Plurality of public goods

public goods show up at every scale of human coordination. we tend to fund them one scale at a time and rarely look at the whole picture at once. here it is in one frame.

the wheel slices public goods by scale: local, city state, nation state, global. plus two slices that aren’t geographic, digital and crypto.

scale what it is example public goods who funds it today
local a town, a neighborhood schools, roads & bridges, community centers municipal taxes
city state a metro transit, water, zoning, local policing city budgets (patchy)
nation state a country social welfare systems, military federal taxes
global the whole species climate, herd immunity, pandemic prep almost nothing
digital the internet’s commons web servers, npm, pip, IPFS, AI safety almost nobody
crypto protocol infrastructure BTC core, ETH L1, L2 tech token incentives, sporadic

the pattern

read the right column top to bottom. the funding mechanism gets weaker the more diffuse the scale gets.

  • local goods have a tax base. a town funds its roads.
  • national goods have a tax base. a country funds its military, whether or not you like how.
  • global goods have almost no funding apparatus. there’s no world government, so climate and pandemic prep live on whatever nation-states feel like donating.
  • digital and protocol goods have essentially nobody. npm, pip, the web servers half the economy runs on, held up by a handful of unpaid maintainers.

so the underfunding is worst at the outer edges, and the instinct is to aim funding there.

where the work actually is

the most underfunded scale and the highest-impact scale for us are two different scales. the place to push is local.

the force eroding public goods at every scale is the same one: winner-take-all network monopolies. the internet let a few platforms consolidate and extract from everything underneath them, and ai is accelerating it, moving people from small-business owner to employee to laid off. you can’t out-fund that at the global scale, there’s no mechanism up there to pull on. the local scale still has a tax base, still has civic institutions, and is the one place the fight against monopoly is winnable. 80% of the country lives in cities.

one thing i’m considering is what it’d look like to do quadratic funding (and other coordination infra) at the local scale. a matching pool per city, repointed from ethereum open-source software to city resilience. you give a dollar to a local business or a local project, and a broadly-supported one pulls real matching out of the pool. the same mechanism that funded ethereum’s commons, aimed at main street.

the ask

three questions for governance:

  1. how do we represent the overlapping nature of public goods? eg if a network monopoly is extracting from the local and hollowing its public goods, how do we show that reflexive loop?
  2. is local the right aim, or should we chase the global and digital edges where the underfunding is objectively worse?
  3. does QF-for-cities hold as a mechanism, or does the local scale need something quadratic funding can’t give it?
  4. for a pilot: which city, and what matching-pool size crosses the activity threshold? (working guess: $25k to $100k per city.)
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This is spot on. the push toward onchain governance for everything seems premature. Some decisions genuinely benefit from offchain discussion and rough consensus before going to a formal vote. Not everything needs to be a DAO proposal.

I agree with this as well, always good to get an informal agreement

Building on this — privacy in blockchain transactions should not be controversial. Financial privacy is a basic right. Zero-knowledge proofs offer a path to privacy without enabling illicit activity, which is the right balance.