Cryptoeconomics as a Limitation on Governance
One aspect discussed is the issue of plutocracy. It is argued that if tokens are equated with voting rights, it would not be much different from the traditional game of stocks. This is highlighted in the article Governance, Part 2: Plutocracy Is Still Bad. The discussion also touches on the problem of vote buying and its implications for DAO Governance and the challenges it poses to democracy. Further insights on this topic can be found in the article On Collusion and the concept of moving beyond coin voting governance. Another important aspect discussed is the role of positive and negative externalities in funding public goods. It is emphasized that addressing the challenges in funding public goods is crucial for the sustainability of the crypto ecosystem. The article Quadratic Payments: A Primer introduces the concepts of quadratic voting (also known as secondary voting) and quadratic funding (also known as secondary fundraising) as potential solutions. The use of secondary voting in the "Presidential hackathon" held in Taiwan is mentioned as an example. The discussion also delves into the debate between private goods and public goods, citing the initial cost of public goods and referencing the Fundamental Theorem of Welfare Economics. The concept of value production and the indivisibility of public goods are explored, as illustrated in the provided images (https://gyazo.com/18cdea9bef064a5c5ec667a625f03f43 and https://gyazo.com/d81567266a360bc1f2e17ac2041caf86). The distinction between private property and public goods is highlighted, emphasizing that public goods cannot be divided. The question of where public goods start is addressed, suggesting that non-profit infrastructure organizations should maintain public roads and discussing the differences in goals between projects done by non-profit organizations and projects done by companies. Additional information on this topic can be found in the provided image https://gyazo.com/ef21ce961a467ecf3036eec9b38db1ba, which seems to be related to Gitcoin.