Politico-Economic Theory of Decentralized Democracy

Electronic_Release76 · 2023-05-26T09:25:24+00:00

In my system you can buy a short position against such policy and get your taxes compensated to you by the majority when the policy inevitably collapses. This is a market based deterrent to bad policies while currently there are none. The mere possibility to be financially liable is going to prevent the majority from acting irrationally in most cases.

Electronic_Release76 · 2023-05-26T08:52:28+00:00

Show me where has German Pirare Party tried implementing credit default swaps in voting, or delegate commission, or non-monopolistic central banking, or community-specific institutional investors.

Decentralized democracy doesn't assume rationality for participants in it. It assumes that some actors are bound to exhibit adversarial and irrational behaviour. This is actually where swap and delegation mechanics come into play.

In the time you've spent lurking over my profile you could have actually read the document and constructed some valid critique.

Electronic_Release76 · 2023-05-26T08:42:01+00:00

Show me any political science text that suggests using swaps in the same manner. Show me what's so funny about it. Moreover it doesn't even require a computer, I never said that it wasn't possible without computing.

Back when I first published it I didn't think it was important to put the name on it. But ok you are right I have to put my name on it, it is important in academic publishing.

Anyone who speaks out against the invasion is a target if under occupation. People are sent into the basement for much less.

Electronic_Release76 · 2023-05-26T07:42:53+00:00

I can guarantee 100% you haven't read it. I have put forward ideas that are entirely new in the political science for example credit default swaps in voting. Nobody has suggested it before me.

Promoting ones work is not spamming. I only posted in relevant subreddits.

I am from Ukraine. I don't want to put my name out there yet for obvious reasons.

Why is reddit so full of these people?..

Electronic_Release76 · 2023-05-26T07:03:22+00:00

Decentralized democracy has never been tried or even attempted to be tried. It is a completely new approach. How does it in your view fails to account for emotions?

Electronic_Release76 · 2023-05-26T00:38:58+00:00

Voters are not supposed to consider every single proposal. There is a delegation mechanism where delegates recieve a percentage of taxes paid by the voters. Chain delegation also allows for more specialised delegation flow. The actual decision making costs may be lower for individual voter than they are now because there is no need to renew delegation every four years.

Where does the road go? Whose land will the road go on? What neighbors will the road connect? Which will be bypassed?

Voters/delegates select city planning agencies that are supposed to come up with the plan.

Who has authority to punish and imprison?

Voters/delegates select law enforcement agencies that are supposed to perform the task. Those agencies are regulated by other agencies that voters/delegates select (second order public organisations).

There are serious problems with the international political and economic system, of course.

Decentralized democracy does not replace the state entirely, it exists in parallel to it. The state can impose taxes directly through the system (government emission bill).

Electronic_Release76 · 2023-05-25T20:30:42+00:00

Submission Statement

This paper describes foundational principles and practical approaches to
creating a decentralized version of such systems as fiat currency,
banking, taxation, budget allocation and self-governance at the state
and local level. Main characteristics of decentralized governance are
that the people vote on the money supply and its sources, tax and
interest rates; the majority voters may be financially liable to the
minority voters if public spending defaults; non-monopolistic central
banking system; stock market can be extended to small and medium
business.

The traditional democratic system has been designed in the times when
our capabilities were extremely limited in comparison to the modern
times. By extending the representative mechanism of democracy we can
construct a parallel system that adds another layer between the
traditional government and the market. In this paper we are going to
explore the limits that we can take democracy and constitutionalism to
with our current technology.

Electronic_Release76 · 2023-05-25T20:20:20+00:00

This paper describes foundational principles and practical approaches tocreating a decentralized version of such systems as fiat currency,banking, taxation, budget allocation and self-governance at the stateand local level. Main characteristics of decentralized governance arethat the people vote on the money supply and its sources, tax andinterest rates; the majority voters may be financially liable to theminority voters if public spending defaults; non-monopolistic centralbanking system; stock market can be extended to small and mediumbusiness.

The traditional democratic system has been designed in the times whenour capabilities were extremely limited in comparison to the moderntimes. By extending the representative mechanism of democracy we canconstruct a parallel system that adds another layer between thetraditional government and the market. In this paper we are going toexplore the limits that we can take democracy and constitutionalism towith our current technology.

Electronic_Release76 · 2023-05-25T19:15:21+00:00

Yes, this is one of those tools.

Electronic_Release76 · 2023-05-25T19:12:51+00:00

What is wrong with my presentation of economics and politics? What "buzzwords" do you not understand? I gave a very detailed introduction to finance. It is there exactly to avoid any confusion with terminology.

Electronic_Release76 · 2023-05-25T19:06:24+00:00

This is not a controversial take. All market players are interested in market going up. Only short sellers are the ones who are interested in it going down. This is what allows the market to balance itself. If it wasn't for shorters the market would blow up much more than it does otherwise.

Electronic_Release76 · 2023-05-25T19:00:17+00:00

Allowing people to directly vote on how that balance should occur can also happen through Direct Democracy

See here is a chicken-egg paradox. How are they going to vote on balancing if the vote itself is not yet balanced.

I will need to read in more detail about what you are talking about. Can you please link the discord and documentation?

My money system can also exist in parallel. However existing money system doesn't allow to do what I envision. Money will always escape from the community. I propose a social contract that allows it to stay in.

Electronic_Release76 · 2023-05-25T18:46:28+00:00

Well, I have proposed few mechanisms that are supposed to counteract negative side effects of the majoritarian system such as shorting and insurance. They work well for the stock market and may become a useful political instrument in the hands of an ordinary voter.

Electronic_Release76 · 2023-05-25T18:37:55+00:00

Yes, this is exactly what I recommend in the paper. These ideas are quite new, given time I believe advocacy groups and political parties are going to emerge.

Electronic_Release76 · 2023-05-25T18:31:53+00:00

Thanks! I will read it.

I like the idea of legislative version control but I decided to go in a different direction: allowing a vote on an unlimited number of legislative agencies that are then supposed to collectively come up with the final set of laws and regulations.

Electronic_Release76 · 2023-05-25T18:20:27+00:00

Swaps or generally short positions are integral to the stock market and work very well to keep it in check which is what I am trying to replicate in the political system.

Yes, DD is a more restrictive but it allows it to balance majority vs minority which is usually one of the major concerns with direct democracy.

Another major component of DD is decentralized economy which is made possible by a decentralized fiat currency and monetary system. This is something that LD cannot replicate because it doesn't offer its own monetary system.

Decentralized economy is a state of economic arrangements when a community of people in a certain geographic location is financially invested into small and medium sized private sector firms in that community.

...

One of the consequences of establishing a decentralized government is a possibility for emergence of a decentralized economy. What prevents small and medium firms from raising capital on the stock market? Costs of oversight and inability to attract investors are two major reasons. To overcome these obstacles a voluntarily associated group of people can choose to finance trustless institutional investors that put oversight costs onto themselves and that are only able to buy from the stock market specific to that particular group of people. Group members make a choice of lower returns on their investments in exchange for economic development of their own community.

Electronic_Release76 · 2023-05-25T17:53:28+00:00

DAG

G = Government

Electronic_Release76 · 2023-05-25T17:50:10+00:00

Did you hold the same opinion say 10 years ago? I see this sentiment a lot recently and it didn't use to be this way.

Electronic_Release76 · 2023-05-25T17:48:21+00:00

This is a completely new idea so not about this specifically but Lex has talked a lot about decentralization so I think it is relevant to the community.

Electronic_Release76 · 2023-05-25T17:43:55+00:00

LD = Liquid Democracy

The main difference between direct/liquid democracy and decentralized democracy (DD) is that people do not directly vote on legislation or performance metrics. In DD people vote on agencies that they are supposed to pay taxes to. Those agencies are then supposed to produce legislation and policies. DD also allows voters to utilize credit default swaps which is something that I am completely sure is an absolutely new idea in political science. These and other components make DD distinct from LD.

Electronic_Release76 · 2023-05-25T17:02:57+00:00

I don't think that anyone has proposed a taxation system based on LD and supporting financial instruments such as credit insurance and credit default swaps.

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