rewards for creating such a system will be greater in the long term than the value of keeping some kind of insider advantage – and this is not a stable equilibrium. Credible neutrality is a competitive advantage. Even if it takes longer to scale, a sound and credibly neu

The Rico project has a number of cultural differences from earlier iterations of the system, which have been distilled into a set of principles. Respect incentives as natural law. In a system that is open for the whole world to interact with, incentives are not just a suggestion. An incentive is more like a physical law such as gravity or entropy. If there is some aspect of the system that is not incentive-compatible, it is only a matter of time until it is exploited. In this sense “gradual decentralization” is a strategic error, it is like “gradually” fixing a crack in the foundation. The lon