How It Works

What Is the Alignment Economy?

4 min read

Why does money need replacing?

Today's money has two cracks. First, it loses value every year by design; your grandparents bought a house on one salary, you pay rent on two. Second, it cannot see most of what humans actually value. The mother, the teacher, the caregiver, the neighbor who maintains the park: the most important work pays the least, or nothing at all.

Bitcoin saw the first crack and proved that decentralized money is possible. Then it ran into two paradoxes of its own: early adopters got rich while latecomers got priced out, and a currency that only goes up is a currency nobody spends. The scoreboard is broken, and the fix so far has been a different broken scoreboard.

How does it work?

Three mechanisms, each answering one failure of existing money.

MechanismWhat it doesWhat it fixes
Daily allocationEvery verified human receives 1,440 Active points per day. Unspent points expire at midnight and are burnedFirst-mover advantage. A person who joins in year ten receives exactly what a person who joined on day one receives
Daily rebaseEarned points (savings) are adjusted daily so total supply stays at 525,600 points per participant. Your share of the pool never changesInflation and deflation. Prices stay stable in points whether the network has twelve people or twelve billion
Proof of humanEach account carries a percent-human score (0 to 100%) that acts as a multiplier on purchasing power. Miners verify accounts; a court system prosecutes fraudBots and duplicate accounts. Only humans receive allocations, and being verified is worth real money

A worked example of the rebase: if you hold 1% of all Earned points before today's rebase, you hold 1% after it. The number in your account changes; your purchasing power does not. The full math is in What Is a Rebasing Currency?

What happens to unspent points?

Active points expire at the end of each day. This sounds strange until you see what it does: a billionaire and a minimum-wage worker wake up each morning with the same 1,440 fresh points, and the billionaire cannot stockpile the daily flow into a position of leverage over it. Savings still exist (points you earn from others become Earned points and persist), but the daily flow must move. Money that must move creates an economy that values contribution today, not accumulation from decades ago. More in Why Money Needs an Expiration Date.

Who verifies that accounts are human?

Miners. Instead of solving math puzzles, miners in the Alignment Economy do the work of verifying that each account belongs to one real, living human. Every new account is reviewed by a panel of three independent miners. Evidence can include documents and biometrics, but the protocol hardcodes one guarantee: a person can reach 100% verification through social vouching alone, with no government ID and no biometric scan. The system verifies humans, not citizens. No identity data is ever stored on the blockchain. Details in Proof of Human: Score the Account, Not the Points.

What is it not?

It is not communism; wealth differences persist based on the value each person contributes. It is not capitalism as currently practiced; a daily allocation ensures a floor of economic participation for every verified human. It is not a UBI program; nothing is taxed and no government signs the checks. And it is not a speculative token; there is nothing to pump because the supply per person is pinned by design.

FAQ

Who is behind the Alignment Economy? The Alignment Economy Foundation, a 501(c)(3) nonprofit. No token sale, no equity, funded by grants and donations.

Is it live? The protocol is specified in a public white paper and the reference implementation is open source on GitHub. A working demo (wallet, app, miner view) is in development.

Why 1,440 points? There are 1,440 minutes in a day. Every person's day contains the same number of minutes, so every person's allocation is the same. Attention is the one asset distributed equally at birth.

Where can I read the full specification? The white paper at alignmenteconomy.org/white-paper.