So bringing some recent threads together – this video includes a discussion about crypto currencies and governance:
Taking a lead from game theory – let’s say that the rules of the game define how economic value is shared across participants, and that governance defines the way these rules can be changed.
In the capitalist economy – money facilitates the transfer of value, the profit motive determines how value is distributed, while the power to change the rules resides with capital (ie. shareholders).
In the crypto-space – we can have tokens that combine value transfer with governance such that the more people that use a system, the wider the distribution of tokens and the more people that have a say in governance.
Suggests a value-in-use approach to governance where you can “distribute power more evenly across the network because everyone is sharing the same asset” – as currency and capital are combined. Power is distributed based on how everyone is contributing to the network.
Under this model, the aim is to reward participation with the power to govern. Governance becomes a mechanism to protect against being “forked to death” as the value to govern accretes to those that work within the structure. A well designed governance mechanism will therefore better enable a network to evolve over time.
Also, suggests that models that reward participation are likely to be more robust than ICO’s where external capital gets to buy power up-front – which just internalises the governance problems that exist with proportional shareholder models elsewhere.
Got me wondering how a currency & capital token simplifies the management of a mutual…
Tokens are migrating to the mainstream. CryptoKitties has demonstrated how the blockchain can extend beyond money into real-world ‘things’. it doesn’t sound like a big leap to enable me to own my own digital cat, but it has the potential to be a whole lot more useful than digital currencies alone.
With CryptoKitties, I can have a cat and that cat belongs to me. If the developers stop supporting the front-end that enables me to look after my cat, it doesn’t change the immutable fact that the cat exists and is mine. I can use someone else’s front-end and my cat will waiting for me. Even better other developers can build other ways of interacting with my cat – my cat can have a hat and that hat belongs to the cat and not me – and the original developers can’t stop this from happening.
This conversation with one of the creators of CryptoKitties Dieter Shirley is good – he is a lucid thinker. Really liked the way he described the potential future for ‘non-fungible tokens’ (and his self-confessed struggle with coming up for a new word for ‘thing’ which must be one of the oldest word in any language).
Once we have things that can exist in their own right on a blockchain, then we have the basis for a whole heap of applications. Dieter talks about something that you earn that contributes to your status – for example, only people who attended a Kanye concert can get a certain token. Collect 10 of these tokens and you graduate to a gold token. This mechanism can send a strong social signal – it’s a form a digital self-expression the way our vinyl record collection used to be. This is exactly the type of mechanism that we are hunting for in regards to ‘reward-for-effort’ tokens in the cooperative space.
The biggest hurdles to mass market solutions are solving the currently very high technical barriers around on-boarding and know-your-customer compliance. And beyond that the scaling problems with ethereum. As Dieter explains ‘we’re running the network on the equivalent of an Apple IIe’… Ah, brings back memories, I loved my IIe.
A surprisingly well attended meeting at the Trades Hall last night given the low key publicity. Developers, designers and folk from 5 different trade unions were there. Interesting perspective on the potential power of developers to influence the shape of new tech to meet privacy-by-design and other yet-to-be-defined principles. Only one developer raising the blockchain flag as a solution in waiting. But perhaps most encouraging, the trade unions showed real willingness to engage on the issue and explore how things like platform coops can help change the balance in favour of workers from all industries – particularly designers.
When tech meets organised labour then the pendulum starts its swing back from current economic extremes.
A meeting for workers interested in collective action & unionism
We believe in workers’ rights, social justice, diversity and equality. We want to challenge corporate control over our technology.
We share a vision for an inclusive & equitable technology industry. We want to collaborate with workers and friends to build tech worker power, organise on workplace issues and create a space for educating ourselves and exchanging ideas.