Introduction: A Cultural "Tree Ring Model" for Global Tech Regulation
In this article, I introduce the "Tree Ring Model of Culture and Politics" to analyze shifting dynamics in global AI development and regulatory approaches. The crypto space, with its independence from legacy systems, offers a unique foundation for innovation free from entrenched biases.

Core Insight: Cultural Inertia and New Technologies
A society’s attitude toward new technologies is shaped by the prevailing social ethos during their emergence, while its approach to existing systems is dictated by inertia. These cultural "tree rings" solidify quickly and become nearly immutable.

The Paradox of Neoliberalism and Rising Regulation
Growing up, I found it puzzling how societies claimed to embrace neoliberalism and deregulation while actual governance trends moved in the opposite direction. Post-WWII, U.S. federal tax revenue as a percentage of GDP remained stable, while regulations—KYC rules, copyright laws, airport security—intensified.

Case Study 1: The U.S.-China AI Reversal
If someone in 2020 predicted that by 2025, the U.S. would lead in closed-source AI and China in open-source AI, most would dismiss it as absurd. Historically, the U.S. championed openness, while China leaned toward control. Yet today, the opposite holds true.

The Tree Ring Model Explained

1. New Technologies: A culture’s stance on innovations reflects the incentives and attitudes dominant during their emergence.

2. Legacy Systems: Existing frameworks resist change due to "status quo bias."
   Each era leaves a "ring" on the cultural tree, embedding norms that persist even as new layers form.

From Internet to AI: How Cultural Inertia Guides Regulation
The U.S. deregulation wave peaked in the 1990s, leaving a lasting imprint on internet culture as a free and open space. By contrast, AI matured in the 2020s amid heightened regulatory scrutiny. For China, adopting a "commoditize the complement" strategy aligned with its catch-up role, fostering an open-source AI ecosystem while maintaining closed systems elsewhere.

Taxes, Risk Perception, and Cultural Lock-In
Tax levels are anchored by decades-old fiscal commitments to healthcare and welfare. Similarly, society tolerates high-risk activities like extreme mountaineering (historically rooted) while over-regulating newer technologies like AI—a mismatch explained by the tree ring model.

Social Media: A Hybrid Case
Social media, emerging in the 2010s, inherited partial openness from the internet’s legacy while facing fresh restrictions as a novel phenomenon. This duality highlights how newer "rings" interact with older ones.

Planting New Trees: Innovation Over Institutional Reform
The lesson? Changing entrenched cultural attitudes is nearly impossible. Instead, creating new systems—whether through technology (e.g., crypto, Web3) or experimental communities—allows fresh norms to compete with legacy frameworks. Crypto’s appeal lies in its ability to bypass "status quo bias," enabling innovation without dismantling old structures.

Conclusion: Open Source as China’s Strategic Edge
China’s embrace of open-source AI reflects a calculated move to commoditize U.S. advantages while retaining control elsewhere. Meanwhile, the U.S. struggles to reconcile its legacy of openness with modern regulatory pressures. For true transformation, we must nurture new "trees" rather than reshape old ones—a vision embodied by decentralized technologies.

Original article link: https://vitalik.eth.limo/general/2025/03/29/treering.html
Compiled by Aki Chen, WuBlockchain

Introduction: A Cultural "Tree Ring Model" for Global Tech Regulation
In this article, I introduce the "Tree Ring Model of Culture and Politics" to analyze shifting dynamics in global AI development and regulatory approaches. The crypto space, with its independence from legacy systems, offers a unique foundation for innovation free from entrenched biases.

Core Insight: Cultural Inertia and New Technologies
A society’s attitude toward new technologies is shaped by the prevailing social ethos during their emergence, while its approach to existing systems is dictated by inertia. These cultural "tree rings" solidify quickly and become nearly immutable.

The Paradox of Neoliberalism and Rising Regulation
Growing up, I found it puzzling how societies claimed to embrace neoliberalism and deregulation while actual governance trends moved in the opposite direction. Post-WWII, U.S. federal tax revenue as a percentage of GDP remained stable, while regulations—KYC rules, copyright laws, airport security—intensified.

Case Study 1: The U.S.-China AI Reversal
If someone in 2020 predicted that by 2025, the U.S. would lead in closed-source AI and China in open-source AI, most would dismiss it as absurd. Historically, the U.S. championed openness, while China leaned toward control. Yet today, the opposite holds true.

The Tree Ring Model Explained

1. New Technologies: A culture’s stance on innovations reflects the incentives and attitudes dominant during their emergence.

2. Legacy Systems: Existing frameworks resist change due to "status quo bias."
   Each era leaves a "ring" on the cultural tree, embedding norms that persist even as new layers form.

From Internet to AI: How Cultural Inertia Guides Regulation
The U.S. deregulation wave peaked in the 1990s, leaving a lasting imprint on internet culture as a free and open space. By contrast, AI matured in the 2020s amid heightened regulatory scrutiny. For China, adopting a "commoditize the complement" strategy aligned with its catch-up role, fostering an open-source AI ecosystem while maintaining closed systems elsewhere.

Taxes, Risk Perception, and Cultural Lock-In
Tax levels are anchored by decades-old fiscal commitments to healthcare and welfare. Similarly, society tolerates high-risk activities like extreme mountaineering (historically rooted) while over-regulating newer technologies like AI—a mismatch explained by the tree ring model.

Social Media: A Hybrid Case
Social media, emerging in the 2010s, inherited partial openness from the internet’s legacy while facing fresh restrictions as a novel phenomenon. This duality highlights how newer "rings" interact with older ones.

Planting New Trees: Innovation Over Institutional Reform
The lesson? Changing entrenched cultural attitudes is nearly impossible. Instead, creating new systems—whether through technology (e.g., crypto, Web3) or experimental communities—allows fresh norms to compete with legacy frameworks. Crypto’s appeal lies in its ability to bypass "status quo bias," enabling innovation without dismantling old structures.

Conclusion: Open Source as China’s Strategic Edge
China’s embrace of open-source AI reflects a calculated move to commoditize U.S. advantages while retaining control elsewhere. Meanwhile, the U.S. struggles to reconcile its legacy of openness with modern regulatory pressures. For true transformation, we must nurture new "trees" rather than reshape old ones—a vision embodied by decentralized technologies.

Original article link: https://vitalik.eth.limo/general/2025/03/29/treering.html
Compiled by Aki Chen, WuBlockchain