Here’s a concept I want to start talking about and propagating:

Salaries don’t work well to express economic power over time. Best approaches to measure this in the past have been in the form of converting to dollars or comparing against an arbitrary basket of goods. This is inaccurate and doesn’t reflect the dilution of purchasing power over time.

Enter SALI

Satoshi Annual Labor Index (SALI)

Pronounced: "Sally"

1. Introduction

Today’s financial system measures salaries in fiat currencies—dollars, euros, pesos, etc.—that can lose purchasing power over time due to inflation and money printing. Many people see their “real” wages stagnate or decline even if the nominal number on their paycheck rises.

SALI (Satoshi Annual Labor Index) offers a simple way to measure the true value of your labor each year by indexing your salary to Bitcoin—a hard, non-dilutive asset with a fixed supply of 21 million coins. SALI helps you see if your real purchasing power is going up or down, without complicated financial jargon.

2. What Is SALI?

SALI is an annual measure of how many satoshis (the smallest unit of Bitcoin) your yearly salary equates to.

Think of SALI as a “personal CPI” that tracks whether your labor is gaining or losing real value over time.


Unlike traditional fiat-based metrics, which can be distorted by inflation and exchange rate fluctuations, a personal CPI tied to Bitcoin offers a more stable and universal measure of value. Bitcoin’s fixed supply and global accessibility make it an ideal benchmark for evaluating the true purchasing power of your labor.

Why the Name?

Satoshi: Bitcoin’s smallest unit (1 BTC = 100,000,000 satoshis).

Annual: SALI is recalculated yearly to show clear trends.

Labor: Focused on wages or salary.

Index: Like a personal CPI but measuring labor value against Bitcoin.

3. Why Satoshis as a Benchmark for Economic Power?

Historically, there hasn’t been an accurate or universal benchmark to measure purchasing power or economic power across time and regions. Satoshis now make this possible by offering a precise, globally consistent metric tied to Bitcoin—a scarce and non-dilutive asset. Unlike larger units like BTC, satoshis are practical for tracking wages at all income levels, ensuring stability and relevance as Bitcoin’s adoption grows and its price rises.

4. SALI Formula

SALI Formula:SALI = (Yearly Salary ÷ Bitcoin Price) × 100,000,000

Example:

Yearly salary: $50,000

Average BTC price: $75,000SALI = ($50,000 ÷ $75,000) × 100,000,000 = 66,666,667 satoshis/year

If Bitcoin’s avg price doubles to $150,000:SALI = ($50,000 ÷ $150,000) × 100,000,000 = 33,333,333 satoshis/year

This shows a 50% drop in the real value of your labor when measured in Bitcoin.

5. Why SALI Matters

Reveals Inflation’s Impact:SALI highlights if your labor’s purchasing power is eroding, even if your nominal salary increases.

Borderless Comparison:SALI works across countries, free from exchange rate fluctuations, and tracks value trends year over year.

Encourages Saving in Hard Assets:A declining SALI shows the potential benefit of saving in Bitcoin or other non-dilutive assets to preserve value.

Simplicity:SALI gives a single, relatable metric: “How many satoshis can I earn in a year?”

6. How to Use SALI

Pick a Year: Choose a snapshot date (e.g., Jan 1) or an annual avg for salary & Bitcoin price.

Calculate SALI: Use the SALI formula.

Compare Over Time: Plot yearly SALI on a chart to see trends.

Make Informed Decisions: Adjust financial strategies (e.g., negotiate a raise or save in Bitcoin) if SALI trends down.

7. Key Considerations

Bitcoin Volatility: Price swings matter less over yearly averages.

Salary Fluctuations: For freelancers or contractors, use realistic and consistent annual earnings.

Macro Changes: Economic factors affect both fiat salaries & Bitcoin prices.

Adoption & Understanding: Regular tracking makes SALI a valuable personal CPI.

8. Conclusion

SALI (Satoshi Annual Labor Index), or “Sally,” is a clear yearly measure of your labor’s purchasing power in Bitcoin. By tracking SALI, you can see if your salary is gaining or losing value in the face of inflation and fiat currency depreciation.

Key Takeaways:

Track SALI annually to reveal wage erosion or progress.

Use SALI to compare purchasing power across years or borders.

Consider storing value in non-dilutive assets like Bitcoin.

Next Steps:

Calculate your SALI: Divide your salary by Bitcoin’s avg price, then multiply by 100M.

Track it yearly.

Use the data to negotiate wages or explore saving in Bitcoin.

SALI is your personal scorecard for understanding and protecting the real value of your labor.

Feedback is welcomed!