1
people have died from curable diseases
since this page started loading...
💀

Aligning Incentives

Keywords

war-on-disease, 1-percent-treaty, medical-research, public-health, peace-dividend, decentralized-trials, dfda, dih, victory-bonds, health-economics, cost-benefit-analysis, clinical-trials, drug-development, regulatory-reform, military-spending, peace-economics, decentralized-governance, wishocracy, blockchain-governance, impact-investing

Related: Incentive Alignment Bonds details the specific financial mechanism design.

This book is not about convincing people to be better. It’s about building a system where doing well and doing good are the same thing. The current system pays for death and disease. The new system pays for life and health.

This chapter shows how to align incentives so everyone profits from human flourishing instead of suffering. You don’t appeal to better angels. You make the math work.

You can align major interest groups behind a single goal: curing disease. Not through charity. Not through guilt. Through pure profit.

Defense Contractors: Teaching Merchants of Death to Love Life

Defense contractors aren’t evil. They’re just following the money. Currently, that money comes from building things that explode. You’re going to offer them something better.

A comparison diagram showing the shift in defense contractor focus from kinetic weaponry to positive alternatives, driven by changing financial incentives.

A comparison diagram showing the shift in defense contractor focus from kinetic weaponry to positive alternatives, driven by changing financial incentives.

Their Structural Vulnerabilities

Look at what they’re working with:

  • Customer base: One customer (the government), meaning total revenue dependence on political cycles
  • Product cycle: 20 years to build a plane that’s obsolete on delivery
  • Risk: Peace might break out (their literal nightmare)
  • Public image: “We make orphans” (hard to explain at parties)

Here’s Your Better Offer: VICTORY Incentive Alignment Bonds

Show them this math:

  • Current defense stock yields: 2-3% (basically inflation)
  • VICTORY Incentive Alignment Bonds at full treaty: 272%+ perpetual returns
  • With treaty expansion (2%, 5%, 10%): Returns scale automatically
  • Liquidity: Trade them anytime (unlike locked government contracts)
  • Public image: “We cure cancer” (instant party hero)

The pitch: “Keep making bombs AND buy bonds that pay 10X better returns. Or your competitors will buy them and use the profits to destroy you.”

A comparison chart showing the massive yield gap between traditional defense stocks and VICTORY bonds, alongside qualitative benefits like liquidity and public image.

A comparison chart showing the massive yield gap between traditional defense stocks and VICTORY bonds, alongside qualitative benefits like liquidity and public image.

Why They’ll Take the Deal

The Portfolio Math

A comparison showing how a 10 percent allocation to high-yield VICTORY bonds shifts a standard pension portfolio from a 7 percent return to a 33.3 percent blended return.

A comparison showing how a 10 percent allocation to high-yield VICTORY bonds shifts a standard pension portfolio from a 7 percent return to a 33.3 percent blended return.
  • They have billions in pension obligations
  • Current portfolio returns: 6-8% (barely covers inflation)
  • Add 10% VICTORY Incentive Alignment Bonds: Portfolio returns jump to 33%+ (90% at 7% + 10% at 272% = 33.3% blended return)
  • Their retirees get paid, executives get bonuses, pension obligations get met

The PR Victory

A comparison showing how shifting a corporate narrative from negative press to positive social impact leads to improved ESG scores and better recruitment opportunities.

A comparison showing how shifting a corporate narrative from negative press to positive social impact leads to improved ESG scores and better recruitment opportunities.
  • Current headline: “Raytheon Missile Kills Wedding Party”
  • New headline: “Raytheon Funds Cancer Cure”
  • ESG scores improve dramatically
  • Recruiting top talent becomes possible again

The Competitive Pressure

Once Lockheed buys bonds, Raytheon has to follow or get crushed by Lockheed’s superior returns. It’s a prisoners’ dilemma where cooperation pays better than defection.

The Implementation Playbook

A process flow showing how pension fund and treasury investments lead to advocacy and support from defense contractors.

A process flow showing how pension fund and treasury investments lead to advocacy and support from defense contractors.
  1. Start with pension funds - Fiduciary duty requires best returns
  2. Move to treasury - Diversification mandate allows alternative investments
  3. End with advocacy - They lobby FOR the treaty to protect their investment
  4. Result - Defense contractors become your biggest supporters

Insurance Companies: The Accidentally Aligned Industry

Insurance companies are already on your side. They just don’t know it yet. Every disease you cure is billions they don’t have to pay out.

Their Current Death Spiral

A conceptual diagram of the insurance ‘death spiral’ showing the causal links between rising medical costs, regulatory constraints, and declining profit margins.

A conceptual diagram of the insurance ‘death spiral’ showing the causal links between rising medical costs, regulatory constraints, and declining profit margins.
  • Medical costs rising 7% annually
  • Premiums can’t keep pace (regulation)
  • Claims destroying margins
  • Chronic disease = lifetime payouts
  • Their business model is dying

Your Salvation Offer

The Math They Can’t Refuse

Disease Current Annual Cost After Cure Reduction
Diabetes

$327B (95% CI: $278B-$376B)

One-time cure cost ~90% ongoing savings
Alzheimer’s

$355B (95% CI: $302B-$408B)

One-time cure cost ~90% ongoing savings
Heart Disease

$363B (95% CI: $309B-$417B)

One-time cure cost ~90% ongoing savings
Cancer

$208B (95% CI: $177B-$239B)

One-time cure cost ~90% ongoing savings

Even partial cures dramatically improve their margins. They don’t need $0 costs - they need costs to stop rising 7% annually.

The Implementation

A flow diagram illustrating the causal chain from bond purchase and lobbying to health improvements and permanent profit increases.

A flow diagram illustrating the causal chain from bond purchase and lobbying to health improvements and permanent profit increases.
  1. They buy VICTORY Incentive Alignment Bonds (272% returns)
  2. They lobby for the treaty (protects investment)
  3. Cures reduce their claims (profits increase)
  4. They lower premiums (competitive advantage)
  5. Healthier population = permanent profit increase

Why They’re Your Natural Allies

Insurance companies are the only industry that profits from human health. Every other healthcare player profits from sickness. Use this natural alignment:

  • Pharma wants chronic patients - Insurance wants cures
  • Hospitals want full beds - Insurance wants empty ones
  • Doctors want repeat visits - Insurance wants one-time fixes

You’re offering insurance companies a world where chronic disease costs stop compounding at 7% annually.

A comparison chart showing the conflicting incentives between traditional healthcare providers and insurance companies, highlighting how insurance aligns with long-term patient health.

A comparison chart showing the conflicting incentives between traditional healthcare providers and insurance companies, highlighting how insurance aligns with long-term patient health.

Pharmaceutical Companies: Converting Drug Dealers to Drug Curers

Pharma companies aren’t evil either. They’re trapped in a broken business model that rewards treating symptoms forever instead of curing diseases once. Here’s how you free them.

A conceptual diagram contrasting the current pharmaceutical model of recurring symptom treatment with a new model focused on one-time cures.

A conceptual diagram contrasting the current pharmaceutical model of recurring symptom treatment with a new model focused on one-time cures.

Their Current Trap

An infographic illustrating the ‘Pharma Trap’ by visualizing the extreme funnel of drug development, highlighting the 17-year timeline and 2.6B cost to move from 10,000 compounds to one successful drug.

An infographic illustrating the ‘Pharma Trap’ by visualizing the extreme funnel of drug development, highlighting the 17-year timeline and 2.6B cost to move from 10,000 compounds to one successful drug.
  • R&D costs: $2.6B per drug (unsustainable)
  • Success rate: 1 in 10,000 compounds work (lottery odds)
  • Timeline: 17 years to market (patients die waiting)
  • Patent cliffs: Blockbusters become generics overnight
  • Public hatred: Martin Shkreli is their poster boy

The Cost Elimination

A side-by-side comparison showing the shift from the high-cost, high-risk traditional pharma trial model to a low-cost, scalable decentralized pragmatic trial model.

A side-by-side comparison showing the shift from the high-cost, high-risk traditional pharma trial model to a low-cost, scalable decentralized pragmatic trial model.

Current model (pharma pays for trials):

  • Pharma spends $48,000+ per trial participant
  • Burns cash for 17 years hoping for approval
  • 90% of drugs fail in trials = money incinerated
  • Success means jacking up prices to recover losses

The new model (using decentralized pragmatic trials):

  • Trial cost drops ~98% (pragmatic design, existing medical records, no dedicated sites)
  • Can afford to run 100x more trials with same budget
  • Success means profit, failure doesn’t bankrupt you

The Math That Converts Them

Current Pharma Economics

A visual breakdown of pharmaceutical economics illustrating how high development costs and low success rates result in a marginal 1.2 percent return on investment.

A visual breakdown of pharmaceutical economics illustrating how high development costs and low success rates result in a marginal 1.2 percent return on investment.

New System - Cost Elimination

The main benefit: pragmatic clinical trials become 100x cheaper.

NoteHow your decentralized institutes of health eliminate trial costs

Current system: Pharma spends $48,000 per participant on:

  • Dedicated trial sites and staff
  • Extensive monitoring and site visits
  • Custom data collection infrastructure
  • Regulatory compliance overhead

A system using your decentralized institutes of health (DIH): Cost drops ~98% because:

  • Uses existing medical practices (no dedicated sites)
  • Patient’s regular doctor enrolls them (one-click)
  • Leverages existing EHR data (no custom infrastructure)
  • Pragmatic design = minimal monitoring
  • Platform handles regulatory compliance automatically

Result: 50,000-participant trial drops from $2.4 billion to under $50 million (regulatory filing, data analysis, platform fees).

Current System A decentralized trials framework
Pay $2.60B (95% CI: $1.50B-$4B) for trials Pay ~$50M for trials (98% reduction)
90% of drugs fail = $2.3B loss Failure costs ~$50M (survivable)
10-17 year development 2-3 year development
Only blockbusters viable Rare diseases = profitable
Massive risk Manageable risk per attempt

A decentralized institutes of health network doesn’t change whether drugs work biologically. It changes the economics: you profit from TRYING, not just from SUCCEEDING.

Side-by-side comparison of the current high-cost pharmaceutical model versus the proposed decentralized low-cost model.

Side-by-side comparison of the current high-cost pharmaceutical model versus the proposed decentralized low-cost model.

Pharma’s New Business Model: Volume Over Blockbusters

The trade-off: Lower revenue per drug, but massively more attempts.

Current model

  • Chase $1B+ blockbusters
  • Can only afford ~10 attempts (each costs $2.6B)
  • Need huge markets to justify risk
  • 10,000 compounds sitting on shelf

The new decentralized model

A visualization of the decentralized drug development model, contrasting lower profitability thresholds with a massive increase in trial volume and target market diversity.

A visualization of the decentralized drug development model, contrasting lower profitability thresholds with a massive increase in trial volume and target market diversity.
  • $500M per success is profitable (smaller markets work)
  • Can attempt all 10,000 compounds (failure doesn’t bankrupt you)
  • Rare diseases become gold mines (no competition)
  • 115× more trials = 115× more shots on goal

How to Get Them Onboard

A 4-step sequence illustrating the market adoption strategy starting with generic manufacturers and biotechs, followed by big pharma, leading to a total industry transformation.

A 4-step sequence illustrating the market adoption strategy starting with generic manufacturers and biotechs, followed by big pharma, leading to a total industry transformation.
  1. Start with generic manufacturers - No R&D costs, immediate margin
  2. Add biotechs - Desperate for cash, will try anything
  3. Big pharma follows - Can’t let competitors have advantage
  4. Industry transforms - Competition shifts from marketing to outcomes

Politicians: Hacking Democracy’s Source Code

Politicians are the simplest organisms in this ecosystem. They want exactly two things: votes and money. You’re going to give them both.

Their Current Misery

A dashboard-style infographic illustrating the ‘misery profile’ of a modern politician, contrasting high fundraising demands with low approval and actual power.

A dashboard-style infographic illustrating the ‘misery profile’ of a modern politician, contrasting high fundraising demands with low approval and actual power.
  • Fundraising: 70% of their time begging for money
  • Approval rating: 18% (everyone hates them)
  • Actual power: Near zero (lobbyists write the bills)
  • Legacy: “That guy who renamed a post office”
  • Job security: One bad tweet from extinction

Your Political Welfare Program

The Money Pipeline

  • Treaty supporter: Super PAC funds flow in
  • Treaty opponent: Super PAC funds their opponent
  • It’s not corruption, it’s free speech (thanks Citizens United!)

The Vote Harvest

A process flow showing how Wishocracy aggregates user votes to track legislative records and trigger real-time constituent pressure on elected officials.

A process flow showing how Wishocracy aggregates user votes to track legislative records and trigger real-time constituent pressure on elected officials.
  • 280M of people voting on Wishocracy
  • You publish voting records: “Senator X opposes cheaper healthcare”
  • Their constituents see this in real-time
  • Support the treaty or face electoral extinction

The Bipartisan Beauty

This works on everyone:

  • Republicans: “Free market solution! Cuts government spending!”
  • Democrats: “Universal healthcare access! Helps the poor!”
  • Libertarians: “Ends FDA tyranny! Personal freedom!”
  • Socialists: “Destroys Big Pharma monopoly! Power to people!”

Everyone can claim victory because the framing works for each ideology.

Billionaires: Self-Interest Meets Self-Preservation

Billionaires have everything except the one thing money can’t buy: not dying. You’re offering returns AND longevity research. The incentives align naturally.

A conceptual diagram showing the alignment of financial returns and longevity research as dual incentives for billionaire investment.

A conceptual diagram showing the alignment of financial returns and longevity research as dual incentives for billionaire investment.

What They Really Want

  • Legacy: Being remembered (narcissism is powerful)
  • Returns: Beating other billionaires (it’s all a game)
  • Survival: Not dying of whatever will kill them
  • Reputation: Not being history’s villain
  • Control: Shaping the future

Your Irresistible Package

The Investment

  • VICTORY Incentive Alignment Bonds offer returns funded by treaty revenue
  • Beats traditional portfolio yields

The Legacy

  • “The Gates Cancer Center” (permanent naming rights)
  • “The Musk Longevity Institute” (feed that ego)
  • History books: “Funded the cure for death”
  • Nobel Peace Prize possible (they crave validation)

The Insurance

A conceptual model illustrating the transition from biological vulnerability to extended lifespan through the ‘insurance’ of medical research investment.

A conceptual model illustrating the transition from biological vulnerability to extended lifespan through the ‘insurance’ of medical research investment.
  • They’re getting old (mortality is calling)
  • Their genetics aren’t special (death doesn’t care about wealth)
  • Every disease cured = their lifespan extended
  • Basically buying protection from biology

The Domino Effect: How This Cascade Works

Once you align a few key players, others follow:

The Sequence

A flowchart illustrating the sequential chain reaction of influence, starting from insurance companies and moving through politicians and defense contractors to billionaires.

A flowchart illustrating the sequential chain reaction of influence, starting from insurance companies and moving through politicians and defense contractors to billionaires.
  1. Insurance companies move first (pure financial logic)
  2. Their lobbying convinces politicians (money talks)
  3. Politicians create treaty momentum (votes follow)
  4. Defense contractors hedge (can’t risk being left out)
  5. Pharma pivots (adapt or die)
  6. Billionaires pile in (FOMO is powerful)

Why This Can Work: Solving the Collective Action Problem

Public choice theory predicts that concentrated interests (defense contractors, pharma incumbents) beat diffuse interests (patients, taxpayers) because small groups with high per-person stakes outorganize large groups with low per-person stakes. This is why the current system persists despite its inefficiency.

But here’s what Olson missed: The capital asymmetry is 90:1 in favor of diffuse beneficiaries.

Side Available Capital Current Political Spending
Concentrated interests (defense, fossil fuels) ~$5T market cap $100M-$1B annually
Diffuse beneficiaries (everyone who’d benefit from cures) $454T household wealth ~$0 (coordination failure)

The problem isn’t resources. It’s coordination. Diffuse beneficiaries can’t deploy their 90:1 capital advantage because each individual’s stake is small and coordination costs are prohibitive.

Incentive Alignment Bonds solve the coordination problem by securitizing political change. When political outcomes become an investable asset class with 100-1000x expected returns, coordination happens through financial markets instead of grassroots organizing. Investors don’t need to care about curing disease - they need to care about returns. The mechanism converts self-interest into collective action.

Why the cascade can happen (not “must” happen)

Once IABs concentrate financial benefits on the pro-health side:

  • Politicians face a new calculation: IAB benefits > concentrated opposition costs
  • Each policy success increases IAB funding, strengthening the coalition
  • Investors lobby for treaty expansion to increase their returns
  • The dynamic reverses: supporting pragmatic clinical trial funding becomes the concentrated-benefit option

This isn’t inevitable. It requires sufficient IAB funding to overcome opposition. But it’s achievable because the capital is there - it just needs a coordination mechanism.

A virtuous cycle diagram illustrating how IAB funding creates a reinforcing feedback loop between political support, policy success, and increased investor capital.

A virtuous cycle diagram illustrating how IAB funding creates a reinforcing feedback loop between political support, policy success, and increased investor capital.

Why This Scales: The Ratchet Effect

The mechanisms above get the first 1% treaty passed. But the goal is expansion: 1% → 2% → 5% → eventually much more. The key insight: political incentive funding grows with treaty size.

Treaty Level Political Incentive Funding
1% $2.72B/year
2% $5.4B/year
5% $13.5B/year
10% $27B/year

Each expansion creates more funding to lobby for the next expansion. Politicians who supported the 1% treaty are rewarded; those rewards grow if they push for 2%. It’s a ratchet that only moves in one direction.

See Incentive Alignment Bonds for the full mechanism design.