I don’t think there is anyway to address current problems until you begin to think about core relational dynamics within the architecture of the protocol which is in effect a ‘tri-chameral’ political system per The evolution of Polkadot’s political economy.
Most people here will be familiar with the scalability trilemma - aka you can’t have your blockchain cake and eat it.
The same is also true within the emerging tri-chameral political economy of polkadot:
The same is also true when we consider the role of value-accrual and spending as part of this tri-party incentives balancing act.
If we stick with just DOT and USDT for example, then I agree that binary creates tension that can only result in either stasis as people fear spending down the treasury and brutal zero sum games around receiving grants since theres no objective ways to establish ROI or an unsustainable approach to ecosystem development since there is no direct value accrual and thus its just money printing until inflation/reality catches up with everyone.
However if we add a third party to this mix - parachains backed by uncorrelated assets, whose assets are assigned to a reserve by a proposing team that the treasury funds, in return for diversifying reserves, we can add a third element to balance the system.
- DOT security
- USDT spending
- X backed assets diversification
We use USDT to bootstrap the core incentive design, funding parachain teams that drive coretime demand through industries backed by appreciating reserves, giving some stability and price floor to the treasury, and then develop a native stablecoin based on a diverse basket of treasury held assets.
We end up with something like IMF’s Special Drawing Right.
The kabocha roadmap outlines the very simple approach to aligning on-chain collectives, with NFT based treasuries.
Kabocha splits the difference between for-profit parachains (let’s call them gen1) and system chains, taking the best of both but within a more explicitly cooperative structure that aligns incentives between between relay (security), parachain (utility) and collectives (rights assigners).
we’re focused on introducing a design template to Kabocha (and chains we incubate beyond that) where the funding of projects via our decentralised currency, also accrues value to the chain’s treasury.
Rather than inflating a supply and directing it into a treasury – as has been done by all Substrate chains so far, we will only be minting new KAB when a proposal is approved by the community.
Therefore, we can say that every KAB minted after launch is to fund a specific job.
In addition, those requesting funds will assign NFTs to Kabocha’s ‘reserve’ that are representative of their ideas / concept or project.
We call this ‘cultural collateral’.
These NFTs will also confer access rights, permissions and future utility to those holding KAB and can be upgraded as the funded projects develop over time utilsing https://rmrk.app.
The narrative idea is a rework of the well known ‘Store of Value’ concept which has been the major hook for Bitcoin.
Except rather than being backed by machines / sunk electricity costs of miners, Kabocha is backed by the time, effort and insight of its contributors. Those investing in Kabocha are essentially betting on the future collective cultural value and access afforded by the assigned assets.