Glossário

Scale-Free Money

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Scale-Free Money enables users to define values or objectives and then create and tie in specific denominations of money with those values.

What Is Scale-Free Money?

Scale-Free Money enables users to define values or objectives and then create and tie in specific denominations of money with those values. 

Through token issuance, users can direct funding toward objectives they care about, and token holders can collaboratively decide which goals to support and execute. 

Traditional financial systems often prioritize profit and growth, which can lead to decisions that don't align with individual or community values. Scale-Free Money, on the other hand, allows users to define their own goals and values, and then create and use money specifically to achieve those goals. This flexibility and adaptability are not typically possible with traditional forms of money, which are often used as a general medium of exchange rather than a tool for achieving specific, user-defined goals.

Why Do We Need Scale-Free Money?

  1. Improving Crypto’s Capital Inefficiency: Current crypto ecosystems suffer from poor capital allocation, duplicated work, and inefficiencies in producing meaningful global impact. Scale-Free Money can fix these inefficiencies by making funding and resource distribution more purposeful.

  2. Breaking Out of Speculation Cycles: Crypto is often seen as a space for speculation rather than real-world impact. Scale-Free Money provides an alternative model where value creation is tied to meaningful objectives, rather than short-term benefits. 

  3. Interoperability Without Competition: Rather than competing for dominance, different forms of money are fully compatible and seamlessly interoperable, making financial systems more scalable and cooperative.

  4. Creating an alternative financial system: Scale-Free Money moves crypto beyond being just an investment vehicle and enables it to function as a truly alternative financial system built around human values and serving meaningful goals.

What Are the Use Cases for Scale-Free Money?

Scale-Free Money can enable unique use cases and improve existing ones. It can be used to fund public goods, address coordination problems, and provide a more efficient alternative to traditional fundraising models like ICOs. Local economies, communities, and even cities and states can create their own sovereign, interoperable currencies that function seamlessly in the backend without users needing to be aware of them. This solves a significant barrier to adoption in the lack of sovereign controls over infrastructure and trust models. Additionally, crypto projects can use Scale-Free Money for mutual credit relationships, issuing tokens to one another to create shared incentives for success, thereby offering a more sustainable approach to traditional airdrops. By allowing even non-technical users to create and manage new forms of money, Scale-Free Money democratizes financial innovation and opens up new possibilities for community-driven economic models, where communities can create their ideal economic future.

Scale-Free Money for the Web3 Ecosystem

Scale-Free Money can address inefficiencies in the current crypto economy, including fragmentation, capital inefficiency, and misaligned incentives. The inefficiencies and abuses of the current system diminish public trust and threaten crypto’s long-term viability. Scale-Free Money offers a solution by introducing a more sustainable and efficient financial model that moves beyond speculation and base-layer value capture. By enabling different tokens for different shared purposes, it fosters a more cooperative and interoperable ecosystem, where outcomes are defined by individual and community needs, preferences, and values. Scale-Free Money presents a path for crypto to evolve beyond speculative value capture and instead function as a truly alternative financial system that drives meaningful real-world impact.

Author:

Christopher Goes is a co-founder of Anoma and Namada. Previously, he was a core developer at Tendermint (Cosmos), lead designer of the IBC protocol, and primary developer of the Wyvern Protocol, which was used for many years by the NFT exchange OpenSea. Before Anoma and Namada, Christopher also co-founded proof-of-stake validator Cryptium Labs and Metastate, an R&D team focused on protocol development, architecture, ZK cryptography, and programming languages.