Content:
Capital is the power to organize the economic resources of a social system. Its worth is a function of how much of those resources can be directed to the holder’s benefit.
Cryptonetwork governance is a form of capital. Tokens with governance rights in cryptonetworks are a new kind of capital asset.
All forms of capital offer some kind of control over the distribution of economic resources across a group of people. Capital offers governance over that pool of resources.
Since capital = governance, it has intrinsic value. Whoever has control over a pool of important resources can also direct some of those resources to their own benefit. The value of a system’s capital is proportional to the value of the resources it governs.
If capital is the power to organize economic resources, then the power to change the rules of a cryptonetwork forms its capital.
When that power takes the form of a token, it can be traded, priced and modeled by markets. In context of a cryptonetwork, the network’s ‘assets under power’ include
“Power tokens” fuse the features of “utility tokens” and “governance tokens.” They combine the functions of currency and capital. The capital function is what drives long-term value.
When creating these assets we’re dealing with a new form of capital, network capital. It is is natively digital, and cheap to distribute – and that’s important.