Token-based Platform Design

We are living in a crisis of institutions that spans all areas of society including governments, parties, churches, enterprises and associations. One of the reasons for this crisis is the fact that these institutions mostly rely on governance mechanisms designed in the 19th century. So these governance mechanisms are pre-digital and need to catch up with technical innovation.

Another reason is that today’s institutions are focussing on increasing internal value creation only and so are having a tendency to be extractive, create negative externalities and are causing stakeholder conflict.

We do not only need to upgrade governance from analog to digital, we also need to find ways to effectively create positive sum games, positive externalities and evolutionary upgrade governance systems and market mechanisms in accordance with accelerating technological innovation.

Due to flaws of analog governance, artificial stakeholder groups have been created. Most noteworthy is the management complex and the audit complex. In addition, due to the digital transformation and the emergence of digital network effects and platforms, big tech has grown to dominate many industries. Both led to highly centralized power structures that in some cases use surveillance capitalistic digital methods to manifest, sustain and even enlarge their power.

We do not only need to upgrade governance from analog to digital, we also need to find ways to effectively create positive sum games, positive externalities and evolutionary upgrade governance systems and market mechanisms in accordance with accelerating technological innovation

Due to flaws of analog governance, artificial stakeholder groups have been created. Most noteworthy is the management complex and the audit complex. In addition, due to the digital transformation and the emergence of digital network effects and platforms, big tech has grown to dominate many industries. Both led to highly centralized power structures that in some cases use surveillance capitalistic digital methods to manifest, sustain and even enlarge their power.

Single company platforms are the only business model that successfully captured network effects and leveraged the true potential of digital assets like not seen before.

But especially these intermediaries are claiming too much of the economic value created and governance power accumulated. Regulation and state interventions are a first reflex in overcoming this situation but there is also the possibility to upgrade market mechanisms and create community-owned and -governed token-based platforms to out-cooperate Web2 platform incumbents and align cross-organisationally around a common purpose.

The most advanced approaches of decentralized governance and token-based platforms are coming from the Blockchain and Web3 space. I am especially focussing on the concepts of RadicalxChange, Token Engineering and Platform Design. 

What most people don’t know is that more regulation is not the only way of responding to the rise of these market failures but that we can reshape market and governance mechanisms on their own to improve on fairness, agency and regeneration of our socio-economic systems with the above mentioned social innovation concepts.

“Single Company Platforms a the predominant form of digital business models - this needs to change. Token-based platforms offer the possibility to align all stakeholders on a common purpose and make platforms community-owned and -governed.”

Enabling Experimentation

Experimentation is the scientific way of gaining insights and inventions. This is also true for social systems. In our highly interconnected and fast-paced world predictions are becoming more and more difficult. Therefore we need to innovate iteratively and with experimentation in the social and people space, too.

Drive Adoption

Once “product-market-fit” of a new product, platform or system is proven by experimentation the goal is to achieve large scale adoption. One critical point is to leverage network effects and manage to bootstrap the ecosystem so that it gets beyond the inflection point (the chasm) of adoption.

Testimonials

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