This pamphlet argues that the fiat monetary system is fundamentally incompatible with the deflationary nature of technological progress. It proposes an Energy Standard — a decentralized, blockchain-based currency backed by physically produced kilowatt-hours — as a thermodynamic anchor for money in the age of AI and robotics. Drawing on the Austrian School of Economics (Mises, Hayek), game theory, and thermodynamics, it analyses incentive structures in energy markets and makes the case for a market-driven ecological transition without state coercion.ditigal: petznek.at/pamphlet
This chapter examines the decentralized autonomous organizations (DAOs), which rely primarily on sociotechnical infrastructures supplied by blockchain technology and consist substantially of combinations of shared computer code and shared data. The chapter considers DAOs using the governing knowledge commons (GKC) research framework, contrasting the GKC perspective with long-standing views of the corporate form as a nexus of contracts, as an instance of hierarchy and decision theory, and as a complex system. The analysis is set against the context of earlier work on the corporation as commons. The chapter concludes that the GKC framework focuses attention on elements of governance that often are not salient in conventional accounts. This is especially true of the important question of how governance responds to and generates social dilemmas associated specifically with practices of sharing knowledge, information, and data.
This paper establishes the Equality of Wealth Creation principle within the Natural Economic Wealth (NEW) framework: any algorithmic execution satisfying Axioms 1, 2, and 3 of Paper 0 constitutes wealth creation and is recorded in the distributed ledger with full Qoin attribution, regardless of whether it is recognised, monetised, or valued by any existing economic system. The restriction that orthodox economics imposes requiring financial mediation as a precondition for economic recognition has no physical basis. It is an institutional convention, and Axiom 1 dissolves it by measuring what physically occurs rather than what the financial system records.
This article argues that the extraction of value through informational asymmetry, what the article formalizes as the Blaeu rent, is categorically distinct from Ricardian scarcity rents and Schumpeterian innovation rents: it scales with the counterparty’s blindness, is invariant to productive merit, and is dissolved entirely by symmetric closure. The argument proceeds in three interlocking registers. The first is philosophical: drawing on Maurice Merleau-Ponty’s account of motor intentionality, Martin Heidegger’s analysis of the ready-to-hand, and Antonio Damasio’s somatic-marker hypothesis, the article defends the existential claim that some intentional states carry content before they are verbalized, and that pre-articulate knowledge, alongside acquired, derived, received, and inherited knowledge, constitutes a legitimate and analytically distinct mode of knowledge entry. The second is formal: the article introduces a fiber bundle topology to represent semantically overloaded concepts without metric distortion; formalizes the Blaeu rent as a function of the information set differential between counterparties, subject to strict conditions of merit-invariance; presents a mechanism-design proof, grounded in adverse selection dynamics, demonstrating that institutional adoption of symmetric instruments is the dominant rational strategy for capital; and formalizes the irreversible loss of cognitive potential under asymmetric conditions as a cognitive entropy law, drawing on Nicholas Georgescu-Roegen’s thermodynamic framework, showing that the waste is path-dependent and permanent. The third is architectural: the article specifies the federated, homomorphically encrypted governance structure required to make the sovereignty claim real rather than nominal, and addresses the warrant-adjudication problem through cryptographically verifiable zero-knowledge credential systems. The central finding is that symmetric closure of the information gap dissolves the Blaeu rent entirely while leaving earned competitive advantage, including first-mover position, execution capacity, and risk tolerance, wholly intact.
Axie Infinity is a blockchain-based video game offering players the chance to earn crypto tokens in exchange for their time spent playing the game. During the COVID-19 lockdowns, the game's popularity surged alongside the crypto market and stories of early adopters’ quick returns on investments circulated among online crypto and Web3 communities. As the game's rapidly growing userbase plateaued, the community experienced several growth-related crises, one of which saw the value of the game's tokens crash. But players were not passive victims of these developments. They responded by creating a “scholarship” program to secure the flow of new players to the platform and actively commented on their commitment to the “grind” of playing the game to recoup their investments. This article treats the trajectory of Axie Infinity as both an exemplar case study of broader dynamics in the crypto gaming landscape—a process we call the economization of play —and as a unique site in which players were not simply duped by the promise of the game, but were responding to crises proactively with risk mitigating and rationalizing strategies.
This paper offers a critical reassessment of Milton Friedman’s economic principles—monetarism, free-market competition, and limited government—in light of the rise of artificial intelligence (AI) and platform capitalism. Drawing on a structured qualitative literature review, the study explores how AI-driven economic structures challenge core assumptions embedded in Friedman’s theoretical framework. The analysis is organized around three key domains where traditional economic logic is being destabilized: (1) the erosion of competitive market dynamics through the rise of digital monopolies and algorithmic control; (2) the transformation of labor markets via automation, gig work, and AI-based management; and (3) the weakening of central bank authority amid the proliferation of decentralized finance and platform-based payment systems. Friedman envisioned markets as inherently self-correcting and efficient, but AI capitalism increasingly reveals the limitations of such views. Digital platforms leverage network effects, data accumulation, and algorithmic manipulation to entrench market power, creating structural barriers to entry that contradict the competitive ideal. Similarly, the gig economy, governed by opaque algorithms, distorts labor flexibility into labor precarity, contradicting Friedman’s belief in voluntary and efficient labor exchanges. On the monetary front, the expansion of private payment ecosystems and algorithmic lending challenges the foundational monetarist assumption that central banks can regulate the money supply effectively. While the analysis recognizes the continued relevance of Friedman’s normative commitment to individual autonomy and market-based coordination, it argues that his framework must be significantly revised to account for the institutional and technological dynamics of the digital age. The paper concludes by proposing a forward-looking governance agenda focused on antitrust reforms, algorithmic accountability, labor protections, and monetary innovation. In doing so, it contributes to the emerging literature that seeks to reconcile classical economic theories with the demands of a rapidly evolving AI-driven global economy.
Abstract Blockchain-based emerging technologies such as decentralized finance (DeFi), cryptocurrencies, tokens, and smart contracts have introduced innovative frameworks for resource allocation and economic interactions. Ethereum, as the major technical network foundation of DeFi and tokenized assets, is becoming increasingly pivotal in facilitating an extension and alternative to traditional finance for many stakeholders, including those who are “unbanked”. Moreover, the recent transition of Ethereum from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) consensus mechanism and the Shanghai upgrade may significantly impact Ether (ETH) distribution. However, the status quo and dynamics of wealth distribution, especially after these changes in governance structure, remain unclear. By utilizing a rich dataset spanning the entire Ethereum history from July 2015 to December 2024, we analyze the balances across address groups of different sizes and the role of key economic activities and infrastructure components within Ethereum, such as exchanges, DeFi platforms, and staking. To provide detailed insights into ETH’s distributional equality, our approach combines descriptive, longitudinal, and causal inference analyses; a complete enumeration of more than 98 million unique wallet addresses; and novel on-chain analysis. Our findings show a substantial concentration of ETH within a small fraction of addresses, with approximately 0.3% of wallets holding nearly 95% of the total supply, despite the majority of wallets holding less than 0.1% ETH. However, the ETH distribution broadly resembles wealth distributions in traditional economies, with a log-normal body and Pareto-like tails. We assert that previous studies have overstated the concentration of ETH. Additionally, our dynamic analysis reveals a nuanced trend toward less concentration over time, driven by market cycles, increasing staking participation, and reinvestment in DeFi. These results challenge the notion of pervasive centralization. This study contributes to a deeper understanding of the current ETH distribution and its evolution over time. Therefore, this work provides an objective, data-driven basis for the ongoing discussion on wealth (in)equality in blockchain-based ecosystems, particularly in DeFi.
Tarun Chitra, Kshitij Kulkarni, Mallesh Pai, Theo Diamandis
Mechanisms for decentralized finance on blockchains suffer from various problems, including suboptimal price execution for users, latency, and a worse user experience compared to their centralized counterparts. Recently, off-chain marketplaces, colloquially called `intent markets,' have been proposed as a solution to these problems. In these markets, agents called \emph{solvers} compete to satisfy user orders, which may include complicated user-specified conditions. We provide two formal models of solvers' strategic behavior: one probabilistic and another deterministic. In our first model, solvers initially pay upfront costs to enter a Dutch auction to fill the user's order and then exert congestive, costly effort to search for prices for the user. Our results show that the costs incurred by solvers result in restricted entry in the market. Further, in the presence of costly effort and congestion, our results counter-intuitively show that a planner who aims to maximize user welfare may actually prefer to restrict entry, resulting in limited oligopoly. We then introduce an alternative, optimization-based deterministic model which corroborates these results. We conclude with extensions of our model to other auctions within blockchains and non-cryptocurrency applications, such as the US SEC's Proposal 615.
• We study governance mechanisms in decentralized autonomous organizations (DAOs). • Regression discontinuity design on contested proposals overcomes endogeneity concerns. • Distributed governance mechanisms increase tokenholders value. • Proposal passage increases DAO token returns by 4.7 % at the margin. • Effect amplified by voter participation, DAO democratization, and DAO decentralization. Distributed governance mechanisms increase tokenholders value in decentralized autonomous organizations (DAOs) when decision-making is contested. Using a comprehensive dataset of proposals voted on within blockchain-based DAOs from 2020 to 2024, we exploit a regression discontinuity design on proposals that pass or fail by a close margin around the majority threshold. Local average treatment effects indicate that proposal passage increases DAO token returns by 4.7 % at the margin. Further, a one standard deviation increase in vote participation amplifies this effect by 2.2 %. Proxies for democratization and decentralization also increase the value-creating effect of contested decision-making in DAOs. Our findings contribute to understanding how distributed governance structures create value in digital organizations.
Abstract This chapter discusses the additional risks on MLFT that are created by the Metaverse. These two risks as discussed in the introduction are the Non-Fungible Tokens and the anonymity created by the Metaverse. Section 8.1 starts by discussing Non-Fungible Tokens (NFTs) and the specific risk for MLFT. It considers both the risks from a financial aspect as well as the risk it poses for transferring information. Section 8.2 discusses the concept of stateless firms. The construction of the Metaverse makes it possible for firms to remain fully anonymous. Section 8.2 discusses how the risks of these stateless firms can be limited.
The stage is about the most solid decision to oversee Ethereum Trader, such incalculable clients have made mind boggling reviews about the prosperity procedures they portray as perfect. Furthermore, the association passes on its clients along by sending standard messages about the stage and enlightening new clients about the crucial components they should use to participate in the stage's benefits.\n\nhttps://www.theethereumtrader.com
(Forthcoming in Volume 27, Issue 3 of the University of Pennsylvania Journal of Business Law) This article presents the first in-depth analysis of the reality of voting within Decentralized Autonomous Organizations (DAOs) by examining over 4,963 voting events through a combination of quantitative and qualitative research methods. DAOs have risen to prominence as an innovation in business organization models, with advocates highlighting their potential to offer democratic, non-hierarchical governance, lower agency costs, and evade regulatory oversight. However, this study reveals that DAOs are inherently susceptible to low voter participation, contradicting their decentralized ethos by potentially centralizing decision-making power and casting doubt on their democratic promise. These findings carry significant implications for the classification of DAO tokens as securities, hinging on their genuinely decentralized decision-making attributes. This article suggests policy interventions to stimulate voter engagement and foster genuine decentralization. Additionally, it introduces a novel regulatory framework—the “probationary business classification”— for DAO classification, considering the dynamic nature of DAO governance. This approach seeks to reconcile the decentralized ambitions of DAOs with the realities of their operational structures, potentially reshaping the regulatory landscape for DAO tokens.
Hugh D. Whittaker, Timothy J. Sturgeon, Toshie Okita and Tianbiao Zhu, Compressed Development: Time and Timing in Economics and Social Development. Oxford: Oxford University Press, 2020. 295 pp. £ 60.00 hardback. Graham Harrison, Developmentalism: The Normative and Transformative within Capitalism. Oxford: Oxford University Press, 2020. 304 pp. £ 58.74 hardback. At the turn of the 21st century, development research witnessed the consolidation of a socio-economic transformation paradigm centred around individual agency (and freedoms) and localized processes of empowerment (and stable forms of change). Within this paradigm, development processes are mainly mediated through markets and enhanced by good governance institutions. Neoclassical economics, as well as humanist approaches to development advanced by the capability approaches of Amartya Sen (1999) and Martha Nussbaum (2000), provide theoretical foundations to this paradigm. The Millennium Development Goals (MDGs) Agenda for 2000–2015 was a clear manifestation of this established consensus at the turn of the century (United Nations, 2000). Aligning with a liberal tradition, these theories have promoted research in development policies and the implementation of institutional market failure fixes that deliberately avoid a direct engagement with the political economy of structural transformation, the developmental role of the state, and the full reality of development in context. Examples of the transformative structural dynamics that the conventional development discourse struggles to grasp include changes in the organization of global production and their impact on the development of countries; technological changes driven by information and communications technology and, more recently, digitalization; the rise of China and the ‘great doubling’ in the global labour markets. There have been several calls for new syntheses, integrating alternative research frameworks which can address the current reality of global development. These include a call to rediscover high-level theories of the classical political economy and developmentalist traditions.11 See, for example, Chang and Andreoni (2021) and other contributions in the special issue on ‘Bringing Production Back into Development’; Kholi (2004) on the developmental state; and Kvangraven (2021) on the ‘dependency research programme’. The widening contradictions between the dominant development research agenda and the reality of local and global development have been addressed mainly by scholars ‘trespassing’ across disciplinary boundaries (Hirschman, 1981). This includes economists working in the classical political economy tradition — Marxist in particular but also Structuralists, Schumpeterians and Old Institutionalists — alongside anthropologists, sociologists and political scientists. This essay considers two recent books whose authors breach these traditions and disciplines. They both make a significant, and in many respects complementary, contribution in pushing ahead a new wave of high-development theory better equipped — both theoretically and empirically — to address development and underdevelopment in the 21st century. The first of these two books, Compressed Development: Time and Timing in Economic and Social Development (hereafter Compressed Development) by Hugh D. Whittaker, Timothy J. Sturgeon, Toshie Okita and Tianbiao Zhu, advances a new theoretical synthesis within which the global matrix of technological and organizational change (and their co-evolving relationships) is framed and linked to state and markets relations (and their embedding and disembedding dialectics). The authors use these theoretical constructs to identify and document distinctive features of the current ‘era’ of development — what they call ‘compressed development’. In their view, there is something unique in the regime of compression experienced by countries from 1990 onwards. Compressed development is a historical phase of global capitalist transformation characterized by ‘out-of-sequence’ and ‘simultaneous’ phenomena. For example, the authors point to the coexistence of ‘premature de-industrialisation’ in developed economies and ‘thin industrialisation’ among several middle-income countries (p. 23). Furthermore, Compressed Development highlights how ‘transmission mechanisms’ such as global value chains (GVCs) and the disembedding of global markets lead to the spread of phenomena like financialization and interdependence across developed and developing countries. Indeed, the book points to mutual interdependencies between countries whereby national dynamics shape (and are shaped by) state–market and organization–technology relationships unfolding in different countries. For example, the compressed development framework highlights how imperial powers shaped the development journey of ‘the rest’ through ‘policy space compression’, as well as showing how the rise of the rest — China in particular — has affected early and late industrializers including America and Japan (the so-called ‘China shock’). These structural interdependencies pose new development trade-offs in the forms of ‘dual challenges’, especially for countries aspiring to achieve socially inclusive industrialization. This is perhaps the second most important contribution of this book — pointing out that social policy was a key, although implicit, ingredient of late industrialization (Mkandawire, 2004) and that this key policy has become increasingly difficult to deliver under compressed development. ‘Recent developers now face simultaneous challenges in social development which early and late developers confronted sequentially’ (p. 160). Education and health are sectors in which the double burdens and challenges are most acute and difficult to address. In the education sector, for example, the need for inclusive ‘basic education’ co-exists alongside the need for ‘advanced education’ towards technological and innovation capabilities development. These complex relationships and policy challenges are finally addressed in Chapter 8 of Compressed Development with the introduction of the idea of an ‘adaptive developmental state’ and the discussion of the need for ‘dynamic state‒civil society relationships’ (p. 185). Building on the case of China, the authors convincingly point to the importance of understanding the opportunities offered by multilevel governance structures and incentives, including ‘local developmentalism’; they also highlight new problems posed by decentralization projects for overall policy coherence and integration at the time when these are increasingly necessary. The book adopts a political economy lens to advance a stylized theory of an adaptive developmental state. However, it does not fully engage with the problems that ‘the rest of the rest’, that is, countries that have not even managed to reach their middle-income status, are facing in their efforts to initiate and sustain their infant processes of capitalist transformation. This is where Compressed Development finds an interesting interface and starts a dialogue with the second book reviewed in this essay. The second book, Developmentalism: The Normative and Transformative within Capitalism (hereafter Developmentalism) by Graham Harrison, offers an ambitious critical political economy framework that takes on — directly and forcefully — the ‘normatively pleasing’ approach to development embodied by capability approaches and germane liberal development perspectives (p. 48). The key historical anchor of the book is that while romanticized historiographies of capitalist transformation should be avoided, we cannot escape from acknowledging the fact that developed capitalist societies have achieved generalized conditions of material progress which are historically unprecedented. Within developed capitalist societies these conditions of material progress are so ‘pervasive and obvious’ that they are often not recognized — even though ‘they are very easily recognizable if one does not live in these conditions’ (p. 7). Using Tanzania as a standpoint — a country where a radical transformation in the material conditions of people's daily lives has still to come — the book centres the analysis on the tension between progress and agency, as a tension between the normative and the transformative. This is central to development understood as a process of capitalist transformation, an untidy process that is in fact intrinsically (p. 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Ludwig von Mises produced an impossibility theorem indicating that economic calculation in the absence of market prices was impossible. This gave rise to the ‘socialist calculation debate’ in the first half of the twentieth century. This paper makes use of the insights of that debate to shed light on other situations where decision makers are required to allocate resources in areas where there are no market prices. A pertinent example would be most corporate social responsibility programs. In the absence of market prices local information cannot be communicated to decision makers. The paper further argues that blockchain technology can create the institutional environment for markets to emerge and consequently overcome the problem of missing prices.
Research has shown that cognitive, normative, and regulative legitimacy are important for new market emergence. Little known, however, are the conditions and dynamics under which these three forms of legitimacy interact over time and in different institutional settings. In this study, we investigate the emergence and development of the new market for cryptocurrencies (i.e., Bitcoin) using a comprehensive dataset on trading in 49 countries between 2010 and 2020. Our study reveals that all three forms of legitimacy drive Bitcoin trading. Surprisingly, we also found increases in trading volume when Bitcoin was declared illegal and when normative support preceded, rather than followed, regulative legitimacy. Our results shed light on the relationship between cognitive, normative, and regulative legitimacy and their interactions in the emergence and development of a new contested market over time.
In recent decades, the birth of crypto-currency has challenged the monopoly of paper money controlled by national central banks and their respective states. From a decentralized conception of the economy, digital currencies such as Bitcoin have tried to replace traditional money as a new and more democratic form of economic relationship. However, it is necessary to confront these new forms of economic exchange with Karl Marx's analyses in Das Kapital to see whether they really represent an effective alternative to capitalism or whether they fall into new forms of capitalist relations.
Cryptocurrencies present a disruption to financial institutions, investments, and markets. Should governments therefore allow cryptocurrencies or ban them? How will they affect the flow of money? What form of economic justice should the cryptocurrency market adopt? Who should be involved in the determining of the economic justice? I claim that Michael Polanyi’s theories about employment, money, trade, and his overarching sociotechnical vision of society and the economy can help us understand the current labour market challenges and solutions in view of the digital economy.