Crypto Research

Modern Economical Nonsense – Economic Models

Who determines the economic models? In the past, institutions were carrying out such impossible missions. They failed miserably. Do we head into the self-creation of the economic model through possible cryptocurrencies?

Let’s explore. 

Table of Content

Trilemma 

Technology Dominated Economy

The Idea Economic Model

Feasibility

Digital Rules

Proposal

In Conclusion

Trilemma 

The global economy is slowing down further as inflation continues to rise. It tells people the economic model is not working properly in the future.

Image credit: https://blogs.imf.org/2021/05/12/the-policymakers-trilemma/

When institutional models economy, they focus on three factors, spending, tax, and debt. The more spending power the nation has, the more power its economy will have. The tax revenue depends on how the nation wants to balance the social structure and prevent the rich from getting richer while providing sustainable social programs to support the bottom social groups. While debt is a way to further increase spending powers on some other programs while it can slow down the growth of the nation. 

However, to get into the fundamentals of the trilemma, we dig further into each factor to conclude three more essential factors: technology, art, and social justice to constrain the growth of the nation.

Technology Dominated Economy

For the past half-century, technology has dominated the national economy.

Technology is reliant on the value of scientific truth. The measurement of the technology is the truth of scientific knowledge. However, it has become an absolute power of truth in recent years. 

Social justice is reliant on the value of justice. The measurement of social justice is equality. Recently, the yardstick has been changed to income level and creates a wider inequality in the society as we continue debating.

Art is reliant on the value of aesthetics. The measurement of art is aesthetically pleasing such art can bring to people. It has become evident that the value of money has become a dominant measurement of the artwork recently.

Thanks to advanced technology, our economic model has been living under the influence of technology.

The Idea Economic Model

Shouldn’t we focus on social justice to create an equal opportunity environment for everyone to participate?

Social justice is a middle ground between technology and art. Truth is too concrete and art is too abstract. Social justice is to meet the needs of both sides to the middle. 

Feasibility

I think a part of the DAO’s mission is to determine a social justice mission. There hasn’t been a nation with a pure social justice driven economy in the past. That doesn’t mean it is not feasible to do so. We just have no opportunities to test it out.

The failure to implement social justice is because of the failure of centralization. Justice isn’t a science of truth to have an absolute definition and it cannot be too abstract like an artwork to get various definitions

Digital Rules

DAO has proposed rules embedded into consensus algorithms that no one can modify unless through a community voting. It brings technology under the rule of social justice.

However, it does not automatically solve the problem of fairness. You have to create a mobility mechanism within your community to motivate people to work toward the community goal while distributing fairness rewards to the community.

Proposal

Perhaps, we should utilize art to reward the senior members and to exchange opportunities for new members to step into senior roles while senior members reward NFTs to phase their responsibilities out into more of a glory position. It then motivates new members to move upward while preventing the loss of the existing talents.

In Conclusion

There is not a single solution to create an economic model in DAO. Perhaps you have a better idea to improve DAO and implement it and test it out.

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