Building on Vlad Zamfir and Vitalik Buterins' work around consensus-by-bet, I had an idea I wanted to share, on what could be called "representative consensus-by-bet".

Instead of staking Ether, the consensus system PANARCHY "stakes people", and uses "betting pools" which are "powered" by people, using pseudo-anonymous Proofs-of-Personhood (PoPs) from the [Virtual Pseudonym Parties](https://blockgeeks.com/using-virtual-reality-to-generate-untraceable-proof-of-individuality/) system.

Betting pools are operated by anonymous entities, and compete for "power" from people. A pool powered by 10000 PoPs would be similar to a staker in Casper with 10000 ETH, while a pool powered by 1000 PoPs is 1000 ETH in Casper. The pools then perform consensus-by-bet games on what block gets authority, similar to Ethereums' Casper.

The pools then compete for "power" from a global population with global suffrage, and people can opt-in and opt-out of pools, re-arranging how power of authority is distributed. 

In "representative consensus-by-bet" and proof-of-suffrage, each cycle of authority is a few seconds (a block) compared to 4 years of authority with the current suffrage system with representative government.

Since consensus is powered by people, there could be very broad consensus, and proof-of-suffrage also has instant feedback between people and the "virtual state", building on the legacy system of representative democracy which also used direct feedback.

# Whitepaper draft

http://i.imgur.com/sEBdR6H.png