Entries for March 28, 2026
There is an economic theory waiting to be uncovered here Token Leverage (TL) = Token spend / Human labor spend The higher Token Leverage a company has, the more automated and productive they are If you have TL=1, you are spending as much money on AI as your human employees The goal of a company should be to increase TL as much as possible, while keeping a positive profit margin. It will be the only way to compete You don’t need to muddy the definition with wasted tokens vs useful tokens, because a company will always be incentivized to reduce token waste in a competitive environment. By that logic, monopolies will always waste more tokens, similar to how they waste other resources Scaling TL higher to 2x, 10x, 100x will require a skilled workforce of engineers. It will be a very complex job similar to those working at the big labs. Burnout will be a defining feature of teams scaling TL Most incumbents will fail to scale their TL over 1. Some will get decimated by new entrants with TL much bigger than 1 Curious how the average TL will end up in different sectors. Whether it will stabilize at a certain value like 5.7x, or will just keep growing…