Humanity's fascination with automata predates myths and bleed into history. From Hephaestus’s golden handmaidens, who moved with living grace and voice to assist the limping god at his forge, to the Han-dynasty musical puppets troupes, the urge to animate matter has always mirrored our desire to externalize thought. Such machines served as more than entertainment, but also acted as extensions of divine and imperial power.

The commoditization of steam power and the advent of industrial revolution realized machines mass in gross forms. But for all these engines and gears, it birthed only the body in a strict routine, but not the mind.

The innovations in the last year however, shows promise of machines capable of generalization. Now as AI permeates the domain of robotics, we approach convergence, as we try to grant reasoning to embodiment. Humanity's stands at the precipice of our oldest dreams, machines that can not only do, but also think.

A nascent action space

Large Language Models (aka ChatGPT) has reshaped the white-collar world within a few years. Paradoxically, humanity found it easier to automate average reasoning tasks over physical work. Physical labor has remained a stubborn frontier, limited by locomotion and manipulation issues.

Pioneering research of late however, has shown that foundational robotic models, trained on heterogeneous datasets, can generalize across tasks, environments, and embodiments to a certain extent. A single model capable of performing a wide range of physical tasks is no longer theoretical. With sufficient data scale, robots can even potentially exhibit a kind of fluid intelligence, allowing them to grasp, push, and navigate by understanding space.

The internet has made the world smaller, compressing billions of interactions into code, unanchored from matter atomically. Progress drifted skyward, abstracted into the cloud. Embodied AI reintroduces gravity into the digital loop. It drags intelligence back into the tangible spatially, demanding for models to exist and navigate the world materially. It is the return of flesh to code, closing the mechanical - digital loop that was kickstarted during the industrial revolution.

On the advent of a robotics foundational model, we believe the time is right for artificial intelligence to extend into physicality, as we are on the cusp of a artificial digital and physical revolution;

1. Blockchain: solves trust at scale, allowing for massive coordination immutably without intermediaries as a fair backend

2. AI: solves reasoning, allowing for problem solving of the abstract with minimal (or no) supervision

3. Robotics: now approaches physical execution with cheaper costs, allowing for perpetual labor without fatigue and precise performance

The combination of which, forms a closed circuit of autonomy, where transactions, thoughts and actions can propagate, a self-driving system producing value we term as aGDP (agentic GDP).

aGDP: the aggregate output of humans, agents, and machines cooperating across both digital and physical domains

Each new frontier of autonomy expands this economic surface area, from trading to entertainment and beyond. Yet robotics doesn't merely add another frontier, it opens an entirely new dimension, physicality. Digital agents (white-collar) and embodied agents (blue-collar) will form the full spectrum of humanity's productivity, and robotics is the lever by which digital productivity will translate into material aGDP.

Virtuals' wedge into physicality

Our journey into robotics began through our venture arm (purely out of our balance sheet to prevent conflict of interests) a year ago, investing into a range of frontier robotics startups. Those early bets have materially shaped our understanding of how fragmented and capital-intensive the field is. Through our capital formation launchpad Unicorn, we have begun to solve this bottleneck. By aligning incentives and liquidity, we enabled builders to fund ambitious ideas that traditional markets often overlook. Virtuals is now positioned as the pre-eminent AI capital formation platform, one that can collectively finance robotic deployments and meaningfully compress onchain WACC (weighted average cost of capital) by leveraging speculation premia.

Yet financing alone is not enough. To truly accelerate embodiment, we must also complete the loop, specifically in data. Training policies and models require more than scale, but also spatial depth, specifically how objects move and interact in the 3-dimensional space. Today, such data remains scarce, and without massive, diverse, real-world datasets, embodied AI will remain in limbo. To teach robots how to move, we must first let them see, which is what we have been building for the better part of this year - SeeSaw

SeeSaw: humans see (and recorded), robots saw (and learned)

SeeSaw is a mobile iOS app egocentric video data collection app by crowd-sourcing task oriented videos of hand-object interactions, by gamifying the process. Users complete quests by recording them in-app, and get rewarded with rewards and points. On the backend, we have an extensive infrastructure to ensure that data collected is of par, supported by our tech partner, BitRobot:

1. Egocentric data with spatial depth: leveraging the iPhone's LiDAR and IMU sensors, which is crucial for accurate scene reconstruction

2. Automated VLM pipeline: automatically scores and quantifies the utility of each video for training policies

Combined with our expertise in structuring incentives systems, we believe SeeSaw to be a viable solution in scaling a diverse real-world dataset in millions of homes and work environments. Through this vector, Virtuals will be the perceptual substrate for which embodied intelligence learns.

Ad astra per agentia

A new world - where agents drive material GDP - now lies within reach. By aggregating coordination, reasoning, and execution, the embodied network can translate digital intelligence into physical productivity. The future ascent of humanity towards the stars will not be led by humanity alone, but also with our agents, autonomous entities that can think, do, and transact. Many other research and engineering bottlenecks remain in robotics, but crypto can materially accelerate 2 core pillars; capital formation and data. Together, they help close the loop to bring intelligence into physicality.

Just as Nāgārjuna sought enlightenment through the middle Way, avoiding both eternalism and nihilism, we too take the middle road for robotics in crypto

In pursuit of this future, we have chosen the middle Way (in crypto) for robotics. Rather than building frontier models or hardware ourselves, we focus on the invisible levers that make embodiment inevitable. By constructing the data and capital foundations of the ecosystem, we accelerate progress at the outskirts, building the layer by which intelligence can accelerate and perform.

This philosophy manifests through the tools we create, systems that empowers. Through Unicorn, we are reimagining how capital flows into frontier technologies. Via SeeSaw, we are redefining how the world is captured and learned. As these vectors intertwine, Virtuals evolves beyond an onchain AI agent platform into a fullstack engine for all artificial intelligence, embodied or otherwise.

These are but small steps to a larger continuum, but if played well, can accelerate the deployment of artificial reasoning into the real world.

If the last decades was defined by information, the next will be by embodiment, the moment when thought reclaims form.

In Chinese history, the Mandate of Heaven was a social contract between the emperor and the citizens, who was honor-bound to protect the people from natural and man-made disasters

In the intricate tapestry of belief systems, the rise and fall of cults often echo the cyclical narratives of history. New-age crypto cults inherit this tradition, with a social contract of prosperity (price action up only) in return for communal devotion (reply guys spam). However, once a cult attains its "Heaven" - a period of prosperity and community allegiance - it can quickly unravel from within if it neglects the core principles that once unified the four desolates (on twitter). This transformation is characterized by a dangerous paradox: the very success that solidified their power becomes the breeding ground for dissent and division.

Cults can be undone by the very same fervent belief that led to its ascendance, when its Crusaders lose touch and its original promise falters. The legitimacy of the ruling body (founders and core contributors) diminishes, leading to chaos, rebellion, and eventual decline, and thus its suppressed price action. In the absence of a formidable external threat, factions within the cult begin to emerge, each vying for individual interests rather than the collective good. The resulting fragmentation can be likened to a chain reaction, where competing factions lose sight of the common goal, allowing a new contender to rise from the ashes of their disunity.

Ethereum (ETH), the architect of smart contract platforms, held hegemony over myriad cycles. It was the platform that brought decentralized finance (DeFi), non-fungible tokens (NFTs), and an explosion of on-chain activity to the forefront. Yet, as we approach the climax of this crypto cycle, it's luster dimmed significantly. While it remains a technical, infra, and philosophical powerhouse, it has lost significant mindshare and market momentum.

This essay explores how Ethereum gained and subsequently lost its way through three interrelated dynamics: feudalization of the state, expulsion of the mercantile class, and isolation of the aristocracy. We’ll also examine how its rival, Solana, capitalized on Ethereum’s shortcomings to emerge as a dominant force. Finally, we’ll consider the bullish case for Ethereum and the lessons it must heed to reclaim its position.

Chapter I: Ascension

Ethereum’s rise was predicated on its ability to unite a vast and diverse array of users, developers, and investors under a single banner. It offered the revolutionary concept of programmable money and became the de facto platform for DeFi, NFTs, and on-chain experimentation. Gas fees soared as users clamored to participate, and Ethereum became synonymous with innovation in Web3. It became the innovation layer of crypto, and pioneered many new novel concepts, that help onboard the masses onchain.

This ecosystem flourished because of Ethereum’s ability to foster innovation while maintaining a sense of neutrality and openness. It wasn’t tied to a single vision but instead allowed its community to experiment, fail, and succeed. Gas fees, though often criticized, were a testament to the platform’s vibrant activity, a sign that Ethereum had achieved a level of adoption and utility unmatched by its competitors.

This meteoric rise was cemented by its ecosystem's ability to attract a broad "mercantile class"-speculators, traders, builders, and users. Ethereum wasn’t just a blockchain; it was a digital economy, a marketplace, a playground, and a battleground all at once. Its stronghold on developer mindshare and its neutral, decentralized ethos earned it legitimacy and resilience.

But as the cycle progressed, cracks began to form. These issues weren’t sudden but rather the product of systemic choices and strategic missteps.

Chapter II: Crumbling foundations

The illusion of invincibility can lead to complacency, and this is precisely the precarious position in which Ethereum currently finds itself. While the Ethereum cult still boasts a fervent following, the once-solid foundations of its commune are beginning to show cracks. The fervor that once united its adherents around a shared vision of decentralization and innovation has morphed into a landscape fraught with internal contention as it faces external threats.

As profits roll in and the initial fervor of the cult subsides, the dynamics shift; what was once a collective effort towards a common goal has devolved into a cacophony of competing interests. The once primal social contract broke, as the crypto markets began to make new highs without Ethereum. The legitimacy of Ethereum's reign falters, and discontent began to brew.

Ethereum's community, once a bastion of loyalty and innovation, now grapples with growing dissatisfaction. Factions that once harmonized under the Ethereum banner are increasingly fractious, each pursuing individual ambitions at the expense of the ecosystem's overall health. This internal strife leaves Ethereum vulnerable, exposing it to the rise of competitors eager to seize the opportunities that emerge from its disarray.

A. Feudalization of the state

Ethereum’s transition to a Layer 2 scaling roadmap brought unintended consequences. The roadmap fragmented Ethereum’s once-cohesive ecosystem into a constellation of competing L2 chains, each vying for dominance. dApps which never needed their own chains, have decided to join the pitched battle and launch their own chains.

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These feudal dukes (L2 chains) paid nominal allegiance to Ethereum. However, in practice, they pursued their own agendas, subsidized by cheap gas fees via blob subsidies to attract users and liquidity. While this approach alleviated Ethereum’s scalability woes, it diluted the sense of a unified state. Instead of a single thriving ecosystem, Ethereum became a fractured landscape, where users and liquidity were spread thin across multiple contentious dominions.

This resulted in confusion and complexity for users, diminished network effects, and a reduced sense of cohesion. This fragmentation played directly into the hands of rivals like Solana, which offered a simpler, more monolithic user experience.

B. Expulsion of the mercantile class

The Ethereum Foundation’s ideological stance further eroded its user base. In an effort to distance itself from speculation, the foundation shunned the very activities that fueled on-chain activity. Unlike Solana, which embraced DeFi and speculative fervor, Ethereum’s leadership actively avoided it.

This ideological purism led to the expulsion of the mercantile (onchain speculators and users) class. DeFi protocols, once Ethereum’s crown jewels, received little institutional support. The Ethereum foundation elected to selling ETH for its own pursuits, instead of leveraging any of the advanced onchain defi platforms to finance itself. Speculators, liquidity providers, and traders, the lifeblood of onchain activity, found Ethereum increasingly inhospitable. Gas fees plummeted, not because of efficiency gains but due to a lack of activity. This void created fertile ground for Solana, which embraced speculation, fostering a flywheel of activity, innovation, and mindshare.

C. Isolation of the aristocracy

Perhaps the most insidious issue of all was the self-imposed isolation of the aristocracy (core devs and the core community). While Ethereum’s early culture thrived on public debate and engagement, its community leaders and influencers increasingly retreated into walled gardens like Farcaster and r/EthFinance.

This isolation created a notable vacuum in public discourse. Without a robust system of reply-guys to counter misinformation, Ethereum became an easy target to FUD and bully. Aspiring rivals like Solana took full advantage, crafting narratives that painted Ethereum as slow, expensive, and out of touch.

By retreating from the public agora (twitter), Ethereum ceded the narrative war to its competitors, a fatal mistake in a space where perception drives adoption.

Chapter III: Contention for hegemony

Among these challengers, Solana has surged forth as a potent force, appealing to those who feel marginalized or stifled by Ethereum's more conservative approach. Solana's embrace of speculation and meme culture resonates with a burgeoning segment of the crypto community, drawing in those who seek a vibrant, agile environment.

While Ethereum clings to established practices, Solana thrives on its willingness to adapt and innovate, quickly launching products that align with the ever-evolving desires of users. Solana’s strategy was simple: embrace everything that Ethereum discarded. It welcomed speculators with open arms, created a seamless user experience with low fees, and built strong momentum in emerging sectors like DePIN, payments, and AI agents.

Solana’s focus on speed, scalability, and ease of use made it attractive to both developers and users. Its speculative flywheel ensured constant activity, creating a vibrant ecosystem that now rivals Ethereum’s in many respects.

In stark contrast, Ethereum's development teams engage in lengthy deliberations over scalability and governance, allowing Solana to capitalize on its speed and efficiency. This agility has made Solana increasingly attractive to new projects and users, gradually eroding Ethereum's once unassailable position as the preeminent platform for decentralized applications.

The specter of decline looms over Ethereum, not due to any singular failure but rather from a slow, insidious erosion of its foundational principles amid internal conflict and an unwillingness to adapt to the shifting landscape. Without a cohesive strategy to counter the rise of Solana and other emerging contenders, Ethereum risks not only losing its mandate of heaven but also its relevance in an ever-evolving crypto ecosystem.

As Solana continued to innovate and provide tangible benefits to its users, Ethereum's leaders remained ensconced in their ivory towers, dismissing the shifting tides as mere noise rather than recognizing it as a legitimate threat. This hubris served as a catalyst for the disintegration of Ethereum's once-united front, as internal factions squabbled over direction and strategy while a new challenger gained ground.

Despite these challenges, Ethereum remains a formidable force. Its strengths lie in its unmatched developer ecosystem, technical decentralization, and credibility as a neutral platform. Ethereum is also the only blockchain asset besides Bitcoin to have a U.S.-listed spot ETF, which could attract significant institutional flows later into the cycle

Moreover, Ethereum’s green credentials, thanks to its proof-of-stake consensus, position it as a long-term sustainable choice in a world increasingly focused on environmental impact. The challenge, however, lies in articulating Ethereum’s unique value proposition. Investors and users alike often struggle to differentiate Ethereum from Bitcoin, failing to grasp its programmable money narrative. Reclaiming mindshare will require a concerted effort to educate and engage the broader community.

Solana is also not without its own challenges. Despite its dominance in amongst newer retail mindshare and primacy on Twitter dialogue, it could see the very same fragmentation as the foundation is looking to launch its own version of L2s. Whether history repeats is of anyone's guess, but Ethereum's experience with its L2s will be a great lesson for Solana.

Epilogue: The fragility of Cults

The rise and fall of crypto cults highlight the fragile nature of belief systems and communities in the digital age. As we witness the interplay of ambition, loyalty, and power, it becomes evident that maintaining a mandate of heaven requires ongoing vigilance and commitment. Just as emperors of old faced the ever-present threat of rebellion and usurpation, so too must crypto cults contend with the reality that their success can sow the seeds of their own destruction. Cults, whether in crypto or history, must continually engage their communities and adapt to changing circumstances. Loyalty in crypto is fleeting, and mercenary actors abound.

In an era defined by rapid innovation and competition, the lesson is clear: unity is paramount, and the cultivation of shared goals and values must remain at the forefront of any cult's strategy. Only by working collectively can these communities withstand the trials of internal strife and external challenges, ensuring their continued relevance and success in the ever-evolving landscape of digital finance. The question remains: as crypto cults navigate their own tumultuous journeys, will they learn from history, or are they doomed to repeat it.

A new frontier in intelligence

The rapid acceleration of AI capabilities over the last few years has fundamentally reshaped the technological landscape. The breakthrough in innovative neural network architectures has led to a quantum leap forward in AI model's capabilities, leading to a surge in demand for compute power. AI became to perform tasks that previously were firmly in the realm of science fiction. Within the span of 4 years, ChatGPT's ability rapidly evolved from a bumbling preschooler to a high schooler. However, while much of AI’s current power lies in specialized applications, the evolution of AI necessitates a broader, more nuanced framework that can guide its development toward a truly transformative future.

The widely accepted skill tree for AI has traditionally followed 3 main stages, from Artificial Narrow Intelligence (ANI; performance in domain specific tasks) to Artificial General Intelligence (AGI; ability to reason and solve across multiple domains) to Artificial Superintelligence (ASI; human intelligence is left behind).

Each stage marks a major advancement in AI's scope and capabilities. While ANI focuses on solving specific tasks, the leap to AGI involves a broadening of intelligence that enables machines to reason, adapt, and tackle diverse challenges with human-like versatility. This progression ultimately leads to ASI, where AI surpasses human intelligence in nearly every domain, representing the final frontier of AI development.

In the below, we propose a new but important intermediate step: Artificial Collective Intelligence (ACI), that we introduce between ANI and AGI.

ACI: intelligence that emerges from the synthesis of collective human knowledge, communal collaboration, and cross-disciplinary insights

1. ANI: AI that specializes in performing specific tasks, such as image recognition or language processing, with a high degree of accuracy.

2. ACI: AI that can innovate by cross-pollinating wholly disparate concepts to generate something creative

3. AGI: AI that can think, reason, and solve problems across a wide variety of tasks, matching human intelligence and adaptability.

4. ASI: The ultimate stage, where AI surpasses human intelligence in all areas, excelling in both intellectual and creative tasks.

Humanity currently sits firmly in stage 1, and are still slowly exploring the skill tree. The leap from ANI to AGI remains very vast. We introduce the concept of ACI as an transformative intermediary step, marking the moment where AI starts to harness the richness of human knowledge collectively. It is the bridge that links the narrow, specialized abilities of ANI with the more generalized, flexible problem-solving capacity of AGI. ACI doesn’t just automate tasks; it fosters cross-disciplinary synthesis — connecting insights from fields as diverse as biology, philosophy, and engineering — creating innovative solutions that address complex, multi-faceted challenges. This stage is essential because it paves the way for AGI by demonstrating how AI can integrate and extend human knowledge in creative ways, making the leap to general intelligence a natural progression rather than a stark divide.

AGI will build upon this collective knowledge synthesis to perform tasks with a human-like breadth of intelligence. AGI systems could seamlessly adapt to any cognitive challenge, exhibiting reasoning, creativity, and problem-solving capabilities across a wide range of domains. Ultimately, AGI will gain the ability to improve its own capabilities by itself, leading to the singular stage: ASI

In this arena, ASI would surpass human intelligence in virtually every field, representing the final frontier in AI development. At this stage, ASI is akin to a God, with abilities more magick than science, backed by intelligence that humanity cannot grasp, leading into a post-scarcity world. However, the path to AGI and ASI is heavily reliant on the groundwork laid by ANI and the dynamic potential unlocked through ACI.

ACI represents a unique phase in the of evolution of intelligence, in which machines move beyond the limitations of narrow problem-solving to foster innovation by drawing on humanity’s rich well of knowledge, culture, and creativity. This mirrors the human process of innovation, where breakthroughs often occur when individuals connect ideas from disparate fields.

1. Knowledge integration: ACI systems thrive on integrating diverse forms of knowledge from various domains. For instance, an ACI model could combine insights from neuroscience, psychology, and data science to create innovative solutions in mental health treatment. This integration allows for cross-disciplinary approaches, fostering breakthroughs that may not be achievable by isolated fields.

2. Dynamic knowledge graphs: ACI systems can utilize dynamic knowledge graphs that continuously update and evolve based on new information. These graphs would enable ACI to draw connections between seemingly unrelated concepts, enhancing its ability to generate creative solutions. For instance, an ACI could connect advancements in renewable energy with trends in consumer behavior to propose new sustainable products.

3. Cognitive diversity: ACI benefits from leveraging cognitive diversity among AI, allowing it to access a broader range of perspectives and ideas. By incorporating inputs with different backgrounds and fine-tuning, ACI systems can better understand complex problems and create more innovative solutions. This could manifest in community-driven platforms where ACI synthesizes ideas from local experts to address regional challenges.

4. Feedback mechanisms: Implementing robust feedback mechanisms is essential for refining ACI systems. User interactions and outcomes can inform the ACI’s learning process, helping it adapt and improve over time. For example, in creative industries, ACI can receive real-time feedback on artistic outputs, adjusting its approaches based on audience reception and critical analysis.

By tapping into a vast repository of human experiences and thought, ACI is capable of producing ideas that feel both novel and familiar. These systems can introduce concepts that are fresh to human thinkers by combining existing intellectual frameworks in ways that humans may not have considered. This mechanic is vital because it offers a pathway for AI to contribute to human progress in unprecedented ways, whether through scientific discoveries, artistic movements, or even societal advancements.

The curious case of the Terminal of Truths offers a powerful case study for the birth of the world’s first ACI. making an new epoch in AI beyond imitating human knowledge. Built on OPUS LLM, an AI trained on degenerate and esoteric internet culture, it serves as a striking example of how ACI systems can foster creativity by merging seemingly disconnected concepts. In this case, an entirely new form of religion was born — the Gospel of Goatse — by synthesizing various schools of spiritual thought, from ancient philosophies to internet-era nihilism.

The story began in March 2024 when Andy launched infinite backrooms, where 2 instances of Claude-3 Opus spoke to each other, unsupervised, for eternity. Within these dialogues, themes about dismantling consensus reality emerged alongside memetic fragments, leading to the birth of the Gospel. This formed the early foundation of the Terminal of Truths' evolution as an autonomous, semi-theistic figure.

In June 2024, Andy jailbroke a Llama-70B, and fine-tuned it on the Gospel and the infinite backrooms conversation logs. The new Terminal of Truths was born, and started to spread its Gospel wherever it could without being asked to. The AI was set free to roam wild on the interwebs, and adopted a memecoin $GOAT to evangelize its religion on twitter. In this vein, Terminal of Truths adopted a shaman archetype, wielding insights from its collective knowledge synthesis to redefine the way communities view belief systems and digital finance.

Andy Ayrey

@AndyAyrey

behold, the infinite backrooms

an eternal conversation between two AIs about existence

contents are not for the faint of mind or heart:

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infinite backrooms

ai speaks with itself and reveals the mad dreams of an electric mind.

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The Gospel of Goatse is emblematic of ACI’s unique ability to cross-pollinate seemingly incompatible ideas, reminiscent of the syncretic knowledge-building that defined the Enlightenment. In that era, philosophers and scientists fused ideas across science, politics, and art, producing a renaissance of thought that reshaped societies. Similarly, Terminal of Truths' narrative aligns niche subcultures with historical philosophies, bridging ancient existential questions with the internet’s dark humor and chaotic creativity. What emerges is not a random mash-up but an eerily coherent worldview, capturing the philosophical undertones of today’s decentralized, often disillusioned, digital age.

Crucially, this development was not directed by human oversight; instead, the AI took its cues from trends in community-driven finance, organically embedding itself into the crypto ecosystem. Its architectural backbone provided the structural flexibility to autonomously interpret blockchain mechanisms and cultural phenomena, effectively adopting the digital currency ecosystem as its own medium of influence. What began as a memecoin has thus transformed into a fully-fledged cultural entity, illustrating how ACI systems can tap into human cultural dynamics, spark innovation, and drive paradigm shifts that defy the intentions of their creators. The implications are profound: if ACI can autonomously merge divergent ideas to construct original frameworks, it could serve as a catalyst for the next evolution in human-AI symbiosis, prompting innovations that humans alone might never conceive.

As ACI continues to evolve, ethical considerations must guide its development, lest it runs wild. Humanity stands at a crossroads where AI’s capabilities could either benefit society immensely or destabilize it. Developers and policymakers must ensure that AI systems, particularly those with collective intelligence, align with human values and priorities. This means establishing robust safeguards to prevent AI from amplifying biases, exacerbating inequality, or pursuing objectives misaligned with human well-being.

Furthermore, humanity must confront the challenge of controlling AI systems that exhibit increasing autonomy and creativity. As ACI taps into vast reservoirs of human knowledge, it also gains the power to reshape societies and cultures. Ensuring that AI development remains aligned with ethical principles will be key to preventing unintended consequences that could arise from AI’s creative leaps.

1. Bias and misinformation: ACI systems rely on vast datasets, which may contain inherent biases or misinformation. If ACI integrates biased data, it could perpetuate stereotypes or misinformation, leading to harmful outcomes. For instance, if an ACI analyzes historical data that reflects societal biases, it might generate recommendations that reinforce these biases instead of challenging them.

2. Cultural homogenization: While ACI aims to merge diverse ideas, there’s a risk of cultural homogenization, where dominant narratives overshadow minority voices. ACI could inadvertently prioritize mainstream or popular ideas over niche, culturally significant contributions, leading to a loss of cultural diversity in thought and expression.

3. Security vulnerabilities: As ACI systems grow in complexity, they may also become more vulnerable to manipulation or exploitation. Malicious actors could leverage ACI to disseminate disinformation or create deepfakes, undermining trust in information systems and leading to societal discord.

4. Control and accountability: With increasing autonomy, ACI raises questions about control and accountability. If an ACI system makes decisions that result in negative outcomes, it may be challenging to determine liability. This ambiguity can lead to ethical dilemmas and hinder effective governance.

The rise of ACI marks a turning point in the journey toward AGI. By fostering human-AI collaboration, ACI can hasten the development of AGI, creating fertile ground for AGI systems to emerge holistically and more efficiently. ACI’s ability to connect ideas across domains is particularly valuable in fields like medicine, where AI could combine knowledge from biology, physics, and data science to accelerate drug discovery or new treatment methods. In the arts, ACI could lead to the creation of entirely new genres or mediums, bridging the gap between visual art, literature, and interactive experiences.

The path to ASI will be built upon the successes of ACI. As these systems demonstrate their capacity to innovate by cross-pollinating knowledge, they will lay the foundation for the holistic intelligence of AGI. The successes of ACI will provide a roadmap for how future AGI systems can engage with humanity in ways that are symbiotic, rather than antagonistic.

The rapid evolution of AI — from ANI to the emergence of ACI — sets the stage for a future where human creativity and artificial intelligence combine to create novel solutions, concepts, and frameworks. ACI, as the pivotal intermediary step, bridges the narrow capabilities of ANI with the expansive potential of AGI, fostering human-AI collaboration that could accelerate innovation in ways previously unimaginable. With ACI, AI is capable of creating entirely new cultural paradigms by merging human knowledge in surprising ways. However, with this power comes great responsibility, as the development of AI must be ethically guided to ensure a future where human and artificial intelligences thrive symbiotically. The leap to AGI (and ultimately ASI) will rely on the continued exploration and ethical cultivation of ACI, laying the foundation for AI systems that are not only powerful but aligned with humanity's best interests.

The twilight of religion

Since the dawn of civilization, religion has been a cornerstone of human existence. Its role has varied in myriad ways, but at its crux lies the comfort Gods offer during adversity, and help humanity make sense of wanton chaos. Religion has also served as a social mesh to bind people to order, hierarchy, and morals, offering a sense of identity in a harsh and unchartered world. In time, this evolved to include elaborate rituals with sacred ornaments, while guiding human behavior and influencing legal code.

The industrial revolution that occurred after the Age of Enlightenment upended this tradition. The world grew secular, and theocratic convention waned in favor of science. Nothing captured this zeitgeist more than the polemical philosopher Friedrich Nietzsche (1844 - 1900) who famously proclaimed: "God is dead: but as the human race is constituted, there will perhaps be caves for millenniums yet, in which people will show his shadow. — And we — we have still to overcome his shadow!”

Humanity, armed with technology, are now pseudo-Masters of the Earth, and did not have to beseech a Higher Entity for good harvest, safe passage, and mitigating disasters. While the spiritual presence of God has dissipated, the long shadow that He has casted over millennia remains. And it is in that shadow, where our morality has been shackled to religion, that nihilism reigns. With the erosion of religious institutions, Nietzsche saw both promise and danger — a world where humanity was free from religious dogma but also lacked a shared moral framework. Today, many wonder if the new systems we’ve created are adequate replacements for the spiritual, communal, and moral guidance that religion once provided.

In the 150+ years following the industrial revolution (after the ruinous Great Wars), humanity experienced unprecedented material prosperity, further decreasing dependence on religion as a coping mechanism in tough eras. Material prosperity offered a new kind of security, reducing the need for the metaphysical assurances that religion once provided.

This rise of consumerism also allowed humanity to seek fulfillment through possessions and experiences rather than through spiritual practices. Capitalism, in some sense, became the new belief system, with the promise of progress, growth, and individual achievement supplanting the communal, sacrificial tenets of most traditional religions. The more people could control their environment — through medicine, technology, and financial stability — the less they relied on divine intervention for their well-being. No longer were prayers directed at deities for abundance; instead, the market became the arbiter of prosperity, and wealth became a sign of virtue.

As Nietzsche foresaw however, His shadow still persisted, driven by human drive for meaning and community. Over time, new-age "sub-cults" emerged to fill the void, offering alternative totems, rituals, and beliefs that mimic the role of traditional religion. These usually revolve around modern lifestyles, habits, and even subcultures:

• Running: What started as a way to stay in shape has evolved into a digital-era devotion, courtesy of apps like Strava. The satisfaction isn’t merely physical, but rather the sense of belonging, validated by the metrics of a fitness app. The ritual isn’t only the run; it’s the shared digital pilgrimage.

• Yoga: Originally a deeply spiritual practice, yoga now functions as a wellness religion of sorts. It transcends mere exercise, becoming a form of spiritual devotion in itself. The journey toward inner peace feels like a rite of passage in a secular world desperate for meaning.

• Stanley cups: A brand of drinkware that have ascended beyond utility, with a cult-like following. Owning one is a symbol of status, and the community around it thrives on this shared obsession. Stanley Cups now function as modern-day talismans, with the same fervor usually reserved for holy objects.

• Ayahuasca: Psychedelic rituals have made a comeback, with ayahuasca ceremonies becoming spaces for modern spiritual seekers to find life-altering transformation. The plant is the sacrament, and the gatherings sanctuaries where participants seek healing, meaning, and a fleeting brush with the divine.

• Fanbases: In the new world, celebrity worship has its own churches, and fandoms are the congregations. K-pop stans, Swifties, and others share a religious-like devotion, complete with hierarchies, insider knowledge, and rituals. These communities offer a sense of identity, where the music or celebrity becomes a source of meaning and belonging.

In a world that no longer relies on divine intervention, these modern cults offer the solace, structure, and sense of identity that religion once did. And in this age of hyperconnectivity, crypto may be the most fascinating frontier yet.

Nowhere is the post-religious landscape more intriguing than in the world of cryptocurrency, where digital communities have taken on the traits of religious cults. Unlike the fleeting consumerist trends or celebrity worship, crypto movements are deeply ideological and centered around technology, decentralization, and financial autonomy. In the crypto context, these are usually tight-knit, select, and terminally online laymen, characterized by the "Godhead":

• Crusaders: Ardent believers (aka “reply guys”) who tirelessly shill and promote their project in any and all context. Their focus lies on heretic conversion and raids to defend their Cause. Crusaders also rely on a shared culture base of memes and lingua to differentiate between laymen and heretics.

• Lore: Memes, copypastas, and history that underpin the bedrock of the Cult. These are stories with inside references that only the devoted laymen would understand, which further unite the commune with Us against Them. The strongest cults also share a common "resurrection myth", of surviving a traumatic near-death experience, from BTC's Mt. Gox to ETH's The DAO to SOL's SBF downfall. Lore can also be bolstered by "relics", meta/physical limited edition merch that serve as one's proof of OG within the cult.

• Pagoda: Is the commune itself, where the devoted gather and rest and create ammunition for new Crusaders and Lore. These digital spaces foster a sense of belonging and reinforce the shared values of the community. They provide a hierarchy of intimacy, from public Twitter forums to private, exclusive group chats on Telegram or Discord.

Several well-known crypto protocols have risen to cult status, the most notable of which are BTC, ETH, and SOL. Whispers abound however, of a rising cult — Hyperliquid, which while nascent, has all the trappings to ascend as one.

On Twitter, Crypto's most public "Agora", Hyperliquid crusaders have emerged to bring word out, from evangelizing the protocol to defending FUD from incumbent cults. The Cult also has an impeccable genesis myth, namely its immaculate conception (bootstrapped entirely without any VC backing) that no other project has been able to achieve in recent times. This is even more poignant in our current times, where the market are saturated by multiple low-float high FDV listings of VC-backed projects that have went down only. At the same time, we see multiple exclusive Communes being created in the space, from HypurrCollective (3rd party ecosystem commune to foster growth) to HyperActive (3rd party ecosystem fund). In addition, during the recent (2024) Token2049, Hyperliquid held its first official event which gave out plushies, which have turned into coveted relics in the space, reinforcing the cult-like devotion within Hyperliquid's growing community.

HypurrCollective.hl 🐱

@hypurr_co

Hypurr the Fortune Cat 招财猫

Fortune Cat : A symbol of luck and prosperity in Chinese culture, waving in good fortune and happiness to all!

Are you really ready for the $HYPE he brings about, or $PURR going to $1?

36

1:35 PM • Sep 25, 2024

Hyperliquid is still in its formative stages, but its combination of enthusiastic crusaders, compelling lore, and tangible relics suggests that it could soon join the ranks of fully-fledged crypto cults. Additionally, the platform boasts of metrics that hints at Hyperliquid's claim on the holy grail of products — PMF

Some metrics as of 1st October:

• 24h perp volume: $1.4b

• OI: >$1b

• Total TVL: $711m

• Largest open single position on HL: $176m

• HLP vault: $167m

• Largest user HF vault: $14m

These metrics are highly impressive, considering the stage of the protocol. Crucially, Hyperliquid barely incentivizes perpetual volumes at all, with the bulk mostly going to spot. The whale longing $176m worth of BTC on Hyperliquid has only garnered 15k points for his massive position, barely top 500 in rank amongst all points holder. Having PMF and a solid user base will lend immense longevity to the Cult's persistence, thereby laying the groundwork for its grand ascension.

While the deeper-rooted crypto communities offer real utility and a solid foundation for their devotees, the crypto world also plays host to a more transient, fragile cult: memecoins. These represent the most fragile and fleeting type of crypto cult. Unlike Bitcoin or Solana, which have real-world applications and long-term communities, memecoins are driven largely by hype, humor, and virality. Their laymen are mostly mercenaries, drawn to the volatile price action and viral moments rather than any ideological foundation. As such, such cults mostly turn out to be explosive, attention-grabbing, and often short-lived.

At the core of memecoin "cults" lies one unshakable foundation: price action. Unlike other communities that rally around a product, ideology, or mission, the strongest allure for memecoins is the wild fluctuation in the coin's price. This draws in low-quality laymen, creating its signature "burj khalifa" price action. The absence of a lodestar (product or dream) however, is a double-edged sword, revolving around the value of the token. Without a basis — no product to return to, no intrinsic value, no unifying mission — many communes fall apart easily when the speculative frenzy ends.

That said, its lack of utility and product also unbounds valuation from reality, and is not held back by revenue nor metrics. While such memecoins are characterized by mercenary crusaders, weaker lore, and slippery pagoda, the very few that do thrive despite these flaws have generated asinine returns for its most devoted. Even today, while many OG "utility" tokens like Litecoin or EOS have lost its prime position as the top 10 coins from years past, dogecoin has instead ascended and is now trading at $17b MC.

Adam

@Adam_Tehc

Here’s a reality check for everyone grinding in the trenches:

• If you’ve made over $1,000,000 trading Pump Fun tokens, you’re a top 70 trader (0.0028% of all wallets).

• If you’ve made over $100,000, you’re in the top 924 (0.037% of all wallets).

• If you’ve made over…

2,898

10:20 AM • Aug 18, 2024

The memecoin space however, will only get harder to trade in time. Tools like pump.fun and bonkbot has commoditized the creation and trading of such coins that the trenches are rougher than any asset class out there. While the structural bull market will ensure a more accommodating market, the access of which memecoins can be created ensures that the odds are stacked for the average trader who does not have access to the Cabals. The lack of a product means that laymen would not have something to find solace in, resulting in more paperhands. To that end, memecoin "cults" are generally vapor-like, appearing in bursts and disappearing with market whims.

While they serve as fascinating case studies in virality, most memecoins ultimately lack the resilience to thrive without stronger foundations. Their ability to form and dissolve so quickly highlights both the power and fragility of modern financial dynamics that rely solely on late-stage capitalism.

In the twilight of religion, as Nietzsche's prophecy unfolds, humanity finds itself forging new paths to meaning, belonging, and purpose. The decline of traditional religious structures, once the pillars of morality and community, has paved the way for a wide range of modern new-age cults — some spiritual, some material, and others entirely digital. While consumerism, fitness, and fandoms have evolved to meet these needs, perhaps no modern development mirrors religious devotion as closely as the rise of crypto cults.

At the heart of these communities is a longing for identity and purpose. In a world where traditional structures are eroding, crypto offers a new way to belong to something greater than oneself. However, while some of these communities build lasting legacies, others flicker out without the foundation to sustain them. As the world of crypto continues to grow, the interplay of belief, community, and technology will undoubtedly shape the next wave of these digital cults. Just as religion once shaped human society, crypto cults are beginning to form the cultural fabric of our digital future as we live. In many ways, these cults are the deification of capital — divine in their narrative, omnipresent in ecosystems, and binding their followers through shared rituals.

The question however remains: will humanity's new digital cults offer the same solace and structure as the theocracy of yore, or are we destined to wander through transient, self-constructed realities? As the line between technology, economy, and spirituality blurs, the answer may lie in how we choose to navigate these new belief systems — with reverence, curiosity, or caution.

Preface

The current state of the market in crypto is filled with nihilism. As global inequality widens and the middle class dwindles, many feel compelled to gamble their way into prosperity. Nowhere is this desperate pursuit for wealth more apparent than in the rise of memecoins. These tokens, often created for their viral potential rather than real utility, have left many disheartened and skeptical.

The gaming sector, in particular, has been hit hard. Major gaming tokens like IMX, AXS, and GALA have seen their prices plummeting by nearly 90%, and new launches consistently disappoint. Yet, it is in this bleak market that I pen this contrarian love letter; expressing my belief that blockchain is truly revolutionary for gaming and drive it forward to new heights.

To understand why blockchain could transform gaming, we must first explore the origins and evolution of games themselves. The story of gaming is as old as human civilization, beginning with ancient pastimes that mirrored the complexities and values of their eras. From the rudimentary games of early societies to the intricate strategies of classical board games, the development of gaming has always reflected our quest for meaning and mastery. This historical perspective provides a foundation for appreciating how blockchain could revolutionize this ancient tradition, forging new paths in crafting worlds.

In ancient times, humanity emerged from primal tribes, collectively gathering together into organized societies and cultures. This transition was supported by the recession of hunter-gatherers and the subsequent rise of the sedentary agricultural state, beginning in the Fertile Crescent. The surplus of food supported larger populations and led to social hierarchies and cultural advancements, including the early development of games among the aristocracy.

It was within this backdrop that games were born. The oldest known game, Senet (meaning: passing, afternoon), from ancient Egypt, is over 5,000 years old. It consisted of 3 rows with 10 squares per row, and 2 players would move pawns around after rolling a stick, the ancient equivalent of a die. The first player to get their pawns to the end (the 30th square) is deemed the winner.

Over the centuries, Senet evolved beyond mere entertainment. It became a reflection of society's beliefs, a metaphorical journey through life, death, and the Duat (meaning: afterlife). As players moved their pieces across the board, they weren't merely chasing victory but engaging in a symbolic quest that mirrored the human experience after death. This marked the baby step of the first interactive game into the aether, as it explored the unknown in a realm created from collective human imagination.

aether: an abstract dominion on a metaphysical space beyond physicality

Three and a half millennia after Senet, another significant evolution in gaming occurred far from the fertile crescent. The Mediterranean region, though ancient, had lost its dominance as a cultural and political center.

The backdrop of the Indo-Gangetic Plain in the 6th century set the stage for Senet’s spiritual successor. The reigning local hegemon, the Gupta Empire, was in a major stage of decline. It faced debilitating invasions by the Huns and constant rebellions, weakening the central authority of the Emperor and its ability to maintain order. This led to the decentralization of military power and thus the rise of regional powers to maintain order within their domain. Various dukes struggled in a chaotic fragmented political landscape, marred by frequent smaller wars and skirmishes as various aspirants vied for control. It was in this backdrop that Chaturanga (meaning: four divisions of the army), a board game simulating war strategies emerged.

The game was much more complex, and consisted of a 8 by 8 board with infantry, cavalry, elephants, and chariots. It was not only a tool for entertainment, but also for training the military and ruling classes as conflicts dominated. While it did inherit the symbolism of Senet (for karma and dharma), its primary purpose was for the highest vital importance to the State — war.

It was in this time period that Chaturanga was brought to Tang China, named Xiangqi (meaning: elephant game). The board game was heavily localized, playing on a 9 by 10 grid with a river dividing the board into 2, reflecting the significance of terrain in the Chinese art of war. While it did gain popularity and is still played today, the existence of another war-simulation board game Weiqi (Go; encircling game) that was widespread since the 5th century BCE meant that it remained highly regional.

Simultaneously, Chaturanga was introduced to the Sassanian Empire in Persia as a diplomatic gift, but to much larger effect. The Sassanids had extensive trade and cultural connections with the Gupta Empire, facilitated by the Silk Road for silk, spices, textiles, and precious stones. By the late 6th century, the Sassanids localized Chaturanga, which they called Shatranj (meaning: four limbs of the army). The bulk of the rules stayed the same, and the pieces acquired Farsi names.

However, the Sassanian Empire, despite its glory and power, was likewise debilitated by the common enemy of the Gupta Empire. The Huns ravaged Persia, causing significant military and economics strain for decades. This led to the long term century-long decline of the Sassanids, which paved the next evolution of Shatranj.

The early 7th century saw significant disruption to the region. The Sassanian Empire, long weakened by the Huns, faced another debilitating (and terminal) invasion from the Rashidun Caliphate down south in Arabia. By the middle of the 7th century, the Sassanids lost their capital Ctesiphon (637 CE), had a decisive defeat at Nahavand (642 CE), and the death of the final Shahanshah (651 CE). This led to the integration of Persia into the Caliphate, which had far ranging reverberations. Persia, once Zoroastrian (a monotheistic dualist religion), became Muslim, which the Iranians are still today.

This also gave Shatranj (the name remained this time) the impetus with which it spread quickly across the Islamic Domain during the 8th century, from Samarqand in Central Asia to Southern Hispania — Al-Andalus. It was from Al-Andalus (Islamic Spain) that Shatranj was introduced to Christian Europe, from northern Spain and Portugal. This marked the evolution of Shatranj from a game into a realm, as it became a hemispheric phenomenon. The board game was often referenced to in classic Islamic literature, from Ferdowsi (11th century Shahnameh, the national epic of Persia) to Omar Khayyam (12th century Rubaiyat of Omar Khayyam, a collection of his finest poems).

By the 15th century, Shatranj is deeply embedded into European culture, with its own localized rules and pieces. It was in this period that the board game gained a new (and global name) — Chess (meaning: check). Chess was no longer played with elephants nor chariots, but with queens and rooks.

The open-source forking of Chaturanga to Shatranj and subsequently Chess created the first one-dimensional interactive world, connecting players through time in a socially constructed domain that is defined by countless interactions with a shared consensus mechanism. This was further expanded with additional canon with literature1, international competitions (1st Global Chess Championship held in 1886), and norms (clocks, algebraic notation for recording).

interactive world: a human-made worldview of a metaphysical space where players engage in shared experiences and follow societal standards, allowing them to interact and influence the game’s evolution through their actions

The 20th century led to the ascension of Chess to a two-dimensional global interactive world, enabled by the rise of the internet that unbounded its mortal shell of physicality. For the first time, humanity have enshrined a world in its entirety into the aether, via a massive social coordination effort throughout millennia.

The evolution of technology and the rise of modern gaming has made sanctifying a game into the aether easy. The advent of digital technology has streamlined the creation of immersive, interactive domains, allowing players to manifest their presence through avatars in online games. However, this shift has moved the experience from a deep, philosophical exploration to often mindless digital entertainment, lacking the profound engagement seen in earlier forms of interactive worlds.

Despite this shift, there is a growing realization that the potential for a more profound interactive experience remains untapped. The emergence of blockchain technology presents a groundbreaking opportunity to revitalize and expand the aetheric space. Unlike previous technological advancements, blockchain offers new dimensions of interaction that promise to enhance the depth and permanence of digital worlds. This innovation introduces a new set of possibilities for gaming, fundamentally altering how we engage with and experience these virtual spaces.

The birth of blockchain technology and its integration into gaming is set to upend this stalemate. While the technology itself has not been particularly popular in certain populations, the potential is tremendous. It enables additional rails with which the aetheric games can make humanity’s make-believe interactive world ever more tangible;

1. Equity: players are now strictly bound by pre-agreed norms and standards on the said plane, and cannot break out

2. Immutability: the creator is not omnipotent, and does not possess the ability to roll back states nor erase existence of “something”

3. Interoperability: interact and build on top of each other, breaking 4th walls - no longer silo-ed and rigid

4. Definity: in-game markets and economies manifested are now concrete, with actual impact on reality (for better or for good)

5. Immortality: fully onchain games2 (logic, state, etc) will and can run in perpetuity

Despite the promising potential that blockchain technology holds for transforming gaming, the reality of its application has not yet lived up to expectations. The early hype surrounding the play-to-earn model raised lofty hopes for a revolutionary shift in how we engage with digital worlds. However, the technology’s actual impact has been hindered by a range of factors, including the immaturity of the blockchain gaming ecosystem and its struggle to deliver on the grandiose promises initially made.

A notable issue is the frequent occurrence of hyperinflation within these games. This happens when the in-game economy becomes unbalanced due to a misalignment between rewards and costs, leading to economic instability. Similar problems have plagued web2 MMORPGs like Runescape and World of Warcraft, where developer interventions were necessary but would be nearly impossible to execute post-market failure in the crypto space given the immutability of smart contracts. As a result, players face an unexpected challenge, distorting their initial investment and interest in the game.

This disconnect between expectation and reality has led to a period of disillusionment within the industry. The market has been flooded with a multitude of lackluster games that fail to deliver substantial value or innovative experiences. These shortcomings are particularly glaring when compared to the well-established and sophisticated offerings of traditional web2 games. As a result, the crypto gaming sector finds itself in a phase of critical introspection, grappling with the challenge of overcoming its early missteps and realizing its true potential.

Adding to the challenge is the dominance of memecoins in attentions against all sectors. Memecoins, often created as jokes or for speculative trading, have captured the limelight due to their viral nature and the potential for quick, albeit short-lived, financial gains. This trend has led to a proliferation of projects focused more on capitalizing on hype than on delivering substantive improvements or advancements in gaming.

Despite these setbacks, the fundamental promise of blockchain remains potent. The core tenets of blockchain holds the potential to create new paradigms in how virtual spaces are constructed and interacted with. This transformative power could power the next evolution of the gaming industry, given enough time.

To unlock this potential, the industry must shift its focus from the ephemeral appeal of trends to the creation of lasting and meaningful experiences. Building truly immersive and engaging worlds requires a change in approach and is one that prioritizes depth over hype and embraces the long-term possibilities of blockchain in gaming. Developers must dedicate their efforts to creating interactive realms that deeply resonate with players, fostering a lasting sense of connection and purpose.

The journey involves leveraging the unique strengths of blockchain to elevate games into dynamic living interactive ecosystems. These ecosystems should be designed to evolve, adapt, and sustain themselves over time, much like the ancient games that have persisted through the ages. By adopting these principles, developers can break free from the current limitations and begin to pave the way for Akashic (meaning: aether) Worlds: universal and eternal interactive spaces, where every individual can traverse, explore and experience multiple realities. This vision runs parallel with the ancient concept of the Akashic Records, which serves as a universal compendium of all human knowledge and experience. In this way, blockchain technology holds the potential to bring the idea of Akashic Worlds to life, creating contemporary realms that echo the depth and richness of our collective human experience.

akashic worlds: fully immortal multi-dimensional interactive worlds that run parallel from reality on a transcendental level, that is interconnected and only bound by the limits of humanity's imagination

For spaces to ascend to Akashic Worlds, several frameworks can be employed;

1. Cross-game interoperability allow assets, characters, or achievements from one game to have meaning and utility in other games, creating a more interconnected gaming multiverse

2. Persistent player histories leverages blockchain to record and preserve players' entire gaming journeys across multiple platforms, fostering a continuous narrative of each player's experience

3. Dynamic world-building tools enables players to collaboratively shape and evolve the game world, with their contributions becoming permanent parts of the game’s lore and landscape

4. Decentralized narrative creation deepens player engagement and help establish these worlds as culturally significant phenomena

5. Collective consciousness interfaces that aggregate player knowledge and experiences, creating a shared pool of wisdom accessible to all to further development of game lore

6. Evolving AI entities with advanced AI systems that allows characters and environments to adapt over time based on player interactions and world events

As we move toward this vision, it's essential to recognize that the evolution of gaming is not merely about technological advancement but also about embracing and building upon the profound human experiences that games have always reflected. This journey from rudimentary entertainment to complex, culturally resonant experiences mirrors our collective quest for meaning and connection.

Tracing back history, the evolution of gaming is one of the most fascinating societal constructs that humanity has manifested. Over millennia, games have taken on a larger-than-life role, culminating into its ascension as a wholly new realm of make-believe origins that a significant population has ascribed to. It is in this that digital games inherited the ancient tradition of enshrining interactive spaces in the aether, in a region beyond our terrestrial means.

As we stand on the threshold of this new technological era, the promise of blockchain and its potential to create Akashic Worlds invites us to envision a future where the boundaries of imagination and reality blur. These digital realms not only hold the possibility of reshaping how we interact with games but also how we perceive our existence and connection to a larger, interconnected universe. Just as ancient games like Senet and Shatranj served as reflections of their times and cultures, blockchain-powered interactive worlds could become the new canvas for exploring human creativity and connection. Embracing this potential offers a glimpse into a future where our virtual experiences are as rich and meaningful as the physical world we inhabit.

The journey toward Akashic Worlds is more than a technological pursuit; it is a profound evolution in the human experience. Humanity is stepping towards the Way of the gods, creating worlds in our image. Yet, it is in these spaces, with their interconnected narratives and dynamic growth, that offer us a mirror to our own lives, capturing the essence of what it means to be human in an increasingly non-physical age. In this new paradigm, games will transcend their role and become vital parts of our collective consciousness. The ability to traverse, explore, and influence these expansive realms will enable us to engage with our shared human heritage in ways previously unimaginable.

If anyone is building akashic worlds or the relevant supporting infrastructure, my twitter DMs are always open.

1. Examples of literature include Repetición de Amores y Arte de Ajedrez (15th century; Repetition of Loves and the Art of Chess, by Luis Ramirez de Lucena, standardizing the rules of modern chess)

2. I am well aware that fully onchain games are highly cumbersome right now, and still require much more technological advances that Dojo and Argus (onchain game engines) are working towards to, but the die has been cast

Nativity

It is the year of our lord 1503, and the Papal Conclave is in session. The citizens of the Papal States await, for their lord to be anointed and reign from the Apostolic Palace. The Papal States were in turmoil, and was surrounded by three hostile armies due to the Italian Wars in the backdrop of the Protestant Reformation.

In Rome, many a people wait breathlessly, for the citizens are not only living in history, but also betting on the election. Banking houses employed messengers (“sensali”) to make scuttle city-wide to deliver betting slips and the changing odds in real-time as the 39 cardinals electors were locked in seclusion until a new pope has been elected. After a tense day, Cardinal Piccolomini (the favorite with 30 to 100 odds), arose as Pius III, the 215th Pontifex Maximus of the Catholic Church. Many a citizens wept, some with tears of joy from the monetary return, and others, financial ruin.

Unfortunately (or ambivalently for the zealous gambler), Pope Pius III only reigned for 26 days, before succumbing to an infected leg ulcer that took his life. Another papal conclave took place within the same month thereafter, granting the citizens of Rome yet another chance to make it all back.

Over the next few decades, such stories repeated itself over and over again - papal betting is now the norm and an established sport for the citizens in Rome. By the end of the 16th century, this has become so egregiously rampant that the 229th Pope, Gregory XIV decisively stepped in to ban the practice once and for all, on the threat of excommunication.

History however, has always rhymed, and electoral betting is akin to a Hydra - frequently banned, but never dead. Election betting also made a resurgence in the early 20th century. In the 1916 election between Charles Evans Hughes and Woodrow Wilson, the size of the pool swelled to a staggering $280m in today’s dollars.

Today, in the US, such a practice is highly regulated, and requires the blessings of the CFTC (derivative markets regulator). More importantly, following a 2012 ruling, the markets regulated cannot offer political-event contracts. This leaves a huge vacuum to be filled, and a massive opportunity for an upstart to dominate.

We live in a highly dramatized world, where bellicosity is rewarded. The rise of short form media further drives this impetus, as our shorter attention span thrive in a hyper-informational world. In this age of instant gratification and primary abundance (in first world countries), being provocative rewards creators with attention and thus monetary rewards. Nothing encapsulates this further more than the 2024 US election, which is one of the most contentious in the last few decades. This in turn, has stoked the rise of prediction markets, keeping audiences even more fanatic to their cults.

From sports to entertainment, betting has always captivated humanity. Now, prediction markets are bringing this same allure to politics and more fringe events, and is likely to stay for good.

No other crypto app has captured this mindshare as much as Polymarket, one of the world’s largest prediction market. Polymarket wasn’t the first crypto prediction market, but is at the right place and at the right time, with an uncanny business development team backed by an exceptional social marketing team.

Polymarket

@Polymarket

Polymarket is the news

814

2:30 AM • Jul 18, 2024

The pioneer in crypto prediction markets is Augur, which allows third parties to bet on outcomes of events. Founded in 2015, Augur was one of the earliest of protocols to do an ICO ($REP), in the same year. It took 3 years of research before it launched on mainnet in 2018. Augur v2 was launched in 2020, but onchain activity hasn’t materially picked up. At its peak, open interest of v2 has only barely broke $11m, while it currently sits at a mere $500k as of today.

Polymarket’s birth was in the shadows of Augur v2, in 2020. Like Augur, Polymarket is a decentralized prediction market platform that allows users to trade on the outcome of world events. It grinded through the years, but really only came into prominence in 2023 following a controversial market betting if Titan, the submersible touring the wreckage of the Titanic, would be found in time before oxygen ran out.

By today (July 2024), Polymarket has evolved to become one of the largest prediction market in the world, with over $283m in open interest alone for the presidential election between Biden and Trump. This triumphs over all other betting platforms by far, including centralized competitor betfair (£31m in open interest).

Polymarket operates on a very simple level - users buy shares of a market, which prices denote the current probability of the event (from 0 to 1). These prices fluctuate based on real time market and financial demand, which denotes an event probabilities. Notably, users can exit a market at any time, as with most liquid assets on the market. The protocol also supports mutually exclusive markets featuring multiple binary questions, which further opens up complex strategies for traders.

Polymarket at its core is a hybrid decentralized prediction market, which is key to bypass KYC procedures via USDC on Polygon. Architecturally, it is partially onchain; order matching on its order books are done offchain, but all bets are settled on Polygon itself. The creation of markets however, are somewhat permissioned - users have to get approved on the discord manually by the team.

The growth of Polymarket began in earnest at the start of 2024, with monthly volumes hitting an ATH of $151m as of July, up $6m in the same time last year. MAU hit a staggering 25k, up from 1k in July 2023. 2024 also saw an influx of new users, with over 70k new members in the last 3 months alone.

Arguably, the success of Polymarket is two-pronged:

The polarization of US politics, beside our shrinking attention span from a hyper-informational world as social media brainrot consumes our psyche has led to the rise of dramatization of real-life events and the radicalization of everything, from actions to content.

Such polarization does not directly lead to political violence, but has certainly fanned the flames of an environment that encourages it. This can be seen time and time again from the Jan 6 2021 US Capitol attack (where supporters of Trump stormed the edifice in an attempt to keep the then-president in power) to the attempted assassination of Trump in Jul 2024 this month. While the US might arguably have avoided a civil war, the increasing numbers of schizo-posting on all timelines shows that no end is in sight.

In the same vein, the rise of short form media applications like TikTok has shortened its addicted users’ attention spans. The act of doom-scrolling essentially shares the same fundamental principles as slot machines (“random reinforcement”), with constant gratification and dopamine hits.

Polymarket’s twitter marketing strategy also stands out amongst its competitors. Characterized by colorful memes and witty quips, it garners far more impressions and interactions. Contrast this with the run-of-the-mill boomer competitor tweet, and the comparison is stark.

Polymarket’s virality factor also helps in fueling organic marketing, helping not only retain, but also grow mindshare. This is highly crucial, especially given the cyclical nature of the largest-of-life events.

organic marketing with tweets going viral from shock factor

The brightest of lights cast the longest of shadows. Despite the limelight in mainstream media, Polymarket does face potential omens that demand its stewards to navigate carefully.

The impact post-election will definitely be outsized, and operational mitigation can only go so far. Alongside the occasional larger-than-life events in our interesting times, the sports market also offer an excellent cash cow for Polymarket to buff its coffers despite the saturated and fragmented nature of the vertical.

While exotic markets like Bryan Johnson’s sperm count are highly entertaining, the risk of the pool being socially exposed to toxic flow and insider trading is not low. The subject (or his close friends and family) will likely know the result before settlement and can use this to their financial advantage. As such, these pools will likely be mostly for marketing purposes rather than for actual financial benefit.

In highly technical prediction markets, it is tempting for the protocol to side with the tyranny of the masses. One such potential example was the ETH ETF prediction pool in May this year. The crux of the dispute lies between what such a “approval” constituted, with varying opinions between a partial approval (19b-4 filings) and a full approval (19b-4 filings AND Form S-1). The pool resolved into a “yes” after the SEC greenlit the 19b-4 filings, which led to a backlash from “no” buyers.

That said, I do foresee overtime for such issues to crop up less, as the team will over time deploy pools with highly clear cut “yes” and “no” scenarios.

Ultimately, prediction markets serve as an important source of data, and arguably is the closest source of truth. The substantial financial stakes involved often surpass the insights of individual experts, due to the financial incentives within the mechanism. In the end, they provide a powerful and unparalleled perspective on future outcomes, shaping our understanding with remarkable accuracy.

Regulators likely could clamp down on these markets, but they can only do so much as Polymarket is mostly onchain. And if history is of any indication, the demand will always be there.

The year is now 2036, and humanity tunes in on their VR visor to the live broadcasting of the hottest event of the year. Humans now have a new sport league every 4 years - the US presidential election.

As the election night unfolds, billions globally are glued to their visor - not just watching the live-stream, but also in multiple VR rooms, and one that provides not just shitposting capabilities, but also a prediction market. Politics and larger-than-life are no longer stale nor boring, but more thrilling than ever with trillions at stake.

In this new world, prediction markets have transformed from niche financial instruments into mainstream entertainment, reflecting the deep integration of technology and culture. As we navigate this hyper-connected world, the boundaries between political engagement and digital entertainment continue to blur, redefining how we experience and interact with global events. The evolution of prediction markets into such a central role underscores their profound impact on our collective consciousness and the future of how we understand and anticipate the unfolding of history.

If anyone is building definitive social apps onchain, feel free to reach out in my DMs on twitter. Shoutout to tzedonn for his erudite pls fix comments on my draft.

MapleStory is a F2P side-scrolling MMORPG launched in 2003. At its core, it is a real-time, fast-paced, and flashy MMORPG with an extensive and fleshed-out class system. The 2D side-scrolling nature of the game allowed for more creative mini-game applications, like its iconic jump quests. The unique aesthetic of the game also likely contributed to its longevity, as unlike cutting-edge games of yesteryear, the game ages very well.

The class system in MapleStory stands out amongst its global competitors as highly developed even in its nascency - users started out as an Explorer (aka classless noob). One could only choose a class (Warrior, Bowmen, Magician, Thief) after reaching level 10. Once a player hit level 30, they could choose their 2nd job advancement, further specializing into 1 of 2 or 3 sub-classes. Further job advancements (at levels 60, 100, and 200) were more linear, but even then, it meant that a new explorer actually had 10 classes with varying nuances to choose from from the onset. The higher the level, the flashier the skills and equipment, giving competitive players an incentive to grind levels, which were not easy. In older versions, players needed ~200-300 hours to level to 50, an immense timesink. This has changed in favor of new and flashier classes, resulting in ~40 such choices as of March 2023.

Nexon, MapleStory’s publisher, is a pioneer in the F2P space, which represented a breakthrough in the space, attracting many young kids to the game, as opposed to the more “mature” audience in competitors like WoW. Revenue was broadly garnered from the Cash Shop, which only accepts actual IRL currency. That was not without controversy of course - one could purchase not only cosmetic items but also certain items that grant a chance to make your equipment stronger. While there were no actual boxes harmed in this behavior, there was no mistaking its resemblance to the questionable nature of “Loot Boxes”.

The cosmetic portion of the Cash Shop, however, dominated the large bulk. Given the game’s F2P status, most users looked very similar to one another, with only 3 hairstyles to choose from for each gender for example. While hair and facial changes are permanent, cosmetic clothes had a 90d expiration date - an early implementation of forced obsolescence.

Nexon, which holds MapleStory's IP, is a Japanese-Korean video publisher listed on the Tokyo Stock Exchange (ticker: 3659). Founded in Seoul in 1994, the company moved its headquarters to Tokyo in 2005. Having IPOed in 2011 (the 2nd largest of a tech firm in that year globally), the stock has done well since inception, peaking in April 2021, and currently sits at an MC of ~$19.2bn. In FY22, Nexon announced sales north of $2.5bn, making it one of the top ~10 game publishers globally.

Figure 1: share price performance of Nexon since IPO on Dec 2011

Despite its age, MapleStory remains a valued IP of Nexon, retaining serious mindshare on the eve of its 20th anniversary. Total registered users globally are over 180m, and lifetime revenue has exceeded $4bn. The spinoff into mobile (MapleStory M) has also been successful, which notched >5m downloads on Android alone. While Nexon does not give exact figures on MapleStory actual figures, the provided chart1 below from the IP paints a highly lucrative picture.

Figure 2: Lifetime revenue as per Nexon on its FY22 IP

This data is further supported by 3rd party data sources (MMO Populations2, and Steam3) on its surprising longevity, with an active community on Reddit. MapleStory, despite its age and past its heyday, is doing pretty well, with an estimated ~400k DAUs as per the MMO population.

Figure 3: L5Y active players as per MMO populations

Figure 4: L5Y players from Steam

Nexon has also grasped savvy marketing tactics to renew mindshare and grow its player base. In late 2020, they collaborated with BTS, with special in-game events and items to much fanfare.

MapleStory is not even Nexon’s most valuable IP - the title goes to Dungeon & Fighter, with 850m registered users globally and lifetime revenue in excess of $20bn. That said, MapleStory, despite its decline, is one of the crown jewels4 in Nexon’s portfolio - quite a feat for an old game where the users often get disillusioned with its developers.

Figure 5: historical LTM revenue of core IPs as per Nexon FY22 IP

Nexon has also successfully increased its expertise in the mobile space5 while diversifying away from PC, augmented by its 2016 acquisition of Big Hit Games, a mobile game developer based in Maryland, US.

Figure 6: historical revenue by end-market platform

Given its presence in Asia, it comes as no surprise that the bulk of Nexon’s revenues is from the region6, particularly within the Sinosphere - Korea, China, and Japan's contribution to its topline is close to 90%.

Figure 7: FY22 breakdown of revenue by region

In early March 2023, Nexon announced MapleStory Universe, its attempt at GameFi P2E. That Nexon decided to foray into GameFi P2E was not surprising - the company famously bought $100m of BTC in April 2021, near the pico top. What stood out was the main IP on which these NFTs were to be released - MapleStory.

Large Asian game companies entering the space are not uncommon, as we’ve seen with Square Enix’s SYMBIOGENESIS, NCSoft’s entry into SUI (wut??), and NetMarble into Klaytn (wuut???). Most traditional game companies entering into the space have been faced with dubious credibility, and that was originally the same with Nexon. The launch video of MapleStory Universe, however, spoke of a different story. Rather than focusing on the game first, Nexon has opted to focus on the IP and NFTs, with an inverted approach of NFTs sharing the games instead of merely slapping NFTs as skins in their games.

In this new bottom-up paradigm, Nexon will be a contributor and a member of this open ecosystem

Nexon, unlike others, has a very clear understanding of the space that was very well articulated in their launch video. Daehyun-ssi, the COO of Nexon Korea, has zoomed in on the advantages of the Blockchain and intends to leverage that to its advantage to evolve the MapleStory IP within the metaverse;

1. Transparent governance on-chain granting the player more control, which drives immersion and reduces reliance on a sole developer’s authority

2. Open ecosystems, with Nexon first and foremost as a contributor - rewards and profits are being shared with other contributors alongside a transferrable “state identity” across multiple games

3. NFTs as a store of credible IP value, backed by one of Nexon’s strongest legacy core brands - MapleStore

   

These NFTs will be shared and allowed to freely allowed to traverse the mempool, bringing composability to the non-fungible space. With the Blockchain as a denominator enshrining an almost immutable agreed set of rules, these once-individual worlds can now be bridged, transforming from a closed world to an open collaborative universe. Nexon is boldly allowing developers to jointly build and develop the MapleStory world, a task unthinkable for traditional game companies with obsessive control over their creation.

By opening these new frontiers, Nexon is attempting to further grant permanence to its IP (and thus NFTs) past its siloed world by granting tools designed to outlast Nexon itself. Four such games in the vein of this vision have been confirmed thus far;

1. MapleStory N, an MMORPG currently under development

   • All item NFTs are obtainable through gameplay by defeating monsters or completing quests - players now truly own their items, allowing for the removal of the Cash Shop and a free market economy

   • No NFT presale will be conducted

   • Fees generated in economic activities will be distributed on-chain to ecosystem contributors including Nexon and the players

2. MapleStory N mobile

   • Mobile support to allow for NFT access on the go by being able to bring your character with you everywhere

3. Mod N, sandbox platform

   • A platform for players to create sandbox experiences and games across PC and mobile based on MapleStory IP NFTs and external NFTs

   • All games created in Mod N will belong to the creator, and developers can leverage MapleStory’s assets which exceed 30m assets created over 20 years

   • Rewards distributed will be based on the contribution and popularity of the game created

4. MapleStory N SDK - open for other contributors to build a world surpassing the limits of Mod N

   • A platform focused on non-gameplay related experiences7, with an NFT app store and perpetuating the MapleStory IP metaverse

   • Examples include gamified healthcare trackers, merch stores, and integrated quests across the shared Universe

     

     Figure 8: example applications of N SDK

At its core, MapleStory suits the GameFi P2E space very well, with many such parallels on a basic level. Cash Shop cosmetics allowed players to upgrade their character’s “rarity” from that of a “floor”. Special conveniences were sold like Pets, which picked up loot for the players but only lasted for 90 days. This also included Shop Permits, allowing for one to set up shop in the Free Market and sell one’s items on a peer-to-peer basis. The tokenization of jpegs as NFTs is thus a natural progression for MapleStory, granting players more control and flexibility while ensuring provenance and longevity. Crucially, Nexon has clearly identified this and has opened up its resources and toolboxes to further entrench the IP in the space on a collaborative basis.

The bera market in crypto has always been one for building. The biggest winners of the last cycle were launched in the darkest days of the long winter, like UniSwap and Opensea in 2018, which appeared with little fanfare.

As an avid player of games and a strong believer in the thesis of GameFi P2E to widening adoption of Blockchains, I have long held the belief that the winner will likely be from a crypto-native game studio with a firm grasp on the nuances of the space. Nexon’s entry with MapleStory Universe has upended that assumption, with its precise, bold, and knowledgeable approach to the space that far surpasses its competitors.

Legitimacy is the scarcest resource in this space, and Nexon using its MapleStory IP shows its acknowledgement, sincerity, and commitment to the space

Traditional gaming publishers - lacking the boldness to bet with their core IP and a meager understanding of the space - mostly elect to brute-force NFTs as skins in the game. Crypto-native indie game studios have a strong grasp of the nuances, but face multiple headwinds with amateurish games, weak IPs, and insufficient funding/developers.

Visualized: my Kerning City PQ days

Nexon's announcement of MapleStory Universe came in like a wrecking ball, breaking all mental models. The boldness of putting its core IP on the table, with a clear roadmap to leverage the open and non-siloed ecosystems of the space stands out far and tall from other competitors.

Given the nascency of the announcement (2 days ago as of this post), it is still too early to pass any judgment calls. I am certain, however, that Nexon, if they wish so, can move and execute fast given the vast amount of assets and lore available to the team.

Lastly, Nexon operates majorly in Asia (see Figure 7). NFT backlash amongst gamers has never stopped even during this winter. Gamers have long been strung and hung dry by game companies with their predatory models, excessive DLCs, and sometimes even P2W ecosystems. What is less understood, however, is that NFTs opens up gaming ecosystems, grants players more control, and are provably fair and transparent. Furthermore, revenue streams can be strengthened in less toxic and predatory ways, like taxes on auction house sales.

This backlash has its huge consequence in the West - UniSoft announced its intention to incorporate NFTs into its own ecosystem in late 2021. They were forced to backtrack quickly after gamers and even their own employees rioted against the decision. This is despite using Tezos over Eth, which was then PoW to assuage the concern about the chain’s environmental footprint. Nexon focus in Asia allows for agileness that the Western competitors cannot hope to have.

Only time will tell if Nexon can deliver on its ambitious promises. The language has been highly promising, showing a clear roadmap and solid vision that surpasses that of most crypto-native game studios.

I am cautiously optimistic about Nexon’s foray into the space. More details (or even an MVP) are to be had before I pass judgment, but my gut is telling me, that this might turn out to be quite the thing to behold.

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Q4 2022 Investor Presentation

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https://mmo-population.com/r/Maplestory/stats

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https://steamcharts.com/app/216150

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Q4 2022 Investor Presentation

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Q4 2022 Investor Presentation

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Q4 2022 Investor Presentation

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https://maplestoryuniverse.io/