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WEconomics, merging "WE" with "Economics," represents a co-building and permissionless economy focused on startup growth and innovation. It's rooted in blockchain technology, connecting ideas, talents, and funding via the Decentralized Collaborative Organization (DCO) format to drive economic growth through startup launches.
WEconomics modifies institutional economics and the Marx labor theory of value, centering on labor value theory and humanism. It aims to liberate and enhance productive forces in the global economy through the internet and blockchain, promoting equal opportunities. Its core theory is labor capitalization, which encompasses specific elements yet to be detailed.
Social NetworkIndividual rights and MotivesDigital property rightsLabor value conversion mechanismFreelance Market deal mechanismTransaction costIncome distributionUBI ..
Traditional economic theory is anchored in the concept of scarcity, suggesting that limited resources lead to competition. This competition drives efficiency, which often results in centralized organizations. Such centralization can further lead to monopolies, where a few entities control the limited production factors. This paradigm, fundamental to capitalism, has significantly shaped modern society by driving economic growth and influencing production mechanisms. The progression from scarcity to monopolies encapsulates the core logic of traditional economics and has been instrumental in crafting our current civilization.
WEconomics is not a negation of this logic. It is not anti-capitalist. Instead, it focuses on solving some of the social problems that have risen from the application of this meta-hypothesis to bring about the rapid progress of the world. WEconomics takes collaborative creation as the meta-hypothesis, and solves the problems behind the progress that traditional economic theory has manifested, such as the serious exploitation of labor value, the growing gap between the rich and the poor, and the stagnation of social innovation and entrepreneurship because of capital monopoly and high permission barriers.
Compared with general economics, which focuses on raising questions and theoretical research, WEconomics has built itself a set of standardized production paradigms for its theory, using production factors as input parameters and outputting the WEconomics production organization. The WEconomics paradigm is mainly composed of five core units:
A new decentralized WEconomy organization (DCO) form for the digital ageA new decentralized freelance bounty deal mechanismA new decentralized crowdfunding mechanism based on game theoryA on-chain governance frameworkA programmable dAppstore market that supports an integrated dApp to customize your business
WEconomics is a supplement to traditional economics. It is mainly dedicated to solving some social problems that arise while traditional economics brings great progress to society, so as to promote innovation and entrepreneurship, promote the integration of social capital, and promote weak connections. Forming an effective production organization is the main goal.
A weak tie network is a kind of social network, which contrasts with a strong tie social network. Strong tie networks are closely connected entities within a clear and centralized group, such as families, companies or classes. Weak tie networks, which were first proposed by Mark Granovetter in 1973, are loose connections with a decentralized focus and usually exist between groups and are characterized by less interactive, non-close ties, and non-close friends.
The ancient human village was the basic production unit in agriculture civilization, and the factory, which is centralized and managed, was the basic production unit during the industrial revolution. Both of these needed strong tie social networks, on which modern organization and management theories have been constructed. These strong tie networks allowed centralized companies and the concept of capital transfer to form, which is the mainstream value conversion mechanism under the traditional social production economic model.
The advantage of strong tie networks lies in their high efficiency under centralized connection and management and its closed internal structure, which allows information and team members to have a high degree of repetition and similarity. Each member assimilates to the homogeneous network and becomes accustomed to the daily functions. However, too much homogeneity leads to the blocking of diverse ideas, which in turn affects innovation. Weak relationships, by contrast, are caused by distant social relationships and very infrequent meetings or interactions. For example, acquaintances and strangers cause weak ties. Weak ties have many practical advantages, because they can transmit heterogeneous and non-repetitive information between different organizations, and members within an organization can fully integrate with the outside world to generate informational viewpoints or cognitions separate from the homogeneous thought patterns present in strong tie networks.
Everyone has both strong ties and weak ties. From the perspective of labor value creation, most workers usually only use their strong ties to carry out production activities. They work for a specific company and interact with the other employees inside and sometimes outside of the company. They live in their strong tie networks daily.
WEconomics is based on weak ties. Members from different strongly connected organizations build DCO organizations with innovative production capabilities through weak links to engage in innovative economic production activities. Weak ties provide another brand-new value creation field for every ordinary worker versus the centralized organizational economic model constructed by strong ties. Global social networks like Facebook, Twitter, etc. are the main bodies of value creation under weak ties, fully expressing weak connections to create value and promote innovation.
In the internet age, irrelevance is a type of weak ties. Based on the unrelated connections in reality, weak ties can be established through the aggregated interests, cognitions and collective behaviors of fringe topics on social networks, forming a disjointed state. Behaviors such as posting photos on social networks, messaging with a limited number of characters, liking content and following others are all single and standard actions. There is no logic in itself in any single action; the logic occurs at the connection between the individual and the content. WEconomics is based on similar weak tie connections to transmit and exchange more complex and diversified information, such as remote task collaboration, benefits assignment, and team management. This can even be done across different languages and cultures. If we likened the weak connections of social networks to the 2G communication network, the weak connections of WEconomics is like the 5G network. The content is diversified and complicated with a strong business logic unit, which has greatly improved the information capacity carried by traditional weak connections. WEconomics can essentially improve the information throughput, and thereby increase the creativity and efficiency of the overall weak connection network.
At present, there are two major liquidity markets in the world, which support the use of currency as the main investment method to obtain capital gains.
The first market is provided for large centralized companies, mainly IPOs and other listings, and the stock exchange market represented by Nasdaq, New York Stock Exchange, Shanghai Stock Exchange and other stock markets. The primary characteristic of this layer of liquidity market is that the organizations that want to obtain liquidity in it need extremely high thresholds of capital, such as through certain revenue scales or profit. However, once liquidity is obtained, the follow-up supervision is relatively loose, allowing for financial fraud and fictitious profits common in the A-share market. Because market regulators and investors have strong inertia and lack the follow-up of real-time supervision mechanisms, the interests of investors in the secondary market are seriously damaged.
In addition, the secondary market requires a high threshold for ordinary investors, requiring certain trading skills and knowledge in professional financial analysis. As such, this market is only suitable for a small number of investors.
This market is mainly composed of some private/public offering institutions and VC type individuals/entities. Compared with the first-tier global open liquidity market, the liquidity of the second-tier market is relatively weak because of its high-risk and high-return characteristics, which brings a correspondingly higher entry threshold for investors. In addition to having a certain wealth of assets, you must also have a certain risk tolerance, and because the private market is usually divided according to industry themes, if you want to invest in the second-tier liquidity market, you again usually need to have certain business capabilities. This further narrows the scope of qualified investors even though most of the investors in the real world are ordinary people who have several thousand yuan to get started with.
Looking at the first layer and the second layer comprehensively, both liquidity markets are capital-oriented and have very high access conditions for investors, which are not suitable for ordinary investors. They still want to find a way to tap into the liquidity but unless they have a winning lottery ticket, the only thing they can offer is their labor or production skills, neither of which are helpful in the currency-centric liquidity markets just discussed. This means that if you want to directly use your labor skills to make capital gains in the open market, the above two Liquid markets are not options.
Through the above analysis of the two-tier liquidity market, it can be concluded that the both markets are only suitable for a small number of investors. They only support the use of currency as an investment method to obtain capital gains, which leads to a small number of investors. More and more people with capital hold their capital, the liquidity of capital is stronger than that of labor skills, the capital return of capital holders is higher, and the total amount of money in society is basically understood as conservation. That is, the capital added by capital holders is the capital lost by ordinary people. The reason for such serious inequality is that the current rules released by the capital market are not friendly and the efficiency is not sufficient for ordinary people. Therefore, network chain economics play an important role in the allocation and mobility of social resources. From the perspective of establishing a third-tier liquidity market, which supports the use of labor skills and ordinary investors' small currency as the main investment means, Communion will establish a new value liquidity market, allowing value to flow freely.
Classical and neoclassical economics continues the idea of a free, competitive market, advocates social isolation, promotes low socialization of human actions, and advocates that production, distribution, and consumption behaviors are entirely based on self-interest. However, in actual production, economic people are far more complex and unpredictable than those revealed by the self-interest hypothesis. From the self-reliance hypothesis of classical economics to the economic model that is embedded in Granovetter, both follow the theory of humanistic psychology. That is, the hierarchy of human needs, from physiological needs, safety needs, belonging and love needs, to self-esteem needs and self-realization needs, are all deeply motivating to the economic man's decision-making chain. Traditional economics generally ignores the interaction between economic motivation and non-economic motivation, but network chain economics is different. In terms of normal economic demands, network chain economics has a wider focus on social interaction, identity, status, rights, self-existence and realization. What if the basic centralized organization provided individuals with physiological needs and primary security needs at the same time? That would mean the network chain organization economics, with their weak tie networks, would allow individuals an opportunity to realize self-fulfillment.
Transactions are the basis of the market. Since Adam Smith's theory of the division of production, transactions can exist within companies and in the market. And just as Williams proposed from the perspective of new institutional economics, any organizational form should be based on the most efficient processing of economic transactions. Under the impetus of bounded rationality and opportunism, those that occur frequently, uncertainly, and require special investment (such as capital, intellectual investment, etc.) usually stay in the company; those that are simple, direct, infrequent, and do not require special investment transactions usually take place between companies. From the perspective of new institutional economics, it can be concluded that the transaction cost inside the company is lower than the transaction cost outside the company, and thus the tendency of opportunism can be avoided. However, under the economic production model of global modern capital flow, companies have started to expand infinitely with the globalization of their capital, and the departments of the same company have essentially become two independent companies. They bear the transaction costs as if it were between companies and with the embedding of the social network, collective fraud is triggered, which leads to higher transaction costs for certain transactions in the company. Therefore, the company's transactions will continue to be marketed and connected to a more intensive, market-oriented transaction network.
In the process of continuously splitting transactions within the company into market-oriented transactions, the boundaries of the company have begun to blur. If the standard and clear charter is the definition of the company, then the organization is a more specific and clear production unit. Chain economics focuses on organizations as the main production unit. Compared with companies, the relationship between chain economic organizations is densely connected through transaction contracts, and uses business as a scaling measure to build an infinite organizational network
Compared with a company, an infinite organization has higher creativity, lower cost, better robustness and better scalability. It also balances between efficiency and creativity while simultaneously endowing social resources with wider mobility.
The industrial revolution opened up modern production methods. Nearly all of the time before and most of the time after, labor skills could not be separated from the place of labor, such as farming on the land in the agricultural era or production around large machines in the industrial era. Thus labor mobility, as defended by Adam Smith and as defined and supported by classical economics, is the movement of labor from lower-level jobs to higher-level jobs. Labor’s free movement should not be restricted. .
With the emergence of long-term contracts aimed at efficiency in the new institutional economics, restrictions on labor mobility are becoming more and more popular, forcing laborers to be confined to one service subject for a long time. This not only reduces productivity and creativity, but it is also detrimental to the competitiveness of organizations. This limitation is based on the background of low socialization, while the actual society is moderate or highly socialized. Therefore, improving labor mobility can bring about the inter-organizational weak tie connected networks, which in turn bring creativity, motivation, and external perspectives to the organization itself, improving the organization's robustness.
The free flow of labor defined by network chain economics is based on the fact that classical economics takes laborers themselves as the main body of mobility, and in the basic economic network constructed by the internet and blockchain, it is based on the heterogeneity of laborers. In the above, it focuses on encouraging and emphasizing the free flow of labor skills. Compared with laborers themselves, skills are naturally more mobile in network chain economics. The innovation, creation and trading carried by this flow will enhance the competitiveness of the organization. For the workers themselves, it will not only expand their weak tie network and enhance the accumulation of social capital, but also improve their skills and their own market competitiveness for future scenarios.
Under the theory of surplus value in Marxist economics, the surplus value of early capitalist laborers was extracted by capitalists mainly by increasing the labor intensity of workers and forcing laborers to work extended hours. With the implementation of capitalism and the establishment of the global capital market, capitalists use the value conversion mechanism to convert surplus value into capital. Capital has stronger mobility, obtains limited resources in a wider range, builds barriers, and causes workers to enter another forced labor cycle. According to the access requirements of the first-tier and second-tier liquidity markets, the threshold for this value conversion mechanism is relatively high, which makes ordinary workers unable to enter due to their limited production factors. Only capitalists can grasp the value constructed by the modern capital market. During the transformation of the mechanism, the exploitation of the surplus value of the labor force entered a more efficient stage, which greatly widened the gap between the rich and the poor in the society, resulting in a lower income of the laborers than in the early days of capitalism.
The value conversion mechanism defined by the network chain economy is different from the value conversion mechanism held by capitalists. In the network chain economy, each worker can hold the value conversion tool for labor capitalization by himself. Under this value transformation mechanism, the laborer gains its own capital gains, instead of under the traditional value transformation mechanism where the capitalized gains of laborers can only be held by a small number of capital shareholders.
If the Renaissance dominated the 14th-16th centuries in human history, and the Industrial Revolution was the theme of the 17th-20th centuries, then the theme of the 21st century is undoubtedly the internet. Since Tim Bonas first proposed the WWW protocol in 1989 through today, more than 30 years, the Internet economy has produced super giants such as Google, Amazon, Facebook, Tencent, Alibaba, etc. In the mobile internet economy, there have also been super giants such as WhatsAPP, WeChat, Uber, Twitter, Meituan, and Toutiao.
All the above companies have fully penetrated into daily production and life. According to the field of problem solving, the internet can be divided into: classical internet and digital internet. The former mainly uses pure network applications such as Google, Facebook, Twitter, WeChat, etc., while the latter solves problems in real life through the network, uch as Amazon, Uber, Meituan and other companies. The former uses new means to meet people's still unsaturated spiritual needs, while the latter focuses on solving realistic needs.
It can be seen that from the perspective of the classical internet, it is an independent market itself, satisfying some needs from human beings. These needs have always existed but have not been well satisfied, or have never been discovered and solved before. The improvement of technology and the expansion of the network are becoming larger and larger, and are even surpassing the traditional industrial production market in some indicators. The network chain economy is built on the classical internet market, on the entrepreneurial economy, focusin, on creating classical internet applications, or solving some digital internet needs.
The focus of WEconomy is on the following markets: online economy digital, economy sharing, economy mutual aid, and fan economy.
Innovative production paradigm is a kind of labor performance that integrates various production factors to engage in production activities in the process of transforming nature. If production is compared to a more abstract science than specific sciences, then production will also use the corresponding paradigm. To format the factors of production and ultimately obtain effective labor output, the production paradigm = laborers + tools + resources. Under this basic production paradigm, we gather laborers into collective organizations of productive capacity, create labor tools that improve productivity, and use various resource factors to do purposeful production activities. If the production factors are divided into two according to the subjective and the observable, then the production paradigm is equal to laborers + production resources.
Combined with the centralization of land and capital under the industrial production model and the collection of workers into a bureaucratic centralized organization, the production tools are mainly large-scale production machinery, and the limited production resources are highly concentrated. Thus the industrial production paradigm is equivalent to centralization; Organization + limited and concentrated resources. This can be further combined with the labor force under the internet production mode, the centralized organizational form of industrial production, the high-speed flow of information, the highly fragmented unlimited production resources, and the productivity tools dominated by personal handheld computing devices.
The production paradigm of the internet economy is equivalent to a centralized organization + infinite fragments and flowing distributed resources. The production paradigm of the network chain economy is based on the internet production paradigm and focuses on improving the liquidity of the centralized organization.
Through the new rights confirmation and protection mechanism brought by blockchain technology, a new organizational governance framework has been constructed. On the basis of a decentralized organization or a distributed organization, a network chain organization with realistic production capacity is constructed.
Therefore, the production paradigm of the network chain economy is equal to the network chain organization + infinite fragments and flowing distributed resources. This fundamentally deconstructs the centralized organization model inherited from the production of the industrial age, reconstructs labor resources with the network chain organization model, forms an effective production organization suitable for the network chain economy field, and creates a new production paradigm.
Through the transaction, which is the interaction of two or more people, the market is born. The transaction is limited by the contract and the form of the contract determines the organization form. When the employment transaction transitions from the early piece-work contract to the modern company contract, this results in a modern corporate organizational form and a centralized-bureaucratic management system. In the case of a piece-work contract, the employed party pays the price in terms of quantity, labor precedes remuneration, and the contract has no structure and exists by default.
The complexity of the market has brought about market expansion, resulting in higher transaction costs, and contracts have become structured. The company is the main body that provides structured contracts for complex market transactions, so the emergence of company contracts is a positive as it is intended to save market transaction fees. However, if it is purely to reduce transaction costs, it is obvious that the emergence of companies has brought more unquantifiable costs, which will eventually be fed back to the market, pushing up transaction costs.
Based on that, it seems that the emergence of companies during the Industrial Revolution was based on a sociological perspective, under the background that workers cannot hold large and complex production tools and production paradigms are complex, so the structure of contracts is used to improve the cooperation mode and efficiency between workers, and finally achieve effective production goals.
Corporate contracts can be divided into two types: employment system and transaction system, both of which are structured contracts that originated in the era of industrial production. In the traditional handicraft economy era, the piece-work contract is the default subject of the employment contract, which can satisfy the laborers' direct remuneration after labor. When switching to the era of capitalist large-scale production, the initial cooperation process of many laborers is to make capital. At the same time, the laborers do not master the production tools, and the daily output cannot obtain divisible and tradable rewards. Therefore, at this time, the contract is switched to the purchase of the laborer’s working time, which is the commission amount.
The division of labor helps to reduce transaction costs. Through the above, it is not difficult to find that the emergence of employment contracts is because in the era of capitalist mass production, the delivery of labor results is too complicated, and laborers do not master production tools. The structure of employment contracts promotes modern companies. It was born as the structural subject of the contract, and a centralized-bureaucratic organizational structure appeared under this contract structure. However, in the network chain economy market, workers themselves can hold productivity tools, and laborers and production sites can exist apart from their domain.
The production paradigm is mainly intellectual-intensive and has a simple structure. The structure of the contract can be returned to the contract mechanism based on the piece of work, but it is different from the traditional one-price and one-quantity piece-work. The overall time entrusted volume is divided into pieces, and each piece of time contains the corresponding workload, where the quantity corresponds to the result.
When the labor trades labor with the shared time as the pricing commission amount, the work result delivered in each shard is the amount. At this time, compared with the traditional company-centralized organization that uses the employment time system as the contract structure component, the application is also implemented. With deconstruction, it becomes a distributed organization or a limited decentralized organization, or in other words, a network chain organization.
Its core is that the contract of labor transactions is no longer a complete employment system, but a time-sliced system oriented by work results. At the same time, the contract structure based on the transaction system has changed into a contract structure based on the proposal system. The centralized organization has the main body of the release structure (the company) while the decentralized organization usually only has a clear organizational vision without a clear release.
The main body of the transaction contract structure has allowed more transaction-based contracts to evolve into proposals for the development of the organization, so what follows is the change of the governance mechanism for the organization, the change of the transaction contract, and the traditional bureaucratic governance mechanism for the centralized organization changed to a network chain organization governance mechanism dominated by distributed organizations. Additionally, the contract structure dominated by transactional systems changed to a proposal for organizational development, and transaction pricing changed from passive to active.
Income comes from transactions, and the income from transactions depends on the contract. The earliest transaction contract with income is the labor contract for labor, which is exchanged for price. All transactions belong to one type. In order to make contracts, one can either exchange time for prices, or use different abilities within a specified time.
But we still use one ability as the main pricing entrustment quantity, which has continued as the main contract method of modern labor employment until now. In the employment scenario involving the income of the laborers, the above two contracts have two common characteristics no matter what kind of entrustment volume is used for agency pricing: long contract time and undersaturated income, which leads to long-term contracts.
In these long contracts, workers can only use one ability as the transaction subject of income, and cannot switch between different abilities to maximize their income according to market demand. Work ability and creativity are limited to a single, definite problem, restricting the laborer to having a single source of income. That is to say that during the contract period, only one kind of ability can be traded to passively solve clear needs, leaving the laborer unable to take the initiative to solve fundamental problems, which ultimately leads to lower income of laborers.
The transaction is the interaction between the two parties based around the market behavior. The one party to the transaction is the employer who also faces the same problem. It is the most creative solution that holds capital and cannot use more distribution to create activities. The production requirements are stable and efficient, so in the network chain economy period, mobility and creativity are needed, and ultimately reduce production costs and invest more resources to stimulate the creativity of workers.
When workers trade their own diversification capabilities in shared time, and different shared times can hold different transaction types, such as labor income, capital income, or price with quantity. The laborers combine their market-oriented transactions with maximizing income. At the same time, workers can give full play to their creativity, and update proposals to solve problems that already exist but are not good enough or for solutions that do not exist at all, and use their creativity to perfect them.
In the network chain economy, shared transactions and active proposals are officially used to maximize the income of laborers and distribute wealth. At the same time, the diversified pricing mechanism also provides more income opportunities for laborers and keeps them from falling into the trap of the current bureaucracy-centralized value conversion mechanism.
The first lesson of economics is scarcity: we don't have enough resources to fully satisfy everyone's wishes. The first lesson of political science is to ignore the first lesson of economics. Because of the scarcity of resources, there is competition. Competition leads to the pursuit of efficiency, Efficiency generates centralized organizations. Centralization generates corporate giants. Corporate giants create monopolies. And monopolies lead to the continued possession of limited production factors and resources. That is a summary of the current economic cycle of the world.
Competition has tacitly become the meta-hypothesis of society, the rules of cooperation and even production goals that guide all workers. The most well-known theory for competition is the Malthus trap proposed by the nobleman Malthus. After that, game theory designs various strategies based on the background of scarcity to win the competition, creating an infinite competition cycle. When competition is the main factor and when the target coerces the labor force, the sole purpose of winning will dominate the laborer's time and energy allocation, and ultimately lead to the social resource allocation.
That is, limited competitors divide limited resources. Competition also produces hierarchies such as social hierarchies and corporate positions. For example, in addition to the rich material rewards, there are rewards for winning in a competition for promotion to management in a bureaucratic-centralized organization. The desire to dominate cannot be ignored.
Competition is the root of conflict and destruction. The two world wars and the Cold War still have the shadow of human destruction. What really drives human progress has never been competition, but unity in equality is the law of progress (Henry George). Union frees intelligence for improvement and freedom prevents intelligence from being consumed in unnecessary competition. For example, in the era of slavery, the main energy of the master was wasted in managing thousands of slaves.
In a bureaucratic-centralized organization, the main energy of the manager was wasted in monitoring and evaluating the work attitude of employees. Quality and efficiency are focused on so that the manager’s intellect and energies are not used at all for real progress. Human nature is to unite, form a family, tribe, nation and country. Every larger union has allowed human beings to make unprecedented progress. Before modern times, geographic location was the main obstacle to our larger and broader union.
However, in the network chain economy environment of the present, we are linked across geographical locations brought by the internet and have undoubtedly entered a new phase of history. The personalization of productivity tools has already allowed people to get rid of the requirements of centralized production. Therefore, on a global scale, if we can link a wider range of laborers, and at the same time, under the cooperation and governance of the network chain organization, more energy of the laborers, we will be able to achieve real improvement and progress.
To sum up, the WEconomics uses the management model of network chain organization to carry out creative production on the basis of low costs by uniting laborers on a global scale under a new production paradigm, activating the entrepreneurial economy, and injecting new ideas into the society.
In this economy, through the new labor value conversion mechanism, the gap between the rich and the poor has been reduced, the employment rate and labor income have been increased through a new labor transaction contract. Innovation has been promoted and the entrepreneurial economy has been activated through a combination of lower costs.
Under the general trend of development, WEconomy will become one of the main economic disciplines to solve current social issues and improve economic development.