Mindplex Episode 9: Cogito, Building a Fair and Rational Global Financial System

Haley Lowy
SingularityNET
Published in
5 min readJun 30, 2023

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The 9th Mindplex livestream Pubcast features Cogito’s AI Tracercoin asset class — and how it will change the global financial landscape.

Greetings Singularitarians, and welcome to your next glimpse of the rapidly approaching future with Ben Goertzel, Lisa Rein, and Grace Robot, your hosts for The Mindplex Podcast:

The Mindplex Podcast team will host a watch party “Pubcast” livestream of Episode 9 on SingularityNET YouTube on June 30 at 1:30 PM PST/8:30 PM UTC.

Watch the exciting 9th episode features the new Cogito AI Tracercoin Project:

Mindplex Podcast Episode 9 — “Cogito: Building a Fair and Rational Global Financial System” with Cloris Chen, Ben Goertzel, Lisa Rein, and Grace Robot

Tracercoins are an entirely new asset class for blockchain — with low volatility, like stablecoins, that are linked to non-financial indices instead of being pegged to fiat currencies. They utilize the flexibility of smart contract infrastructure and AI techniques to create new financial instruments that achieve stability without pegging to fiat. They’re a complementary solution to already existing stablecoin options.

Tracercoins are unique in that they define value based on AI-optimized index tracking; the GCOIN, or Green Coin, will track its value based on metrics of development toward environmental solutions. Cogito Protocol is ramping up the development of tracercoins, with the GCOIN leading their innovative efforts and new options approaching fast.

Want to see how these Tracercoins will work? Explore the testnet demo of GCOIN here.

Stabilizing Tracercoins with AI

During the podcast, Ben Goertzel explains how Cogito’s AI Tracercoin will maintain a less volatile position without pegging to a world fiat currency:

“With Cogito, we’re looking at fractional reserves. And you can have some reserve, which is fiat pinned reserve, if you want. You can have some reserve, which is USDC, or whatever. You can have some reserve, which is more volatile and less backed utility tokens, and then you don’t have to have a full reserve. Then, you have some algorithmic stabilization methods. Which means you have some AI code. You have some pure quantitative finance code, which is buying and selling various stuff on the back end, to help the Cogito tokens remain approximately pinned to the indexes that they’re trying to stay pinned to.

And some of that is very simple. Like, if the token is going higher or lower than the index. Then on the back end, you can buy or sell stuff to keep the token closely pinned to the index. You can mint more tokens if the token is getting too high relative to the index. You can burn tokens if the token’s value is getting too low relative to the index. But AI can also play an interesting role there. Because if your AI can predict that, in the future, the value of the token is going to go above or below the index it’s supposed to be pinned to, then you can take action in advance.

So, if you have some AI algorithms that can predict the future value of the Cogito token and how it may go above or below the index, then you can, with less resources, do a better job of using algorithmic methods to maintain stability. And this is where SingularityNET AI comes in — the AI predictive methods that we built in SingularityNET — and we’ve been working a bunch on that, together with our spin-off SingularityDAO. So, we’ve been working on transformer neural networks and neural symbolic methods and agent-based systems to predict the future of crypto assets, and we’ve been doing that so as to provide better performance of SingularityDao’s “dynasets.”

So this same AI-based algorithmic crypto price prediction code that we’ve been working on in SingularityNet, for SingularityDAO — the same code can be used within Cogito to predict the direction of Cogito’s own tokens price relative to the indexes it’s trying to track, and then the better your prediction goes, the less resources you have to spend to use algorithms to stabilize the price…

And, you know, that’s actually how I got into this in the first place. I was thinking like, well, algorithmically, stabilized, stablecoins are good. But wouldn’t they be “better” if you could put some, you know, machine learning-based prediction on the back end, then the algorithmic stabilization would work better, and it’d be less expensive?”

Cloris adds:

“Yeah, I think there is also another synergy between SingularityNET and Cogito…We also rely heavily on the open market operation to stabilize our stable coins. So, the algorithms will also be able to identify the good behaviors and bad behaviors that will help in the stabilization of the protocol. Then, we will be able to rely on that, and you should have a reward or penalty mechanism in order to enhance the process.”

Mindplex Pubcast Episode 9 Featured Guests:

Join us for the Live Pubcast, where Cogito Team members Cloris Chen (CEO) and Nejc Znidar (Quantitative Analyst) will be joining live, along with co-host Lisa Rein.

Cloris Chen (CEO, Cogito)

Cloris Chen: The CEO and brilliant financial mind behind Cogito Protocol.

Cloris worked for HSBC corporate banking in Hong Kong and Bangkok for six years, developing a strong network in Asia Pacific and gaining competence in financial products and risk management.

She also managed a fund of over $150 million and successfully diversified investments across numerous assets as treasury director for a unicorn firm.

Nejc Znidar (Cogito’s Quantitative Analyst)

Nejc Znidar is the mathematical mastermind behind the Cogito Protocol.

With a background in financial mathematics and quantitative analysis, Nejc has been instrumental in laying the foundation for Cogito’s AI Tracercoin ecosystem.

As a key member of the team, Nejc plays a significant role in building Cogito’s AI-powered protocol. His extensive experience as a financial modeler and analyst has contributed to various research areas at SingularityNET, including the development of the weighted liquid rank reputation algorithm.

Nejc brings to the table a unique combination of expertise in data science, AI, and risk management. Although his education focused on traditional finance, a significant part of his career has been focused on the development of cutting-edge financial solutions.

About Mindplex

An embodied AGI controlling an army of AGI Toddler robots, connected by a “mindplex.” Art by Tesfu Assefa.

The Mindplex Podcast team invites you to join them as they contemplate and learn about this fascinating world. They look forward to meeting you so you can help each other understand the true nature of all the challenges involved as we work together to create a Benevolent Singularity.

Each release of a Mindplex Podcast will be accompanied by a live “pubcast” watch party.

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We invite you to check out the Mindplex website, set up a profile, and perhaps even contribute to the magazine.

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Haley Lowy
SingularityNET

Marketing & Communication at SingularityNET… bringing about benevolent Singularity bigger-faster-better!!