Crypto Research

Modern Economical Nonsense – The VUCA World

Do you think we are heading into a chaotic world? If you feel that way, it is okay. Because human instinct has been developed to automatically feel fearful when there is uncertainty around us. It is perfectly normal to fear. However, we can find a way to navigate through such fearful situations.

Let’s explore. 

Table of Content

VUCA World

High Inflation

Digital Goods

Digital Mindset

Debunk Information Asymmetry

Build a Sustainable Tokenomic

In Conclusion

VUCA World

VUCA is pronounced ‘voo-kar’. It is short for volatile, uncertain, complex, and ambiguous. The similar feeling from FUD or fear, uncertainty, and doubt, portrays an uncertain and chaotic environment.  

High Inflation

As inflation rises, every asset becomes speculative because the money is so cheap. People got used to wanting more and more without putting in more effort. There is more and more demand for goods and services. However, we are living in a finite world. Supply has been limited. This situation is called a supply shock.

Digital Goods

Because digital goods can be unlimited, it resolves the supply limitation concerns. What cryptocurrencies want to resolve is to shift desire from physical goods obsession into digital goods obsession. However, the price from both ends fluctuates even more than ever.

Digital Mindset

From the traditional sense of the physical economy, there is only one single solution to the problem. Everyone should focus on resolving it and it should be resolved eventually. But what if that is not the case? Similar to the expectation of the Fed to bring down the inflation and only they can resolve the issue and believe they will. What if they fail our expectations? We need a digital mindset to help us to navigate through VUCA. A digital mindset is to open your mind to absorb any possibilities and learn from them. You will have to utilize possibilities to encounter uncertainty.

Debunk Information Asymmetry

VUCA will create information asymmetry which makes individuals lack information on a certain event. To encounter such disadvantages, you need signaling, screening, warranties, and mandatory disclosure.

Signaling is a way for individuals to find a possible signal for certain events. Many places such as social media platforms and other news outlets may provide signal information.

Screening is to verify the signals. You will need to research evidence to verify such signals are indeed true.

Warranties can be someone’s verifications to support the signal. It is a way to double-check the signal’s correctness.

Mandatory disclosure includes any information that is disclosed by regulations that can help you to understand the signal better.

Build a Sustainable Tokenomic

To create a tokennomic for your DAO, you will need to prevent information asymmetry. Here are 4 steps you can do to prevent this:

Signaling: it is a way to market your community but align to the current trends. However, creating hype is not viable for sustainable community building.

Screening: verify your tokenomic and make sure such design can be implemented and sustainable. Incorporated ideas from your community to make the idea closer to what the community wants.

Warranties: double checks with another source to confirm your design is viable. It is better if other communities also implemented a similar plan.

Mandatory Disclosure: make sure your tokenomic is transparent to your community members. Education them to understand the process.

In Conclusion

To navigate through the VUCA world, you need to change your mindset to become more adaptive. Also, your tokenomic will require you to become adaptive too.

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