The Economics of Safecoin (presentation)

I think Micro-Finance Institutions could build an entity into SAFE (not sure if this is allowed) and then start farming and earning SafeCoins themselves, which could then be lent out …

Over time, I believe that a new model could be developed that was neither interest nor donation based. In the same way that the whole network is a new model for content and digital services, I think that there has to be a way to redesign the micro-finance model outside of the interest model without it becoming just like a crowdfunding platform.

I am not sure what that model would be, as it would take some work. But my original thinking was that Micro Finance could be developed out of the original architecture of SAFE based on what I know today. Obviously I wouldn’t know if actual coins could be specifically allocated to micro finance from the outset, but I think that the incentives and structures will be there at some point in SAFE’s evolution post-launch.

A challenge, but in my imagination it seems possible haha

3 Likes

@joelfinn @chrisfostertv @dallyshalla @al_kafir and others.

Just want to say I find your ideas and aspirations around protecting and helping the poorest people in the world touching and exciting. I’d love us to find ways of making this a part of SAFE Network, either through the core, or things built on top of it.

After the insightful economics thread @chrisfostertv started
Safecoin and ‘The Real Bills Doctrine’ of Adam Smith I’m wondering if one of the most effective ways is to help people bypass the current economic systems and provide alternatives, akin to a credit based economy as exemplified by Real Bills.

The radio programme I posted on that thread: The Classical Period (15 mins long), revealed to me two key misunderstandings I had about money. It seems it was not necessary for trade! Who knew?! And was introduced only to project power, to incentivise & coerce populations to supply armies based in their viscinity with food and resources. Money, ie coinage, was introduced for this specific purpose (while global trade had flourished for thousands of years without it). The introduction of coinage, while ingenious, enabled ever greater wars, and had drastic consequences for societies which no longer addressed inequalities through debt forgiveness, and ever since have been subject to periodic, catastrophic economic collapses instead.

I’m wondering what we can learn from these insights and how SAFE can contribute to something that frees us from this dangerous and unstable monetary system.

3 Likes

Here are some photos of the event. Thanks to @LeJacobRoy for taking them!

3 Likes

some early drafts of the diagrams for SAFEX Protocol;

many thanks @LeJacobRoy;

5 Likes

Maybe we have the start of it hinted at in the diagram @dallyshalla posted

Everyone has the chance to be a consumer, merchant and producer in a value exchange with many ecosystems existing within each realm.

4 Likes

@happybeing I will have to spend some time reading through that forum on Adam Smith, thanks for sharing.

I think that there is a lot of big ideas surfacing out there about how to shakeup the monetary system, but I think the key ingredient to making it all work is a scalable network that people trust in. So I think SAFE as a whole is a great building block for whatever the new system would become at some point in the future.

A really inspiring article came out recently that showed how bitcoin is being used to build new portals for the unbanked in places like Africa, and creating new trade possibilities in the Carribean:

The obvious problem for me is that the bitcoin blockchain is not well-designed for global scalability, so there will come an inevitable point where all these new payment and remittance services will need to deal with that. That’s why I really think that all else being equal, SafeCoin has a much better foundation and a secure network layer to achieve these outcomes.

1 Like

@nicklambert ADAM Symposium; Connection Map

2 Likes

I cannot take credit for this map @dallyshalla. This is the fine work of @BenMS!

3 Likes

I cannot take credit for that map either. It’s the fine work of @Shona and the front-end team, @Viv in particular!

3 Likes

The FIX protocol is well… what it is: Financial Information eXchange.
It’s important not because it provide protection to seller and buyer
but because it provide a common language.
To make the FIX protocol work on the SAFE network you need to do some work.
SAFEX is the result of this work.

Guarantee are possible for digital assets.
Because they live in the digital world, we can do all sorts of computations(proofs) on them.
But thing that happen outside of the digital world are outside of the control of a computer.
Doing business (in our nasty :weary: side effect world) require trust and you try to protect yourself with thing like escrow and arbitration.
Hope it helps

“Love all, trust a few, do wrong to none.”
William Shakespeare, All’s Well That Ends Well

“All the world is made of faith, and trust, and pixie dust.”
J.M. Barrie, Peter Pan

“The best way to find out if you can trust somebody is to trust them.”
Ernest Hemingway

3 Likes