Why Public Chain Should Optimize Grant Distribution for "Good Public Goods"
Why should a Public Chain optimize the distribution of grants for "good public goods"?
In this note, I will summarize the concept of Public Chain and Dapps grants from an administrative perspective. Specifically, I will discuss the importance of creating an ecosystem and what governance entails.
A Public Chain can be seen as a Nation. In this context, a "nation" does not necessarily refer to a physical territory. What matters is that the development of the ecosystem becomes an incentive for those who contribute to building the nation. While it may not directly generate money, services that are widely used by many people, such as public goods, are crucial for the growth of the Public Chain ecosystem.
There are numerous examples of countries (such as the United States, China, and Japan) investing in their ecosystems. This includes areas such as education, healthcare, and employment. While basic welfare services may seem like short-term expenses, they can be seen as long-term investments that yield returns.
One reason why the analogy between a Public Chain and a nation is relevant is the ability to enforce Taxation when commercial transactions (referred to as "transactions" in the context of cryptocurrencies) occur within the ecosystem. Smart contracts in a Public Chain have the power to enforce these transactions, just as nations have Police and Military forces to enforce laws. The use of Law is largely based on the existence of a Violence Device. Understanding the concept of Social contract theory can provide further insight into this discussion. Smart contracts as public and natural phenomena
Considering these similarities, don't you think that a Public Chain and a nation share certain characteristics? In the next section, I will discuss How to Distribute Grants for "Good Public Goods".