Valocracy

Description

1. Danimim:

"Valocracy': A novel and structured social, economic, and political framework that attempts to leverage blockchain technology in order to create new forms of organizations with the goal of empowering communities along with their individuals and their combined efforts." - Casta [1]

When we talk about efforts, both combined and individual, we need to chart a path that delivers these efforts in a tangible way to governance capable of reading this type of data. So, when we talk about on-chain reputation that considers efforts, we also speak of a DAO ecosystem that is moving towards being based more on valocracy than on plutocracy or political influence power in DAOs."

(https://mirror.xyz/blockful.eth/Ht7raeMRhVNg64X-uHJ3vowmox2Dx8_OPMWVWPnkVyI)

2. Castaneda:

"Valocracy is a novel proposal for on-chain human coordination.

It takes inspiration from Web 3 ideals and aims to address an issue that is currently prevalent in both the traditional world and in simpler forms of DAO, and that, in our opinion, is still one of the greater inhibitors for better systems of human coordination.

That issue is that we still operate, even in the so called Web3, with collective arrangements in which “greater purchasing power” usually conveys “greater political representation”.

Thus, Valocracy is designed as a socio-economic framework to operate collectives in which “purchasing power” does not easily translate into “political power”, and where individuals are rewarded by their capacity to contribute to the collective rather than by their capacity to extract from the collective."

(https://castacrypto.notion.site/Valocracy-0194daa64df546d4adeb2732c506064b)

More information

* The Valocracy Manifesto. Rafael Castaneda.

URL = https://castacrypto.notion.site/Valocracy-Manifesto-f1ca6d59fad54ab9a8aa15924026a05f

"Valocracy is initially thought to leverage digital communities that want to be economically sustainable. In particular, communities that are sprawling within the Web 3 movement, as several of these communities comprise people that are dissatisfied with traditional economic, social, and political arrangements and that are migrating to Web 3 in search not only for a breath of fresh air but also to engage in economic activities and to make a living out of it.

Born out of this realization, Valocracy is a system that aims to economically incentivize individuals to generate true value for their organizations and for themselves, all while being free to choose between one or several organizations and the activities that better fit their life ambitions.

One may argue that this is true today, and that the stories of self-made millionaires are proof that entrepreneurs who generate value with great products and services are made rich as retribution for their fair contribution to society.

And indeed, it is, but only to some extent.

The fact is that once individuals and companies are rich enough, it becomes cheaper to use their accumulated wealth to bend the system in their favor rather than to further improve society via a fair contribution. This results in the inevitable and ever-widening gap between the ultra-rich and the masses, or shareholders and laborers.

By attempting to learn from history, Valocracy was designed to operate in such a manner that “purchasing power” does not easily translate into “political power”, and that individuals are incentivized to constantly generate value, being rewarded by their capacity to contribute to the collective rather than by their capacity to extract from the collective.

In order to achieve that, our framework has several design principles"

(https://castacrypto.notion.site/Valocracy-Manifesto-f1ca6d59fad54ab9a8aa15924026a05f)

Typology

So now we have a social problem, which already exists but which we must transpose into the digital organizational universe: the trilemma of power. Democracy, valocracy, and plutocracy.

1) On one side, you can have governance that values equal participation but tends towards the monetary side: a demo-plutocratic governance.

2) On the other side, you can have governance that leans towards both participation considering the efforts of members, but prioritizes capital: a valo-plutocratic governance.

3) And finally, a more complex governance due to lack of capital, which encompasses equal participation of all and considers the efforts of members: a demo-valocratic governance."

(https://mirror.xyz/blockful.eth/Ht7raeMRhVNg64X-uHJ3vowmox2Dx8_OPMWVWPnkVyI)