Radical liberalism: acne Buterin proposed solution to the problem of financing cryptoprocta
The founder of Ethereum Vitalik Buterin co-authored white paper that, in his opinion, offers the solution to the problem of financing cryptocurrency projects. The essay is called “Liberal radicalism: the formal rules of a neutral society.”
Co-authors of the white paper were made by Zoya Hitzig, candidate of economic Sciences from Harvard, and Glen Weyl, a researcher from Microsoft. White paper points to the problem of financing cryptocurrency projects, due to a large number of people wanting to profit at someone else’s expense. We are talking about those who appropriates public goods, which leads to their shortage for projects that they vitally need.
Faced with this problem, and projects outside the cryptocurrency industry. The three authors are very well known, as ideas can create a dangerous motivation when it comes to financing. Now the team is mainly dependent on donations; many good ideas never find the funding. White paper offers a new method of raising funds, supporting the “self-balancing ecosystem public goods”. The model allows different groups to donate funds for the preservation and increase of public goods and services and at the same time to avoid “free riders”.
The mechanism is similar to quadratic voting in the sense that it gives participants the opportunity to vote via cryptotokens depending on how important they think the project. Due to this change the approach the user communities donations to public goods, especially FOR development, journalism and cryptocurrencies. Individuals will donate money depending on how much they value the project. This will increase the amount of funding worthy causes.
Speaking to CoinDesk, Hitzig said:
We expect that as soon as the document will be available to the public, she will begin to experiment with the contained ideas.