Abundance Protocol: A Decentralized Solution to the Problem of Public Goods

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https://gyazo.com/bb95fb274874e0076f5398c5cee8c5ef

Summary: The coin issuance mechanism that maintains value is supported by an on-chain domain-specific evaluation system, and contributors to public goods projects are compensated in proportion to the economic impact of their work. All participants in the ecosystem have economic incentives to maintain the value of their currency while maximizing economic growth derived from public goods. When contributors are compensated through the issuance of new coins, economic growth is maximized and the value of the currency is maintained when the compensation amount is equal to the economic effect realized by the public good. To accurately estimate the economic effects of public goods in a decentralized system, reliable data, verification technology, and mechanisms to counter potential fraud or collusion are necessary. These arise from the incentive structure and embedded mechanisms of the protocol.

Effective economic mechanisms for public goods do not exist, so innovation has become heavily dependent on market mechanisms. While this system works well for certain types of innovation, it falls far short of producing economic efficiency. On the other hand, innovations that cannot directly acquire value in the market are not receiving significant funding, regardless of the magnitude of their impact on the economy. Government funding for public goods is also inefficient and inadequate, as funds are allocated according to bureaucratic processes. In other words, officials lack the necessary incentives (and