If ARCx is to become a decentralised internet nation state over the next decade, then those who want to contribute and create fundamental value need to know what actions they can take to move the needle. Rather than creating “Key Performance Indicators” in the traditional world, outlined below are the “Key Nation Indicators” that outline how we should think about what informs the core team and external contributors work.
Why do we want to create DeFi’s reputation layer?
So that we can leverage it to create a new kind of central bank that can issue significantly more credit to people around the world via their pseudonymous identity.
Eventually, we’d like other developers to build and extend our reputation layer to create a whole new class of DeFi applications that rely on our on-chain reputation services.
For any goal to be achieved, there needs to be clear, measurable metrics that the community can rally around. If you think about ARCx Passport Holders as a new internet nation state, outlined below are the two key nation indicators we can use to measure if we’re on-path to our 2030 vision.
- Passport Represented Value. The collective net worth of all the passports is an indicator of how influential and wealthy these passports holders are. In order to increase this metric, either more passports need to be issued or higher net worth individuals need to be issued passports.
By 2030, the total passport represented value should exceed $1,000,000,000,000 (one trillion dollars).
- Passport Value at Work. This metric is a measure of how much on-chain code is secured by active passport holders. Another way of thinking about this metric is how much value are passport holders deploying to passport enabled applications. This metric can primarily be increased through adoption/integration of the DeFi Passport and the various scores attached to it.
By 2030, we aim for (1) the total Passport Represented Value to be $1T and (2) at least 10% (monthly average) of that to be Passport Value at Work (one hundred billion dollars).
All actions by all contributors of the protocol should be primarily anchored around these two metrics as they are the north star for the ARCx nation and define success.
In order to achieve the measures of success:
The birth of the ARCx nation begins with the issuance of the passports and curing a list of the highest quality passport holders
In order to achieve this we need to:
- Ensure the infrastructure and security is ready to issue passports
- Issue the first 1,000 DeFi Passports
- Create the first enabled passport enabled farms for users to experience
- Issue the first ever on-chain credit scores to passport holders and mint STABLEx against it
After curating an initial distribution of passport holders, the next step in growing the nation state and the things citizens can do with their passports. This includes, but is not limited to:
- Performance: Improved credit scoring algorithms and extending risk parameters. $100m in organic borrow demand is a marker of success here.
- Diversity: Issuing scores to measure loyalty across other DeFi protocols. At least 3 additional scores should be developed here in the medium term.
- Robustness: Building trust and reliability of the underlying contracts through weathering volatility events in the markets and paying out bug bounty incentives
Flexibility in action
Crypto markets are incredibly fast moving and making assumptions about the next 3 months, let alone the next 4 years is incredibly harmful. While building in a market and a new vertical of identity, ensuring that we build with flexibility is crucial to win the future of reputation. Understanding that crypto markets are highly cyclic is part of the experience should always be held in mind when building.
Long term thinking in vision
As has been done here with our ‘2030 Vision’ we want to keep a vision for ARCx always looking several years out. Especially because crypto markets are volatile and hyperbolic, employing long term thinking for the spirit and guiding principles of ARCx will help us be resilient and antifragile. Running experiments with the comfort of knowing that there may not be a short term pay off should always be held in mind.
Decentralized autonomy in governance
The DAO is the present and future of ARCx. As history has shown in the evolution of real world government, the most desireable nations continue to decentralize power and empower the voice of their constituents. However, not all policies can wait for a nation-wide vote and not all constituents can be constantly called on to vote on each issue. We want to strike a healthy balance between ‘decentralization’ and ‘autonomy’ in the DAO that allows ARCx to function fluidly, but gives voice to all its nation members and welcomes their participation at all levels of governance. At present, we are focusing on increasing decentralization, and simultaneously on sustainable, governance-minimized or programmable functionality.
ARCx is positioned to be one of the first internet nation states and the passport will be a critical component in creating this new pseudonymous network. The role of the DAO will facilitate the development of the product and distribution of the vision to the world.
Provided that the DAO can execute on this vision, ARCx has the opportunity to eventually create a passport that’s native to power reputation for the internet. The value of this cannot be understated given access to reputation and identity services in the real world is inaccessible to the majority of the planet due to age, race and location.