Getting through the ARCC Whitepaper Part 1
As we are about to officially launch the ARCC project there has been much said about the length of the ARCC whitepaper which currently stands at 135 pages, while the abridged reference version is at 54 pages.
The paper itself is a product of over 18 months of writing and research and encompasses an outlook that covers an entire basis for a decentralized economic system. The scope of the solution has everything to do with the problem that the whitepaper is addressing, namely systemic corruption in failing emerging markets.
The size and scope of this problem can’t be understated and it has never been solved outside of massive internal social movements that have a real human cost of both lives and disruption for the entire society.
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What brought me to this project was that the advent of bitcoin in and of itself was so revolutionary that even gaining the ability to understand a solution in a purely decentralized paradigm was a long process. Before bitcoin and Ethereum, decentralized solutions were simply add-on features to a centralized platform. An example of this is the effect of social media on social change. While social media has been able to disseminate information, there is still a central starting point and past creating mass awareness and initial coordination, you are still left with replacing one centralized solution with another. Meaning that the decentralized function was not structural. This does not take away from the effect or power of a decentralized movement, but it isn’t a stand alone system.
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Welfare capitalism, as we know it, is the undisputed economic system , but it has structural limitations because power via capital inherently gets concentrated over time, then it requires a centralized decision to reset the power balance. Now, this is fine in an altruistic, democratic, educated environment where there is relatively open access to opportunities due to strong rule of law and transparency, but in the case of failing emerging markets, there is no moral or financial reason to give up or redistribute power/capital. Meaning that, the power wielded in these failing emerging markets isn’t just about amassing the most amount of capital, rather it is ensuring that others do not have the access to participate in the general wealth and progress of the economy as well. i.e. controlling every opportunity for wealth creation and development.
What this translates into are certain vulnerable classes of people who see no increase in their standard of living over a decade of increased national GDP and who continue to live without any hope of progress unless they actually emigrate or work abroad.
A decentralized economic system changes the structural nature of participation by seeing open access for the growth of individuals as essential to the wealth of all because a decentralized economic system is also a system that derives its wealth/power from being a strong robust network.
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The ARCC whitepaper, in presenting a decentralized economic system, addresses the solution in terms of the structural components as well as the mechanics to make it happen, so it is a paper that has a long route to present the whole picture.
In actuality, the first part of the whitepaper covers the basis for the entire economic system which includes the structural functions of ARCC as a macroeconomic stablecoin for financial inclusion, open distribution, radical social transparency and a debt-free micro asset for entrepreneurial investment.
As a decentralized economic system, the entire basis is predicated on having a network which is robust because of the clear incentive for the participants, but this model only works if the incentive has value. So another major part of the whitepaper is ‘how does the token achieve its value?’. This is the section that will be the most important to those looking at ARCC purely in terms of its value as a currency. Yet, a major thesis of this whitepaper is that: a currency can be designed to have value mechanisms, but ultimately the currency is a reflection of production of the economy it is used by. So we get further into the rabbit hole by answering the bigger question of ‘how does ARCC add to the production of the market?’.
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In this respect, we come full circle to addressing the issue of corruption through the mechanism of ‘Social Proof of Work’ and the functionality of a product, the ARCC App, that provides a regional ID, and aggregates the data on systemic corruption to provide a public mandate that empowers each individual that participates in the network. We get into the nitty gritty of adoption of ARCC as well as the utility of ARCC.
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There are many terms newly introduced here in the ARCC whitepaper and they may seem extremely redundant in how frequently they come up in each section, such as macroeconomic stablecoin, debt-free micro asset, radical social transparency, regional crypto-reserve currency, and financial inclusion, but there is a nuance here in how they are applied in an economic system. This is not a whitepaper that you can just read through in one sitting and not be overwhelmed with the scope as well as my attempt to articulate the trees from the forest while always presenting the solution at that forest level. So in this respect, the whitepaper is not trying to give you a checklist of what is in the system, but use the details to give you a fuller picture of the whole system.
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With that in mind, I would suggest giving the full whitepaper a read first, then read through the abridged reference version where it has a conversational introduction that clarifies the intention of the chapter as part of the whole system/picture. I will attempt to write out a commentary on each part of the whitepaper here on our Medium page that I hope will bring us all to the same page in terms of a paradigm shift towards the reality of a decentralized economic system for the purpose of progressing the human spirit.
Sinjin David Jung
Jan 27, 2019
