The promise was decentralization and parasite elimination, but what did we get?

[Dr.Seal]

I am a beginner for this community and crypto ecosystem. After reading the whitepaper of btc, eth and other crypto, I found this mechanism is built from the idea of releasing the value maker(computation power and electricity user) from the distorted system controlled by the authority. BTC in fact help people a chance to find way collecting value without the distorted credit currency system controlled by the parasite of the authority who have the power to collect the tax. And ETH brings smart contract permitting the possibility of decentralized community.

However, I found the ecosystem is currently evolve more to a online casino who relieve people from the unfair competition in traditional stock and other market. And even winners are in lack of real-world impacts. The holder of digital currency failed to find access to change the world using their money (actually most of them are satisfied with being a millionaire in Singapore or Dubai).

Here I would share some thoughts and see if there is any people agree on me.

1, There should be a mechanism for people to using crypto to invest in real-world impact and assets. A possible drawback of crypto investor is that they can provide only money but not real-world impact. But decomposing the value of real-world impact and money needed for fund raising requests will make a fairer market. And by involving in real-world entrepreneur in this ecosystem, this ecosystem reward those who really find value (Columbus can now find America without the help from Prince, and the majority of value founded don't need to be sent to the king first). And such real-world impact will find anchor for the decentralized community in the real world. I think this could be some forms of online bonds, the the interests payment can be some online credit for the issuer. I think a fair standard can be made is that the value maker should collect all the value after they paying the interest.

2, The issuer of crypto is over rewarded (even for those who invent valuable mechanism, I am talking about Vitalik). For those idea-driven innovation, they should claim the value they added to the old ecosystem. For those community-like issue, I think the upper limit of money rewarded to the maker shouldn't be more than the amount that can meeting a human's 99% percent of desire. The main advantage should just be the right to regulate the community (even this should be limited)

3, If there is a ecosystem rewarding the value-maker (I would call them wizards, because most values come from technology and technology is like magic that can help people do more than a people can), the regulation of the system shouldn't be just from the ecosystem builder, but by all the wizards, by weight of the impact they make (maybe in a form of how much interest they paid)

Is there any comments or people have similar ideas with me?

[Dr.Seal]

I think the reason why responsible investment doesn't happen is because of credit. In a decentralized system, all the words are assumed as lies unless codes and mechanism are designed to make fraud impossible. However, when it comes to real-world impact, there is no mechanism or ideas securing the information is true, making the validation process pointless. I think there should be a decentralized credit system, I have some thoughts on this actually.

1, in a decentralized system, the only thing people can lose is the credit they accumulate. In such a system, how trustworthy a man is proved by the amount of interests he pays to the his investors. And if this person break his promise, he should receive penalty by losing his credit in this ecosystem. Also, the ecosystem should be regulated by those who has proven that they can pay the interest back. Think about the national bonds, currently it is thought as one of the risk-free asset. However, if a genius issued more money than the national bonds and pay interests more and longer than national bonds than the United States for some grand idea (e.g. building up a Dyson Sphere), I think the fund-raising request of this person is of fewer risk than any country. And the key is here, the wizard can adjust the interest rate, as long as it is below the rate his project can generate. And because the information is open, his funding request will be properly priced by this open market. And the value made from wizard will be completely from the difference between the real revenue and the interest he promise.

2, Also, the ecosystem built up for value makers (wizards) should be regulated by those who have already proven their capacity to make values by paying their investors interest back. But a problem here is that the builder of the ecosystem might not want to lose control and only claim limited profit from this ecosystem he built (think about throwing the crown of being the king of wall street and silicon valley at the same time! An obvious fact is that in such a system, the most powerful wizards won't necessary be the builder of the ecosystem.

3, When people want to raise their credit, the most simple way is to tell people who they are, and their reputation itself is a credit. The methods of raising credit be using real-world asset or reputation should be permitted, and the investors may want to evaluate all the factors, including the interests paid in this system, the name of that fund raiser, and some other real world impact proof (e.g. the documents that proving they have the land to build farms and schools). The investors should also check the details of projects in case it is a Ponzi scheme. Such a ecosystem, will finally filter the stupid investors and liars. In a long run, only smart wizards and smart investors will survive in such a system.

As for "dilemma of Vitalik", which I use this to call people with contribution but lost after having tons of digital golds. This happens because such person have limited ambition and ideas to change the world. Thinking about the most luxury life you can have, spending one million dollars per day, throwing golds to the sea to make fun, this will only costs you 365 million dollars per year, which is much lower than a lot of billionaire's income. However, if you want to change the world like feeding all the starved children in Africa, building up a colony on the moon or developing nuclear fusion technology, billions dollars will be trivial for those targets. The drawback of current system, both crypto and real world, is that the man having the potential to make value can't receive the investment they needed or need to spend stupidly much effort to get invested while person without any grand desire keeps so much money and throwing them in breeding their ego to escape from the emptiness. The wizards in this system will be pushed by the pressure of paying interest back or he will lost credit and kicked out from the system, and when he want to retire, he just need to return money to his investors, and the rest of his saving to invest in new wizards to make the world better.