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markets/crypto systems

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Jul 21st, 2018
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  1. Crypto system are about designing incentive structures so that participants behave as desired. Those incentives can be of different nature and markets are just one of the possible tools. The BTC P2P network for instance has many diff. policies/rules (I could call it also regulation if I would like to provoke more ;-)), none of them are based on markets (e.g. you ban a node if it sends too many or wrong messages). Solving those problems by pure markets (e.g. each node has to pay for each message) would not be feasible as the payment channel requires a P2P network itself so you get a chicken and egg problems...
  2. Maybe there are some misinterpretations of what markets means to different people. I associate a financial element with it and I think that this is - though working for many cases - not sufficient or appropriate for all cases. There are stronger and more important aspects than money like reputations or merit. That is what we use in the Bisq DAO. Voting power will come with 2/3 from what one has already earned in BSQ in the past by contribution and only 1/3 from pure BSQ stake. Intention behind is to give those who earned BSQ by contribution to Bisq due actual work more influence than those who bought BSQ on the market (e.g. weight a G. Maxwell higher than a Rogert Ver ;-)).
  3. If you interpret markets simply as freedom of choice (without the requirement for any financial element) then we have probably just a misunderstanding due diff. understanding of the term. But I fear that definition is very wide and most people outside the libertarian school will misunderstand it as well...
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