1-min summary of Cryptonetwork Governance as Capital by Joel Monegro

This is a 1-minute summary of Cryptonetwork Governance as Capital by Joel Monegro of Placeholder Capital published on 19 February 2019.

• Capital is the power to organize the economic resources of a social system, and its worth a function of how much of those resources can be directed to the holder’s benefit, in turn, depending on the value of resources governed
• 2 pillars of cryptonetworks are cryptoeconomic rules and governance. The first regulate value exchange in the network, and the second defines who has ability to change these rules
• Power tokens are those tokens that have both a currency function (utility) and a capital function (i.e. ability to govern the network’s resources). Power tokens short-term value is supported by the utility properties, while long-term value is supported by the governance attributes
• Network’s resources include the token (defined by cryptoeconomic rules), the flows of value between network’s participants (as defined by the cryptoeconomic rules) and the productive resources involved (e.g. mining rigs)