Celestial Assets: A Marketplace For Space-based Ownership Powered By Cryptocurrency
The objectives of this research report is to explore the following:
- The potential to leverage AI & Cryptocurrencies to build a viable marketplace for extra-planetary assets in order to drive extra-planetary exploration and investment
- The legal, ownership and regulatory consideration of doing so
- Key enabling technologies, motivation and justification for undertaking this project in the near term aka “Why Now?”
- Arguments for why launching such a marketplace can drive many trillions in revenues and investments
- A roadmap for how this marketplace might come into being and achieve broad adoption
MOTIVATION
The motivation of this report is to stimulate conversation, investment, further research, technology innovation into the potential to tap into the multi-trillion dollar unrealized market for minerals, energy and property outside of our typical planet earth.
We also believe that launching a cryptocurrency based marketplace for extra planetary assets can have a profound impact on nation state finances. In particular, we believe that creating an interstellar asset exchange can have the potential to provide significant leverage to pay off national debts and much more.
Our objective is to provide a realistic intellectual foundation for how and why a marketplace for extra-planetary assets might come about in the near term and why we believe this represents a significant untapped new financial market for investors and explorers.
CORE ARGUMENT
This report and following reports will advance the core argument which is summarized below:
- AI, Space Exploration & Robotics Advancements will rapidly form a self full-filling and compounding loop enabling geometric growth in what is possible with robotics and AI (self-designing robots, self-improving AI etc)
- These innovations will combine to rapidly enable interstellar and interplanetary travel, construction, mining, commerce and more
- The current global financial economy will transition rapidly to an economy where the majority of financial transactions are brokered through AI as a result of AI and cryptocurrencies being combined
- The inter-machine economy will start as open-marketplaces for compute, storage, energy, money, commodities, living assets, insurance, bonds real estate on earth and will engulf and supercede our current (vastly outdated) financial system which relies on human labor or outdated software technologies
- This inter-machine (machine-to-machine) economy will dwarf all current financial markets and grow to include highly exotic derivatives, options, financial instruments and synthetic assets
- This AI enabled economy will grow to encompass ownership and transactions for extra-planetary assets such as mining rights or real estate on other planets
- The financial innovations enabled by AI and cryptocurrency will form the vanguard of an extra-planetary economy which will be “made real” through robotic innovation and exploration which will follow soon after, the growth of this AI agent x Blockchain economy will be used to subsidize the costs of space exploration
This chain of events will create a full-filling cycle of search, financing, exploration and innovation. The most logical entry point is to begin the process of forming an AI-motivated marketplace for extra-planetary synthetic assets (futures, options, bonds etc) to bootstrap the investment needed to subsidize this future exploration.
TERMINOLOGY
The terminology is still nascent, but the gist remains: The objective to kickstart a marketplace for exotic financial instruments which enable traders to speculate, invest in extra-planet assets in anticipation that the technology underpinning will evolve rapidly to enable asset acquisition.
In the Cryptocurrency world, it has become popular to speak of “Realworld Assets” which are cryptocurrency instruments backed by traditional financial instruments such as stocks, bonds, options, real estate or even things like underlying storage (Filecoin), compute (Akash Network), connectivity (Helium) or energy (Energy Web).
The traditional financial world has it’s own terminology to describe mirroring an underlying asset with a financial instrument: Synthetics.
In trying to describe the opportunity inherent in “building a marketplace for physical stuff which humans can’t reach in the next 5–10 years but we know to be valuable,” we have a number of potential options:
- Offworld Assets
- Otherworld Assets
- Interstellar Assets
- Space Assets
- Extrasolar Assets
- Orbital Assets
- Celestial Assets
Of these, the most durable is likely to be along the lines of “Space Assets” or “Celestial Assets.”
WHY NOW?
With recent advancements in AI, Robotics, Space-based Communication, Cryptocurrencies and Space Flight — It is becoming increasingly clear that extra planetary resource extraction, robotic factories, trade and habitation are now not just possible but almost garaunteed.
We believe that finance will lead the way as it is not encumbered by physical constraints.
Many of the innovations required to actually utilize, occupy and make use of assets beyond earth are coming into view. These include the following:
- Simulation Technologies
- Enhanced Humans (Longevity, DNA, Biology)
- AI capable of designing and simulating mechanical components
- Cryptocurrencies for inter-machine (Machine-to-Machine Payments)
- Believable Humanoid Robotic Astronauts & “Utility Mechs”
- Biodomes & Extra Planetary Habitation Technologies
- Robotic Tunnel Boring & Terraforming Machines
- Innovations in actuation (tendon driven systems)
- Modular Nuclear Reactors
- Robotic Factories
- Space Elevators
- etc
These sorts of things sound like “The Stuff Of Science Fiction” but have recently moved from “Fairytale Territory” into the realm of “No, this is going to happen in 30 years.”
Possibly Sooner.
GEOMETRIC PROGRESS IN ROBOTICS
Progress in robotics has been slow over the last few decades. The biggest barrier to progress has simply been mature forms of AI capable of motivating the robot to act. Based on recent announcements by OpenAI and X.ai, it is becoming increasingly clear that we are on the verge of a robotics tipping point.
In particular, we are going to see the compounding and exponential effects of intelligent robots which can design and build or print other robots. Once this process kicks into gear, the single biggest barrier preventing broad robotic proliferation will be solved.
Once robots can design and build themselves, it will be realistic to speak of space based robotic factories and mining operations which build and extend themselves.
SELF DESIGNING ROBOTS ARE COMING SOON
Using tools like DALL-E and similar, we are now seeing that it is becoming increasingly reasonable to believe that the development, simulation and design of mechanical components is within a few years of possibility.
This means that creating a robot, printing it, providing it with intelligence and setting it into the world to perform useful tasks is pretty close to reality. This will kickstart a full-filling process of geometric expansion in the number and variety of utility robots.
Once this process starts, the next logical step of launching these robots into space, perhaps as modular self-assembling factories, becomes increasingly realistic.
WHY A CRYPTOCURRENCY MARKETPLACE?
The simple answer is: “Because it is the logical first step and it is possible, today.” Historically, financial motivations have proceeded all forms of exploration.
Many of our current financial instruments such as options, futures, bonds and derivatives were invented as a byprodut of the desire to engage in exploration, fund complex ventures and insure against the lost of property.
These financial instruments, especially venture capital, have enabled innovation to occur on longer and longer timelines by finding novel ways to control and manage risk.
It is natural to assume that the process of space exploration will begin in the realm of finance as the natural entry point.
Furthermore, cryptocurrency technology, of the key enabling technologies required, is furthest along in it’s maturity cycle while AI, robotics technology have not yet caught up.
Therefore, the introduction of a marketplace for interplanetary space assets is likely to be the natural entry point to kick off true exploration.
IS THIS EVEN LEGAL?
In discussing this topic online, the first question is often “Is this even legal?” or “How is this legal?” Our general answer is that “anything of value tends to end up, eventually, as something you can transact on an open marketplace.”
A recent development, ChatGPT, enables me to rapidly research this topic and answer these questions. AI is already empowering visionary futuristic conversations by helping to automate some of the tedious leg work which used to require entire teams of analysts.
LAW GOVERNING SPACE ASSETS
[This section generated by ChatGPT]
We asked ChatGPT what laws govern the ability to own celestial bodies.
Ownership of interstellar or space objects is governed by international space law, primarily under the framework established by the Outer Space Treaty of 1967, which has been ratified by all major space-faring nations. Here are the key points from the treaty and subsequent agreements:
Outer Space Treaty (1967): This is the foundational document for international space law, establishing that outer space, including the Moon and other celestial bodies, is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means. This means that no country can claim ownership of a celestial body.
Rescue Agreement (1968): This agreement expands on the Outer Space Treaty to include astronauts and space vehicles, stating that if an astronaut is in distress, they will be assisted, and when a space vehicle crashes or lands on foreign soil, it must be returned to the country of origin. This doesn’t cover ownership of space objects, but it does establish some norms of responsibility and cooperation in space.
Liability Convention (1972): This convention holds that a launching nation is liable for damages caused by its space objects on the surface of the Earth or to aircraft, and also for damage due to its space objects in outer space to other space objects.
Registration Convention (1975): This requires nations to furnish to the United Nations a registry of space objects launched into outer space to assist in their identification, which helps to establish which objects are under which nation’s jurisdiction.
Moon Agreement (1979): This agreement, which has not been signed by the major space-faring nations, goes further than the Outer Space Treaty by explicitly stating that the Moon and its natural resources are the common heritage of mankind, and prohibits any country from appropriating the Moon or its resources.
While the Outer Space Treaty prohibits the claim of sovereignty over celestial bodies, it does not explicitly regulate the ownership of resources extracted from such bodies, which is an ongoing topic of debate and discussion. In recent years, countries like the United States and Luxembourg have passed national laws allowing for the extraction and use of space resources, which has sparked conversation about the need for updating or supplementing the existing international legal framework to reflect the changing realities of space exploration and utilization.
ROBOTIC LAWYERS & RESEARCHERS
We want to point out that this very article would not have been possible 3 years ago. Now, with ChatGPT, we can produce a fully researched book complete with legal research leveraging AI.
It seems to us that the primary barriers to creating a Celestial Asset exchange are actually legal and regulatory, we anticipate that AI lawyers can lay the groundwork rapidly.
Building a marketplace using cryptocurrencies and space assets will involve tremendous amounts of legal research and contract writing.
Previously, these barriers were insurmountable — Perhaps tens of billions of dollars. Today, wecan use ChatGPT to generate contracts linking Space Assets to Earth Law instantly.
The tools are already here, not everyone realizes it yet.
ENERGY CURRENCY
In our opinion, energy will be the fundamental unit of account. We believe that dollars are “energy dollars” in that the moment of value inception is when dollars printed in the United States are exchanged for oil produced in the Middle East.
We believe Bitcoin is similar — Bitcoin is effectively “energy money,” in that it is created from nothing more than energy used to run miners that crack cryptographic puzzles.
We believe that cryptocurrency, in it’s truest form, is nothing more than a unit of account backed fundamentally by energy.
AN ECOSYSTEM & INDUSTRY APPROACH
We believe that this opportunity is so large that it will need a cross-section of industry to make it a reality. We have in mind the shaping of an ecosystem of partners in advance who are organized into an industry group beforehand.
We believe the following are needed:
- Cross-section of cryptocurrency platforms and exchanges
- Robotics, space, banking, industrial and AI innovators
- Mining, energy & oil exploration companies
- Hedge funds and global financiers
- World governments
STATE OF MOON REAL ESTATE
Taking the idea a step further, we asked ChatGPT what would be involved if someone wanted to purchase a segment of the Moon. The answer is as follows:
According to international space law, particularly the Outer Space Treaty of 1967, no government can claim sovereignty over the Moon or other celestial bodies, which means they cannot grant, sell, or recognize ownership of land on the Moon to private individuals or entities.
While there are private companies that claim to sell lunar land by arguing that the Treaty only prohibits governments from claiming celestial bodies and does not explicitly forbid private ownership, these claims are not recognized by any national authority or international body. Thus, any ‘purchase’ of lunar land from such companies would not be legally binding in terms of international law or recognized by any government on Earth.
In essence, if you pay a company for a piece of the Moon, you are more buying a novelty item than acquiring a legally enforceable land deed. As of my last update in April 2023, there is no legal mechanism for an individual to buy land on the Moon in a manner that would be acknowledged by international law or the broader international community.
WHO SIGNED THE OUTER SPACE TREATY & HOW DOES IT GET CHANGED
According to ChatGPT, the current status of the Outer Space Treaty is as follows:
The Outer Space Treaty, formally known as the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, was opened for signature in the United States, the United Kingdom, and the Soviet Union on January 27, 1967, and entered into force on October 10, 1967.
The original signatories to the treaty were the major space-faring nations at the time, including the United States, the Soviet Union, and the United Kingdom. Since then, it has become the framework for international space law and has been signed and ratified by more than 100 countries, including all of the major space-faring nations.
The United Nations Office for Outer Space Affairs (UNOOSA) maintains the status of the Outer Space Treaty and updates it with the latest information on signatories and ratifications. For the most current and detailed information, you would need to refer to their latest records.
Changing the Treaty:
The process to amend the Outer Space Treaty would involve diplomatic and legal processes similar to those for amending other international treaties. While the Outer Space Treaty itself does not specify an amendment procedure, amending it would generally follow the principles outlined in the Vienna Convention on the Law of Treaties, which is the authoritative international treaty regarding the amendment of treaties. Here’s a general outline of how the process might work:
Proposal: An amendment to the Outer Space Treaty would typically begin with a proposal. This proposal could be made by one of the parties to the treaty or by a group of parties. The proposal would then be discussed among all parties to the treaty, often at an international conference or meeting convened for this purpose.
Negotiation: If there is sufficient interest in the amendment, negotiations would begin. These negotiations would aim to reach a consensus on the text and implications of the proposed amendment. Given the complexity of space law and the diverse interests of different countries, this could be a lengthy and detailed process.
Adoption: For the amendment to be adopted, it would need to be approved by a specific number of parties. The requirements for adoption would depend on the terms of the treaty or the consensus reached during negotiations.
Ratification: Even after adoption, the amendment would not become legally binding until it is ratified. Each country would go through its own domestic legal procedures to ratify the amendment. This could involve, for instance, approval by a country’s legislature.
Entry into Force: The amendment would only enter into force after a certain number of parties have ratified it. The required number of ratifications for the amendment to enter into force would be determined during the negotiation phase.
It’s important to note that international treaty amendment processes are often slow and complex, requiring a broad consensus among the participating countries. Given the fundamental principles established by the Outer Space Treaty, any significant amendments would likely require lengthy negotiations and a strong consensus among the space-faring nations.
VIOLATING THE SPACE TREATY
What can the U.N. do to punish people who violate the space treaty?
The Outer Space Treaty of 1967 does not specify punitive measures for violations such as landing on the Moon and claiming or selling real estate there. Instead, the treaty establishes a framework of principles that are meant to guide the actions of states in the exploration and use of outer space.
Since the treaty prohibits national appropriation by claim of sovereignty, by means of use or occupation, or by any other means, any attempt by a state to claim or sell lunar land would be considered a breach of international law. However, enforcement of the treaty relies on diplomatic and political means rather than specific legal penalties. Here’s how disputes or violations are generally handled under the framework of the treaty:
Diplomatic Discussions: If a country were to claim or sell real estate on the Moon, it is likely that other countries would first engage in diplomatic discussions with the offending nation to resolve the issue in accordance with the principles of the treaty.
United Nations Involvement: The United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) serves as a forum for the development of international space law. A violation could be brought before this body, and COPUOS could recommend actions or sanctions.
International Dispute Resolution: If the dispute could not be resolved through negotiation or diplomacy, it might be addressed through international dispute resolution mechanisms, such as the International Court of Justice.
National Consequences: Countries that are parties to the treaty could also individually decide to impose consequences, such as sanctions or cessation of cooperation with the offending country in space activities.
Non-Recognition of Claims: Other states could simply refuse to recognize the claim, making it effectively meaningless on an international scale.
It’s important to note that there are no police or enforcement bodies in space to enforce the treaty. Instead, compliance is expected because states have agreed to the terms voluntarily and because there is mutual interest in preserving outer space for peaceful and cooperative use. For private entities or individuals that attempt to sell lunar land, states under whose jurisdiction these entities operate are responsible for ensuring that their activities are in compliance with international obligations.
VIOLATING OTHER SPACE TREATIES
We asked if there are any other laws from the ones listed which might impose any other punishments for selling space assets, ChatGPT listed the potential harms from the below treaties:
The agreements and treaties you’ve listed form the basis of international space law, and while they don’t provide specific punitive measures for the sale of mining rights on celestial bodies like Saturn, Mercury, Venus, Mars, or asteroids, they establish principles that make such sales illegitimate under international law. Here’s how each could potentially respond to the unauthorized sale of mining rights:
Outer Space Treaty (1967): This would be the primary document that would make the sale of mining rights on celestial bodies a violation of international law. The treaty doesn’t provide for sanctions, but as mentioned previously, diplomatic and political measures would likely be taken. States under whose jurisdiction the entity making the sale operates would be responsible for ensuring their activities are compliant with the treaty.
Rescue Agreement (1968): While not directly related to the sale of mining rights, this agreement fosters cooperation and could be indicative of how states would react to a violation of the cooperative principles of space law.
Liability Convention (1972): If the entity selling mining rights or their activities caused damage, this convention could hold the launching state liable for those damages.
Registration Convention (1975): If a state or private entity registers an object that is then used to exploit celestial bodies without international agreement, this could create grounds for diplomatic protest or other measures, as the state is responsible for the space object.
Moon Agreement (1979): Although not widely ratified, if a state that has ratified this agreement were to sell mining rights, it would be a direct violation of the agreement. The state could potentially face diplomatic consequences from other parties to the agreement.
In all cases, the actual ‘punishment’ for such a violation would likely be political in nature. A state found to be in violation of these principles might face diplomatic pressure, calls for sanctions, or could potentially be subject to proceedings in international courts. Additionally, other states could refuse to recognize the legality of the mining rights sold, which would make it difficult for the entity to gain international cooperation for their mining activities. However, as of my last update, there has been no precedent for such a situation, so the specific consequences would likely be determined by the reactions of the international community at that time.
KICKSTARTING THE SPACE ASSETS EXCHANGE
We now have enough information to write a “Gigaprompt.” Here is the Gigaprompt:
I understand that it is not currently legal to sell celestial assets. However, I believe that robotics and AI will develop rapidly to enable marketplaces for celestial assets to form, and that the first step to financing space exploration and mining will be to open a marketplace for space assets.
This marketplace would begin with an initial auction and treaty to enable members of the UN to bid on celestial assets based on their historical preference. Nations like Africa who were victimized by colonization will receive preferential treatment in extra planetary mineral exploration.
We will launch an initial asset exchange on Ethereum, using advanced forms of NFTs which enable trading via automated AI agents. Our objective is to introduce futures, options, bonds and loans on celestial assets so that we can kickstart the space race by future financing operations with the understanding that robots and aI will progress rapidly to enable things like space mining rigs, drilling and robotic factories.
Please write an actionable plan about how the ethereum based exchange would be launched, relevant business, industrial, robotics, AI companies to engage, how the exchange begins as a prototype to prove the concept, then we use AI lawyers (chatGPT) to approach the UN in collaboration with BlackRock to get the Space Treaty Amended to propose auctioning mining rights using a fair lottery system weighted towards colonial history, and then how the initial space exchange launches, and ultimately legal contracts generated automatically by AI lawyers are used to bind these futures, options, bonds and other financial instruments to actual ownership in space until ultimately, the celestial assets exchange becomes the standard used by the United Nations.
Our intention is to propose the framework as an open source protocol and set of standards to enable the behavior and enable many exchanges to launch.
GIGAPROMPT RESULTS
The following is the output of the Gigaprompt from above:
Creating an Ethereum-based exchange for celestial assets involves a complex interplay of technological innovation, legal negotiation, and international cooperation. While the notion of such a marketplace is currently speculative and would face significant legal and ethical challenges given the current framework of international space law, here is a hypothetical plan that outlines the steps that could be taken to pursue this goal:
Phase 1: Technological Development and Proof of Concept
- Research and Development: Engage with leading AI, robotics, and industrial companies to develop the technologies necessary for space exploration and mining. Companies like SpaceX for launch capabilities, Boston Dynamics for robotics, and OpenAI for AI systems could be involved.
- Develop the Exchange Platform: Create a prototype Ethereum-based exchange platform using smart contracts for trading NFTs that represent hypothetical celestial assets.
- Simulation and Testing: Run simulations of the marketplace with stakeholders, including AI-generated agents, to test the functionality, security, and robustness of the platform.
- Legal Framework and Compliance: Consult with legal experts in international space law to develop a compliance framework for operating within the current legal boundaries.
Phase 2: Diplomatic Engagement and Treaty Amendment
- Draft Proposal: Use AI tools (like an advanced version of ChatGPT) to draft a proposal for amending the Outer Space Treaty, incorporating equitable principles reflecting historical preferences and colonial history.
- Engage with International Bodies: Present the proposal to international bodies, such as the United Nations Committee on the Peaceful Uses of Outer Space (COPUOS), and seek support from member states.
- Collaborate with Financial Institutions: Partner with entities like BlackRock to build financial models demonstrating the potential for space asset markets to fund space exploration and development.
- Lobbying and Advocacy: Engage in lobbying efforts with nations and key stakeholders to gather support for the treaty amendment.
Phase 3: Market Establishment and Expansion
- UN Auction and Treaty Implementation: Should the treaty be amended, facilitate the initial auction of mining rights on the platform, ensuring transparency and fairness as outlined in the amended treaty.
- Launch of Exchange: Officially launch the celestial assets exchange, allowing for the trading of futures, options, bonds, and loans tied to celestial assets.
- Regulatory Framework Establishment: Work with international regulators to establish a framework for the operation of the exchange and the enforcement of contracts.
- Integration with Space Operations: Coordinate with space exploration companies to ensure that the outcomes of the exchange are aligned with actual space operations and asset utilization.
Phase 4: Legal Infrastructure and Operationalization
- Automated Legal Contracts: Utilize AI-powered legal tools to generate and manage contracts for the exchange, ensuring they are enforceable and compliant with international law.
- Open Source Protocol: Develop and release an open-source protocol for the celestial asset exchange to foster transparency and allow for the creation of additional exchanges.
- Global Standards and Practices: Establish a set of standards and best practices for celestial asset exchanges, ensuring they operate fairly and contribute to the responsible development of space resources.
- Continued Advocacy and Education: Promote understanding and acceptance of the celestial assets marketplace through educational campaigns, academic partnerships, and continued engagement with the public and private sectors.
Phase 5: Long-term Sustainability and Governance
- Establish Governance Body: Create an international governance body with representation from participating nations, companies, and other stakeholders to oversee the celestial assets exchanges.
- Sustainable Development Goals: Align the marketplace’s activities with sustainable development goals for space, ensuring that space mining and resource utilization do not lead to a repeat of terrestrial environmental degradation.
- Continuous Review and Adaptation: Implement a system for continuous review and adaptation of the marketplace rules and technology to ensure it remains fair, equitable, and relevant to the evolving context of space exploration.
This plan is highly speculative and idealistic, considering the current legal and political climate surrounding space law. Any movement towards the privatization of space assets would require careful consideration of not just the economic implications but also the ethical and environmental impacts. It would necessitate unprecedented international cooperation and a significant shift in how celestial bodies are governed.
CLOSING THOUGHTS
So there we have it. An initial plan around what would be required to stand up a space asset exchange with analysis of the legal situation and potential punishments.
There are many unanswered questions and further areas of exploration. However, we believe that the framework for the idea is solid, it is viable and AI and robotics will proceed rapidly to make it not just possible but something we can implement and begin trading within the next two years.
Stay tuned.
