DAOs are effectively owned and governed by people who hold a sufficient number of a DAO’s native token, which functions like a type of cryptocurrency. For example, $FWB is the native token of popular social DAO called Friends With Benefits, and people can buy, earn, or trade it.

Contributors will be able to use their DAO’s native tokens to vote on key decisions. You can get a glimpse into the kinds of decisions DAO members are already voting on at Snapshot, which is essentially a decentralized voting system. Having said this, existing voting mechanisms have been criticized by the likes of Vitalik Buterin, founder of Ethereum, the open-source blockchain that acts as a foundational layer for the majority of Web3 applications. So, this type of voting is likely to evolve over time.

Decentralized blockchains eliminate middlemen. We live in an era of 30% app store take rates, opaque algorithms, and where an increasingly high volume of content competes for an ever-dividing audience for attention. An outsize amount of the value created on these networks gets siphoned away by the platforms themselves, and a similar degree of uncertainty abounds when it comes to the terms, services, and standards permitted by these platforms.

The internet is a firehose. I don’t, myself, have 351 thousand unread emails, but when anyone can publish and connecting and sharing is free and frictionless, then there is always far more than we can possibly read. So how do we engage with that?

So your feed becomes a sample - an informed guess of the posts you might like most. This has always been a paradox of Facebook product - half the engineers work on adding stuff to your feed and the other half on taking stuff out. Snap proposed a different model - that if everything disappears after 24 hours then there’s less pressure to be great but also less pressure to read everything. You can let go. Tiktok takes this a step further - the feed is infinite, and there’s no pressure to get to the end, but also no signal to stop swiping. You replace pressure with addiction.

Another approach is to try to move the messages. Slack took emails from robots (support tickets, Salesforce updates) and moved them into channels, but now you have 50 channels full of unread messages instead of one inbox full of unread messages.

Screenshots are the PDFs of the smartphone. You pull something into physical space, sever all its links and metadata, and own it yourself.

Email newsletters look a little like this as well. I think a big part of the reason that people seem readier to pay for a blog post by email than a blog post on a web page is that somehow an email feels like a tangible, almost physical object - it might be part of that vast compost heap of unread emails, but at least it’s something that you have, and can come back to. This is also part of the resurgence of vinyl, and even audio cassettes.

The film-camera industry peaked at 80bn consumer photos a year, but today that number is well into the trillions, as I wrote here. That’s probably why people keep making camera apps with built-in constraints, but it also prompts a comparison with this summer’s NFT frenzy. Can digital objects have value, and can a signature add scarcity to a JPEG - can it make it individual?

there are now close to 5bn people with a smartphone, and all of us are online and saying and doing things, and you will never be able to read everything ever again. There’s an old line that Erasmus, in the 15th century, was the last person to have read everything - every book that there was - which might not have been literally possible but which was at least conceivable. Yahoo tried to read everything too - it tried to build a manually curated index of the entire internet that reached 3.2m sites before the absurdity of the project became overwhelming. This was Borges’s 1:1 scale map made real. So, we keep building tools, but also we let go. That’s part of the progression - Arts and Crafts was a reaction against what became the machine age, but Bauhaus and Futurism embraced it. If the ‘metaverse’ means anything, it reflects that we have all grown up with this now, and we’re looking at ways to absorb it, internalise it and reflect it in our lives and in popular culture - to take ownership of it. When software eats the world, it’s not software anymore.

Many national governments around the world are showing themselves to be inefficient and slow-moving in response to long-running problems and rapid changes in people's underlying needs.

Now consider local governments. Cities and states, as we've seen from the examples at the start of this post, are at least in theory capable of genuine dynamism. There are large and very real differences of culture between cities, so it's easier to find a single city where there is public interest in adopting any particular radical idea than it is to convince an entire country to accept it. There are very real challenges and opportunities in local public goods, urban planning, transportation and many other sectors in the governance of cities that could be addressed. Cities have tightly cohesive internal economies where things like widespread cryptocurrency adoption could realistically independently happen. Furthermore, it's less likely that experiments within cities will lead to terrible outcomes both because cities are regulated by higher-level governments and because cities have an easier escape valve: people who are unhappy with what's going on can more easily exit.

I would argue that there are two distinct categories of blockchain ideas that make sense: Using blockchains to create more trusted, transparent and verifiable versions of existing processes. Using blockchains to implement new and experimental forms of ownership for land and other scarce assets, as well as new and experimental forms of democratic governance.

One simple idea that plenty of people, including government officials around the world, have brought up to me on many occasions is the idea of governments creating a whitelisted internal-use-only stablecoin for tracking internal government payments. Every tax payment from an individual or organization could be tied to a publicly visible on-chain record minting that number of coins (if we want individual tax payment quantities to be private, there are zero-knowledge ways to make only the total public but still convince everyone that it was computed correctly). Transfers between departments could be done "in the clear", and the coins would be redeemed only by individual contractors or employees claiming their payments and salaries.

Many more processes could be made more trustworthy with blockchains: Fair random number generators (eg. for lotteries) - VDFs, such as the one Ethereum is expected to include, could serve as a fair random number generator that could be used to make government-run lotteries more trustworthy. Fair randomness could also be used for many other use cases, such as sortition as a form of government. Certificates, for example cryptographic proofs that some particular individual is a resident of the city, could be done on-chain for added verifiability and security (eg. if such certificates are issued on-chain, it would become obvious if a large number of false certificates are issued). This can be used by all kinds of local-government-issued certificates. Asset registries, for land and other assets, as well as more complicated forms of property ownership such as development rights. Due to the need for courts to be able to make assignments in exceptional situations, these registries will likely never be fully decentralized bearer instruments in the same way that cryptocurrencies are, but putting records on-chain can still make it easier to see what happened in what order in a dispute.

There is an inevitable political tension between a home as a place to live and a home as an investment asset, and the pressure to satisfy communities who care about the latter often ends up severely harming the affordability of the former. A resident in a city either owns a home, making them massively over-exposed to land prices and introducing perverse incentives to fight against construction of new homes, or they rent a home, making them negatively exposed to the real estate market and thus putting them economically at odds with the goal of making a city a nice place to live.

What if we could create a divisible and fungible city token, that residents could hold as many units of as they can afford or feel comfortable with, and whose value goes up as the city prospers?

Create economic alignment between residents and the city. This means first of all that the coin itself should clearly become more valuable as the city becomes more attractive. But it also means that the economics should actively encourage residents to hold the coin more than faraway hedge funds. Promote saving and wealth-building. Home ownership does this: as home owners make mortgage payments, they build up their net worth by default. City tokens could do this too, making it attractive to accumulate coins over time, and even gamifying the experience. Encourage more pro-social activity, such as positive actions that help the city and more sustainable use of resources. Be egalitarian. Don't unduly favor wealthy people over poor people (as badly designed economic mechanisms often do accidentally). A token's divisibility, avoiding a sharp binary divide between haves and have-nots, does a lot already, but we can go further, eg. by allocating a large portion of new issuance to residents as a UBI.

And 21st-century digital democracy through real-time online quadratic voting and funding could plausibly do a much better job than 20th-century democracy, which seems in practice to have been largely characterized by rigid building codes and obstruction at planning and permitting hearings.

The main trap that governments should avoid is too quickly sacrificing optionality. An existing city could fall into this trap by launching a bad city token instead of taking things more slowly and launching a good one. A new city could fall into this trap by selling off too much land, sacrificing the entire upside to a small group of early adopters. Starting with self-contained experiments, and taking things slowly on moves that are truly irreversible, is ideal.