Layer of consensus formation
Politics is a mechanism based on distributed consensus formation that determines the current state of land. In the context of Mechanism based on distributed consensus formation, it can be seen as a virtual society where people with different ideologies and interests participate. However, the current public blockchain mainly operates on market principles. Instead of engaging in discussions, consensus formation is based on price, supply and demand, calculations, and dice rolls. However, societal issues cannot be solved solely through market principles, and "discussions" are always necessary. This is hinted at by Amartya Sen's Pareto Liberal and the Impossibility theorem. The impossibility theorem of Pareto liberal states that societal problems cannot be solved solely through market principles. Some problems can be resolved through force, while others can be resolved through market principles. However, the principles of our society are based on accumulating objections, deliberating, and improving through democratic procedures. Akio Hoshi August 19, 2021 In the current blockchain space, the predominant approach is driven by market principles, without much emphasis on discussions. However, there are discussions within DAOs about Shareholder Meeting-like Governance Function. I am contemplating whether it is possible to create scenarios for social consensus formation beyond that. Akio Hoshi August 19, 2021 If the consensus formation of DAOs is derived from governance tokens, it is merely one of the historical principles and does not lead to the realization of democracy. This is similar to a Shareholders' meeting in the crypto era. What the market decides is the price and the buyer. This is the layer where the decision of "who verifies the blocks and receives rewards" is made. On the other hand, in a shareholders' meeting, there is a vote on the Approval of Agenda. Therefore, the Layer of consensus formation is different. For example, Tezos incorporates governance of protocol changes, and the original The DAO introduced voting through Governance token. These have different functions from a pure market, as they involve voting on agenda items. When I mentioned "Pure market," I meant making decisions solely based on market principles without discussions. If we can create and operate governance functions similar to a shareholders' meeting, which includes "discussions," then perhaps we can implement Democracy. This is the starting point of my thinking. Akio Hoshi August 19, 2021