Cake Monster — A Moral System

Author: Bakemonsta

What is the purpose of decentralized finance? Is it to provide 2% of the global population with the opportunity to ape, flip and dump on each other, over and over? Is it to provide institutions with yet another market to control and fleece at will? Is it to HODL and hope, perhaps getting rich, perhaps becoming one of countless bag holders?

Yes, this is apparently the purpose because unfortunately, that is exactly how so-called DeFi is presently, predominately being utilized. A seemingly endlessly growing number of networks and projects, harvesting capital with promises, swilling it around, amplifying it’s resulting token volume and generally recycling garbage or other people’s code. Much of it is not fit for purpose. Does anyone care? Hardly anyone at all. The architects, core developers and their backers may be getting rich, whilst everyone else believes they will.

We’ve been here before. History is replete with examples of exclusive, captured economic systems wielding power and lies in order to enslave, control and parasitize the economic lives of everyone else.

DeFi was to change all that. It was to lower the barrier to entry for basic financial services, allowing nearly 2 billion unbanked people to properly enter and add their voices to the global economy. It was to be resilient to corruption so that the few would never again, be able to co-opt these new economic systems, thereby making them fairer and more reliable.

Unfortunately, DeFi has not delivered, not yet. What are some of the problems?

• Unsustainable network & project economic models
• Heavy centralization
• Immoral founding and community values
• Immoral community cultures
• Corrupt leadership
• Limited reach
• Limited access
• Adversarial regulation

There are two critically important, fundamental human systems. The first is a system of morality. The second is a system of economics. There are many other systems, but these two are the most important in determining human-controlled outcomes.

What is a moral system? It is a system which recognizes that complex social structures require cohesion and co-operation. Social cohesion is achieved through shared values which help to establish trust. This enables humans to live in complex, specialized societies. Imagine how people might generally behave if a handful of the most powerful sociopathic people in the world had not stolen so much from so many? Do you think it’s possible there might be more peace and harmony in the world? Do you think the world might be a better place today?

Unfortunately corruption is an ever present feature of human nature. Every system we build contains the seed and potential for corruption. It is a reality we must acknowledge, accept and work to minimize. If the desire to build an equitable and enduring economic system is genuine, it must first be a moral system. Naturally there are those who’s preference is for an immoral system which enables them to produce an immoral economic system. This in turn, provides the power to create favourable conditions for those in control of the system, at the expense of everyone else and society at large. This is sociopathic and results in the cyclical nature of economies observed throughout history.

In order to build an economic system that is resilient, the first thing that must be addressed are the details of the moral system that will govern it. Every decision taken must be weighed against the expected outcome. The architect’s decisions, from conception and vision, to delivery and development will impact the eventual nature of the resulting system and its effects. A moral system does not guarantee a successful project. However, a DeFi project that manages to deliver on the grand vision will unquestionably come from a moral system.

What does a moral system in DeFi look like?

• Sound economic model
• Resilient incentive model
• Privacy preserving (anonymity is possible)
• Transparently accountable
• Secure, adaptable development
• Robust, security audited code
• Pathway to Decentralized governance
• Pathway to becoming network agnostic
• The desire to educate and build a community of common, moral values
• The desire to foster a culture of integrity, innovation and abundance
• Exceptional documentation, information dissemination and community support functions
• An inclusive vision (equal opportunity)
• Committed leadership
• A roadmap of milestones
• The ability to deliver

Cake Monster is a project founded upon a moral system first. The objective is to provide DeFi for the people of the world. A stable economic system with financial services open to all and providing equal opportunity. In order to achieve that, considerable consideration has been given to each item listed above. Of paramount importance is the need for the model’s rules to work for individuals no matter the size of their stake, yet enable stake-weighted governance to take over at the right time. The right time will likely be once the economic system is sufficiently proven, robust and the stake adequately distributed. The quality of the distribution will determine the degree to which the protocol can continue to evolve in a way that fits the needs of the majority of stakeholders.

It is a bold objective in keeping with the stated aims of the DeFi movement generally. What makes the objective realistically achievable, given that the project is six months old? The key piece of evidence, the key innovation, is the economic model, a core feature of which, is the growth (via proof of life and transaction tax) of a non correlated reserve asset, alongside hyper-deflation of the native asset.

The formation and growth of a non-correlated reserve is what makes the economic model worthy to be considered part of a moral economic system. Those who invest and participate in the economy know categorically that it’s value has an externally established and growing baseline. Added to which, the native asset is in a state of hyper deflation and not being used to perpetually recycle and redistribute internal value. Once multiple non correlated assets are added to the reserve, the economic system will become even more resilient and decentralized.

Given the highly subjective nature of humans beings and the asymmetric distribution of information, the Cake Monster protocol affords the wealthy an opportunity to position into and out of the protocol, whilst their volume adds to vault and distributes part of their wealth to the holders. The greater the volume, the greater the potential distribution and benefit to the less wealthy. Added to which, people are paid a share of the reserve (MONSTA) in recognition of their work and the value they bring to the community. Team wages, the new Discord tipping platform for people promoting the project across social media, competitions all help to further distribute protocol equity into the hands of those who support the community.

Eventually, it is possible that the total reserve value will exceed the market capitalization of MONSTA, the opposite of the usurious, cyclically collapsing, FIAT financial system.

Ultimately, no system is perfect, but if humans want an economic system that is fair and resilient, it’s foundation must be built upon a moral system and able to evolve in a moral way. Cake Monster has done exactly that and so far, so good. The leadership has done its job and must continue to do so. The community must decide how to respond. Does it embrace the example set? Does it forge a robust moral culture before the DAO is deployed? That remains to be seen, but it appears hopeful, not least because of the strength of the incentive model.

When given the opportunity and cause to be better, it is surprising how many will raise their game. Not everyone, but more than enough. Not only will an effective incentive model reinforce itself, it may also, given time to mature, inspire people to expect more from themselves and each other.

It appears as though we have collectively reached a fork in the road, so to speak. As the collapse of the existing economic system accelerates, technology has provided unparalleled opportunity to architect systems that promote slavery or freedom to a previously unimaginable degree. We may not get another chance to get this right. History beckons and it is incumbent upon us to answer the call by building moral systems that engender resilient and moral economic systems, or forever regret the lost opportunity. Consider this when examining the Cake Monster economic model, vision and community.

Disclaimer

Opinions or ideas expressed in articles published in the Cake Monster Guest Column are of the respective authors and do not represent those of the Cake Monster Team.

About Cake Monster

Cake Monster ($MONSTA) offers a multitude of great features aimed at building a flexible, multifaceted, and automated dividend yield and reward system for participants without compromising the sustainability or security of the protocol ecosystem, and combines this with smart design, creativity, and organic growth, resulting in a very vibrant and engaged community.

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