🛠 [Analysis] Do not design for speculators – Tony Sheng

The history of property rights shows that inefficient designs that reward speculators lead to stunted growth and concentration of power. Token networks should optimize for network growth instead of speculative value accrual. In order to do so, projects should aim to optimize for 1. allocative efficiency (getting the property to those who value it most) 2. investment efficiency (getting owners to increase the value of the property) 3. diversity efficiency (getting the property to a diverse set of owners). This is because poor allocative efficiency means users who would be able to contribute value to the network would be unable to, poor investment efficiency leads to users not being properly incentivized to add value to the network, and poor diversity efficiency means a concentration of ownership. The history of private property and property taxes is a great example that demonstrates this idea. Tools such as high inflation networks, taxes, quadratic-voting, and others could potentially be used to maximize these three efficiencies.