Challenges in funding public goods
The challenges in funding public goods, as mentioned in On Nathan Schneider on the limits of cryptoeconomics, are significant. One of these challenges is the presence of positive and negative externalities. Environmental costs, which are a classic example of externalities, are invisible to the feedback loops of the system and do not provide incentives to its users. The funding of public goods like Public Good is another example of an externality that threatens the sustainability of cryptoeconomic systems. If this challenge is not addressed, it becomes difficult to establish an ecosystem on the Cryptocurrency Network where public goods can thrive. Even vitalik repeatedly mentions the issue of externalities related to the environmental costs of software as public goods. These externalities are not visible or easily understood by users. September 29, 2021 tkgshn also highlights this challenge.