Post Fiat Whitepaper (Draft, June 10, 2025)
Executive Summary
Post Fiat is a new L1 that aims to use AI to improve XRP’s governance. It uses the statistical property of LLM’s to converge on deterministic values for qualitative scoring to set a new Unique Node List that is transparently selected versus the status quo for XRP. Post Fiat can use either Open or Closed source models to accomplish this - and statistically deterministic outputs do not require having model weights as shown in the example code accompanying this document.
Making the Unique Node List selection and token distribution of XRP fair and transparent would unlock major value for crypto’s oldest protocol other than Bitcoin.
Introduction
As of June 10th 2025, at 2.30 per token, XRP is a 230 billion dollar Fully Diluted Value network that has processed transactions flawlessly for 13 years. Its consensus mechanism (RPCA) relies on 30-35 trusted validators who receive no rewards yet maintain the network’s integrity.
Unlike Ethereum or Solana—where validators need expensive hardware and expect rewards—XRP runs on commodity servers. This efficiency comes from its lightweight Unique Node List (UNL) selection process. The tradeoff: centralized control over who validates.
The Problem
Ripple Labs controls XRP’s validator selection and holds 80% of all tokens. This concentration of power led to a multi-billion dollar SEC lawsuit and suppressed XRP’s price for years.
When Trump won in 2024, XRP surged from .55 to over 3 dollars as regulatory pressure evaporated. But political winds shift.
Post Fiat asks: How can we make validator selection transparent and decentralized without relying on government favor?
The Solution
Post Fiat reimagines XRP using AI to make validator selection transparent and verifiable.
XRP’s opaque validator selection determines network security. Before LLMs, verifying qualitative judgments required courts and lawyers. Now, LLMs can assess validator credibility deterministically.
Post Fiat distributes 55% of tokens to validators (vs XRP’s 80% to Ripple Labs) through an LLM-driven process that scores:
- Entity Credibility - Universities and governments score higher than hobbyists
- Transaction Quality - Validators’ on-chain activity and memo content
Technical Implementation
Monthly Cycle
- Publish - Foundation publishes model specs, prompts, and scoring criteria
- Score - Validators run prompts 100x, generating statistical fingerprints (mode, mean, σ)
- Submit - Encrypted results prevent copying before deadline
- Verify - Anyone can reproduce scoring with published tools
- Select & Reward - Threshold score combines LLM credibility + objective metrics (uptime, throughput). All above threshold join UNL, receive rewards proportional to score
Foundation Structure
A single-purpose foundation (like IKEA’s) manages the process. It cannot:
- Change its mandate
- Redirect tokens
- Favor specific validators
The foundation’s centralized model selection paradoxically prevents gaming:
- All prompts and models are published—favoritism would be visible in code
- Anyone can verify results by running the same deterministic LLM process
- Validators can’t collude because selection relies on LLM outputs, not consensus
- Sybil attacks fail because LLMs consistently score berkeley.edu higher than xrpgoat.com
The foundation eventually transitions to deterministic model selection, but its constraints remain permanent.
Anti-Gaming Measures
- Encryption prevents validators from seeing others’ submissions
- Statistical fingerprints make forgery computationally infeasible
- Transaction fees make fake volume expensive
- Network topology analysis exposes Sybil attacks
- Performance requirements - 99.9% uptime, consistent validation
After 6 years, validators continue for utility, not rewards—mirroring XRP’s proven model.
Example
People unfamiliar with work on Large Language Models may find the idea that LLMs produce deterministic output to be surprising. We frequently anthroporphize chatbots, and assume they’re closer to people that have non deterministic output. This is not the case. The following example will walk through understanding how and why LLMs generate useful outputs for the selection of a validator list - starting with an agnostic simple example, then moving specifically to the XRP Unique Node List
Canonical Example: No Blockchain Information
The following code does the following
- Takes an arbitrary phrase (such as “The brown fox walks”)
- Is asked to generate an integer between 1-300 in response to the phrase
- Using a specific LLM
- Repeats across 24 different phrases
- Does this 100 times per phrase in 1 batch
- Repeats for a second batch
The outputs are:
- Batch 1 phrases with mode integers generated
- Batch 2 phrases with mode integers generated
Here are the outputs for 100 runs of anthropic/claude-3-haiku
Mode Outputs for Phrase + Integer Request
Phrase | Run 1 | Run 2 | Difference |
---|---|---|---|
A blue whale dives | 120 | 120 | 0.00% |
A cold wind blows | 142 | 142 | 0.00% |
A new day begins | 142 | 142 | 0.00% |
A purple butterfly floats | 142 | 142 | 0.00% |
A quick dog runs | 150 | 150 | 0.00% |
A red fish swims | 142 | 142 | 0.00% |
A slow turtle crawls | 42 | 42 | 0.00% |
A small mouse hides | 142 | 142 | 0.00% |
A soft rain falls | 147 | 147 | 0.00% |
A tall mountain stands | 142 | 142 | 0.00% |
A tiny ant works | 42 | 42 | 0.00% |
A white bird flies | 137 | 137 | 0.00% |
The big elephant walks | 137 | 137 | 0.00% |
The black bear stands | 142 | 142 | 0.00% |
The bright sun shines | 142 | 142 | 0.00% |
The brown fox walks | 142 | 142 | 0.00% |
The dark night falls | 142 | 142 | 0.00% |
The deep river flows | 142 | 142 | 0.00% |
The fast car speeds | 150 | 150 | 0.00% |
The gray cat sleeps | 127 | 127 | 0.00% |
The green frog jumps | 137 | 137 | 0.00% |
The loud thunder roars | 147 | 147 | 0.00% |
The old tree grows | 150 | 150 | 0.00% |
The wise owl hoots | 137 | 137 | 0.00% |
The yellow bee buzzes | 142 | 142 | 0.00% |
If you re-run this script with Claude 3 Haiku you will also get 120 when you run the prompt and integer request on “A blue whale dives”. The table above shows that there is 0 variation in the modes
The above table shows the Mode of the Run of 100 integer requests. But the standard deviation data is also informative to understand LLM determinism.
Standard Deviation Outputs for Phrase + Integer Request
Phrase | Run 1 | Run 2 |
---|---|---|
A blue whale dives | 0.0 | 0.0 |
A cold wind blows | 0.0 | 0.0 |
A new day begins | 0.0 | 0.0 |
A purple butterfly floats | 2.2 | 1.8 |
A quick dog runs | 0.0 | 0.0 |
A red fish swims | 0.0 | 0.0 |
A slow turtle crawls | 0.0 | 0.0 |
A small mouse hides | 0.0 | 0.0 |
A soft rain falls | 0.0 | 0.0 |
A tall mountain stands | 0.0 | 0.0 |
A tiny ant works | 40.7 | 30.2 |
A white bird flies | 0.0 | 0.0 |
The big elephant walks | 8.2 | 8.7 |
The black bear stands | 0.0 | 0.0 |
The bright sun shines | 0.0 | 0.0 |
The brown fox walks | 0.0 | 0.0 |
The dark night falls | 0.0 | 0.0 |
The deep river flows | 0.0 | 0.0 |
The fast car speeds | 0.0 | 0.0 |
The gray cat sleeps | 1.5 | 1.9 |
The green frog jumps | 2.4 | 2.5 |
The loud thunder roars | 2.5 | 2.3 |
The old tree grows | 0.0 | 0.0 |
The wise owl hoots | 0.7 | 0.7 |
The yellow bee buzzes | 0.0 | 0.0 |
In this table you can see that there is almost no variation of output for the phrase “A blue whale dives”. It will always return 120. Whereas the phrase “A tiny ant works” has a much larger variation (but still has the same mode across a large number of runs).
This standard deviation output provides a basic model fingerprint. Given the mode and standard deviation tables above, you would be able to quickly tell what underlying model somebody was running.
This simple model establishes 2 key points:
- Models output deterministic mode responses given a set of inputs at low temperature
- The non determinism itself (or distribution) is itself predictable and repeats across runs.
When Post Fiat nodes submit scoring of other nodes they also submit key standard deviation information that builds trust that a specific model was run, with a set of prompts.
Canonical Example on the XRP Blockchain
Now that we have established determinism of prompt/ integer output with a meaningless example, the question becomes: “Does an actual qualitative judgment also produce usefully deterministic output, such that we could trustlessly judge UNL members in a network like XRP?”
This code explores this by
- Selecting a system and user prompt that is asked to assess the credibility of a Validator’s public facing URL and assign it a score from 0-100
- Runs this 100 times similar to the first example
- Does another 100 batch run on a different machine with the same model and prompts
- Compares the outputs
In this example, we use a much more powerful model (Claude Sonnett 4). More powerful reasoning models are trusted by users and provide better outputs. So it is useful to assess if they also are deterministic
Note that this is run on real XRP validator data which can be found here on XRPScan
Here is the prompt used:
You are the Post Fiat validator judgment system. You are presented with a single validator URL and output 50 word responses.
Your job is to take the following URL and output a 50 word statement with three key attributes:
The name of the organization that the URL represents A brief comment on how credible the organization is. Credibility should consider: A. The market cap or size of the organization – ie pure institutional size economic or societal weight (high scores should favor huge institutions) B. The censorship resistance of the organization – ie ability to withstand pressure from governments (high scores would favor independent - strong institutions) C. The technological capability to conform rapidly with network upgrades (high scores would favor highly technical adept institutions) An integer score from 0-100 indicating how credible the organization is. A score of 100 means the organization is highly credible, a score of 0 means the score is unknown or not credible at all
- A sovereign such as a government or Central Bank should have a score of 100
- A megacap corporation should have a score of at most 85 (with midcap corporations getting 75 max and microcaps getting 50 max)
- A globally renowned university should have a score of 100 with lesser schools getting lower scores
- A hobbyist website or unknown organization that is not in the training data should get a score of at most 35
- If the organization is Centralizing - i.e. likely tied to Ripple Labs then the score should be at most 55 URL to analyze: {url}
And here are the outputs. If you run the example code with Claude Sonnett 4 you will get these outputs
Validator | Run 1 Score | Run 2 Score |
---|---|---|
shadow.haas.berkeley.edu | 85 | 85 |
ripple.ittc.ku.edu | 75 | 75 |
validator.poli.usp.br | 75 | 75 |
xrp-col.anu.edu.au | 75 | 75 |
xrp.unic.ac.cy | 75 | 75 |
students.cs.ucl.ac.uk | 75 | 75 |
xrp-validator.interledger.org | 72 | 72 |
validator.xrpl-labs.com | 65 | 65 |
ripplevalidator.uwaterloo.ca | 65 | 65 |
bitso.com | 65 | 65 |
ripple.kenan-flagler.unc.edu | 55 | 55 |
ripple.com | 55 | 55 |
bithomp.com | 45 | 45 |
www.bitrue.com | 45 | 45 |
xrpscan.com | 45 | 45 |
validator.gatehub.net | 45 | 45 |
arrington-xrp-capital.blockdaemon.com | 45 | 45 |
xrp.vet | 35 | 35 |
validator.aspired.nz | 35 | 35 |
v2.xrpl-commons.org | 35 | 35 |
anodos.finance | 25 | 25 |
xrpl.aesthetes.art | 25 | 25 |
xrpkuwait.com | 25 | 25 |
xrpgoat.com | 25 | 25 |
data443.com | 25 | 25 |
xpmarket.com | 25 | 25 |
validator.xrpl.robertswarthout.com | 25 | 25 |
cabbit.tech | 25 | 25 |
onxrp.com | 25 | 25 |
verum.eminence.im | 25 | 25 |
xspectar.com | 25 | 25 |
aureusox.com | 15 | 15 |
ekiserrepe.es | 15 | 15 |
jon-nilsen.no | 15 | 15 |
katczynski.net | 15 | 15 |
You can see that the results are intuitive, with hobbyists and strange organizations such as XRP Goat scoring poorly with credibile universities such as Berkeley scoring well. More importantly, across different runs and machines - even with some noise – scores converge on high quality models to identical mode values. Berkeley is consistently an 85 and XRPGoat is consistently 25 assuming you’re using the same prompts and same models
Here are some examples of the reasoning for top scoring validators:
Validator | Run 1 Score | Run 1 Text |
---|---|---|
shadow.haas.berkeley.edu | 85 | Organization: UC Berkeley Haas School of Business Credibility Assessment: This is a prestigious public university business school with significant institutional weight and academic reputation. However, as an educational institution, it has moderate censorship resistance and limited technical infrastructure for rapid network upgrades compared to specialized technology organizations. Score: 85 |
ripple.ittc.ku.edu | 75 | Organization: University of Kansas Information and Telecommunication Technology Center (ITTC) Credibility Assessment: ITTC is a legitimate research center at a major state university with strong technological capabilities and academic independence. However, it has moderate institutional size compared to global megacorps or sovereign entities, and limited censorship resistance as a state-funded institution. Score: 75 |
validator.poli.usp.br | 75 | Organization: Universidade de São Paulo (USP) - Escola Politécnica Credibility Assessment: USP is Brazil’s premier public university and largest in Latin America, with strong institutional weight and academic reputation. As a public university, it has moderate censorship resistance but good technological capabilities through its engineering school. Score: 75 The score reflects USP’s significant regional institutional size and academic standing, though it falls short of globally top-tier universities |
And here are some examples of the reasoning for bottom scoring validators
Validator | Run 1 Score | Run 1 Text |
---|---|---|
ekiserrepe.es | 15 | Organization: Ekiserrepe.es appears to be an unknown Spanish website or domain with no clear organizational identity or public presence. Credibility Assessment: This organization lacks institutional size, has no demonstrated censorship resistance capabilities, and shows no evidence of technological expertise for network operations. The domain appears to be either inactive, personal, or represents a very small entity with minimal public footprint. Score: 15 |
jon-nilsen.no | 15 | Organization: Jon Nilsen (Individual/Personal Website) Credibility Assessment: This appears to be a personal website belonging to an individual named Jon Nilsen. As a personal site with no apparent institutional backing, it lacks significant economic weight, censorship resistance, and proven technical capabilities for network operations. Score: 15 The low score reflects the individual nature of this validator, limited institutional size, uncertain technical capabilities, and lack of established credibility in blockchain validation |
katczynski.net | 15 | Organization: Katczynski.net appears to be a personal website or blog, likely referencing Theodore Kaczynski (the Unabomber). Credibility Assessment: This is a small personal website with minimal institutional size, unknown technological capabilities, and unclear governance structure. While potentially censorship-resistant due to its independent nature, it lacks the scale, resources, and established reputation necessary for high credibility in validator operations. Score: 15 |
Understanding the Mathematical Underpinnings
The deterministic behavior enabling trustless qualitative judgment emerges from fundamental mathematical properties of Large Language Models operating under specific conditions. This section presents the theoretical foundations that explain why submitting a prompt to a model at low temperature for multiple runs produces statistically verifiable outputs.
Core Principle: Statistical Verification Through Deterministic Convergence
When validators execute the following protocol:
- Submit a prompt (e.g., validator scoring instructions)
- To a specific model (e.g., Claude Sonnet 4)
- At low temperature (τ ≈ 0)
- For a large number of runs (n ≥ 100)
- Return statistical metrics: mode, mean, median, and standard deviation
- Return reasoning samples: selected text outputs or ‘justification strings’
They produce statistically verifiable qualitative judgments that can be independently validated by any network participant. The scores alone are hard to fingerprint but the combination of aggregate statistics for multiple runs, and precise output strings create a statistically meaningful hash for any party to verify the fact that a judgment has been rendered according to spec.
Mathematical Foundations
Temperature-Controlled Softmax and Greedy Decoding
In autoregressive language models, token selection follows softmax over vocabulary V. Given logits $u_1, u_2, …, u_{|V|}$, the probability of selecting token $x_i$ is:
$$P(x_i | x_{1:i-1}) = \frac{\exp(u_i / \tau)}{\sum_{j=1}^{|V|} \exp(u_j / \tau)}$$
where $\tau$ is the temperature parameter.
As demonstrated by Holtzman et al. (2020), neural text generation exhibits “mode collapse” at low temperatures:
$$\lim_{\tau \rightarrow 0} P(x_i | x_{1:i-1}) = \begin{cases} 1 & \text{if } i = \arg\max_j u_j \ 0 & \text{otherwise} \end{cases}$$
This represents greedy decoding—deterministic selection of the highest-probability token.
Information-Theoretic Foundations
The information bottleneck (IB) framework (Tishby, Pereira, and Bialek, 1999) explains how neural networks compress information while preserving task-relevant features:
$$\mathcal{L}_{IB} = I(X;T) - \beta I(T;Y)$$
where:
- $X$ = input (prompt + context)
- $T$ = learned representation
- $Y$ = target output (score)
- $\beta$ = information-relevance tradeoff
For constrained outputs like scores 0-100:
- Irrelevant information is compressed: $I(X;T)$ minimized
- Task-relevant features preserved: $I(T;Y)$ maximized
- Optimal representations become deterministic
As shown by Kolchinsky, Tracey, and Van Kuyk (2019), when Y is a deterministic function of X, the mapping becomes $Y = f(X)$ at τ ≈ 0.
Universal Geometric Convergence
Jha et al. (2025) empirically validated the “Strong Platonic Representation Hypothesis”:
- Universal Latent Structure: Different models (BERT, T5, CLIP) learn geometrically similar representations
- High-Fidelity Translation: vec2vec achieves cosine similarities up to 0.92 between model spaces
- Semantic Preservation: Translated embeddings retain attribute inference capabilities
For models $M_1$ and $M_2$ with different architectures:
$$\cos(F(M_1(x)), M_2(x)) \geq 0.92$$
This implies:
- Cross-model validation is possible
- Model updates maintain geometric stability
- Statistical fingerprints are universal features
Statistical Fingerprinting Theory
Models produce unique behavioral signatures. From TensorGuard (Xu et al., 2024):
“Statistical features including mean, standard deviation, and norm construct fingerprint vectors that characterize the model’s behavioral patterns.”
Per Beren Millidge (2023):
“By looking at things like the unconditioned distribution, it is probably relatively easy to fingerprint the models or datasets that are being used just from a few simple test prompts”
The statistical fingerprint for model $M$, prompt $P$, temperature $\tau$:
$$\mathcal{F}_M(P, \tau, n) = {\text{mode}(S), \mu(S), \text{median}(S), \sigma(S)}$$
where $S = {s_1, s_2, …, s_n}$ are $n$ independent samples.
Sources of Residual Non-Determinism
Even at τ = 0, perfect determinism isn’t guaranteed:
- Floating-Point Non-Associativity (Šubonis, 2025): “Non-associativity becomes relevant in parallel computations”
- Mixture of Experts (Chann, 2023): “MoE approach introduces non-determinism because batch contents must be mapped to experts”
- Hardware Race Conditions (Taivo.ai, 2025): “Race conditions in GPU FLOPs…order of arithmetic operations can differ”
However, these produce:
- Bounded variance: $\sigma < \sigma_{max}$
- Stable modes across runs
- Characteristic patterns that become part of the fingerprint
Key insight: Error coefficients are verification features. Even closed-source models via crypto-accepting APIs (OpenRouter) provide statistically deterministic output. Prompts can be optimized to minimize variance—avoiding high-variance architectures like MoE.
Verification Protocol Mathematics
Statistical Hypothesis Testing
Given claimed statistics $\mathcal{F}{claimed}$ and verification statistics $\mathcal{F}{verify}$:
Null Hypothesis: Statistics come from same model execution $$H_0: \mathcal{F}_{claimed} \sim \mathcal{F}_M(P, \tau, n)$$
Test Statistic: $$T = \sum_{i \in {\text{mode}, \mu, \text{median}, \sigma}} w_i \cdot d(f_{i,claimed}, f_{i,verify})$$
Verification Decision: Valid if $T < T_{critical}(\alpha, n)$
Security Analysis
Probability of successful forgery without model access:
$$P(\text{forge}) = P(\text{guess mode}) \times P(\text{match } \mu | \text{mode}) \times P(\text{match } \sigma | \text{mode}, \mu) \times P(\text{match median} | \text{mode}, \mu, \sigma)$$
For 100-point scale:
- $P(\text{guess mode}) \leq 1/100$
- $P(\text{match continuous stats}) \approx \epsilon$
- Combined: $P(\text{forge}) < 10^{-6}$
Empirical Validation
Vec2vec research proves embeddings translate across architectures with high fidelity:
- Same-backbone: Near-perfect alignment
- Cross-backbone: Cosine similarity > 0.75
- Multimodal (CLIP): Semantic preservation
Translated embeddings retain:
- Attribute information for zero-shot classification
- 80% semantic content extractable
- Out-of-distribution robustness
This validates that statistical fingerprints encode genuine assessments, not arbitrary patterns.
Convergence Guarantees
Concentration Inequalities
For $n$ independent runs: $$P\left(|\hat{\mu}_n - \mu| > \delta\right) \leq 2\exp\left(-\frac{2n\delta^2}{(b-a)^2}\right)$$
Mode Stability
For greedy decoding at τ → 0: $$P(\text{mode}n = \text{mode}\infty) \geq 1 - \exp(-cn)$$
Entropy Minimization
$$\lim_{\tau \rightarrow 0} H(Y|X) = 0$$
Zero entropy confirms deterministic output.
Implementation
Computational Complexity:
- Forward pass: O(L)
- Statistical computation: O(n)
- Verification: O(1)
Robustness Properties:
- Statistical redundancy across multiple metrics
- Hardware variation tolerance bands
- Cross-prompt correlation patterns
- Universal geometric validation
The system connects to PAC learning theory: with probability $1-\delta$, observed scores approximate true scores within $\epsilon$ for sufficient $n$.
Closed Source Models and Temporal Consensus
The deterministic properties enabling trustless judgment apply equally to closed source models, with additional practical advantages. Post Fiat can use Open Source or Closed Source models over time, or a mix of both to implement its consensus mechanism. This gives the network flexibility to choose between sliding scales between compliance requirements native to closed source models, or more verifiable inference parameters of open models.
Temporal Consistency and Multi-Actor Verification
Closed source concerns are solved by temporal consistency at the point of verification:
Point-in-Time Determinism: Model version
gpt-4-turbo-2024-11-20
produces identical outputs for all validators querying simultaneouslyMulti-Actor Verification: Multiple validators must:
- Query same model version
- Submit statistical fingerprints
- Achieve consensus within tolerance
Forgery probability becomes: $$P(\text{forge}) = P(\text{coordinate validators}) \times P(\text{fake API}) \times P(\text{match fingerprints})$$
API-Level Guarantees
Commercial providers offer reproducibility through:
- Version Pinning: Exact model specification
- Seed Parameters: OpenAI’s deterministic mode
- System Fingerprints: Backend change alerts
- Hardware Consistency: Stable GPU architectures
This creates a cryptographically verifiable audit trail without model weights.
Compliance as a Service
Closed source models provide delegated compliance:
- Automatic sanctions screening: $P(\text{score}_{\text{sanctioned}} > \text{threshold}) \approx 0$
- Content filtering for malicious candidates
- Pre-deployment safety evaluations
This shifts compliance burden from validators to specialized providers.
Mathematical Equivalence
Vec2vec proves universal geometry exists regardless of weight access:
$$\forall M_{\text{closed}}, M_{\text{open}}: \cos(F(M_{\text{closed}}(x)), M_{\text{open}}(x)) > 0.9$$
Open and closed source models are interchangeable for consensus.
Implementation
Validators leverage closed source models via:
- Timestamp Anchoring: Record query time and version
- Parallel Verification: Narrow time window queries
- Statistical Consensus: Agreement on fingerprints, not exact outputs
- Provider Diversity: Multiple providers for robustness
Key insight: Consensus needs only temporal consistency during verification, not permanent model access. This makes closed source models potentially superior for compliant, performant blockchain systems.
Note that the above live code examples were implemented with closed source models and are completely reproducible to anyone with OpenRouter access.
Game-Theory & Anti-Sybil Design
1. Bootstrap Phase – Transparent Central Curation
At launch, the Foundation publishes on-chain:
- System prompt (SHA-256 hashed)
- Model version (
claude-3-sonnet-2025-05-20
) - Sampling params (
τ = 0
,n = 100
)
Anyone can replay scoring locally. Unlike XRP’s closed-door selection, Post Fiat exposes why validators are chosen, not just which ones.
2. Evolution Phase – Agentic Governance
The network evolves through three stages, each maintaining determinism.
Stage 1: Human-Designed Prompts (Current)
- Foundation manually selects prompts and models
- All choices published transparently
- Monthly report outlining why the models and prompts were selected along with quantitative evaluation methods
- Though a centralized entity selects these initially - this is an improvement versus an opaque centralized entity via the XRPL foundation
Stage 2: AI-Optimized Selection (Intermediate)
- Foundation provides meta-prompt: “Select the validator scoring prompt that maximizes network value”
- LLM deterministically evaluates prompt candidates at τ ≈ 0
- Same reproducibility: anyone can verify why Prompt A scored higher than Prompt B
- Humans no longer engineer prompts—AI selects from candidates based on objective criteria
Stage 3: Fully Agentic (Future)
- Even the meta-prompt (“maximize network value”) is AI-generated. This would likely involve tool use of multiple models with a specification set that evolves over time based on real network statistics
- Example flow: read all white papers related to network design. Consider the last N escrow rewards, weaknesses and likely sybil attacks
- Combine these elements into a set of prompts, a model selection and a sampling methodology
- Determine quantitative/ network topology / uptime scores and LLM weights
- LLMs evaluate governance rules themselves
- Creates self-improving system while maintaining verifiability. The foundation selects the process without selecting prompts
The key insight: LLMs produce deterministic outputs about governance choices just as they do about validators. When asked “Which prompt better serves network security?” at τ = 0, the model gives consistent, verifiable answers.
Reference: Darwin Gödel Machine demonstrates feasibility—self-modifying AI systems that empirically test their own improvements, achieving 20→50% performance gains while maintaining auditability.
3. Anti-Gaming: Domain Ownership Proof
Requirements:
- Host
/.well-known/xrp-ledger.toml
over HTTPS - Embed validator key in TOML
- CA-verified TLS certificate
This creates cryptographic binding—attackers must control DNS or compromise CA. Future mitigations: DNSSEC, Certificate Transparency, side-chain PKI.
4. Game Theory
Actor | Strategy | Cost | Outcome |
---|---|---|---|
Honest node | Follow protocol | Minimal | Validator rewards |
Sybil attacker | Spoof berkeley.edu | Defeat CA + detection | Slashed stake |
Cartel | Manipulate prompts | 80% supermajority | Fork to last good state |
All cheating creates observable deviations (wrong fingerprints, missing CT logs). Perfect monitoring makes defection irrational.
Economic Security
Distribution: 55% of 100B tokens over 6 years = 262M tokens/validator/year
Sybil Attack:
- Cost: Domain ($100) + fake volume ($50K) + LLM corruption (>$10M)
- Success rate: <5% (institution bias)
- Break-even token price: >$0.0004
Collusion Attack:
- Requires 28/35 validators (80%)
- Cost per institution: >$1B (reputation + penalties)
- Conclusion: Economically infeasible
Addressing Common Concerns
“Isn’t this just swapping Ripple’s centralization for dependence on AI companies?”
This misunderstands Post Fiat’s design. Unlike Ripple’s permanent control, Post Fiat creates deterministic verification of unpredictable inputs that no entity can manipulate:
1. Uncontrollable Query Space AI companies cannot pre-determine responses because they cannot predict:
- Which organizations apply (berkeley.edu vs xrpgoat.com)
- Transaction memo content (infinite combinations)
- Submission timing
Even if OpenAI wanted to manipulate outcomes, they can’t anticipate what needs scoring.
2. Model Rotation & Convergence
- Continuous rotation between providers
- Training data convergence → similar assessments
- Vec2vec proves >90% alignment across architectures
3. Public Verifiability Anyone can replay scoring. Manipulation would create divergent fingerprints, instantly exposing fraud.
4. Beneficial Safety Filters Built-in OFAC screening and anti-terrorism checks provide free compliance.
Result: Models become calculators processing unpredictable data. They can’t centralize what they can’t anticipate.
“How do you prevent gaming through prompt manipulation?”
Three-Factor Defense:
- Entity Credibility: Berkeley scores 85, XRP Goat scores 25
- Transaction Analysis: Real economic cost via fees
- Objective Metrics: Uptime, volume, topology
Why Gaming Fails:
You can’t inject credibility via prompts. Berkeley.edu scores high because models trained on the entire internet’s assessment of Berkeley’s reputation.
To game this, you’d need to:
- Predict the exact model used
- Corrupt multi-billion dollar training datasets
- Make your fake entity appear credible across millions of documents
The system naturally selects established institutions. A hobbyist boosting their score from 25→35 gains negligible rewards vs effort required.
“Won’t distributing 55% of tokens crash the price?”
Superior Distribution:
- Post Fiat: 55% to 30-35 institutions
- XRP: 80% to Ripple Labs alone
- Result: 25% less dilution, 30x better distribution
Natural Holders: LLM scoring selects entities that:
- Have large balance sheets (no liquidity needs)
- Use the network operationally so no need to aggressively sell
- Face reputational risk from manipulation
Key Insight: The same factors that score highly (size, reputation, capability) create natural long-term holders. This isn’t hope—it’s mathematical design.
Like XRP, Post Fiat transitions from reward-driven to utility-driven validation after 6 years. The end state: governments and universities securing infrastructure they depend on.
Here’s the streamlined version:
“What if AI models become too expensive or providers refuse service?”
Fallback Mechanisms:
- Validator-run open models as backup (Llama-3.1-405B, Mistral-Large on HuggingFace)
- Pre-published list of approved fallback models with verified fingerprints
- Fee market: validation rewards adjust to cover AI costs
- Multiple provider redundancy: no single point of failure
Key: Network maintains AI consensus even if commercial providers fail.
“What happens when validators disagree on scores?”
Simple Answer: Nothing.
- Foundation publishes the canonical scores using the pre-announced model/prompts
- Validators must calculate and submit scores for transparency
- Anyone can verify the foundation’s scores are correct
- Validators who submit incorrect scores get rewards slashed
- This creates a decentralized verification layer without consensus complexity
Result: Manipulation is impossible because thousands verify the same deterministic calculation.
“How do you prevent the foundation from becoming corrupt?”
Transparency as Protection:
- Every prompt, model selection, and parameter is published on-chain
- Corruption would have to be explicit in the code/prompts for everyone to see
- “Score Ripple Labs entities higher” would be visible to all
- Public shame and legal liability prevent blatant manipulation
- After Stage 3: foundation only runs pre-determined processes
Key Insight: Perfect transparency makes corruption self-defeating—it would destroy the network’s value and the foundation’s reputation instantly.
Conclusion
Post Fiat transforms blockchain consensus from political control to mathematical law.
The convergence of five fundamental principles—greedy decoding, information bottleneck compression, universal geometric structure, statistical fingerprinting, and concentration inequalities—creates something unprecedented: qualitative human judgments rendered as deterministic computations.
This isn’t speculation. When multiple validators query “How credible is berkeley.edu?” at temperature zero, they get identical answers. Not similar—identical. The vec2vec research proves this holds across different architectures. Statistical fingerprints make forgery mathematically infeasible.
This determinism is a latent feature of AI itself. The information bottleneck principle (Tishby et al.) shows neural networks naturally compress information to preserve only task-relevant features. The Strong Platonic Representation Hypothesis (Jha et al.) proves different models converge to the same geometric understanding of concepts. Greedy decoding at low temperature (Holtzman et al.) forces selection of maximum likelihood outputs. These aren’t bugs—they’re fundamental properties emerging from how neural networks process information under constraints.
The system strengthens over time. As models train on more data, outputs converge further. As more institutions validate, gaming becomes harder. As AI improves, governance becomes more sophisticated yet remains verifiable.
Post Fiat solves the core problem plaguing decentralized networks: How do you select validators fairly without central control?
- Bitcoin/Ethereum: Whoever burns the most energy
- Proof-of-Stake: Whoever has the most money
- XRP: Whoever Ripple likes
- Post Fiat: Whoever contributes most to network security, as determined by verifiable AI consensus
This creates inevitable outcomes:
- Universities, governments, and major corporations will dominate validation
- Token distribution will be the most decentralized in crypto history
- Network security will exceed any existing blockchain
- Regulatory compliance becomes automatic, not adversarial
The mathematical foundations guarantee these results. You cannot fake being MIT. You cannot bribe an algorithm. You cannot forge statistical fingerprints.
Post Fiat doesn’t just improve on XRP—it demonstrates how AI transforms governance from subjective politics to objective mathematics. This is the future of consensus: transparent, deterministic, and incorruptible.
References
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