The Crypto Governance Manifesto

Loosely Coupled Governance and Its Effects on Future Economies and States

Steven McKie
Aug 3, 2018 · 17 min read

Loosely Coupled Governance, and Growth

I propose that good governance doesn’t just mean more features; it means cohesive decision making about the features the global community (or a localized population) wants (or needs), in a both a timely and efficient manner.

Governance Layers Existent Today

It’s easier to illustrate these concepts with nice graphics. This web shows the interactions between various “governance layers”, how they play into one another, and how each are all inter-related.
Image Source: Mechanism Labs
McKie’s Triangle for building sustainable blockchain-based communities.
As you can see, designing cryptoeconomic systems is a complex game theoretic smorgasbord — it takes a village. Source and image credit goes to Vlad Zamfir.

Importance of Loosely Coupled Governance

Illustration showing the interactions of various decentralized applications, built to work on top of public chain systems, that utilize the public chain as an anchor of trust (i.e. for fraud proofs).

What we are seeing here, is the slow evolution from States that are tightly-coupled to legal entities (Federal governments) to the dependence on state-machines built on blockchains that can provide you the utility and access to services you deem most useful to your personal independence, similar if not better than those of the existing legacy state.

Risks of Oligopolistic Mining Cartel Collusion and Its Long-Term Effects on the Political State

“We know of mining farms that are willing to pay millions of dollars for exclusive access to designs for specific cryptocurrencies. Even low ranking cryptocurrencies have the potential to make millions in profits for someone with exclusive access to secret ASICs. As a result, an informal underground industry has been set up around secret mining. The heavy amount of secrecy involved means it’s disconnected and mostly operates off of rumor and previous relationships.”

Prime Conditions for Miner Collusion

Experimentation and Goal-Seeking

Avoidance of Crypto Authoritarians

Embracing the Good Through Governance

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Relevant excerpts from Peter Thiel’s from Zero to One.


Video on governance by Vlad Zamfir


Updates and essays from the Amentum Capital Fund GP team.