Little off beat here. But AGI in my system uses pulses, just like spiked 
nerves. 
 A variable capacitor or inductor could be used to get position when pulsed.
 Like a 100,000 pulses for the lowest setting and a million for highest 
position. That  is
900,000 position on a encoder wheel. 
 On the other hand, I can only get a thousand position by putting a thousand 
notches around a encoder wheel. Then read with optics or a vinyl record needle.

The beauty of LC Oscillations!:
https://www.youtube.com/watch?v=2_y_3_3V-so

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