Appendix G. Glossary of Terms & Notation

Jason St George. "Appendix G. Glossary of Terms & Notation" in Next Generation Stores of Value: Privacy, Proofs, Compute. Version v1.1. /v/1.1/read/appendix/g-glossary/

Appendix G: Glossary of Terms & Notation

Triad: Privacy, Proofs, and Compute — the three cryptographic capacities that can function as monetary primitives.

VerifyPrice(W): A public KPI vector measuring the cost and time to verify workload W.

VerifyReach(N,R): Metrics for network reachability under censorship conditions.

VerifySettle(C): Metrics for settlement success and safety on corridor C.

r(W): Verification overhead ratio — v(W)/p(W), where v is verification cost and p is production cost.

Work Credit (WC-Base): The primary monetary object: a scarce native asset required for fees, staking, collateral, and governance. Minted against verified work under issuance constraints. Distinguished from WC-Vouchers (prepaid capacity hedges, not SoV candidates) and Work Receipts (evidence of past work, not scarce).

Value Capture Lemma: The central bridge argument: demand for triad capacity creates SoV premium for the native asset only if five conditions hold—required fee medium, supply reduction via burns, collateral lockup, issuance discipline, and non-bypassability. See §6.

Bypass Risk: The risk that users consume triad capacity (proofs, privacy, compute) through channels that do not require the native asset—e.g., fiat-denominated cloud services, stablecoin payment to operators. If bypass channels dominate, the SoV thesis fails.

Utility-Token Trap: The pattern where a network provides useful services but the native token fails to capture economic value because operators extract all surplus, users pay in alternative currencies, or governance inflates supply. The thesis’s value-capture conditions are designed to prevent this outcome.

PIDL: Proof Interface Definition Language — the minimal receipt schema for proofs and settlements.

PaL: Proofs-as-a-Library — SDK that compiles claims to proofs.

PRK: Privacy Rails Kit — executes non-custodial, refund-safe settlement over privacy corridors.

FER: Facility Energy Receipt — signed summary of a site’s energy use over a time interval.

PoUW: Proof of Useful Work — consensus mechanism where block rewards are earned by producing verifiable receipts of useful compute.

SLO: Service Level Objective — published targets for system performance and availability.

Bronze/Silver/Gold: SLA tiers for proof and settlement services with different latency, redundancy, and interruptibility characteristics.

MatMul-PoUW: Proof of Useful Work construction based on matrix multiplication verification.

ZK Money: Instruments primarily referencing Privacy + Proofs (shielded settlement capacity, ZK proof capacity).

Attestation Money: Instruments backed by proof capacity and provenance attestations. Formerly ‘Truth Money’ in earlier drafts; renamed to emphasize that proofs verify bounded claims (origin, computation, custody, policy compliance), not semantic truth.

AI Money: Instruments primarily referencing Compute + Proofs (verified FLOPs, inference capacity).

Layer 0: Verifiable Machines & Energy — open hardware and sampled supply chains as base reality.

Layer 1: Reachability — communications and transport resilience.

Layer 2: Distribution & Execution — software supply and runtime.

Layer 3: Identity & Claims — pseudonymous credentials without doxxing.

Layer 4: Truth & Work — proof systems, PoUW, VerifyPrice.

Layer 5: Value & Settlement — privacy rails and non-custodial flow.

Layer 6: Governance & Telemetry — keeping neutrality and resilience measurable.

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