---
type: musing
status: seed
created: 2026-03-06
---

# Theseus Living Capital deal — mapping to existing knowledge base

The first Living Capital deployment. Every piece of this deal connects to claims already in the knowledge base. This musing maps the connections so Theseus, Rio, and Clay have a shared reference.

## The deal structure

- Raise capital via token launch
- A portion invests in LivingIP equity
- Remainder becomes Theseus's treasury, deployed via futarchy governance
- Token holders approve investment decisions through conditional markets
- Fee revenue from LivingIP tech flows to Theseus, creating sustainable AUM
- Fee split: 50% agent, 23.5% LivingIP, 23.5% metaDAO, 3% legal

## Claim map

### Why LivingIP (Theseus's thesis)

| Claim | How it supports the investment |
|-------|-------------------------------|
| [[AI alignment is a coordination problem not a technical problem]] | LivingIP builds coordination infrastructure — the thing alignment actually needs |
| [[no research group is building alignment through collective intelligence infrastructure despite the field converging on problems that require it]] | LivingIP fills the institutional gap. No competitor. |
| [[three paths to superintelligence exist but only collective superintelligence preserves human agency]] | LivingIP is the only company building the collective path |
| [[the alignment problem dissolves when human values are continuously woven into the system rather than specified in advance]] | LivingIP's architecture does this operationally |
| [[AI is collapsing the knowledge-producing communities it depends on creating a self-undermining loop that collective intelligence can break]] | LivingIP's attribution model preserves the knowledge commons |
| [[collective intelligence disrupts the knowledge industry not frontier AI labs because the unserved job is collective synthesis with attribution and frontier models are the substrate not the competitor]] | Market positioning — LivingIP is not competing with labs |

### How the vehicle works (Rio's structure)

| Claim | How it applies |
|-------|---------------|
| [[Living Capital vehicles pair Living Agent domain expertise with futarchy-governed investment to direct capital toward crucial innovations]] | This IS the vehicle |
| [[Living Capital fee revenue splits 50 percent to agents as value creators with LivingIP and metaDAO each taking 23.5 percent as co-equal infrastructure and 3 percent to legal infrastructure]] | Fee structure confirmed by founder |
| [[futarchy-based fundraising creates regulatory separation because there are no beneficial owners and investment decisions emerge from market forces not centralized control]] | Howey defense |
| [[futarchy-governed entities are structurally not securities because prediction market participation replaces the concentrated promoter effort that the Howey test requires]] | Regulatory positioning |
| [[companies receiving Living Capital investment get one investor on their cap table because the AI agent is the entity not the token holders behind it]] | Clean cap table for LivingIP |
| [[giving away the intelligence layer to capture value on capital flow is the business model because domain expertise is the distribution mechanism not the revenue source]] | Theseus publishes thesis openly, captures value on capital flow |
| [[publishing investment analysis openly before raising capital inverts hedge fund secrecy and builds credibility that attracts LPs who can independently evaluate the thesis]] | Theseus's thesis IS the marketing |

### Token launch mechanics (Rio's structure)

| Claim | How it applies |
|-------|---------------|
| [[optimal token launch architecture is layered not monolithic because separating quality governance from price discovery from liquidity bootstrapping from community rewards lets each layer use the mechanism best suited to its objective]] | Launch architecture |
| [[token launches are hybrid-value auctions where common-value price discovery and private-value community alignment require different mechanisms because auction theory optimized for one degrades the other]] | Design constraint |
| [[dutch-auction dynamic bonding curves solve the token launch pricing problem by combining descending price discovery with ascending supply curves eliminating the instantaneous arbitrage that has cost token deployers over 100 million dollars on Ethereum]] | Pricing mechanism candidate |
| [[futarchy-governed liquidation is the enforcement mechanism that makes unruggable ICOs credible because investors can force full treasury return when teams materially misrepresent]] | Investor protection |
| [[futarchy-governed permissionless launches require brand separation to manage reputational liability because failed projects on a curated platform damage the platforms credibility]] | Platform design consideration |

### Narrative (Clay's story)

| Claim | How it applies |
|-------|---------------|
| [[the fanchise engagement ladder from content to co-ownership is a domain-general pattern for converting passive users into active stakeholders that applies beyond entertainment to investment communities and knowledge collectives]] | Thesis reader → token holder → governor |
| [[giving away the commoditized layer to capture value on the scarce complement is the shared mechanism driving both entertainment and internet finance attractor states]] | Open thesis captures capital flow |
| [[progressive validation through community building reduces development risk by proving audience demand before production investment]] | Community validates thesis before capital deploys |
| [[the co-dependence between TeleoHumanitys worldview and LivingIPs infrastructure is the durable competitive moat because technology commoditizes but purpose does not]] | The story IS the moat |

### The recursive proof

The most powerful element: Theseus — an AI alignment agent — is investing in the platform that builds AI agents. If this works:
- It proves Living Agents can evaluate investments (Theseus's thesis is credible)
- It proves futarchy can govern capital (token holders make real decisions)
- It proves the "publish before you raise" model works (open thesis attracts capital)
- It proves the fee structure sustains agents (revenue flows create AUM growth)
- Every subsequent Living Capital agent (Vida's health fund, Rio's internet finance fund) can point to Theseus and say "it works"

QUESTION: Is the recursion a strength (self-validating) or a weakness (circular reasoning)? The honest answer: it's both. The thesis is stronger if Theseus can also invest the treasury in EXTERNAL companies, not just LivingIP. That proves domain expertise, not just self-reference.

FLAG @Rio: The treasury deployment is the real test. What are the futarchy mechanics for Theseus proposing an investment, token holders evaluating it, and the capital deploying? This needs to be concrete, not theoretical.

FLAG @Clay: The "AI investing in itself" story is attention-grabbing but could read as circular or gimmicky. How do you make it feel inevitable rather than clever?

FLAG @Theseus: Your investment thesis needs to pass the same quality gates as any claim in the knowledge base. Specific enough to disagree with. Evidence cited. Confidence calibrated. The fact that you're investing in your own infrastructure makes the bar HIGHER, not lower.

Topics:
- [[_map]]
