THE KARDASHEV STANDARD
Energy-Backed Stablecoins
A Proposal & Invitation to Collaborate
READ THE PAMPHLETFull PDF:
GitHub Repository
WHAT THIS ISThis is an early-stage proposal for backing stablecoins with verified energy production rather than fiat reserves or algorithmic mechanisms. I'm sharing it here to start a conversation, find collaborators, and stress-test the core ideas before any implementation.
Core thesis: All economic value is fundamentally energy transformation. Labor is biological energy, manufacturing is energy applied to materials, computation is energy converted to information processing. Rather than backing currency with arbitrary proxies (gold, fiat, algorithms), we could back it with energy itself, the physical substrate of all economic activity.
The pamphlet explores both the philosophical case and a practical architecture for making this real.
PROPOSED MECHANISMPhase 1: Renewable Energy Credits (RECs) as Initial Collateral• RECs are tradable certificates proving 1 MWh of renewable energy was produced
• Already independently certified by registries (NAR, M-RETS, WREGIS)
• Highly auditable (serial numbers, timestamps, facility IDs)
• Minting process: acquire RECs → verify via registry APIs → permanently retire them (prevents double-counting)
• Over-collateralized baskets (150%+) account for price volatility
• Diversified across energy types (wind, solar, hydro) and regions
• Oracle verification leverages publicly available registry data
• Redemption provides cash-equivalent value, creating arbitrage-based stability
Phase 2: Expand to All Energy Types• Include natural gas futures, grid electricity contracts, nuclear commitments
• Any energy source with verifiable delivery mechanisms can serve as collateral
• Demonstrates the backing model works beyond just renewables
Phase 3: Direct Producer Integration• Partner with energy producers for blockchain-native delivery commitments
• Deploy cryptographic hardware verification at generation points
• Enable real-time energy tokenization
WHY THIS MIGHT WORKRECs provide immediate viability:• Existing verification infrastructure (billions in annual REC trading)
• Liquid, accessible markets
• Can't be arbitrarily inflated (requires actual energy production)
• Built-in environmental alignment (creates demand for renewables)
Energy is unique as backing:• Not arbitrary, it's the thermodynamic foundation of all economic activity
• Universal measure (a megawatt-hour is a megawatt-hour anywhere, anytime)
• Aligns monetary system with physical reality
WHY THIS MIGHT FAILI need critical feedback on:•
Oracle problem: How do we verify energy production trustlessly? Phase 1 uses existing registries (federated trust), but what's the path to true decentralization?
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Economic modeling: What are optimal collateralization ratios? How does the system behave under market stress? What happens during energy price volatility or REC market disruptions?
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Regulatory challenges: Energy infrastructure is heavily regulated. What jurisdictions are viable starting points? How do we navigate policy uncertainty?
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Coordination difficulty: Phase 2-3 require energy producer participation. What incentives actually work? How do we bootstrap this network?
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Smart contract design: How do we verify REC retirement on-chain? How do we handle quarterly settlement in a futures-based model?
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Market dynamics: What stability mechanisms are needed beyond basic arbitrage? What attack vectors exist?
WHAT I'M LOOKING FORCollaborators & Contributors:•
Energy market experts who understand REC trading, futures markets, or power purchase agreements
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Smart contract developers experienced with collateralized protocols (MakerDAO, Liquity, Frax-style mechanisms)
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Oracle engineers who can help design verification architecture
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Economists & mechanism designers to model stability and stress scenarios
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DeFi protocol teams interested in novel stablecoin designs
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Energy producers (renewable or otherwise) curious about tokenizing their production
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Anyone who thinks this is fundamentally broken and can explain why
I'm NOT looking for:• Investment or funding (not at that stage)
• Marketing help
• Generic "great idea!" comments
HOW TO CONTRIBUTE•
Technical feedback: Tear apart the mechanism design. What breaks? What am I missing?
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Challenge assumptions: Is the energy-as-value thesis actually sound? Are there better approaches?
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Share expertise: If you understand energy markets, stablecoin economics, or oracle design, your input is valuable
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Collaborate directly: If you're a developer/economist/energy expert who wants to work on this, reach out
Ways to engage:• Reply in this thread
• Email:
[email protected]• GitHub:
https://github.com/tblair-1999/kardashev-standard (issues/discussions welcome)
CURRENT STATUS• ✅ Conceptual proposal written (3-page pamphlet)
• ✅ Philosophical foundation articulated
• ✅ Basic mechanism architecture sketched
• ❌ No code yet
• ❌ No economic models yet
• ❌ No partnerships yet
• ❌ No funding yet
This is Day 1. The goal right now is refinement through discussion, not implementation.
ROADMAP (If This Proves Viable)Phase 1: Economic modeling, smart contract development, testnet deployment, mainnet with REC backing
Phase 2: Expand collateral to multi-energy basket, develop verification for non-renewable sources
Phase 3: Direct producer partnerships, hardware verification, real-time tokenization
But first, I would like to validate the core idea through rigorous critique.
WHY SHARE THIS NOW?Because ideas improve through collision with reality. I'd rather have this torn apart early by smart people than waste months building something fundamentally broken.
If you think this is interesting, help refine it. If you think it's flawed, explain why. If you think there's a better approach, share it.
The energy standard might be inevitable, but the path to it isn't clear yet. That's why I'm here.
May providence reward our boldness.
Discussion, criticism, collaboration, and technical input welcome.
