Multicoin Capital: Proof of Physical Work

Crypto-economic protocols allow for people to coordinate their economic activities without a centralized, rent-extracting party, and will help move these industries from corporate feudalism to meritocratic capitalism and freer markets.

One of the most powerful features of crypto-economic protocols is their ability to create incentive structures that allow anyone in the world to permissionlessly contribute to a set of shared objectives. These incentive structures can be finely tuned to facilitate large-scale coordination to achieve specific goals. This represents a step-function i... See more

A corporation making central planning decisions and compensating its stakeholders at its discretion will never be as effective as a properly designed permissionless network that scales and compensates its most productive actors using the free market’s conceptions of supply and demand.

We refer to this thesis as “proof of physical work.” Protocols that fit this thesis incentivize people to do verifiable work that builds real-world infrastructure. Relative to traditional forms of capital formation for building physical infrastructure, these permissionless and credibly-neutral protocols:1. Can build infrastructure faster—in many ca... See more