Thread by @superverseme

💡“Decentralized Society: Finding Web3’s Soul” great read uncovering human relationships in a native #web3 context. @VitalikButerin @GlenWeyl @pujaohlhaver ➡️papers.ssrn.com/sol3/papers.cf… #nfts #socialtokens #daos #crypto

A short thread summary below ⬇️
Let us know what you think!

👀1.Defining #Souls & #SBTs:
Accounts (or wallets)= “Souls” that hold publicly visible, non-transferable (but possibly revocable-by-the-issuer) tokens.
Tokens held by the accounts = Soulbound Tokens (SBTs), corresponding to a series of affiliations, memberships & credentials.

📚For example, a person might have a Soul that stores #SBTs representing educational credentials, employment history, or hashes of their writings / works of art. In their simplest form, these SBTs can be “self-certified,” similar to how we share info about ourselves in our CVs.

👀2.Enabling a “Decentralized Society” (#DeSoc):
The true power emerges when SBTs held by a Soul can be *issued or attested by other Souls*, who are counterparties to relationships. These counterparty Souls can be individuals, companies, institutions.

🤝Soul & #SBTs relationships as examples:
- the Ethereum Foundation could be a Soul that issues SBTs to Souls who attended a developer conference.
-a university could be a Soul that issues SBTs to graduates.
-a stadium could be a Soul that issues SBTs to longtime Dodgers fans.

💡3.Souls & Art:
Souls enable artists to stake their reputation on their works. An artist could issue the NFT from their Soul. The more SBTs the artist’s Soul carries, the easier it is for buyers to identify the Soul as belonging to that artist, confirming the NFT’s legitimacy.

🤖Why? With deep fake technology direct inspection by both humans & algo's will increasingly fail to detect veracity. SBTs would enable us to trace the social provenance, giving rich social context to the Soul that issued the work - their memberships, affiliations, credentials...

💸4.Souls & Lending:
SBTs unlock a censorship-resistant, bottom-up alternative to credit systems. SBTs that represent education cred., work history & rental contracts could serve as a record of credit-relevant history, so Souls can stake reputation to avoid collateral requirement

Further, loans & credit lines could be represented as non-transferable but revocable SBTs, so they are nested amongst a Soul’s other SBTs—a kind of non-seizable reputational collateral—until they are repaid and subsequently burned, or better yet, replaced with proof of repayment.

👤5.Not Losing Your Soul:
Social recovery is an emerging alternative that relies on a person’s trusted relationships. SBTs allow a similar, but broader paradigm: community recovery, where the Soul is the intersectional vote of its social network.

🤝How? A user curates a set of “guardians'' & gives them power by majority to change the keys of their wallet. While social recovery avoids a single point of failure, successful recovery depends on curating trusted relationships with a majority of guardians that do not collude.

💡A more robust solution is to tie Soul recovery to a maximally broad set of real-time relationships for security. Such as participation in protocol governance, a DAO or memberships to communities.

6.Targeted airdrops: 👥“Souldrops” are airdrops based on computations/intersections over SBTs and other tokens within a Soul. A DAO could souldrop to devs who hold 3 out of the last 5 event attendance SBTs. Protocols could also weight token drops across a combination of SBTs.

& much more! 👀 "Learning how to encode sociality seems to be a required course for human life. We are all in the business of encouraging cooperation."