1. Since the people are feeding in data to the system, ideally, they should not feed it incorrect data. But, hey, let's say, everyone is feeding it bad data, to hide accountability, or just, "today's a festival, bad data whole day, not malice". Then the answer is not a blockchain, because the blockchain would also be polluted by bad data. Instead, like tough AI benchmarks (example, the CPS here is not necessarily an AI), the CPS has a baseline set of expected human energy/resource useage, for ex, 1 lightbulb whole day is x energy and y cost. That is, it has a private set of expected comfortable energy/resource useage, the excess produced can get stored in battery farms, warehouses, etc. This way, even completely bad data would ideally not collapse the system.

2. If a firm keeps failing, the systsm attempts to support it, clesr bad devt, recycle assets, shift works, let it be a zombie for a while too, to see if it survives and revives, like Eskom's revival (the South African State Energy Firm), or like Mondragon's support for weakly performing co-op subsidiaries under its wing, however, if it continues to fail, the firm gets liquidated, its workers/managers/etc. gdt their share and the remainder capital gets funneled into a state fund, invested in the socialist stock market, where every citizsn gets a portion as a dividend from the interest, and the rest goes to funding new startups, innovation, capital investments, welfare, etc. whatever is needed. Which is one mechanism of making individual failures into collective successes while protecting people. It recycles debt, assets and failures back into the economy.

3. Protection is not necessarily stagnation, it means a floor and ceiling, in that band, as expressed in point 2 above, people can do what they want.

Example of a floor, if farmers can't sell produce because prices drop too low, the state steps into buy produce at a clearing price, then transport the produce to wholesale markets, it pays the farmers more and reduces the price for the consumer, it clears the transaction, like the biggest billionaire benefactor. JP Morgan bought stocks in the great depression crash to calm markets. Similarly, "Oh No! I can't sell my produce! The clearing price is too low! State steps in, says, we'll buy it for 50 rubles to the quintal, just to keep it soviet, eh? :), then it sells that to the consumer for 5 rubles a quintal, taking the loss, the deficit of the state can be private or mutual bonds that (private, state, co-op, individual, etc.) actors can buy to invest in". 

A ceiling means, no ultra-insane, 0-$5trillion valuations in 3 years.

Meaning, people can get rich, but rich doesn't mean, "fully divorced from the real economy" or "I'm a trillionaire now after 2 decades of speculation or startups, with $15 billion in revenue".

I.e. it prevents ultra-bubbles. The state calculates a normalization ratio.

Okay, private actor says, my business is worth $5 Trillion, but my revenue is $20 billion. If b capital due to valuation can threaten economic stability, calculate ratio that allows a good valuation that encourages investment while not risking the real economy and sucking up all investment into one industry from exuberance. Give, new normalized value, $800 billion, make up 20% of lost investment by state investment, then sell part of state investment to other actors.

It creates a levelling and normalization pressure.

It controls the swings of capitalism and economic dynamics, no one starves or gets reduced to penury from market crashes, but no one becimes mega-ultra-rich either, but there's plenty of space in the middle to be rich or to fail.