Mechanisms

Generation Mechanisms

Harberger tax - a mechansim that allows an ecosystem to strike a balance between pure private ownership & total commons ownership of a resource.

Lossless Lotteries - A way of running a lottery such that even if you do not win the lottery, you get to keep the price of admission into such lottery. By allowing users to stake funds in a lottery, and then using those funds to generate yield and rewarding the winner of the lottery with those yields, lossless lotteries are able to create a positive sum way of generating funds for winners (but without taking funds from the losers).

Money Legos - Composability is the interoperability of different pieces of the internet of money such that they could be assembled like legos. Each new money lego is a freely available public good for any builder to use - creating an opportunity for each net-new builder in the space to “stand on the shoulders of giants”. It’s what creates the conditions that allow for the creation of exponentially more unique combinations of mechanisms over time.

Sequencer Fees - The Optimism L2 network has pledged to donate 100% of their early sequencer fees to the public good of the Ethereum network. Since Optimism does $100k/day in sequencer fees, this has been a very successful way of funding public goods.

Transaction Fees - Prominent DEFI Protocols have implemened fee switches into their protocols, which if turned on, could be a power funding generation mechanism for the public good.

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Funding Generation Mechanisms cont’d

Funding Generation Mechanisms

Two Sides

of the

Same Coin

Funding Distribution Mechanisms

Data as Labour - What if we treated the consumers of the web as creators & owners of their of data?

Web2 is funded by advertising, and web2 advertising networks like Facebook have become hugely profitable by selling advertising. What kind of new opportunities would it provide to fund regenerative economics to give everyday citiens of the web the ability to route economic upside for their data?

Any other economically exothermic mechanism - Any other mechanism that’s used in DeFi, NFTs, DAOs, or otherwise to generate protocol revenue could be directed to public goods.

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Bonding Curve - A scheme in which the price of a token is determined by its supply. The more tokens that have been distributed, the higher the price + visa versa. Typically used as an elegant mechanism to manage scarcity + price.

Community Inclusion Currencies (CICs) are assignable credit obligations redeemable for goods & services. These can be issued by communities to develop sustainable local markets when National Currencies are scarce.

Fractal DAO protocols, They make 'subsidiarity' easier to implement; Subsidiarity is critical for scalable informed participatory governance. Orca, 1hive Swarms are examples.

Natural Capital backed Assets. Strictly necessary to align regnerative finance with physical/natural world, not just social/economic world. CurveLabs and Kolectivo (formerly CuraDAO) are piloting these.