In this episode, Jeff Emmett, author of Exploring MyCofi: Mycelial Design Patterns for Web3 and Beyond, shares insights on how fungi can inspire the redesign of governance and economic systems. As a co-founder of the Common Stack and token engineering researcher at BlockScience, Jeff has developed tools and blueprints for communities to tackle collective action problems. Drawing on natural patterns, he explores how mycelium-inspired frameworks can increase institutional resilience, enable regenerative economies, and foster mutuality. The conversation touches on the intersections of ecology, distributed technologies, and governance. Jeff discusses how lessons from fungi—such as resource allocation, fractal structures, and adaptogenic resilience—can be applied to human systems. He also examines experiments in decentralized finance, governance models like conviction voting, and the potential for nested economies. Jeff explores: How mycelial principles inspire new governance and resource allocation systemsWhy diverse, local, and fractalized economies are more resilientWhat regenerative finance can learn from ecological cycles Watch this episode on YouTube Listen to this episode: Apple Podcasts Spotify Pocket Casts RSS Feed Themes Mycelial Design Principles – How fungi’s resource allocation and coherence can inform economic and governance systems.Fractal and Nested Economies – Building resilient, decentralized economies that scale from local to global.Alternative Governance Models – Exploring conviction voting, bonding curves, and trust-based signaling.Mutual Credit and Generosity – Lessons from ecological support networks for economic cooperation.Adaptogenic Principles – Translating resilience and adaptability from biology into organizational design.Decentralized Finance and Inclusion – How distributed ledgers and offline transactions can enable bottom-up economies. Timestamps 00:00 — Institutional neuroplasticity and Mycofi principles02:06 — Introducing Jeff Emmett and his work03:07 — Background: from distributed systems to fungi05:45 — Fungal coherence and resource allocation07:34 — Six design principles inspired by fungi09:41 — Beyond money: multidimensional value systems12:35 — Lessons from fungi for governance in times of abundance and decay15:21 — Underground networks and mutual credit17:57 — Governance mechanisms and biomimicry18:35 — Streaming trust and adaptive governance models22:12 — Global experiments in governance: Taiwan, Ethereum, and beyond26:33 — Conviction voting explained29:54 — Bonding curves as economic membranes32:35 — Distributed ledger tech and shifts in power37:29 — Nested economies and ecological parallels40:19 — Stable currencies without violence-based enforcement42:09 — Wealth Defense Industry and resource distribution45:23 — Arbitrage and mushrooms as natural equilibrators47:01 — Gradients of mutualism and economic incentives49:53 — Subsidiarity and supersediarity in governance52:24 — Adaptogenic principles and psilocybinetics54:59 — Trophic levels and upcycling of energy56:53 — DeFi and resilient bottom-up economies59:01 — Offline transactions and financial inclusion1:00:28 — Designing ideal bottom-up economies1:03:46 — Validated data, experimentation, and the future of governance1:04:13 — Closing reflections Resources Exploring MyCofi: Mycelial Design Patterns for Web3 and Beyond – Jeff EmmettPaul StametsMerlin Sheldrake – Entangled LifeToby Kiers – Research on fungal marketsMichael ZarghamBernard Lietaer – Community currenciesElinor Ostrom – Principles for managing commonsDonella Meadows – Thinking in SystemsAstrid Scholz - Tackling the Wealth Defense IndustryAudrey TangMichel Bauwens Transcript: Jeff Emmett (00:00) If these adaptogenic mushrooms help our brains grow new neural pathways as individuals, maybe if we apply these Mycofi principles in organizations, they can increase institutional neuroplasticity. They can allow for new ways to sense things, new ways to cohere around what's important and new ways to act by creating these sensing governance pathways and these acting funding pathways and allow them to proliferate in new organizational forms. Lucas Tauil (00:32) Welcome to Entangled Futures with Lucas Tauil where we explore mutuality in conversations towards a world that works for everyone. Lucas Tauil (00:50) This episode is brought to you by the Holochain Foundation. Holochain is creating technology that allows people to team up, share information, and solve their own problems without needing a middleman. Creating carriers that cannot be captured, Holochain enables privacy and holds space for innovation and mutuality. I first came across the project in 2018. During my journey into participative culture with Unsparil. My good friend Hailey Cooperider pointed me to the green paper and I was blown away by the vision of a local first decentralized internet. I worked for five years on the project and feel very grateful for the support with the show. Enjoy it. Lucas Tauil (02:06) Today we welcome Jeff Emmett, the author of Exploring MyCofi, Mycelial Design Patterns for Web3 and Beyond. Observing natural patterns, Jeff has been modeling novel governance and economic patterns. Co-founder of the Common Stack and token engineering researcher at BlockScience, Jeff designed tools and blueprints for communities to solve collective action problems. By targeting governance and incentives alignment, his work supports communities towards economic sustainability. Welcome, Jeff. It is a pleasure to have you with us. Jeff Emmett (02:50) Thanks very much. Happy to be here. Always enjoy our conversations. Lucas Tauil (02:52) Nice, nice. Yeah it's always a pleasure to be with you Jeff. Jeff shall we start with your background? What led you to distributed technologies and the world of fungi? Jeff Emmett (03:07) Good question. ⁓ a succinct version of that. I mean, they didn't come at the same time. They kind of, ⁓ myciliated together at some point, ⁓ along my journey. ⁓ I, wasn't necessarily looking at distributed systems necessarily in the beginning. I was, I was wondering why, why the world seemed to be falling apart. ⁓ that, you know, these, we, we seem to be rolling backwards all of these, ⁓ sort of advancements that, that we kept talking about, you know, and we were having narcissists in the White House and economic trade wars and Brexit you know, not that there aren't a lot of reasons for these kind of failures of coordination. It really led me down the rabbit hole of blockchain technologies as sort of the, at least at the time, what I understood to be a way to be, to rethink those coordinative structures as protocols rather than as say corporations or nation states. And that kept leading me down the rabbit hole. Actually the first blockchain conference that I went to, I stood outside the whole time and learned about Holochain and the agent centric as opposed to data centric ontology really, really sung true to me. I mean, on a parallel track, I had been very interested in mycelium. I was reading, you know, Paul Stamets’ work Merlin Sheldrake and Alona Hapsing, a lot of these sort of researchers, ⁓ Toby Kier's, her work is fascinating, looking at the sort of the market structures of fungi. So I mean, this was kind of a parallel track of interest that at some point, they merged actually, I think it was at a, it was at a collaborative finance conference. ⁓ Cofi is, one of the, you know, defy refi, Cofi is a new, ⁓ meme in the, mean, I wouldn't even call it the web three space in the monetary theory space. And while we were at the Cofi conference, you know, it was an unconference. So everyone was encouraged to speak if they had topics. ⁓ the topic that we came up with, for my talk was, was Mycofi, was just a play on, on the COFI ⁓ but that really kind of got the sparks, going about how actually there are very, you know, stable long-term resilient patterns of positive, some regeneration in mycelium that have been going since, you know, the dawn of life on this planet. And maybe we had something to learn from, you know, from these wonderful beings to bring into our own economic fabrics. So yeah, that's kind of where I think those two topics merged, but that was still fairly recently. So I don't know what kept them apart for so long. Lucas Tauil (05:45) Jeff, an evolutionary honed capability, both for collective coherence and intelligent resource allocation. Could you share with us how those mechanisms work? Jeff Emmett (06:02) I mean, to be honest, I don't know that we know that much. Toby Kears has some really fascinating research. She's got a number of papers looking at the market dynamics of, if one mycelial mat has higher phosphorus and another mycelial mat has lower phosphorus, they will trade at different rates to trees sugars and whatnot. So you have like walrassian market behaviors. There's also all sorts of like physical, chemical, even down to I've heard mushrooms or the mycelium, the way that they interact with water molecules because they're continuously exploring, but also, you know, maintaining an internal pressure to in the mycelium, they use almost what is a fourth state of water. It's like a gel-like state that has hydrostatics. They're, really making use of all sorts of different natural forces that I don't think we even understand that well, because these are happening at such tiny layers. and just that we have massively under sufficient amounts of study going into mycelium and, and how these organisms operate and how we can, what we can learn from them. So I think it's just a rich area of exploration. Lucas Tauil (07:16) Jeff, fungi allocate resources and facilitate coherence in genetically diverse collectives. What are the key design principles we can learn from them in designing our resource allocation processes? Jeff Emmett (07:34) Yeah, I th