Balaji Srinivasan Profile picture
Feb 21 23 tweets 8 min read
51% democracy vs ~100% democracy

In a 51% democracy you just barely pass the bar, and then assume all will do as you say. They won't.

The ideal is actually a ~100% democracy. An opt-in society, where everyone has chosen to be there. And can leave.
Set aside the question of whether ~100% democracy is practical for a second. (The ~ indicates that 100% is an asymptotic goal, even if not fully achieved.)

Once you agree it is desirable — and morally superior if feasible — then you start thinking about whether we can build it.
The fundamental concept is that democracy is about the *consent of the governed*.

If you have only 51% support, you have the absolute minimum necessary level of consent.

It's a democratic Fosbury Flop. You just barely clear the bar.
archive.is/aP2hv#selectio…
This gets worse if that 51% is an unstable majority that constantly flips back and forth.

There's a temptation for the party in power to impose, say, an emergency...to use the state to ideologically crush the 49% in order to build a supermajority.

Eg:
medium.com/s/state-of-the…
The social war

In 1861, the sides were physically and ideologically separated. So blue's victory condition was simple: invade gray.

By 2016, the blue and red were overlapping in physical space, but disjoint in digital space. So victory meant invading the other side's mind.
Once you reconceptualize what's going on as a social war, you see that debates about free speech and the like only capture part of it.

Unbanking, cancelling, deplatforming, and the like are tactics in a social civil war, waged on digital platforms.

Silencing *as* violence.
If you can invade the other faction's territory, you invade their territory. When you cannot do that — when your faction lives alongside theirs in a hopelessly fractal mix in the physical world — then you invade their mind.

Hence, the ongoing social war.
How do you know you've invaded someone's mind?

When you can force them to say a word.
Or not say a word.
Or put a given phrase on their site.

Territory shifts with each such declaration. Hence all the tribal affiliations in bios. It's a digital game of capture-the-flag.
Where is the social war waged? On the internet. We see this from the way factions line up across national borders. For example:
The real borders in the social war are those of language, not state.

The CCP has wrapped up the Chinese theater, by establishing total root control.

But the battle for the English internet continues, which is why the establishment wants CCP-like control.
theatlantic.com/ideas/archive/…
That's the establishment's "war of restoration".

A social war, waged on the English internet, where victory means control of mind, and where control of mind is signaled by forcing you to voice regime shibboleths.

"Disinformation" thus signals disloyalty.
archive.is/IFcne#selectio…
In many ways this was predictable.

Social media is American glasnost, and cryptocurrency is American perestroika.

Like the USSR, the USA's order cannot withstand truly free speech and free markets.
history.com/topics/cold-wa…
Unlike the USSR or PRC, the US didn't realize just how controlled its speech and markets really were, till social media & cryptocurrency.

The USSR consciously reformed, and collapsed.
The PRC consciously did not reform, and did not collapse.
The USA unconsciously reformed, and…
It's worth stepping back to realize just how controlled speech & markets were in the US till recently.

A nominal right to freedom of speech didn't matter if you didn't own a newspaper. Nominal access to free markets didn't matter as much if it was too costly to start a company.
The ongoing Counter-Decentralization likely succeeds in the East & fails in the West.

It will succeed in China because they censored and cracked down early.

It fails in the West because the establishment won't be fully able to impose harsh controls on a nominally free society.
That is, China set up its Great Firewall and social media censorship when those technologies were at "seed stage". The Western establishment only reacted when they were at billion-person stage. So they paid up to crack down, and did so incompletely and incompetently. Fortunately!
Another way to think about it: technology allowed people to actually engage in the rights they were nominally granted in a free society.

Actual freedom of speech, actual free markets, global freedom of reach.

The result? A reduction in establishment power. Hence, the crackdown.
The pre-internet order gave people the nominal right to start a company or speak their minds. It was just incredibly expensive to do so.

Once that became very *inexpensive*, all the newly independent founders & billions of people online threatened the US establishment's control.
What we're seeing now is a chaotic attempt by the Western establishment to put the internet genie back in the bottle. The fact that social media & fintech are centralized is what gives them that power today. When they're decentralized that power goes away.
The next few years may be gnarly, but resorting to this level of coercion shows the establishment is very insecure. They've lost the moral high ground & are facing unprecedented elite dissent online.

And that's before factoring in hard power & hard money.
One note: it's useful that the Canadian state had to come out & order financial institutions to do this. It reveals a degree of centralization behind what were ostensibly decentralized activities in the US. That makes it legible & easier to defend against.
So: the establishment wants CCP-like control over the internet to win the social war, but can't get that. The dissidents lack any coherent ideology, but can serve as spoilers.

I think the whole thing cracks up, decentralizes. And we need a vision for what's on the other side.
To paraphrase & invert Anatole France:

"The majestic equality of the law allowed the rich and the poor alike the right to own a newspaper, start a company, or speak freely."

Now that tech has delivered on those nominal rights, they want to take it away.

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More from @balajis

Feb 20
Important article by my friend @DavidSacks. He argues crypto isn't enough, politics is needed.

My counterargument is that BTC + web3 provides the crucial philosophical/technological *base* for pro-freedom advocacy.

Examples: Wyoming, Miami, El Salvador.
bariweiss.substack.com/p/a-social-cre…
That is, I agree it's not exit *only*. You can't run forever.

But exit can get you to a high ground. You can beat a tactical retreat, to a place where you can speak and act freely, demonstrate a better system, and thereby reform the old.

That's Bitcoin.
bariweiss.substack.com/p/a-social-cre…
The Harper's letter approach fails because each signatory exists wholly within the old system. They can be surrounded, forced to recant.

But technological & physical exit gets you into a new system. With financial freedom & censorship-resistance, they can't silence your voice.
Read 11 tweets
Feb 20
Thesis: the assembly line trained people for the top-down mass politics of the 1900s.

Today's workplace is network-based. With the crucial exception of China, which still builds things, any viable political ideology will scale up what people are doing on their devices.
Put another way: you don't get communism, fascism, or mid-century democratic capitalism without mass production. Top-down politics pantomimed the assembly line. Centralized states told the masses what to do.

See for example:
Today, the West has deindustrialized, while China has industrialized.

Millions of its people are still conditioned to work together en masse in factories. The scenes below are still common.

This may be why it's capable of doing things like the 1950s US, but the 2020s US is not.
Read 8 tweets
Feb 18
The US military may be weaker than many think.

This detailed post by a retired colonel reviews everything from ground forces to air defenses, and concludes that the US military is overmatched against a peer like Russia — especially in its backyard.
smallwarsjournal.com/index.php/jrnl… Image
All the observable parts of the American state are failing. That may include the military, and in more places than Afghanistan. And that means updating our mental models.
Well, it’s not the same country.

The WW2 America could make a B-24 bomber in ~60 minutes [1]. Whereas 2022 America needs 20 years to reopen a bathroom.

[1] pbs.org/kenburns/the-w…
[2] mercurynews.com/2022/02/02/bar…
Read 4 tweets
Feb 17
Three kinds of DAOs

Autonomous DAO — a group that interacts with a truly self-running smart contract with no admin keys and no CEO

Bureaucratic DAO — a mess of politics

CEO DAO — a single clear leader
Yes, I’m well aware that the A in DAO in theory already stands for “autonomous”, but today’s DAOs mostly aren’t autonomous — so the distinction is worth making.
A non-obvious point is that a single decision maker in a CEO DAO may protect user rights more reliably than the groupthink of a bureaucrat DAO.

No decision makers (autonomous) or one decision maker (CEO) can both be better than a group of decisionmakers (bureaucratic).
Read 5 tweets
Feb 17
The truckers didn’t have a way to win.
But the Canadian state found 3 ways to lose.

First, they couldn’t censor social, so they lost the narrative.

Second, they went after the money because they lost hard power.

Third, they don’t control hard money, so they’ll lose there too.
We will see how things pan out. Much can change.

But this fits with the thesis that the Counter-Decentralization will fail in the West but succeed in the East.

There was a big push by the Western establishment for retroactive censorship — but it may prove too little, too late.
A state that loses social lacks soft power. No narrative, no obedience.

A state that loses AI lacks hard power. No surveillance, no drones.

And a state that loses BTC/web3 lacks hard money. No seizures, no freezes.
Read 4 tweets
Feb 14
The defining scarce resource of each decade?

2000s bandwidth
2010s attention
2020s blockspace
2030s loyalty
First, get people online.
Then, connect the world.
Next, observe that these new connections cause new conflicts by obviating old borders we didn't know existed.
Add crypto to restore digital rule of law.
Finally, rebundle society after the coming unbundling.
Provable patriotism

When something becomes highly abundant, its scarce complement becomes valuable. Given infinite peanut butter, people want jelly.

So, when we enhance technological exit to the nth power, the systems that arise will be those that engender genuine loyalty.
Read 4 tweets

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