Thread by @wrapped_dday

For those interested in #Ziggy whitepapers, please see the quote tweet below.

I will go down both and explain each in as much simplified detail as possible. I can produce a litepaper based on reoccurring questions.

This thread will be for 2: Ziggy - A Terra Chain for Creatives.

https://twitter.com/OnyxNodestones/status/1641839434768470017

Before us is an incredible opportunity to solve one of the most important problems for creatives - intellectual property.

While $USTC does need to improve on refining the White Whale algorithm, we also need to inspire Captain Ahabs to come to the foray and set sail.

As outlined in Market Module - Demurrage, commodity swaps risk intrinsic "costlessness" - their values are subjectively valued by each party, and often, they are full of compromises.

For the artist, that compromise comes of the form of giving up Intellectual Property (IP).

Often, large creative media companies capture IP by having their workers waive rights via Non-compete clauses. For example, if you work as a QA engineer at a games company, you may have a Non-compete clause to not work on side projects, or that those are property of The Company.

Ziggy is a foray into the unknown; it is throwing a tiny net to capture Moby Dick as a way to re-peg $UST.

Complacency is a silent poison. Creators undersell themselves to meet the line of best-fit, rather than price as an outlier.

The global annual market revenue for IP is ~$580.3B.

Capturing roughly ~2.3% of this revenue, or $13.3B, is enough to re-peg $USTC and maintain a baseline level of peg maintenance - $9.8B as reserves, with ~$3.8B of annual runway, as-determined by the staking APR of $LUNC ATOW.

The main challenge is instilling confidence in creative industry professionals to continue putting their work online, knowing that derivatives are spawning from it at light-speed.

The proposal is to let these creatives make their own markets using a commodity coin, Stardust.

For example, someone may value their art at $20, but the buyer may value it at $5. Without using a bid-ask orderbook system, how do they negotiate on value?

The buyer may haggle. Does the seller discount the price, or hold steadfast?

For works of no - or limitless - value, as defined in the Demurrage model whitepaper as a form of "costless exchange," these markets can facilitate organic discovery of creative works, while leveraging Terra's Community Trust mechanisms to ensure IP protection.

NFTs, for example, can be launched on-chain, but they can be rehypothecated through wraps, or transferred out in exploits.

Ziggy, in this example, proposes to launch IPs like Apache v2.0 protocols (e.g. $ANC) on-chain, then stream fork royalties back to the parent repository.

The common joke is to "right-click-save" .jpgs - snide when referring to Bored Apes, and encouraged when referring to Miladies.

However, with creatives, giving up IP can feel daunting, and they often lose out if they don't know how to negotiate adequate credit or compensation.

Speaking of photos, @zmanian mentioned on a podcast with @NEARProtocol to experiment with "photons."

"Photons," in this sense, is a way of monetizing relaying services, which are currently done pro-bono (afaik):

In this talk, block ranges on Ethereum's state would be taken. Then, a sidechain would run from there, and deprecate after six months.

For example, @edk208 could run an AI sidechain from Ethereum's chain state for six months to test ideas without destroying main chain value.

In addition to allowing creatives to market their own work on Ziggy-Stardust chains (in a main-testnet workshopping schema), a proposed Cosmos module (subject to review), #Polymer, suggests a simple way of using encoding to snapshot chain states. ("photo-shooting")

The #Polymer module is built off of the $UST <> $LUNA algorithm that first existed, and is inspired by $ARKHM and $SNX.

In order to mint-and-burn efficiently, swaps need to be atomic, or done in one step. This means that #Ziggy, as a chain, can call mint/burns cross-chain.

@ZaradarBH has suggested he might do this differently, so this is subject to review. However, the general idea is to snapshot chain-states and then mint-and-burn cross-chain, utilizing $SZT revenue as a form of buyback. (Again, the money must ALWAYS come from somewhere.)

The general idea is to relay a simple encoded message, say, with ASCII characters, to perform actions cross-chain.

While we have IBC transfers in- and out-, they rely on the Relayers to do this action. (for free.)

The hitch to IBC relaying is that it relies on a mutually-open channel. In May, if I had UST/LUNA on Osmosis, the IBC channel was closed; I was unable to relay assets out, simply forced to liquidate via $OSMO.

The #Polymer module allows users to relay in or out permissionlessly.

This has some interesting byproducts. If two chains can relay in and out without permission, that means Chain A can "airdrop" any kind of coin or token to Chain B - or that Chain B can simply take it without permission.

This opens a lot of creative - and dangerous - frontiers.

The reason to fork and separate #Ziggy from #TerraClassic is because these kinds of ideas need to be opt-in. That is, it is not prudent to force investors in a mutual fund where risk-assets are highly overweight.

Therefore, $LUNC investors have an option to join here or not.

#Polymer can provide value by bridging the #Ziggy hotbed back to the #LUNC nursery.

In a world dominated by social media and fickleness, and contractual exploits siphoning funds through computer science nescience, providing tools for on-chain, community self-enforcement matters.

Say you are playing the age-old game, EVE Online. In-game, ISK is used for things like asset purchases (eg ships) and bounties (taking down rival factions).

Stardust creates the ISK market; Ziggy facilitates it. Revenues from ISK sales go back to $USTC buy-backs.

This is not a small endeavor. It is abundantly clear to me that there is deficit in the system, and refining the algorithm is important, but brings in niche risk-on money which can't fill the $0.98 gap.

Simple business development, or "utility," is the linchpin of #Ziggy.

While L1TF makes sure that the baseline security maintenance is maintained, we can, as a community, build out spacefaring adventures like EVE, and buy-back the debt that was lost in the Terra crash with game tokens like $ISK and $PLEX.

Two chains living in harmony. 🧬