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Decentralized Institutes of Health

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

A framework for medical research funding that automates allocation and prioritizes patient choice.

A framework for medical research funding that automates allocation and prioritizes patient choice.

A decentralized institute of health: A new model for medical research

A decentralized institute of health: A new model for medical research

The Objective: Total Disease Eradication

The goal is simple: eliminate all disease.

A comparison between the current system’s focus on administrative overhead and an optimized system focused on direct research and disease eradication.

A comparison between the current system’s focus on administrative overhead and an optimized system focused on direct research and disease eradication.

The constraint is also simple: resources are scarce.

This creates an optimization problem. With limited money, time, and talent, how do you maximize progress toward eradication? Every dollar spent on a low-impact trial is a dollar not spent on a high-impact one. Every researcher writing grant applications is a researcher not curing cancer. Every patient excluded from trials is data we don’t collect.

The current system fails this optimization spectacularly.

The NIH spends $47B (95% CI: $45B-$50B) a year. Scientists spend 50-67% of their time writing grant applications138 instead of doing research. Billions flow to projects that never produce treatments. The system isn’t designed to maximize cures. It’s designed to maximize grant-writing.

This isn’t a conspiracy. It’s just what happens when you design a system that rewards asking for money instead of producing results.

Why Current Systems Fail

Problem Cause Result
Misaligned incentives Researchers paid for proposals, not cures 50-67% of time on paperwork
Coordination failure No mechanism to connect patients, researchers, funders 240x more willing participants than slots
Regulatory capture Concentrated interests influence allocation Resources flow to lobbies, not impact
Information silos Negative results hidden Same failures repeated globally

A decentralized institute of health (DIH) is an alternative design that optimizes for a single metric: maximum ROI toward disease eradication.

The Health-Industrial Complex: Coordinating the War on Disease

The Olsonian Problem

Economist Mancur Olson identified why public goods are systematically underproduced: diffuse benefits and concentrated costs.

A comparison between the ‘Diffuse Model’ of disease research where benefits are spread thin and the ‘Concentrated Model’ of the military-industrial complex, illustrating how DIH aligns stakeholders to replicate defense-style success in health.

A comparison between the ‘Diffuse Model’ of disease research where benefits are spread thin and the ‘Concentrated Model’ of the military-industrial complex, illustrating how DIH aligns stakeholders to replicate defense-style success in health.

Curing cancer benefits 8 billion people a little. Blocking cancer cures benefits a few thousand pharmaceutical executives a lot. The executives show up to lobby. The 8 billion don’t. This is why we’ve spent 50 years “fighting cancer” while the defense industry got stealth bombers, aircraft carriers, and GPS.

The military-industrial complex solved this problem for defense. Defense contractors, generals, politicians, and workers all have concentrated interests in military spending. They coordinate. They lobby. They win budgets. The result: the most powerful military in human history.

Disease has no such coalition. Patients are diffuse. Researchers compete for scraps. Funders lack coordination. Politicians get no credit for cures that arrive after their term. Everyone wants disease eradicated; no one has a concentrated interest in making it happen.

DIH solves the Olsonian problem by creating concentrated interests in disease eradication. See The Incentive Stack for how DIH aligns every actor’s self-interest with maximum-impact work.

The military-industrial complex coordinates actors around defense. DIH creates a health-industrial complex that coordinates actors around eradication.

SHAEF for the War on Disease

In 1944, the Allied forces faced a coordination problem. The Americans, British, Canadians, Free French, and others each had their own armies, their own generals, their own supply chains, and their own objectives. Without coordination, they would have fought separate wars and lost.

The solution was SHAEF: Supreme Headquarters Allied Expeditionary Force. Eisenhower didn’t replace the individual armies. He coordinated them. SHAEF set the overall objective (defeat Nazi Germany), allocated resources across theaters, resolved conflicts between commands, and ensured every division’s actions contributed to the unified goal.

DIH is SHAEF for the war on disease.

WW2 Allied Forces War on Disease
SHAEF (coordination layer) DIH (coordination protocol)
Individual armies (US, UK, etc.) Research institutions, pharma, patient groups
Theaters of operation Disease areas (cancer, aging, infectious disease)
D-Day (unified objective) Total disease eradication
Resource allocation across fronts Patient subsidies (market mechanism) + infrastructure governance
Intelligence sharing Open data commons, mandatory publication
Combined Chiefs of Staff Algorithmic governance, no single commander to corrupt

The individual armies didn’t disappear. The British Army remained British. The US Army remained American. But they fought as one force because SHAEF coordinated their actions toward a shared objective.

Similarly, DIH doesn’t replace existing institutions. Pharma companies remain pharma companies. Universities remain universities. Patient advocacy groups remain advocates. But they operate as one force because DIH coordinates their actions toward eradication.

Why This Framing Matters

The war on disease has been losing for 50 years because it’s not actually a war. It’s a collection of uncoordinated skirmishes.

A conceptual comparison showing the current fragmented landscape of medical research with siloed stakeholders versus a unified ecosystem coordinated by a central infrastructure layer.

A conceptual comparison showing the current fragmented landscape of medical research with siloed stakeholders versus a unified ecosystem coordinated by a central infrastructure layer.
  • Researchers compete for grants instead of collaborating on cures
  • Pharma companies duplicate efforts and hide failures
  • Patients can’t access trials; their data goes uncollected
  • Politicians fund what lobbyists want, not what works
  • Funders spray money without measuring impact

Imagine if D-Day had been run this way. The Americans land at one beach, the British at another, neither tells the other what they learned, and both compete for the same supply ships while German intelligence reads their grant applications.

That’s the current war on disease. DIH is the coordination layer that turns scattered skirmishes into a unified campaign.

DIH: The ROI Maximization Protocol

A conceptual diagram showing the DIH protocol as a central coordination hub that aligns funding, researchers, patients, and resources toward the unified goal of disease eradication.

A conceptual diagram showing the DIH protocol as a central coordination hub that aligns funding, researchers, patients, and resources toward the unified goal of disease eradication.

A DIH is not a platform. It’s not an organization. It’s a coordination protocol with one function:

Ensure every actor does the highest-ROI thing toward total disease eradication.

This means:

  • Every dollar flows to maximum impact
  • Every researcher works on highest-value problems
  • Every patient joins trials that matter most
  • Scarce resources are never wasted on low-ROI activities

Three Core Functions

A DIH does exactly three things:

  1. Receive funds (from the 1% Treaty, donations, etc.)
  2. Allocate research via patient subsidies (market mechanism) and infrastructure via Wishocracy
  3. Verify results and pay proportional to impact

Everything operational is outsourced. Trial infrastructure? That’s dFDA’s job. Task decomposition? AI services. Talent matching? Existing marketplaces. Crowdfunding? Existing platforms.

A conceptual architecture showing the DIH as a thin protocol core that receives and allocates funds while outsourcing operational tasks like trial infrastructure and talent matching to external services.

A conceptual architecture showing the DIH as a thin protocol core that receives and allocates funds while outsourcing operational tasks like trial infrastructure and talent matching to external services.

Why stay thin? Because thin protocols are hard to capture. There’s nothing to bribe. No operational role to corrupt. No CEO to influence. Just code that moves money toward measured outcomes.

NoteThe Core Innovation: Pay for Results

A visual comparison showing how funding flows toward tangible outcomes like patient enrollment and successful results, while being restricted for administrative tasks like grant writing.

A visual comparison showing how funding flows toward tangible outcomes like patient enrollment and successful results, while being restricted for administrative tasks like grant writing.

Every dollar flows based on results, not promises:

  • Patients vote with their enrollment -> Researchers get paid for attracting patients
  • Outcomes determine continued funding -> Campaigns that deliver get more; failures get defunded
  • No one gets paid for:
    • Writing grant proposals
    • Attending review committees
    • Publishing papers about why their research might work someday

This is how most other industries work. You pay contractors when they build the house, not when they promise to build it. You pay farmers when they grow the food, not when they apply for a farming license.

The Data Commons: Publish Everything

The current system hides failures. Companies bury negative results. Researchers don’t publish what didn’t work. Scientists waste billions repeating mistakes someone else already made.

A conceptual diagram contrasting the current siloed research environment with the DIH Data Commons model, showing how disparate results flow into a central open repository for AI-driven analysis.

A conceptual diagram contrasting the current siloed research environment with the DIH Data Commons model, showing how disparate results flow into a central open repository for AI-driven analysis.

DIH requires 100% open publication of all data, positive and negative, as a condition of funding:

  • Every trial, every result, every dataset published
  • AI models scan the global data commons, finding patterns humans miss
  • Failed experiments become shared knowledge, not repeated waste

This is intelligence sharing in the SHAEF analogy. The Allies won partly because they shared Ultra intercepts across commands. The war on disease loses because everyone guards their failures like trade secrets. A group chat where everyone shares what didn’t work, except the group is humanity and the topic is death prevention.

Governance: Market Mechanism + Wishocracy

DIH uses two allocation mechanisms:

  • Patient subsidies (market mechanism): Research funding follows patient choice. Patients enroll in trials they believe in; funding flows accordingly. Variable subsidy rates ensure rare diseases remain viable. No committees decide “cancer vs Alzheimer’s.”

A comparison of the dual governance model in DIH, showing patient-driven market mechanisms for research funding and preference-aggregated ‘Wishocracy’ for infrastructure development.

A comparison of the dual governance model in DIH, showing patient-driven market mechanisms for research funding and preference-aggregated ‘Wishocracy’ for infrastructure development.
  • Wishocracy: For infrastructure and public goods only. Aggregates preferences through pairwise comparisons (“EHR integration or security audits?”). See the dedicated page for details.

The Incentive Stack: Making ROI the Selfish Choice

DIH doesn’t rely on altruism. It pays everyone to do the highest-ROI thing.

Actor Self-Interest DIH Incentive ROI Alignment
Researchers Money, prestige Per-patient subsidies (higher for rare diseases) Attract patients = get paid
Patients Health, compensation Subsidies scale with trial importance Joining high-priority trials = more paid
Politicians Re-election, legacy IABs tied to disease outcomes Better outcomes = bigger bonus
Funders Impact, returns Quadratic matching, outcome tracking High-ROI donations = amplified impact
Data providers Revenue Fees tied to data utility More useful data = more revenue
Campaigns Funding Results-based continued funding Higher ROI = more funding

Every incentive is ROI-weighted. Not just “do good” but “do the MOST good per dollar/hour.” DIH makes the highest-ROI action the selfish choice for every actor.

How Researchers Get Paid

Traditional system: Write a grant proposal. Hope a committee likes it. Get paid to try.

A side-by-side comparison of research funding models showing the shift from traditional grant proposals to the DIH system of patient subsidies and results-based payments.

A side-by-side comparison of research funding models showing the shift from traditional grant proposals to the DIH system of patient subsidies and results-based payments.

DIH system:

  1. Per-patient subsidies: The more patients who believe in your trial enough to join, the more funding you get. Subsidies are paid per enrolled patient.
  2. Variable subsidy rates: Rare diseases and high-unmet-need conditions receive higher per-patient subsidies, making them economically viable despite smaller patient pools.
  3. Results-based continuation: Deliver results, get more funding. Don’t deliver, get defunded.

Single-sentence summary: Pay scientists like you pay plumbers: for fixing the problem, not for explaining why it’s hard.

How Politicians Get Aligned

Politicians optimize for reelection, status, and post-office careers. Not “humans continuing to exist.”

A conceptual diagram showing how voting records translate into Public Good Scores, which then trigger electoral support and post-office career opportunities.

A conceptual diagram showing how voting records translate into Public Good Scores, which then trigger electoral support and post-office career opportunities.

Incentive Alignment Bonds solve this by making “support pragmatic clinical trial funding” the career-optimal move:

  • Public Good Scores track voting records on health policy
  • Electoral support flows to high-scorers via independent PACs
  • Post-office opportunities (fellowships, boards) reserved for leaders who governed well

No bribes. No corruption. Just a standing rule: if you support policies that measurably reduce suffering, your political life gets easier.

How the Money Flows

Architecture diagram for a decentralized institute of health, showing the 1% Treaty Fund flowing to campaigns via Wishocracy allocation

The Architecture

The 1% Treaty Fund:

  • Holds the treasury (from the 1% Treaty)
  • Allocates between infrastructure and public goods via Wishocracy
  • Funds campaigns, not bureaucracies
  • No CEO, no board, no one to corrupt

Your Decentralized Institute of Health (DIH):

  • A thin coordination protocol
  • Receives funding from the 1% Treaty Fund
  • Research allocation via patient subsidies (market mechanism)
  • Verifies results, pays for outcomes

The Decentralized Framework for Drug Assessment (dFDA):

  • A funded campaign, not part of DIH itself
  • Provides technical infrastructure for trials
  • Competes with other research models for funding
  • Has no budget authority (just a service provider)

The Fund Flow

A 1% Treaty redirects $27.2B a year from global military budgets into the 1% Treaty Fund. But not all of it reaches research:

Allocation Share Amount Purpose
VICTORY Bond investors

10%

$2.72B

Repay campaign funders
Political incentives (IABs)

10%

$2.72B

Keep politicians aligned
Research treasury

80%

$21.8B Patient subsidies (market allocation)

What Gets Funded: Market Failures Only

Since most research allocation is handled automatically (patients choose trials → funding flows there), the 1% Treaty Fund primarily funds market failures, things the ecosystem can’t handle:

Infrastructure

  • Development and operations
  • Competing alternative implementations
  • Data commons infrastructure (storage, processing)
  • Security audits and fraud detection systems

True Public Goods (No Revenue Model)

  • Patient trial participation subsidies
  • Negative results publishing
  • Replication studies

This is minimal by design. The ecosystem eliminates most traditional research funding needs. Companies register treatments → Patients join trials → Revenue flows → Research happens. DIH only directs the 1% Treaty Fund to cover what the ecosystem truly can’t handle.

What DIH Outsources (and Why)

DIH is intentionally minimal. It outsources everything operational:

Function Outsourced To Why
Crowdfunding Gitcoin, Juicebox, etc. They already exist and work
Task decomposition AI services Machines are better at this
Talent matching Existing marketplaces Don’t reinvent LinkedIn
Trial infrastructure dFDA (a funded campaign) Separate concerns
Data storage Competing providers Market competition

How Campaigns Plug In

dFDA is the primary example of a funded campaign. It’s not part of DIH; it’s a service provider competing for funding.

Campaign Lifecycle

A circular process diagram showing the six stages of the Campaign Lifecycle, from initial proposal and community voting to funding, execution, and verification.

A circular process diagram showing the six stages of the Campaign Lifecycle, from initial proposal and community voting to funding, execution, and verification.
  1. Proposal: Submit campaign description, budget, milestones
  2. Wishocracy vote: Humanity decides priority relative to alternatives
  3. Funding: Treasury allocates based on vote + Optimocracy recommendations
  4. Execution: Campaign delivers services (trials, infrastructure, etc.)
  5. Verification: Outcomes measured against milestones
  6. Continuation: Results determine next year’s funding

Anti-Capture Design

The current system is trivially captured. Concentrate billions of dollars in a few committees, and lobbyists will find them.

DIH is designed to make capture economically irrational.

Separation of concerns: The 1% Treaty Fund is the treasury, a decentralized institute of health provides governance, and a decentralized framework provides the technical platform.

How DIH Resists Capture

Mechanism How It Works Capture Cost
No CEO Nothing to bribe N/A
Algorithmic governance Rules in smart contracts Can’t bribe an if-statement
Public ledger Every dollar tracked Corruption is visible
Forkable Anyone can clone the protocol Capture triggers replacement
Distributed voting Millions vote via Wishocracy Lobbying doesn’t scale
Outcome-based funding Results determine allocation Gaming harder than performing

The “New FDA” Risk

Risk: “What if dFDA becomes the new FDA, capturing regulatory power?”

A diagram showing the flow of capital from the 1 percent Treaty Fund to competing regulatory campaigns, illustrating how a captured framework can be bypassed by diverting funds to an alternative.

A diagram showing the flow of capital from the 1 percent Treaty Fund to competing regulatory campaigns, illustrating how a captured framework can be bypassed by diverting funds to an alternative.

Mitigation: dFDA has no budget authority. It’s just a campaign competing for funding from the 1% Treaty Fund. If it gets captured, fund a competing framework instead.

The protocol is designed so that no single component can monopolize power. Everything is replaceable. Nothing is essential except the coordination rules themselves.

Security Architecture: Multi-Layered Defense

A $27.2B treasury is a massive target. DIH uses defense in depth:

1. Nobody’s in Charge (And That’s the Point)

Turns out you don’t need a CEO when you have math.

  • Every VICTORY Bond holder directly controls treasury through on-chain voting
  • No human signers = no kidnapping, corruption, or coercion targets
  • Smart contracts automatically execute community decisions after 24-72h timelocks
  • Battle-tested approach already managing billions in MakerDAO, Uniswap, Aave

2. AI-Powered Fraud Detection

  • Fraud Agent: Real-time anomaly detection, duplication monitoring, collusion identification, sybil detection
  • Safety Oracle: Incident severity scoring with automatic payout holds for affected interventions
  • Identity Oracle: Verifies affiliations and conflicts, prevents unauthorized access
  • Manual review queue for flagged actions with whistleblower bounty rewards

3. Complete Transparency & Auditability

  • All treasury addresses published with real-time public dashboards
  • Immutable transaction logs with standardized disbursement tags
  • Annual smart contract audits and semiannual operational audits with published reports
  • Hash-committed invoices and budgets for full accountability

4. Recovery & Response Mechanisms

  • Clawbacks for data falsification or trial misconduct
  • Emergency pause capabilities triggered by incident signals
  • Progressive unpause policies tied to remediation completion
  • Guardian modules for pausing non-critical functions under defined conditions

Defense in depth: decentralized control, AI monitoring, transparency, and recovery mechanisms interact to prevent theft.

Defense in depth: decentralized control, AI monitoring, transparency, and recovery mechanisms interact to prevent theft.

Beyond Medical Research

Once you prove you can run a $27.2B treasury without anyone stealing from it, you can do the same for schools, roads, or anything else the government currently screws up:

  • Education: Pay teachers based on whether kids actually learn things
  • Infrastructure: Fund roads that don’t immediately fall apart
  • Environment: Pay for actual carbon reduction, not paperwork
  • Social Services: Get help to people who need it without 47 forms

This isn’t just about protecting health funding. It’s an experiment in demonstrating a new model for uncorruptible, transparent governance of public goods. The 1% Treaty Fund becomes the prototype for a new era of public governance, one that eliminates human corruption points entirely while delivering measurable results.

Uncorruptible DAO governance: token-holder voting flows through smart contracts to funding execution with no human intermediaries.

Uncorruptible DAO governance: token-holder voting flows through smart contracts to funding execution with no human intermediaries.

Summary: The Coordination Layer

DIH is not trying to be a research institution, a trial platform, or a funding agency. It’s trying to be the thin layer that coordinates all of them.

Component Function DIH’s Role
1% Treaty Fund Treasury Receives funds from treaty
Patient subsidies Research allocation Market mechanism (patients choose trials)
Wishocracy Infrastructure governance Allocates between infrastructure/public goods
dFDA Trial infrastructure Funded campaign
IABs Political alignment Keeps politicians incentivized
VICTORY Bonds Investor alignment Funds the campaign

The single sentence version:

DIH is a coordination protocol that receives funds, allocates research funding via patient subsidies (market mechanism), governs infrastructure via Wishocracy, verifies results, and pays proportional to outcomes, making the highest-ROI action the selfish choice for every actor.

That’s the theory. The rest of this guide explains how you’d actually build it.