Modern Economical Nonsense - The VUCA World

By xuanling11 | Crypto Learning | 15 Apr 2022


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.


Photo by Clayton Malquist on Unsplash
Note: the post was shared on multiple platforms here.

You can refer my previous article lists here and here
------------------------
2022 Prediction
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
------------------------
DAO The Way
DAO The Way Part 1
DAO The Way Part 2
DAO The Way Part 3
DAO The Way Part 4
DAO The Way Part 5
DAO The Way Part 6
DAO The Way Part 7
DAO The Way Part 8
DAO The Way Part 9
DAO The Way Part 10
DAO The Way Part 11
DAO The Way Part 12
------------------------
Learn How To Defi
Learn How To Defi Part 1
Learn How To Defi Part 2
Learn How To Defi Part 3
Learn How To Defi Part 4
Learn How To Defi Part 5
------------------------
Crypto Comics
Crypto Comics
Crypto Comics - PoW
Crypto Comics - Who is Satoshi
Crypto Comics - What is Token
Crypto Comics - What is DeFi
Crypto Comics - What is Wallet
Crypto Comics - What is HODL
Crypto Comics - What is Coinbase
Crypto Comics - What is PoS
Crypto Comics - What is DAO
Crypto Comics - What is A Block
Crypto Comics - What is NFT
Crypto Comics - What is Fork
Crypto Comics - What is Web3
Crypto Comics - What is DeFi-2
Crypto Comics - What is Yearn Finance
Crypto Comics - What is Degen
Crypto Comics - What is Aping
Crypto Comics - What is Cold Wallet
Crypto Comics - What is Hot Wallet
Crypto Comics - What is Airdrop
Crypto Comics - What is DYOR
Crypto Comics - What is 65537
Crypto Comics - What is RC4
Crypto Comics - What is WAGMI
Crypto Comics - What is Bagholder
Crypto Comics - What is Decentralization
Crypto Comics - What is Wallet Address
Crypto Comics - What is Plagiarism in Web3
Crypto Comics - What is Bart Pattern
Crypto Comics - What is Encryption
Crypto Comics - What is Consensus
Crypto Comics - What is Protocol
Crypto Comics - What is Stablecoin
Crypto Comics - What is ApeCoin
Crypto Comics - What is FOMO
Crypto Comics - What is Tokenomics
Crypto Comics - What is APR
Crypto Comics - What is to The Moon
------------------------
Learn Web3 in 100 Days
Learn Web3 in 100 Days - #1 What is the Internet and How Relevant to Web3
Learn Web3 in 100 Days - Day 2: What are the Browsers and Servers
Learn Web3 in 100 Days - Day 3: What are HTTP Status Code
Learn Web3 in 100 Days - Day 4: HTML and CSS and JS
Learn Web3 in 100 Days - Day 5: What is programming
Learn Web3 in 100 Days - Day 6: Markup, Elements, Tags, and Hyperlinks
Learn Web3 in 100 Days - Day 7: Style Your Web
Learn Web3 in 100 Days - Day 8: JS
Learn Web3 in 100 Days - Day 9: SQL
------------------------
Modern Economic Nonsense
Modern Economic Nonsense - Inflation and Incentives
Modern Economical Nonsense - The Astrologist's Way
-------------------------------------------------------------------------------------
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.

How do you rate this article?


25

0

xuanling11
xuanling11

A delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters to write with a freestyle.


Crypto Learning
Crypto Learning

All article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.