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Can Cardano fans be more than just a community?

Published 4.4.2023

Are ADA holders just investors, or something more? Everyone can view it subjectively. Some are just pragmatic investors, some are investors and fans. Is there any other category? I'm sure there is. Someone can be more than just a fan. There is a group of people who see Cardano as an opportunity to create an alternative financial system and are actively involved in building it. It doesn't matter if they are developers, those who actively participate in social media debates or comment on CIPs. They can also be those who follow what's going on in the Cardano ecosystem. They are also those who use DeFi services. If you accept the fact that the financial system, or money if you like, is one of the pillars of states, we should think about what Cardano can become. If cryptocurrencies are to weaken the position of states, it is logical that people need to create some alternative. Is it too bold to think that new groups of people can emerge from decentralized networks that are more than just a community of fans? Can they call themselves citizens, for example? Let's flesh out these ideas more.

TLDR

  • Blockchain is more than just a protocol and a native coin. It's also a community. A community can be more than just a group of fans. It can be the basis for a new society.
  • Futurologists predict that corporations can replace states. Blockchain networks like Cardano are a better platform for replacing states than corporations.
  • Cardano will allow decision-making power to be distributed among all ADA holders. Money doesn't have to be a tool of the state, but a tool of the people to determine how the rules should be set.
  • Success is not about individuals getting a financial boost from a profitable investment, but about the collective being committed enough to strive for change.

What is a public blockchain network?

The answer to this question is not as easy as it may seem at first glance. Some would say it's simply a protocol. Users mostly buy native coins of protocols, so from their perspective, it's mainly a digital asset they hold in their wallets. The reason for holding the asset can be and often is just speculation. People don't know what potential blockchain and smart contract platforms have and what can be created around them. They may therefore choose a project based on sympathy or the technological possibilities that the project offers. This is a very important aspect.

We believe that most people are not just cold-hearted speculators waiting for their opportunity. If they invest their financial resources in something, it is logical that they also invest their attention. If someone buys ADA coins, we assume they have at least a basic idea of what Cardano is, what its mission is, and what it is technologically capable of.

So we can say that people are betting on decentralization through the purchase of ADA coins. Cardano for them may not just be the protocol or the ADA, but also the principles, the concept of decentralization, the mission, and the future potential to create something new that may be better than the current system. An alternative economic system may emerge in Cardano. This economic system can become the basis for something more. We deliberately don't want to call it a state, it's too early for that, but something along those lines could potentially emerge.

Blockchain and native coins are nothing without the existence of a community that keeps the network running, holding the coins and thus ensuring security and decentralization. Networks in general are nothing unless they have a large enough network effect.

Decentralized protocols are not, or need not be, there only to protect the digital scarcity of native coins (monetary policy). They may also be there to enable the emergence of new structures capable of making decisions about the protocol and its ecosystem. Digital assets are not just there to buy things but also to give you the freedom to decide your future and have the same rights as everyone else around you. We believe that many people hold the coins and are unwilling to spend them precisely because they believe in a better world and want to build it.

We believe that Cardano can be a platform for the creation of a new economy and a new society. This society will be run from the bottom up. ADA coins will not just be something that has purchasing power, but a ticket into the financial world or other people's society. The ADA gives holders the right to proportionately own a portion of Cardano's network and make decisions about it at the same time. Public blockchain networks can be seen as emerging platforms that can be the basis for new associations of people who share similar goals, ideals, and values.

It is hard to imagine at the moment and no one knows how governments and regulators will approach it. We think that at this point the blockchain industry is unstoppable and the tendency to change the world for the better has always been there and always will be. The change will be gradual and slow, but within a few decades, new influential groups may emerge alongside the current governments. Indeed, we are not alone in thinking so, and some futurologists have predicted that something similar will emerge through the technological domination of corporations.

Of course, the above does not apply 100% to all cryptocurrency fans and many are just waiting for their chance to sell their coins for a bargain. However, it is necessary to work on getting people to believe in the potential that the blockchain industry offers and to believe that it is possible to change the world based on decentralized protocols. Success is not about individuals getting a financial boost from a profitable investment, but about the collective being committed enough to strive for change.

Blockchain is a better platform for replacing the state than corporations

Many futurologists believe that states may be replaced by international corporations because of their technological dominance.

One example of this idea can be found in the book "The Sovereign Individual: Mastering the Transition to the Information Age" by James Dale Davidson and Lord William Rees-Mogg, which was first published in 1997. In the book, the authors argue that the rise of the internet and the increasing dominance of technology will lead to a decline in the power of nation-states and the rise of powerful global corporations. They predict that these corporations will have the ability to provide many of the services traditionally provided by states, such as security, healthcare, and education. According to the authors, this will lead to a world in which individuals are no longer tied to specific geographic locations but instead are free to move around the world in search of the best services and opportunities.

Another example can be found in the work of economist and political scientist Dani Rodrik, who has argued that globalization and technological change are leading to a weakening of the power of nation-states. Rodrik suggests that global corporations, rather than nation-states, are becoming the dominant actors in the world economy. He argues that this shift is leading to a situation in which governments are losing their ability to regulate the activities of these corporations and to protect the interests of their citizens.

The increasing power of technology and globalization is leading to significant changes in the balance of power between states and corporations. It remains to be seen how these trends will play out in the coming years and decades.

We believe that blockchain technology is a much better foundation for building new financial and social structures than corporations.

Corporations depend on existing money. They might be able to issue their own money soon if regulators allow them to do so. However, new monetary systems have already been created thanks to blockchain networks, and new alternatives to banking services are gradually emerging on smart contract platforms. Corporations have a big lead in the network effect but are technologically behind when it comes to creating a financial system.

Identity is also slowly moving to the blockchain. States will still have a monopoly on issuing and verifying identities, but if they allow digital identities to exist, their position will be noticeably weakened. Over time, new state-independent bodies may emerge.

Blockchain is a better platform for replacing the state than corporations because every corporation has a CEO and senior management. They dictate the rules and can always change them at will. If corporations replaced states, CEOs would essentially become the new rulers of the world.

Blockchain has a huge advantage in decentralization. Cardano will never have a CEO or anyone who had absolute power over the rules of the network. It's already impossible to change the monetary policy of the Cardano network, as all SPOs would have to agree to it and install a version of the node with the change. All ADA holders who determine which SPOs are relevant on the network would also have to agree to it.

Cardano will allow decision-making power to be distributed among all ADA holders. Money doesn't have to be a tool of the state, but a tool of the people to determine how the rules should be set. Instead of the state or central banks controlling the money and thus the citizens, the citizens can be the ones who run the economy.

Why is on-chain governance important?

On-chain governance is a hugely important advance for Cardano as it gives people the ability to make decisions about the ecosystem. It's an insurance policy that Cardano will not be controlled by the CEO, team, or another power group, but by all ADA holders. No one can gain dominance because they would have to acquire a huge amount of ADA coins. If this were to happen, the community could agree on an alternative power structure that would not only depend on ADA coins but also the history of individual members, for example.

Cardano needs its ecosystem to grow and with it the network effect. That's what the project treasury is for. It can be seen as a treasury for income and expenditure. ADA holders must be the ones to decide what is best for Cardano and the community.

Note that the project treasury and the ability of the community to decide the future are very close to the role of government. The government can be seen as the body that manages the state through revenue and expenditure. Cardano will never be about providing health care for the people, funding education, or taking care of public infrastructure. However, it can be a tool to serve local communities for that purpose. Cardano will only be an alternative economic system that may take on wider significance as technology and new ideas for use continue to develop.

An important aspect of success will be the ability to create alternative monetary systems in the Cardano ecosystem. ADA coins will always be volatile. However, the ability to use ADA as a reserve asset, or essentially any other digital asset including BTC and ETH, is the basis for creating an algorithmic stablecoin.

Stability of purchasing power, i.e. a stable economic environment, is a prerequisite for building a functioning economy. ADA will always be the base money of the ecosystem, but to ensure fair access for newcomers, stablecoins need to emerge. Perhaps at some later stage, the ADA value will stabilize and be much less volatile. However, in the transition phase, which may last several decades, we cannot do without stablecoins.

The community should not only think of the OGs in their decision-making but especially the newcomers, as they will be the ones who can help expand the network effect of Cardano. Cardano must be an attractive ecosystem not because of speculation, but because of the utility and convenience of entering it.

Conclusion

The people around Cardano call themselves a community at this stage of cryptocurrency adoption. It may stay that way for a long time. What needs to change is people's perceptions. As long as cryptocurrencies are perceived only as speculation, they will get us nowhere. Only individuals will succeed, not society. It's very difficult to convince people around you that blockchain technology can change the world. But we have to try. On-chain governance can be an important step, as the value of ADA coins will not just be speculative, but will reflect the success of the entire ecosystem. Every single decision can move us closer to higher adoption. Of course, it also depends on third-party developers who, through their DeFi projects, are building the cornerstones of the new economy. These apps may have their governance models and we imagine they may gain more influence in the on-chain governance of Cardano. The future will be what we make it.

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