This paper proposes a self-governing cryptocurrency, dubbed Autonocoin. Cryptocurrency owners play formal tacit coordination games by making investments recorded on the block chain. Such investments represent bets about the focal point resolution of normative issues, such as whether a proposed change to Autonocoin should occur. The game produces a result that resolves the issue. With a typical cryptocurrency, the client software establishes conventions that ultimately lead to the identification of the authoritative block chain. Autonocoin completes a circle by making transactions on the block chain determine the authoritative client software. The distributed consensus mechanism embodied by formal tacit coordination games, meanwhile, can make other types of decisions, including which of competing block chains is authoritative and whether new Autonocoins should be rewarded to benefit those who have taken actions to benefit Autonocoin. This establishes a unique funding model for a cryptocurrency, and it addresses objections to cryptocurrencies issued predominantly to the initial founders, as well as to those that encourage wasteful mining activities.
GW Paper Series
GWU Law School Public Law Research Paper No. 2015-9; GWU Legal Studies Research Paper No. 2015-9
Abramowicz, Michael, Autonocoin: A Proof-of-Belief Cryptocurrency (March 4, 2015). GWU Law School Public Law Research Paper. Available at SSRN: http://ssrn.com/abstract=2573810 or http://dx.doi.org/10.2139/ssrn.2573810