This post unpacks some stuff I’ve been thinking about lately. AI helped me tighten it up.
Here’s a term I’d like to coin:
Value Representation Diversification (VRD): a lens for measuring and understanding the flows of exponential upside in value via equities, tokens, revenue shares, Bittensor’s alpha/TAO, innovation commodities, and OSS ecosystems.
At VRD’s core is another term I’d like to propose — it’s a kind of useful abstraction that proposes intuitions for the types of manifolds that we can imagine seeing in complex environments that create the conditions for value to be recorded, owned, transferred and persisted in society… Asymmetric Value Exponent Diversification Potential (AVESDIP)—outsized, non-linear returns from diversified value representations (VRs). AVESDIP can arise in one VR (for example the equity of a company denominated in only one fiat currency).
VRs are a kind of vessel for storing, transferring, and compounding value: fiat (USD), metals (gold), equities (preferred/common/private).
Modern examples of VRs include crypto tokens, dividends, and OSS intangibles or decentralized neural nets (Bittensor).
VRD (diversification) layers exposures for asymmetric upside.
In growth firms: preferred equity for protection, common for upside; multi-tokens for liquidity/networks; revenue shares for steady cash flows.
Bittensor: TAO for staking/governance in AI subnet alpha token markets; “Bittensor alpha” for early edges. Mix with innovation-driving commodities (e.g., AI hardware metals) or OSS equity for fractal amplification.
History shows VRD’s value: Roman denarii peaked then crashed; gold cycled; USD post-WWII dominance; Bitcoin’s rise to trillions. TAO ties to AI decentralization, potentially surpassing legacies if AI booms.
AVESDIP captures exponential growth via networks, breakthroughs, shifts. Single VR like Bitcoin’s halvings offers it, but multiplicity builds resilience—VRs as fractals scaling independently, hedging obsolescence.
Example: USD hegemony (1940s-70s) eroded by inflation; better: layer USD, gold, Bitcoin, TAO for dynamic denominations and rebalancing.
Fractals deepen: tokens split into subs; OSS adds community value convertible to tokens/shares.
VRD’s key: automate finding “right AVESDIP at right time, in optimal VRs.” Timing matters—late Roman currency or overheld USD amid dedollarization fails. Algorithms scan history, AI-simulate futures, dynamically denominate (e.g., TAO in Bitcoin).
ML predicts: Bitcoin 2010s for digital store; Bittensor 2020s for AI. Granular equities/tokens aid data-rich automation.
Challenges: data silos, unpredictability.
Decentralized nets like Bittensor enable crowd-sourced, real-time intel.
AI evolves from automation to dominance…
Repeatable AVESDIP discovery processes vast data, simulates scenarios, trades instantly—outpacing humans. E.g., spot OSS signals, grab TAO early; pivot USD to commodities in shifts.
“Game over” with sentient AI: self-improving, bias-free. It may create new VRs like consciousness tokens, obsoleting ours. Ethics needed, but AI could steward value for all—or few.
In summary, VRD via AVESDIP in multi-VR fractals blueprints maximal compounding.
Automate exposures—from equities/tokens to Bittensor/OSS—for optimized wealth. AI’s rise sidelines humans; in 2025, embrace VRD intentionally or risk irrelevance.
Joseph Jacks’ Personal Blog 