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 v1.9. /v/1.9/read/appendix/g-glossary/

Glossary of Terms & Notation

Triad
Privacy, Proofs, and Compute — three cryptographic service capacities that may support a monetary candidate. Whether they should share one asset is tested by the Triad Coherence Test, not assumed.

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 $C$.

Value Capture Lemma
The bridge from service use to asset accrual: demand for triad capacity reaches the native asset only if five conditions hold—required fee medium, supply reduction via burns, collateral lockup, issuance discipline, and non-bypassability. It establishes a cash-flow claim and floor, not monetary premium. See §10: Work Credits: Energy-Anchored Claims.

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

Base Asset
The protocol’s bearer fee and settlement unit and the only instrument tested as a monetary candidate. Fees, burns, collateral, or governance use establish neither moneyness nor a durable holder anchor by themselves.

Work Credit
A typed capacity or service claim bounded by stress-adjusted deliverable output. It may be workload-, location-, hardware-, SLA-, and time-specific; it is not presumed to be a store of value.

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.

Differential value ($\Delta$)
The marginal buyer’s willingness to pay for the protocol’s differential properties—cryptographic checkability, neutrality, credible non-discretion, non-custodial exit—over the best bypass channel. Bounds the sustainable fee: $f \le \Delta - (c_p - c_b)$, where $c_p$ and $c_b$ are the protocol’s and the bypass channel’s all-in costs. Also written $\Delta(R)$ when its dependence on regime pressure is at issue. A scalar wedge in price units, not the difference operator. See §10: Work Credits: Energy-Anchored Claims.

Fee incidence
The question of who bears a protocol fee. With free entry and roughly constant returns, long-run supply is horizontal at marginal cost, so the fee is passed to buyers and operator economic profit is unchanged: a fee is a wedge on turnover, not a claim on residual profit. With installed capacity fixed, part of the fee is instead absorbed as quasi-rent to deployed hardware, which affects entry. See §10: Work Credits: Energy-Anchored Claims.

Capturable wedge ($\omega$)
$\omega = s - \gamma$, where $s$ is the normalized bypass spread $(P^{\text{prot}} - P^{\text{byp}})/P^{\text{byp}}$ and $\gamma$ is the verification cost share (proving plus redundancy) as a fraction of $P^{\text{byp}}$. The measurable proxy for $\Delta$: what remains of the price the protocol commands after paying for the verification that justifies it. Normalized because the absolute spread shrinks mechanically with compute deflation. Read by Red Line 14, Condition A.

Realized take rate ($\tau$)
Native fees plus burns in USD, divided by settled protocol turnover in USD. Computable by any third party from chain data. Compared against $\omega$ rather than against a guessed threshold, which is what makes Red Line 14’s first condition self-normalizing.

Regime-Contingent Convenience Yield
The channel through which a triad asset could earn monetary premium: the holder-side service flow arising from the state-contingency of $\Delta(R)$—the bearer’s ability to transact, prove, hold, and exit when the substitutes for proofs, courts, and custodians have stopped working—plus credible non-discretion and bearer holdability. It accrues by virtue of holding rather than as a distribution, so there is no stream to discount, which is what places it outside a discounted-cash-flow valuation. Named by analogy to the convenience-yield mechanism of Kaldor (1939) and Working (1949), not by any claim that a triad asset is a storage commodity. Explicitly not the countercyclicality of the fee stream, which is a negative-beta discount-rate effect a DCF captures exactly; and explicitly not produced by burns, collateral, or fee share, which yield a cash-flow claim and a floor. Unsized. See §10: Work Credits: Energy-Anchored Claims.

Collateral unit-elasticity
The property that a collateral requirement specified as a share of capacity value locks a value rather than a quantity: required units are $N = \chi K / P$ for collateral ratio $\chi$, capacity value $K$, and price $P$. Consequences: a level effect rather than a growth effect, a bound of $\chi K$ set by an accounting identity, wrong-way risk in large drawdowns, and an effect on the liquidity state $\Lambda_t$ rather than the monetary impulse $\theta_t$. See §10: Work Credits: Energy-Anchored Claims.

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.

FCR
Facility Capacity Receipt — extends FER data with infrastructure resilience, grid, cooling, jurisdictional, and hardware-diversity metrics. See §14: Layer 0: Verifiable Machines & Energy.

Delivered Verified Capacity (DVC)
Scenario-specific maximum surviving flow from energy and fuel through firm electricity, transformer and switchgear, cooling and water, hardware, network, workload, proof, verification, settlement, and usable service. Reports the active minimum cut, substitution latency, and common-cause dependencies. See §14: Layer 0: Verifiable Machines & Energy.

Physical VerifyPrice
Used in two related senses, distinguished in §19: Layer 4: Truth & Work: (i) the constitutional SLO measuring verification cost in real resources on reference hardware, exogenous to token price; and (ii) the cost of auditing the physical infrastructure claims (FCR) behind a unit of verified work. Red Line 1 refers to sense (i); Red Line 10 to sense (ii).

Sovereign Optionality ($\mathcal{O}_s$)
A capacity-weighted index of the number of independent physical pathways by which verified work can continue under disruption, net of coercion exposure. Computed from existing FCR fields; feeds risk haircuts and Red Line 13. See §14: Layer 0: Verifiable Machines & Energy.

Topological Scarcity Lemma
A nominal stock does not secure a monetary service; the relevant quantity is stress-deliverable flow through the narrowest non-substitutable edge connecting input to holder utility. See §6: The Triad and the Monetary Candidate.

Pressure–Capacity Corridor
The relation $\Pi_{\mathrm{monetary}}(R)\propto\Delta(R)\times A_{\mathrm{full\mbox{-}stack}}(R)\times H(R)$. Its likely shape is an inverted U because differential demand rises as substitutes weaken while stack availability and holder agency can fall under extreme pressure. See §6: The Triad and the Monetary Candidate.

Disruption-Adjusted VerifyPrice
The probability-weighted cost of verification across physical disruption states, rather than the observed cost under benign conditions. Used to price whether a resilience premium is buying anything. See §14: Layer 0: Verifiable Machines & Energy.

Energy Interdiction
The adversary class in which curtailment, rationing, tariff discrimination, interconnection denial, or long-lead equipment scarcity is used to raise the physical cost of verification without any prohibition on cryptography. See §4: Threat Model.

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
An analytical lens or legacy label for service instruments referencing Privacy + Proofs. Those claims are not presumed money; only the separate base asset is a conditional monetary candidate.

Attestation Money
An analytical lens or legacy label for proof-capacity and provenance-attestation demand. Formerly “Truth Money” in earlier drafts; it does not promote proof claims into money.

AI Money
An analytical lens or legacy label for service instruments referencing Compute + Proofs (verified FLOPs, inference capacity). Work Credits beneath the lens remain typed service claims.

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.

Market Realization Plane
The external financial machinery—exchanges, custody, ETFs, treasury vehicles, index products, derivatives, dealers, passive mandates, systematic and agentic allocation rules—through which claims on the native monetary object are represented and priced. Orthogonal to the stack, not a layer within it. See §10: Work Credits: Energy-Anchored Claims.

Native instrument
A protocol-internal asset, typed service claim, evidence artifact, staking or LP position, corridor claim, or capacity voucher. Touching the protocol does not make the instrument monetary.

External financial wrapper
A conventional market product written on the asset (spot ETF, ETP, treasury company, custodial balance, future, option, swap, leveraged or inverse ETP). Holding it exercises nothing. Unqualified “wrapper” means this.

Value capture vs. price capture
Value capture routes native demand through the monetary object via fees, burns, and collateral. Price capture is demand for exposure to the asset’s price, which can occur with no protocol use at all. Neither implies the other. See §10: Work Credits: Energy-Anchored Claims.

VerifyFlow
The fourth verification family: telemetry for the external financial representation and price-transmission state of the native asset. See Appendix A: Formal Model of Verification Asymmetry & VerifyPrice, §23: Extended Telemetry.

Flow elasticity ($\varepsilon$)
The responsiveness of a wrapper’s shares outstanding to changes in its value per share. $\varepsilon \approx 0$ means holders sit still; $\varepsilon \approx -1$ means they trim to a constant dollar position. Measured, not structural. See Appendix H: Formal Model of Market Realization, Wrapper Flows, and Price Capture.

Net mechanical gain ($\kappa$)
$L(L-1) + \varepsilon L^2$; the coefficient converting an underlying return into a wrapper’s total return-coupled exposure demand. See Appendix H: Formal Model of Market Realization, Wrapper Flows, and Price Capture.

Wrapper Recycling Ratio (WRR)
$-\varepsilon L/(L-1)$. Equal to 1 when holder flows fully offset gross rebalancing; below 1 the wrapper amplifies; above 1 it is countercyclical. See Appendix H: Formal Model of Market Realization, Wrapper Flows, and Price Capture.

Return-coupled vs. return-decoupled flow
Return-coupled flow ($Q^{RC}$) responds to the return itself and shapes volatility and persistence. Return-decoupled flow ($Q^{RD}$) arrives largely independent of the day’s return and shapes destination and level. See Appendix H: Formal Model of Market Realization, Wrapper Flows, and Price Capture.

Wrapper–Native Growth Gap (WNG)
$\Delta \ln E^{\text{wrapper}} - \Delta \ln U^{\text{native}}$. Persistently positive means financial exposure is outgrowing monetary use.

Service-Good Realization
The pattern in which triad capacity is consumed at scale while the asset shows no insurance signature across repeated regime-pressure episodes and the monetary bid accrues elsewhere. Prescribes reclassification to verified-capacity service asset, not retirement. Filed as Market Realization Warning 13 because its corroborating clause reads on price; Red Line 15 separately covers the native collateral–capacity spiral. See §27: Risk Analysis & Failure Modes.

Capital Survival Ratio (CSR)
Whether successive investor cohorts in a wrapper preserved capital, as distinct from whether the product preserved AUM. See §23: Extended Telemetry.

Policy Concentration Ratio
The share of net asset demand governed by the largest common rebalancing templates, treasury algorithms, or agent policies. Ownership can be decentralized while behavior is not.

Compositional adversary
A failure mode with no malicious actor: locally rational agents whose incompatible operating rules combine into concentration, procyclicality, recursive leverage, and uninformative prices. See §4: Threat Model.

Collateral Loop
The reflexive circuit in which asset values support tax receipts, receipts support fiscal capacity, fiscal capacity and central-bank support sustain Treasury market functioning, and Treasury yields sustain asset values. See §2: The World Forces New Monetary Primitives.

Collateralized Sovereign Stack
A description of the incumbent macro order, in which a state’s effective fiscal capacity depends on the market value of the asset complexes it regulates. A diagnosis, not an architecture; distinct from the seven layers this thesis specifies. See §2: The World Forces New Monetary Primitives.

Sovereign Credit Safety vs. Collateral Stability
Credit safety is the probability of nominal repayment; collateral stability is the reliability of the instrument’s price at the horizon over which it is used as margin and reference. An obligation can have the first and lack the second. See §2: The World Forces New Monetary Primitives.

Automatic vs. Marginal Buyer
The automatic buyer supplies demand by formula. The marginal buyer absorbs residual duration and therefore sets the price. Quantity of bids and quality of risk absorption are different objects. See §2: The World Forces New Monetary Primitives.

DV01
The dollar change in value produced by a one-basis-point change in yield. The relevant unit for whether a buyer is warehousing interest-rate risk. See §2: The World Forces New Monetary Primitives.

Duration of the Claim vs. Duration of the Project
Duration of the claim is the interest-rate exposure of a promised cash flow, which a repression-resistant store of value must not be. Duration of the project is the years between committing present resources and receiving the output of a long-lived physical asset. See §2: The World Forces New Monetary Primitives.

Duration Warehouse
An institution capable of converting present savings into long-lived productive capacity without being forced to liquidate, refinance, or reprice at the worst moment. A diagnosis of the incumbent order, not a layer of the cypherpunk stack. See §2: The World Forces New Monetary Primitives, §30: Objections & Responses.

Buyer-Quality Checklist
Persistence of funding, investment horizon, match to an enduring liability, capacity to bear losses without forced liquidation, and countercyclical willingness to add risk when prices fall. Published as fields, not as a multiplicative index. See §23: Extended Telemetry.

Native Monetary Buyer Map
Telemetry separating just-in-time fee acquisition, operator sell-through and inventory, burns and net issuance, self-custodied reserve demand, wrapper demand, leverage, holding period, loss-bearing capacity, and countercyclical accumulation. See §23: Extended Telemetry.

Project Note
Explicit duration-bearing infrastructure credit with stated maturity, covenants, default states, and loss priority. Proofs may audit it; no par, redemption, or emergency-support promise may transfer to the base asset. See §30: Objections & Responses.

Sovereign Maturity Transformation
Financing long-lived public assets and commitments with short-term public liabilities. Duration is transferred onto the rollover calendar, not extinguished. See §2: The World Forces New Monetary Primitives.

National-Champion Pathway
The conversion of private firms into protected quasi-public infrastructure because the state’s fiscal or security position depends on them. Also enclosure by rescue. See §4: Threat Model.

Numeraire-Dependence
The property that a measured price path is jointly determined by the asset and by the unit it is quoted in, so the same series can support opposite conclusions about real command over resources. See §10: Work Credits: Energy-Anchored Claims.

Open Technology vs. Open Sovereignty
Open-source or open-weight software is sovereign only where users can independently obtain the power, hardware, data, communications, privacy, and settlement to run it. Openness at one layer is compatible with concentration beneath it. See §29: The Closed Sovereign Stack.

Strategic Tempo
The conversion of physical resilience into control over when a disruption becomes binding, and thence into bargaining power. See §29: The Closed Sovereign Stack.

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