💥 The programmability of wealth means that all types of assets can now be collateralized into smart contracts with custom-designed payout functions — effectively creating synthetic assets.
“2008, much?” Yes, in the long-term, we need to think of ways to mitigate risks involved in creating complex assets that few understand. But in the short term, to call the design space exciting is an understatement.
Here’s an imaginary example of a synthetic asset that could incentivize collective action to solve a societal problem (see the source for more examples):
“I previously suggested creating a token to track human excrement sightings in San Francisco. The idea: the city of SF could issue “shit coins” to credibly commit to fixing the homelessness problem (and earn a profit if they succeed); residents of the city of SF could buy shit coins as an “emotional hedge” and make money if the problem gets worse. Could “collective action” tokens be used to combat rainforest deforestation, ocean pollution, or other tricky global problems? I’d love to try.
Programmable wealth opens up the entire economic logic for design and experimentation. It’s where the future of social, the future of finance, and the future of work merge into something very new.
🏁 The variety in on-chain governance models will effectively create separate but interoperable digital jurisdictions or digital nations - each with its own system of clearly delineated, irrevocable digital property rights.
🏬 Last but not least, “Ads don’t work that way” will change the way you think about advertising. Cultural imprinting is the best explanation I’ve seen for why brands spend millions on Super Bowl ads and why companies like Nike and Coca-Cola are so powerful.