Remember post-DeFi narratives that included speculations on “blockchain states” becoming a thing as crypto grows stronger?
I still think about it a lot, mostly because I find crypto to be positioned as a better economic layer for the world due to some fundamental designs that just fixes a lot of things; or dare I simply say “restricts a lot of things?”
Usually, when someone asks me why Bitcoin works, I have a three word answer and that's: risk and reward.
People underestimate the power of incentives, even whilst living in a reward-centric world.
The difference between how the real world plays out and how blockchain economies evolve is in the level of applied incentives and associated risks.
Taxes for example, have no guaranteed rewards, but it has risks(consequences) when not paid, that, essentially, is fraud.
The government will tell you that your taxes helps grow the nation's economy and fund some long list of nationwide developments, but that is not always true.
Surely, a percentage of your taxes will go to build/fix roads and nothing more — very common in third-world countries. And what's even funnier is that many of these countries are rich with natural resources, crude oil inclusive, but you still find the government reaching to extract maximum value from the citizens with every given chance.
In no world should a government be entitled to 20-40% of a person's income. It don't matter if it's an individual’s income tax or a company's, middle class, poor or rich, that's exploitation.
15% is already too much. I'm not going to say; let's do the math, because every adult has done the math and we all get to know what's left at the end of the day.
We are living in a slave system, you work, lose close to 80% of what you earn before hitting home, it's just crazy. Then on top of that, we have to battle inflation as the government print to supposedly expand the economy, which you've already been taxed to grow, fool enough, are we?
The central bank, a fraud, the tax system, a fraud, the government, a fraudulent body, the nation, a slave system working round the clock, bringing in real change that the government get praised for at the end of the day.
Zero creatives in the government, the only thing the government knows how to invest in is wars, and other times they're really just selling bonds backed by an economy powered by the labour of the people, who they still heavily tax to fund more wars, give out foreign aids — really just redirectly money into their own pockets.
It's a freaking stupid design, and it's crazy that's we've lived and believed in it for so long.
But, Crypto fixes this
The governmental body is supposed to be a representative of the people, but the problem comes from how it's been designed to shut out the people it should serve once the votes are in.
Given the level of power being handed off, the system is flawed and needs to be replaced with something that enforces accountability through risks and rewards.
Isn't it crazy that being a “Governor or President” is a career but these roles fillers are not treated as other individuals in other fields?
If you're a construction worker, you don't get paid if you don't show up and do the job, as it is verifiable if a job has been completed or not.
This level of accountability lacks in the government.
Crypto fixes this because it takes away the central bank, replacing it with a treasury system managed by all stakeholders.
Want to get paid?
Do the job, and you'll not lose funding.
Want to build a road? Or two? Or an investment for the nation? Put up a proposal with all details and the stakeholders will get you funded.
The system works because the moment you stray, you lose funding, and it becomes public record that you're a fraud. That's the beauty of risk and reward.
The interesting part of it all is that citizens(stakeholders) have no choice but to be fully involved in every process because every funding they vote for is virtual tax on their wealth, so if they themselves decided to be fraudulent and vote for what is only exploitation of the treasury, they'd only be putting their own wealth and reputation on the line.
Think about about it. The treatury is filled up through inflation tokens. If I vote on a proposal that dumbs 20% more tokens into the market without the funds attracting revenue and investment back into the state, I'm essentially just diluting my own wealth and what good does that do me?
Taxes are not forced and directly out of pocket, but through inflation tokens which are channeled towards funding the right projects.
Ideally, the best consensus mechanism for this is DPoS, which is what Hive runs on. It is the single most effective way to run any economy. If we fund what doesn't benefit the ecosystem, we are essentially hurting ourselves and nobody else.
Now everyone who wants to direct the economy has to have some skin in the game.
And when there's a hostile takeover or dispute? We fork away.
Posted Using INLEO