Crypto's Biggest Challenge: Governance

Cryptocurrency is a field of experimentation at this point. It is a wonderful world because all options are on the table. We see projects that do a lot of different things being tested out. It is like the Wild West of innovation.

Since all of this operates in the digital, we are operating in near limitless ways. Whatever we come up with can be tried. A lot of it will end up faltering, dying a slow and unspectacular death. There will be some, however, that do make major strides, creating changes in humanity that we desperately need.

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One area that is lagging is in the field of governance. Cryptocurrency is providing a vast ability to tokenize projects how we want. This includes in areas of governance. Unfortunately, we appear to be following the same ole tired models that we developed a number of years ago.

A project gets started and somehow distributes tokens. This is the framework from which the governance model is derived. Either those tokens are voted or are aligned with other tokens distributed, forming the governance model. Those who are holders of the tokens get to vote, mostly in a staked manner.

There is nothing wrong with this approach. However, it is already known. When it comes to furthering the impact upon society, we need to try different concepts.

Decentralized Autonomous Organizations (DAOs) hold great potential. They can revolutionize the business structures. This will not be the case if we still follow the same concepts surrounding governance. In fact, a case could be made that DAO development is hindered by the lack of progress on the governance end.

Ultimately, we find ourselves in the situation whereby we are thinking too conservatively. Experimentation is, by design, meant to explore to the farthest edges. Hence, it could prove beneficial if we expanded our view of what is possible.

Does this mean it all will work out? Of course not. Nevertheless, it is vital that we start the process in this realm. The advantage to the digital is that things can move very quickly. This is orders of magnitude faster than the physical world. The world is in dire need of new governance systems and modeling what is in the real world with a digital adaption isn't going to cut it.

As we embark into a deeper realm with regards to our digital and virtual lives, it is important to note that our existing governance institutions are going to have less of an impact. While that will be celebrated by many (if not all), it does create a serious void. The idea of a networked economy is enticing until we realize that we are still lacking sound governance models in which we can engage upon said networks.

We know what does not work. This is clear to us. Stated another way, we know what we do not want. However, what we want is not yet designed. Moving away from something is a decision, just not one that opts for something else. Without an alternative, we are operating in a vacuum.

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Cryptocurrency is rapidly bringing about abundance. The only problem with that is we are entering this realm while operating with governance models that are based upon scarcity. Until we start testing the limits of what is possible, we will still be following the same path.

This could also make us vulnerable in the same as many other entities. Decentralization is only as good as its weakest point. If a system can be overtaken at the governance level, then all else is immaterial. It is a situation that needs to be heavily looked at.

The existing system is doing all it can to try and adapt to what is taking place. Even though they are far behind, the fact that they are even in the conversation shows how little we did on this end of things. We had over a decade head start plus the advantage of being in the digital world. With that being the case, we should be light years ahead of what is out there now.

We are not.

Of course, that does not mean all is lost. We can quickly put ourselves into the express lane. There are a lot of bright minds involved in crypto. We have the potential to create governance systems that will be unrecognizable to the rest of the world. This should be our goal. If the masses can't identify it, then we are likely dealing with something completely new and radical.

And that is exactly what is called for.

DAOs have tremendous potential but it is hindered if we structure them like traditional companies with the exception being tokens instead of stock. In a situation like that, we will basically see the same thing.

Is there a better way? The answer is of course. We know there are always more innovative ways of doing things. And let us be honest, when it comes to updating, global governance systems are long overdue.

The answer is obviously not clear at this time. That is where experimentation, adaptation, and innovation all come into play. We might find a few concepts that work very well and a bunch that do not. What is important is to find what works. From there, we can expand upon things to a much greater degree.

This is how we start putting light years between what we are creating and the present system. The digital realm provides an open platform that is fast and flexible. We are not constrain by either the Newtonian laws of physics nor a legacy system. Instead, we are free to go in whatever direction we seek.

It is time we start to apply the creativity and innovation to governance models. The world is sorely in need of an update.

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