Impact

Like it or not, governance is necessary for well-functioning advanced societies. Trying to relegate all institutional functions to markets will sooner or later result in companies giving preferential treatment to their own customers instead of treating everyone impartially.

In such a system taking a company to court – a private court, that is – will likely end in a verdict based on who the court does business with and not based on law or justice. The distance from there to corporate plutocracy is very short.

This all may sound silly, but serious people are pitching anarcho-capitalism as a viable alternative to our current system. In reality it isn't and cannot be one.

But just because we need governance doesn't mean that we're stuck with the current system. We can have governance in a completely different form, and it has to start with the principle that institutions needed for the common interest have to be credibly neutral. Once we realize that the path to a better system is clear.

So wtf is a Network Economy (NE)? The tl;dr: is that it’s a voluntary system based on decentralized governance, stable cryptocurrency, & the ability to create credibly neutral institutions that help the network’s economic growth.

Bitcoin & Ethereum are primitive NEs: their consensus mechanisms are basic credibly neutral institutions built into the protocol, yet they’re not based on a stable currency.

NEs finance credibly neutral institutions much like Ethereum finances its network security - thru currency issuance. A network would only finance such an institution if it believes that the institution is needed for its economic growth - meaning that it can at least maintain currency stability in the process.

If a court is needed, for example, to resolve disputes in the Network, it can be financed by the NE. The performance of its judges will then depend on their ability to maintain neutrality, since that's in the Network's highest interest.

For more:

So wtf is a Network Economy (NE)? The tl;dr: is that it’s a voluntary system based on decentralized governance, stable cryptocurrency, & the ability to create credibly neutral institutions that help the network’s economic growth.

Bitcoin & Ethereum are primitive NEs: their consensus mechanisms are basic credibly neutral institutions built into the protocol, yet they’re not based on a stable currency.

NEs finance credibly neutral institutions much like Ethereum finances its network security - thru currency issuance. A network would only finance such an institution if it believes that the institution is needed for its economic growth - meaning that it can at least maintain currency stability in the process.

If a court is needed, for example, to resolve disputes in the Network, it can be financed by the NE. The performance of its judges will then depend on their ability to maintain neutrality, since that's in the Network's highest interest.

For more: https://paragraph.xyz/@abundance/network-economies

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