What do governments do?

Governments play a crucial role in society by collecting taxes and building public goods such as roads, bridges, and dams. However, they also have the power to print money and impose indirect taxes, which can lead to inflation.

who is deciding which public goods to fund?

One of the main problems with governments is that the representatives who are elected to make decisions about which public goods to fund often have personal biases and can be corrupt. This can result in the funding of projects that don’t align with the needs and interests of the people.

In fact, it’s estimated that governments spend around $25 trillion each year on public goods.

The strength of the chain depends on the weakest link. The weakest link in the current government power structure is the corrupted representatives who make decisions in favor of their personal benefits.

One solution to this problem is to allow the people to directly decide which public goods to fund and build, a system known as direct democracy. Web3 technologies, such as blockchain, make it easier to create new systems like this rather than trying to change old ones.

@gitcoin
@nounsdao
@Meta_Cartel
@Givethio
@MolochDAO
@rainbow_rolls

There are already many public goods funding protocols in #Web3 that use direct democracy@gitcoin@nounsdao@Meta_Cartel@Givethio@MolochDAO@rainbow_rolls

Based on @thegrifft talk in @EFDevcon 6 public goods funding systems can be divided into two types.DonationEconomic

Donation games,

Funding is directly done through donations from people.Decision-making processVoting: organization votes as a whole, through its internal decision-making procedures, whether to fund a project @MolochDAO , @NEARProtocol ,@harmonyprotocol , @Filecoin ,

Quadratic funding:

matches funds from donors with funds from the treasury following a quadratic funding model that weights the matching funds as a function of how many supporters it had, as well as the total amount it received(@gitcoin )

Economic games,

This feels more like games than donations. they create cool economic games that engage people, but under the hood, they fund public goods.Ex: @nounsdao , @rainbow_rolls NFTs, all the project treasure is used to fund public goods.

As blockchain technology continues to accelerate open innovation, we can expect to see more protocols emerge that fund public goods in new and innovative ways.