Decentralized Democracy: Conclusion

Table of Contents:

1. Introduction
2. Methodology
3. Decentralized Democracy
4. Conclusion & References
5. Addition I. Class Summary

Conclusion

What this paper has arguably been able to show is that the potential exists for a new kind of a social contract that pushes democracy and market incentives all the way to their constitutional limits. This push gives us a lot of new territory that was unreachable before certain technological advancements of the current era, and that can be used to build institutions and economic arrangements for collective action on both local and national scale without a central authority.

The main set of promises of decentralized democracy is that it is going be able to facilitate:

• Democratic Finance. Monetary and fiscal policy that is determined by the vote of the people. Public and private credit comes into existence through the democratic process.
• Balanced Majoritarianism. Democratic process that is balanced in terms of the costs to the minority in that process. The process disincentivizes the majority from making reckless decisions.
• Small-scale Investments. Stock market system that incentivises equity creation on a small and medium scale. First, it removes major costs from the business and shifts them to investors. Second, it produces demand for small-scale investments as a consequence of localism. Third, it enables an infrastructure that is required to service the investments.
• Ethics in Data Use. Private data access policy that is determined by the vote of the people. People can allow limited access to their private data and receive benefits from allowing it.

When every individual is able to express their political beliefs in a meaningful fashion and has the confidence that they’ve made a meaningful personal contribution towards their dearly held beliefs, it can be argued that it is going to lead to decrease in societal tension and increase in social harmony.

This document puts out a call to the world to explore and experiment with the idea of decentralized democracy. There are several different steps that one can take with it:

• Build theoretical mathematical models that formally analyze democratic decentralization through social choice, game theory and mechanism design.
• Produce educational and scientific materials that explain benefits of democratic decentralization.
• Build the software system that runs decentralized democracy.
• Organize social and political movements that promote democratic decentralization.
• Try it out in the field with volunteer communities and businesses.

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