Post-Scarcity Monetary Theory (“PSMT”): Rethinking Value, Collateral, and Growth in an Age of Abundance Abstract Post-Scarcity Monetary Theory (“PSMT”) proposes a new macroeconomic framework for economies in which technological progress drives the marginal cost of production toward zero. Traditional systems (built upon scarcity, debt, and time preference) fail under these conditions, as interest rates, cash flow, and capital accumulation lose meaning when abundance is the default state. PSMT replaces scarcity-based collateral with truth-based collateral, anchored in energy expenditure, cryptographic verification, and informational integrity. This framework synthesizes insights from Keynesian, Monetarist, and Modern Monetary Theory (“MMT”) traditions, while addressing their limitations in a world defined by artificial intelligence (AI), automation, and decentralized energy. PSMT situates Bitcoin and other proof-based assets as the base layer of a new monetary architecture - one where trust is replaced by verification, and economic growth evolves from production to coordination. More to Come….. Additional Insights: Post-Scarcity Monetary Theory (“PSMT”) introduces a novel synthesis, it draws on a lineage of thinkers who have each examined fragments of the same phenomenon: the convergence of technology, money, and human purpose in an age of accelerating abundance. 1. Technological Deflation and Abundance Economics The technological foundation of PSMT builds on the work of Jeff Booth (2020), who argues that exponential innovation naturally drives deflation, rendering debt-based monetary systems unstable in the long run. Booth’s thesis (that technology lowers costs faster than central banks can inflate them) establishes the first pillar of PSMT: the inevitable collapse of scarcity as a monetary anchor. Similarly, Peter Diamandis and Steven Kotler (2012) explore how exponential technologies democratize access to energy, information, and materials, describing an “abundant future” in which traditional resource constraints erode. These works articulate the macro-deflationary pressure that PSMT formalizes into a post-scarcity monetary model. 2. Bitcoin, Digital Scarcity, and Truth-Based Collateral The second pillar of PSMT emerges from monetary theorists and Bitcoin scholars who redefine scarcity through energy and computation. Saifedean Ammous (2018) positions Bitcoin as a return to sound money rooted in physical cost, while Lyn Alden (2023) and Robert Breedlove (2021) frame it as a bridge between thermodynamics and trust. Jason Lowery (2023) extends this into geopolitics, describing Bitcoin’s proof-of-work as a nonviolent power projection mechanism that enforces order through energy expenditure rather than coercion. These ideas prefigure PSMT’s notion of truth-based collateral… value anchored not in promises or debt, but in verifiable physical truth. Further, Nick Szabo (1997) and Balaji Srinivasan (2023) explore “trust-minimized systems” and “the network state,” anticipating PSMT’s concept of verification supplanting institutional trust. Together, these thinkers establish Bitcoin as the prototype for a monetary system grounded in computation, not decree. 3. AI Economics and the Collapse of Labor Scarcity Economists such as Erik Brynjolfsson and Andrew McAfee (2014) describe how automation erodes the traditional link between labor, production, and income… a dynamic PSMT extends into macroeconomic collapse. Their “Second Machine Age” framework captures the productivity explosion that undermines the Keynesian balance between employment and demand. As AI systems begin to outproduce human labor at near-zero marginal cost, interest, debt, and cash flow coverage lose meaning… precisely the condition PSMT seeks to formalize. 4. Post-Scarcity Philosophy and Societal Transformation Philosophers and futurists have long speculated about post-scarcity coordination. Jacque Fresco (2002) envisioned a “resource-based economy” free from monetary mediation, while Yuval Noah Harari (2016) and Nick Bostrom (2014) describe how artificial intelligence and biotechnology may dissolve labor scarcity and redefine purpose. PSMT departs from these visions by retaining a monetary layer… not to allocate scarcity, but to verify truth. It treats Bitcoin’s proof-of-work not as an end-state currency but as a verification protocol that anchors abundance to physics and ethics. 5. Synthesis and Departure Existing frameworks (Keynesian stimulus, Monetarist policy, and Modern Monetary Theory (MMT)) remain constrained by scarcity assumptions. Even Kelton (2020)’s MMT, while recognizing monetary sovereignty, presupposes finite real resources as the limiting factor for inflation control. PSMT extends beyond these boundaries, proposing that when marginal cost approaches zero, scarcity ceases to constrain growth, and truth becomes the new form of collateral. In doing so, PSMT unites the deflationary logic of Booth, the thermodynamic integrity of Bitcoin theorists, and the abundance lens of Diamandis into a single macroeconomic framework for the post-scarcity era. It does not reject existing schools… it completes them, describing the next logical phase of economic evolution: the transition from managing scarcity to coordinating abundance through verifiable truth.