Hyperstructures

Hyperstructures are entirely onchain, and are public goods which create a positive-sum ecosystem for any participants.

Another example is the Zora Finder’s Fee, which incentivizes participants to provide a key resource—distribution. This fee is paid to anyone who finds the winning bidder or eventual buyer of an NFT. Finders expand the utility of Zora, and they do not have a monopoly on the NFT markets being displayed, a finder only captures the value they’re creati... See more

A great example of an Expansive fee is the Uniswap LP fee. LP fees incentivize participants to provide the key resource—liquidity. This fee is paid to anyone who is providing liquidity to a pool, it is not paid to Uniswap. LP’s expand the utility of Uniswap, they do not have a monopoly on providing that utility and an LP only captures value on what... See more

In Hyperstructures, any participant's value captured is synonymous with their value generated. The inverse is also true, if any third party or entity has the ability to freely extract value from the system without value creation then the system then it is not a hyperstructure.

The implication of being permissionless means that everyone can confidently build their own platforms, applications and economic models on top of the Hyperstructure without the risk of deplatforming. There are no API keys required, and no fear that a platform can suddenly upend your entire project on a whim.

A hyperstructure can simultaneously be free to use and also extremely valuable to own and govern. This is a familiar value model that we observe for NFTs: the media can be universally free to consume, yet valuable to own and control as an individual or group.

But what does ownership mean in this context? The presence (and control) of a fee switch that can be turned on across the protocol. This creates a dynamic called the "threat of the fee". This means that owners of the Hyperstructure have the right to turn that fee on across the protocol at the base level at any time via a vote. It’s the threat of th... See more

By being free forever, there is no incentive for someone to 1-for-1 replicate the same functionality—since there is no additional value capture or risk minimization that comes from doing so. At a societal level, a hyperstructure only needs to be built once. This does not mean there isn’t an incentive to innovate, people will still have the incentiv... See more

Hyperstructures can be simultaneously free forever to utilize and extremely valuable to own. This is possible because of their unstoppability. There is no cost to maintain and keep the protocol operational forever. Once deployed, it will work exactly as it’s designed with no degradation. For example, if the Uniswap team and website disappeared toda... See more