Thread by @chandan1_

1️⃣The new #governments emerging from #web3

What do governments do?

They collect #taxes and #buildpublicgoods such as roads, bridges, dams, etc.(this is oversimplified)
They also print money cause inflation and taxes people indirectly!

2️⃣who is deciding which public goods to fund?

Mostly by the government representatives who are elected by the people. Most of the government's representatives, don’t represent people's interests most of the time because of personal biases, and corruption.

3️⃣25 Trillions $ spend year on public goods.
As the strength of the chain depends on the weakest link. The weakest link in the current government power structure are the corrupted representatives who make decisions in favor of their personal benefits.

4️⃣Solution
The best way would to let the people decide which public goods to fund and build. This is called direct democracy

5️⃣It is much easier to create a new system, than to change the old system.

There are already many public goods funding protocols in #Web3 that use direct democracy
@gitcoin
@nounsdao
@Meta_Cartel
@Givethio
@MolochDAO
@rainbow_rolls

6️⃣Based on @thegrifft talk in @EFDevcon 6 public goods funding systems can be divided into two types.
Donation
Economic

7️⃣Donation games,
Funding is directly done through donations from people.
Decision-making process
Voting: organization votes as a whole, through its internal decision-making procedures, whether to fund a project @MolochDAO , @NEARProtocol ,@harmonyprotocol , @Filecoin ,

8️⃣Quadratic funding: matches funds from donors with funds from the treasury following a quadratic funding model that weights the matching funds as a function of how many supporters it had, as well as the total amount it received(@gitcoin )

9️⃣Economic games,
This feels more like games than donations. they create cool economic games that engage people, but under the hood, they fund public goods.
Ex: @nounsdao , @rainbow_rolls NFTs, all the project treasure is used to fund publicgoods.

🔟As blockchain accelerate open innovation we will see more protocol emerging from the space that funds public goods.