How the network tunes itself

1. 1

   Measure the network

   The network takes readings of seven kinds: spending, participation, the economy, validation, votes, payouts and new records.

   “a telemetry subsystem configured to obtain ledger-operation telemetry representing at least transaction activity, network participation, economic operation, validation operation, governance operation, value-allocation operation, and ledger formation;”

2. 2

   Agree on one picture

   From those readings each node can rebuild the same summary of the network, so every node starts from the same state.

   “a control-state subsystem configured to generate, from the ledger-operation telemetry, a common control-state representation that is reproducible by the plurality of validation nodes;”

3. 3

   Propose a change

   A controller proposes new settings in a pair: one for the money, such as a fee or reward, and one for the network that carries it.

   “an adaptive control mechanism configured to process the common control-state representation and generate a parameter-state update comprising an economic operating parameter and a network operating parameter,”

4. 4

   Keep it in bounds

   The proposal must pass a set rule that limits how far a setting may move.

   “a parameter-transition control mechanism configured to constrain the parameter-state update according to an authorized transition rule;”

5. 5

   Seal it and send it

   The approved change is sealed with an ID, the ledger interval when it takes effect, and its authentication (in claim 5, a post-quantum signature), then sent to every node.

   “a parameter-state distribution subsystem configured to generate a parameter-state package comprising the constrained parameter-state update, an update identifier, an effective ledger interval, and authentication data, and to distribute the parameter-state package to the plurality of validation nodes,”

6. 6

   Check it and switch together

   Each node checks the seal and switches at the same interval, so the whole network changes at once.

   “each validation node is configured to verify the parameter-state package, activate the constrained parameter-state update as an activated parameter state at the effective ledger interval responsive to the verification, and apply the activated parameter state during ledger operation to control transaction admission, validation operation, and ledger-record formation,”

7. 7

   Measure the result

   The network measures what the change did and feeds the result into the next round.

   “a feedback subsystem configured to measure post-activation ledger-operation telemetry produced by application of the activated parameter state and provide the post-activation ledger-operation telemetry to a subsequent control cycle of the adaptive control mechanism.”

The seven steps are the elements of claim 2. Claims 19 and 20 claim the same loop as stored instructions and as a method. FIG. 28 charts it.