Economic allegiance systems (allegiance and status stored in the blockchain).

[luckybit]

The distributed economic allegiance system:
A participant may pledge allegiance to a participant of equal or higher level whether economic or other criteria. This pledge is sworn or sown into the blockchain.

Definitions:
Mentors are like leaders/mentors in a social network.
Apprentices are like followers/apprentices in a social network.
Pledges are a promise of loyalty sown into the blockchain.

How it all works:
Participant A (Alice) is now a sworn Apprentice of participant B (Bob) who is the Mentor. The Mentor earns a percentage of the credits that the Apprentice earns. In this way participant A and participant B are linked in an economic allegiance stored within the blockchain itself.

A Mentor who has more Apprentices would gain more credit and rewards. As a Mentor gains more Apprentices their title could reflect that.

By having this economic allegiance system cooperative competition is encouraged.

This is not the only possible economic allegiance system but is just an example of what can be built. There are endless possibilities but the main component which has to exist is to allow one address in a blockchain and public key to swear allegiance to another. This allegiance can be sworn to anything because the public key and address could be a regular corporation, an autonomous agent, a contract, a DAC, some principles, I think you get the point.

So for example if Mentor A swears to a set of principles, then their investments would be set up in such a way so that it automatically invests in what that organization representing those principles requires. That means in order for the investment to take place there are certain qualifications which would have to be met, and the Mentor would decide if these qualifications align with the principles of his or her followers, if the Mentor signs off on it then his followers would automatically invest as the Mentor does. This can be facilitated and amplified by Ciphertext-Policy Attribute-Based Encryption.

Additionally, the Apprentices would be able to set aside a specific amount of investment capital to be used for this purpose in follow the leader manner. The Apprentice is always free to break allegiance. The benefit of allegiance is that the Apprentice would become part of a guild and gain a guild badge giving them inclusion and all the special privileges associated with being a member.

Please peer review.