ZenoDEX and the Right to Participate

Advanced AI could make people more dependent on a few powerful institutions.

Networks have given me ways to earn through publishing, mining, and providing liquidity. I want to build systems where more people can participate and have a say in the rules.

Imagine an economy in which a small number of institutions own the most capable models, the data centers, the payment rails, and the productive agents. Output may be abundant. Many material needs may be met. Yet most people could relate to the productive system primarily as users waiting for access and recipients waiting for an allocation.

That world could be called post-capitalist, technocratic, technofeudal, or communist depending on who is describing it. The label matters less to me than the structure: ownership and productive agency are concentrated; everyone else depends on decisions made elsewhere.

I am building ZenoDEX to give people more ways to participate directly in an automated economy.

I value an economy in which people can own and exchange assets, supply capital, take risks, build services, discover prices, and receive the gains or losses from their decisions.

A decentralized exchange can support that participation without requiring a central broker to approve every actor or hold every position. It can also create machine-readable work for solvers, routers, provers, challengers, oracle reporters, and operators.

An exchange can make those forms of participation possible.

The wider political outcome also depends on laws, ownership, institutions, and public choices.

What I believe, and what the protocol can enforce

I am motivated by life, liberty, the pursuit of happiness, free exchange, free speech, privacy, and democratic institutions. I do not believe those values can be collapsed into one global optimization function.

At the local level, a platform can and should aim at user happiness. An interface that produces satisfaction in the person using it is a legitimate utilitarian target. What no single app can do is control the global state of the world. A protocol cannot distribute wellbeing across populations, or resolve the conflicts between safety, freedom, efficiency, and distribution that play out across millions of people and institutions.

Safety can mean protection from fraud and catastrophic loss. It can also become an argument for total surveillance and maximum administrative control. Openness can distribute power. It can also enlarge the attack surface. Efficiency can raise living standards. It can also remove redundancy and make people more dependent on a single provider.

The design needs to account for these competing effects.

ZenoDEX can enforce specific rules for participation and settlement:

• represent assets and obligations with explicit integer arithmetic;
• make settlement rules deterministic;
• bind proposals to exact state and evidence;
• reject invalid transitions;
• expose fee and reward rules;
• preserve public replay;
• let more than one actor propose, solve, prove, challenge, and verify.

My political thesis explains why I chose the problem.

The proofs and replay receipts define what the software can actually claim.

That separation matters. A protocol can increase the option to participate without guaranteeing that participation is equal, profitable, legal in every jurisdiction, or broadly adopted. It can reduce dependence on one intermediary while still becoming concentrated through capital, compute, liquidity, governance, or infrastructure.

The claim I am willing to defend is:

ZenoDEX is infrastructure for participation in an automated capital economy, with explicit mechanisms for checking the rules under which that participation settles.

The engineering question I inherited

Dan Larimer's work helped shape how I think about this problem.

BitShares, Steem, and EOS tested whether open protocols could support exchange, publishing, resource allocation, and governance. Larimer's 2015 essay on BitShares front running examined how exchange timing and matching rules change who captures value and how much control a user retains.¹

His later writing asks a broader question: how can a system mature toward decentralization rather than allowing temporary coordination to harden into permanent control?² More Equal Animals develops the governance side of that inquiry: how people might govern themselves while resisting capture, vote buying, and incumbency.³

I do not inherit every mechanism or conclusion.

I inherit the engineering question:

Where does power accumulate in this design, and what rule gives the participant a credible alternative?

ZenoDEX answers with deterministic settlement, batch mechanisms, explicit proof roles, public evidence, and local replay. The answer is incomplete by design. Decentralization is an empirical distribution that must be observed across liquidity, validators, solvers, provers, governance, frontends, and infrastructure, not a property a repository can declare once.

From a trade to a task economy

A conventional description of a DEX focuses on the trader: connect a wallet, swap one asset for another, perhaps provide liquidity.

An agent economy has more roles.

Role	Work product	How it is checked
Solver	Candidate batch clearing or allocation	Deterministic feasibility and objective checks
Router	Candidate path with improved quoted execution	Replay against committed market state
Proof miner	Validity proof or proof-carrying transition bundle	Accepted image, binding, policy, nonce, and state checks
Challenger	Evidence that a committed result is invalid	Fraud proof or replayable counterexample
Oracle reporter	Timely signed observation under a declared policy	Freshness, identity, threshold, and replay rules
Liquidity provider	Capital made available under pool rules	Ledger conservation and share accounting
Watcher or verifier	Independent replay and attestation	Header, root, certificate, and policy checks

Some roles require substantial compute, much like mining. One human may manage thousands of agents. Some depend on scarce capital. Some may be performed by independent operators in many jurisdictions. Some could concentrate in a few providers with low costs.

The protocol does not know the number of humans.

It can know whether a result was submitted, whether it passed the declared check, whether it was unique, how much was paid, and where the payout went.

ZenoDEX's proof-mining design makes a particularly important choice: provers can be paid from a pre-funded pool routed from fees without requiring new token minting. A valid, unique proof authorizes a transfer from the conserved pool; when the pool is empty, rewards stop.⁴

This accounting ties the rewards to an available pool of fees.

Actual use supplies the fees that fund the tasks.

What we can measure

Let \(Q\) be processed notional and \(f\) the effective fee rate, so \(F=fQ\) is gross fees. Let \(\theta\) be the share of fees routed to provider tasks and \(u\) the share actually settled, so \(R=fQ\theta u\) is the settled reward pool. At average payout \(r\), the number of paid task settlements is \(N=\frac{fQ\theta u}{r}\).

Consider one explicitly illustrative scenario:

effective fee rate f                 5 basis points
task allocation θ                             40%
settlement utilization u                      90%
average paid task r                        $1,000

The translation is:

Annual processed notional	Gross fees	Settled reward pool	Paid task settlements
$1B	$500,000	$180,000	180
$30B	$15.0M	$5.4M	5,400
$300B	$150.0M	$54.0M	54,000
$1T	$500.0M	$180.0M	180,000

The volumes, fee rate, allocation, and average task payout are hypothetical inputs for exploring the calculation. Current modeled realized fees are zero. Forecasts, launch settings, and income estimates would each need further evidence.

The table does one thing:

For each assumed level of activity, it shows the rewards available under the stated fee and allocation rules.

This is a better measure of opportunity than dividing the pool by an annual salary and inventing workers.

Fees have a demand curve

It would be equally misleading to say that raising the fee always creates more tasks.

Fee revenue is \(F(f)=fQ(f)\). At an interior revenue maximum, \(\frac{dF}{df}=Q+fQ'=0\), or \(\left|-\frac{fQ'}{Q}\right|=1\). The revenue-maximizing fee occurs where the absolute fee elasticity of activity equals one. Below that point, a higher rate may raise revenue. Above it, the lost activity dominates.

The same economic discipline applies to a political project. A protocol that extracts too much can shrink the participation it was meant to enlarge. Revenue, user surplus, decentralization, solvency, and provider rewards are different objectives. The fee model should show how each choice affects those objectives.

Participation can still concentrate

Permissionless entry is not the same as broad participation.

Bitcoin mining became open in protocol and concentrated in industrial organization. DEX liquidity can be permissionless while most volume routes through a few pools. A proof market can accept any valid proof while a handful of operators own the specialized compute. Governance can be token-accessible while wealth concentration determines most outcomes.

This is where Larimer's concern with the Pareto principle remains relevant: power tends to accumulate across capital, skill, infrastructure, and attention, even when the formal entry rule is open.⁵

ZenoDEX should therefore report distribution after the system exists:

• top-one and top-ten shares of solver rewards;
• effective independent recipients using inverse Herfindahl concentration;
• liquidity concentration by pool and beneficial controller where observable;
• proposer, prover, validator, and frontend concentration;
• share of settled value reachable through more than one independent route;
• share of user state and positions exportable without a privileged operator;
• share of settlement value backed by independently replayable evidence.

The target is not a cosmetic count of addresses.

If one recipient receives 80% of payouts while 99 addresses split the rest, the raw recipient count is 100. The inverse-Herfindahl effective count is about 1.56. The effective count makes the concentration easier to see.

Keeping participation possible

A capitalist institution is stronger when people can do more than consume its output.

They should be able to:

• own the productive asset;
• deploy capital under intelligible rules;
• build a service on the market;
• compete to solve or route;
• verify the state transition;
• challenge an invalid claim;
• exit with their assets and records;
• receive a share of the value their work produces.

ZenoDEX can define these roles and reduce dependence on a single company for access. Actual participation will also depend on costs, resources, and the risks people are willing to take.

That matters in a post-AGI economy. A person using agents still needs access to capital, markets, settlement, and verification to put those capabilities to economic use.

DeFi is one way to keep the door open.

DeFi carries risks involving smart contracts, oracles, governance, liquidity, privacy, regulation, and user error. ZenoDEX's own repository describes a high-assurance public-testnet candidate whose production readiness remains gated by network hardening and live-value deployment.⁶

I assess the potential benefits alongside those risks.

What I am building toward

I build software that gives people practical choices about how they participate.

ZenoDEX is an option to exchange without a central custodian. Proof mining is an option to be paid for verified computation. Public replay lets anyone repeat the checks behind the protocol's claim. A batch solver market is an option for agents to compete on a declared objective. Exportable state is an option to leave.

The effect of these options depends on how people use them.

Building them gives people choices they can try and assess.

The world after advanced AI may choose larger transfers, public provision, new ownership models, stronger states, decentralized markets, or a mixture we do not yet have words for. I cannot control that equilibrium. I can contribute infrastructure that keeps direct economic participation technically possible.

That is what ZenoDEX means in my portfolio:

A market should give people and the agents they direct more ways to produce, check, and exchange value.