Why your business needs to be on the blockchain.
When we look at the traditional capitalistic economic model, it is a highly successful model which has helped create our first world nations with their concurrent high standards of living, which although they are not perfect, these countries serve as magnetic beacons to the non-first world nations causing continual immigration, as humanity moves seeking better lives for themselves and their children. However, I think that Democracy, capitalism and a true blockchain, these three things combined, may produce a financial revolution where workers and company founders both have skin in the game, and more importantly both profit greatly from their companies success.
In my opinion, there are no perfect economic systems, but we know the western worlds current version of capitalism is the most productive and wealth creating one we have come up with. Although recently, a growing gap between company owners and company workers may be due to more then unequal financial literacy. However, I feel the implementation of what I call “Blockchain Economics” could change everything. If you can image a scenario where a company decides to raise their initial capitol from an initial coin offering of 20 million Tokens, and these Tokens represent ownership positions in the company like a stock certificate. The Tokens cost one dollar, and they are to be redeemed at a future date for one dollar, but these Tokens pay interest to the holders at 4% per year, if they agree to hold them for three years, called a lockup period. And imagine the company sets aside 2 million Tokens to pay employees as part of their employment package, along with allowing employees to buy company Tokens at certain Token exchanges where people who are in the lock-up period sell their coins at a discount or whatever the market will bear.
Now this company’s books are on the blockchain. All company transactions are on the blockchain. The network computers, or “nodes” which run the blockchain, are run by individuals selected according to their qualifications and remain in their paid positions based on objective performance of their node by vote of company stakeholders. The company charter specifies that all five core elements of a blockchain must be implemented and maintained.
In this company the workers are paid a salary, but they also have ownership in the company, and they share in the companies financial success. The owners who invested large amounts of capitol, earn rewards in proportion to their stake. The workers also earn rewards in proportion to their stake and in addition to their salary. Now while initially a large portion of the Tokens will be owned by investors, who will reap the majority of the profit. Over time as the initial investors sell their Tokens for profit, the employees or other smaller investors can buy Tokens, have stake in the company and share in the rewards. Thus an initially somewhat centralized company becomes more decentralized overtime and the workers and small investors replace the initial owners to some degree over time as people choose to sell their Tokens and thus their Stake.
This represents to me a more perfect balance of power and rewards in a capitalistic economic model, because rewards are distributed based on workers being employed or owners being related to company founders. The rewards are distributed according to investment, Tokens purchased, Stake or what I call “skin in the game”. I think this is one possible economic model which could evolve out of the fusion of the blockchain with capitalism. It is only one of several outcomes, but it requires that people educate themselves and participate.
Knowledge of the blockchain is the latest chapter in the book of financial literacy, we all need to read.
Stay thirsty for knowledge my friends.
✍️ written by Shortsegments
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