---
icon: ๐ฐ
alias: economics, cybernetic economy
tags: cybernomics
crystal-type: entity
crystal-domain: economics
---
the science of cybernetic economies โ how tokens emerge, flow, and reach equilibrium in decentralized systems. not specific to any protocol โ the universal theory from which tokenomics, tokenomics, and any token economy derives
## postulates
cybics โ the mother-science: every truth accessible to intelligence is a fixed point of some convergent simulation under conservation laws
token theory โ tokens as the fundamental unit of value, four types
## plumb
plumb โ framework for modeling and simulating token economies
basic token operations โ the five atomic operations: pay, lock, uber, mint, burn (MBLM)
## volume approximation
volume of price estimation (VoPE) โ approximating token value from observable on-chain flows
## modeling framework
[[supply and demand]] โ the demand-supply [[equilibrium]]: where quantity sought meets quantity available
[[adaptive hybrid economics]] โ the stability-fluidity [[equilibrium]]: self-calibrating PoW/PoS with PID control
two equilibria govern every token economy: demand-supply (price discovery) and stability-fluidity (security vs liquidity)
## parametrization wisdom
four types of parameters in any token economy:
- fixed by physics โ conservation laws, immutable (focus sums to 1)
- fixed at genesis โ social contract, changed only by governance fork
- PID-controlled โ self-adjusting via error signals (alpha, beta in adaptive hybrid economics)
- market-discovered โ emerge from agent behavior (staking ratio, fee levels)
the art: knowing which parameters belong in which category
## bonding curves
energy mint using curve โ exponential bonding curve: supply grows only when demand forces price up
mint โ implementation: supply decay formula, $V gets expensive 8x faster than $A
## applied
tokenomics โ the cyber protocol token economy
tokenomics โ the bootloader chain token model
learning incentives โ reward design for knowledge creation
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