I shared my thoughts about Tokenomics and some interesting facts.
Table of Content
Tokenomics is a design concept to manipulate token supply and demand in the crypto ecosystem. The idea is to control the token economy, you can control the behavior. Tokenomic is decentralized, transparent, immutable, and accessible to everyone. The common 4 core benefits everyone in the crypto ecosystem recognized. But do you know where those 4 core ideas came from? Hint: Anarcho-Capitalism.
What is Tokenomics
Tokenomics is an economical design game. It manipulates supply and demand to artificially try to change consumer behaviors. If the designer increases supply, they want to increase the demand by lowering the price of tokens and increasing the user base so that they can scale their community. Or they can increase demand by decreasing the supply of burning tokens or capping token supply to reach high demand with a high token price. Then you start manipulating ROI or Return of Investment through the supply and demand of tokens, depending on how successful your marketing strategy is, the community can grow or shrink through marketing efforts.
It is an economical strategy game that has actual valuation embedded into the system. It is fun to play when you make profits. However, everyone ignores the foundation that makes such a game work. The philosophy that backs such gameplay - Anarcho-Capitalism.
What is Anarcho-Capitalism
Anarcho-Capitalism advocates the abolition of centralized states. They believe that the current system is under threat by the centralized states which is a form of coercion and impediment to the development of a free society. They believe that a truly free society is one that has an absolute right of ownership over any resource so-called self-ownership. They claimed that decentralized services provide an alternative to centralized states. Particularly, such decentralized services can provide immutable and publicly available records of identity and contractual obligations. Wait a minute! This is cryptocurrency and blockchain!
Anarchism vs. Anarcho-Capitalism
The only purpose of anarchism is to reject any form of government. Anarchism by itself usually runs into violence because the ideology only gets the rejects of the hierarchy of any form. But it does raise a question about whether or not humans can self-govern without a state that is necessary for human survival.
On the other hand, Anarcho-capitalism is to liberalize the market. It does not stop with privatizing everything but imposing an absolute self-ownership on anything you can own.
Anarcho-capitalism is a form of anarchism in the marketplace with a twist to eliminate violence.
Deep Dive in Anarcho-Capitalism
With an idea of a self-regulating market and unnecessary evil government, anarcho-capitalism gives some clues about how society operates.
Privatizing everything is a core concept of anarcho-capitalism. The government should not own anything because the ownership of property is through coercion. It should be a “first come, first served” principle in the market. To own a property, it should only be legitimate through the labor process which means if you own land, you should farm the land in order to own it. Other options are through trade or gift to own property.
Anarcho-capitalism opposes intellectual property because property can only apply to tangible assets.
Image credit of 4 Children for Sale, Chicago (1948).: https://en.wikipedia.org/wiki/Anarcho-capitalism
It is a purely voluntary action without any potential coercion or violence. Even child selling can be justifiable (if both sides agree to do so!). We will see how this actually plays in the crypto space in the later section!
Law and Order
Only laws accept the defense of individual liberty. Otherwise, all laws acting as violence should be abolished.
History of Cypherpunk
Cypherpunk was a secret society of bunch coders or self-claimed cypherpunk to promote the right to privacy in the internet age. One of the leading figures is Eric Hughes who drafted “A Cypherpunk’s Manifesto” which eventually led to the creation of Bitcoin. The idea was to defend the public right to use crypto and prevent the government's attempt to control the use and export of crypto through regulatory policies. The movement was able to secure a foundational development of the cryptocurrency later and made cryptocurrency possible to be created by Satoshi Nakamoto who was also a member of the Cypherpunk.
Tokenomic = Anarcho-Capitalism
Anarcho-Capitalism offers the economic concept of decentralization that eliminates the centralized states, imposes absolute self-ownership idea, privatizes everything, eliminates intellectual property rights, forms a voluntary-contractual society, and opposes the law, and order unless they defend individual liberty. Stay quiet on illegal activities that come along with the process (selling children) because there is nothing wrong with defending your liberty (in extreme cases).
Historical Anarcho-Capitalism Nations
Iceland Commonwealth (930‑1264 A.D.)
The Iceland government had no executive, no criminal law, and no bureaucracy but ran on the system of chieftainships based purely on market. The law was only based on tort civil law which resulted in few victimless crimes and all penalties were monetary.
A truly fascinated history shows how decentralized government worked:
The system relies on private entities to provide protection against violence. All violence is settled through monetary compensation. Any damage or physical harm required payment of damages up to a fixed payment such as killing a person would result in between 12.5 to 50 years of income for an ordinary man. It prevented the wealthy from abusing their power to abuse the poor. If the wealthy harmed the poor, the poor would receive enough funds to compensate him or her to become wealthy and to go against the person who harmed him or her.
American (1830 to 1900)
The United States ran a similar Anarcho-Capitalism state system back in the grand old day. Unlike the Wild West Hollywood portrayed in the movie, the old day was a very orderly and well-respected past with fewer crimes and conflicts being presented in the society!
Modern Norway (2015 to Current)
Norway has adopted City Coin (CITY) as their sole source of the medium of exchange. A movement that created a private city-society of Liberstad that was founded in 2015. The entire city data was running on top of the blockchain under the smart contract.
There are many possible future smart contract cities that are coming. Miami and New York are among those to receive their own City Coins that benefit local citizens. The movement will spread out and help other cities to participate in the economic reform of how cities can operate to truly benefit their local residents.
Tokenomic is a game design for the crypto ecosystem. The movement to provide city coins can benefit local citizens to participate in their city's development. Such a movement is ongoing and to benefit the future of tokenomic that can truly be accessible to everyone.
Photo by Christian Lue on Unsplash
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You can refer my previous article lists here and here
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Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.