xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
Who determines the economic models? In the past, institutions were carrying out such impossible missions. They failed miserably. Do we head into the self-creation of the economic model through possible cryptocurrencies?
Let’s explore.
Table of Content
Trilemma
Technology Dominated Economy
The Idea Economic Model
Feasibility
Digital Rules
Proposal
In Conclusion
Trilemma
The global economy is slowing down further as inflation continues to rise. It tells people the economic model is not working properly in the future.
When institutional models economy, they focus on three factors, spending, tax, and debt. The more spending power the nation has, the more power its economy will have. The tax revenue depends on how the nation wants to balance the social structure and prevent the rich from getting richer while providing sustainable social programs to support the bottom social groups. While debt is a way to further increase spending powers on some other programs while it can slow down the growth of the nation.
However, to get into the fundamentals of the trilemma, we dig further into each factor to conclude three more essential factors: technology, art, and social justice to constrain the growth of the nation.
Technology Dominated Economy
For the past half-century, technology has dominated the national economy.
Technology is reliant on the value of scientific truth. The measurement of the technology is the truth of scientific knowledge. However, it has become an absolute power of truth in recent years.
Social justice is reliant on the value of justice. The measurement of social justice is equality. Recently, the yardstick has been changed to income level and creates a wider inequality in the society as we continue debating.
Art is reliant on the value of aesthetics. The measurement of art is aesthetically pleasing such art can bring to people. It has become evident that the value of money has become a dominant measurement of the artwork recently.
Thanks to advanced technology, our economic model has been living under the influence of technology.
The Idea Economic Model
Shouldn’t we focus on social justice to create an equal opportunity environment for everyone to participate?
Social justice is a middle ground between technology and art. Truth is too concrete and art is too abstract. Social justice is to meet the needs of both sides to the middle.
Feasibility
I think a part of the DAO’s mission is to determine a social justice mission. There hasn’t been a nation with a pure social justice driven economy in the past. That doesn't mean it is not feasible to do so. We just have no opportunities to test it out.
The failure to implement social justice is because of the failure of centralization. Justice isn’t a science of truth to have an absolute definition and it cannot be too abstract like an artwork to get various definitions
Digital Rules
DAO has proposed rules embedded into consensus algorithms that no one can modify unless through a community voting. It brings technology under the rule of social justice.
However, it does not automatically solve the problem of fairness. You have to create a mobility mechanism within your community to motivate people to work toward the community goal while distributing fairness rewards to the community.
Proposal
Perhaps, we should utilize art to reward the senior members and to exchange opportunities for new members to step into senior roles while senior members reward NFTs to phase their responsibilities out into more of a glory position. It then motivates new members to move upward while preventing the loss of the existing talents.
In Conclusion
There is not a single solution to create an economic model in DAO. Perhaps you have a better idea to improve DAO and implement it and test it out.
This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
Who determines the economic models? In the past, institutions were carrying out such impossible missions. They failed miserably. Do we head into the self-creation of the economic model through possible cryptocurrencies?
Let’s explore.
Table of Content
Trilemma
Technology Dominated Economy
The Idea Economic Model
Feasibility
Digital Rules
Proposal
In Conclusion
Trilemma
The global economy is slowing down further as inflation continues to rise. It tells people the economic model is not working properly in the future.
When institutional models economy, they focus on three factors, spending, tax, and debt. The more spending power the nation has, the more power its economy will have. The tax revenue depends on how the nation wants to balance the social structure and prevent the rich from getting richer while providing sustainable social programs to support the bottom social groups. While debt is a way to further increase spending powers on some other programs while it can slow down the growth of the nation.
However, to get into the fundamentals of the trilemma, we dig further into each factor to conclude three more essential factors: technology, art, and social justice to constrain the growth of the nation.
Technology Dominated Economy
For the past half-century, technology has dominated the national economy.
Technology is reliant on the value of scientific truth. The measurement of the technology is the truth of scientific knowledge. However, it has become an absolute power of truth in recent years.
Social justice is reliant on the value of justice. The measurement of social justice is equality. Recently, the yardstick has been changed to income level and creates a wider inequality in the society as we continue debating.
Art is reliant on the value of aesthetics. The measurement of art is aesthetically pleasing such art can bring to people. It has become evident that the value of money has become a dominant measurement of the artwork recently.
Thanks to advanced technology, our economic model has been living under the influence of technology.
The Idea Economic Model
Shouldn’t we focus on social justice to create an equal opportunity environment for everyone to participate?
Social justice is a middle ground between technology and art. Truth is too concrete and art is too abstract. Social justice is to meet the needs of both sides to the middle.
Feasibility
I think a part of the DAO’s mission is to determine a social justice mission. There hasn’t been a nation with a pure social justice driven economy in the past. That doesn't mean it is not feasible to do so. We just have no opportunities to test it out.
The failure to implement social justice is because of the failure of centralization. Justice isn’t a science of truth to have an absolute definition and it cannot be too abstract like an artwork to get various definitions
Digital Rules
DAO has proposed rules embedded into consensus algorithms that no one can modify unless through a community voting. It brings technology under the rule of social justice.
However, it does not automatically solve the problem of fairness. You have to create a mobility mechanism within your community to motivate people to work toward the community goal while distributing fairness rewards to the community.
Proposal
Perhaps, we should utilize art to reward the senior members and to exchange opportunities for new members to step into senior roles while senior members reward NFTs to phase their responsibilities out into more of a glory position. It then motivates new members to move upward while preventing the loss of the existing talents.
In Conclusion
There is not a single solution to create an economic model in DAO. Perhaps you have a better idea to improve DAO and implement it and test it out.
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