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A journalist has decided to bring the idea of programmable currencies to the next level and build an open source, non-monetary reputational economy. Created as an incentive for people to push past blockchain technology beyond fintech, let's take a look at the YKarma experiment and the potential uses it may have.
"Blockchain Is Boring Now"
(Source: TechCrunch)
Assuming that cryptocurrencies have only been used to reiterate traditional monetary systems, a journalist has decided to take his basic technology and use it in an innovative and somewhat unusual way.
Jon Evans, an editorial of TechCrunch and published author, stressed that the programmable currencies could allow the construction of new categories of economies. These economies could, in theory, reject the hypotheses traditionally associated with the transfer and storage of value.
To put the idea to the test, Evans created, in his own words, an experimental, open source, non-monetary economy. This economy would be based on blockchain and would quantify reputation as a expendable currency, Evans wrote.
How does it work?
The project, called YKarma, has a relatively simple concept, not unlike a gift economy. Second TechCrunchevery person in the community receives "karma coins" to be distributed every week. This is done in order to transform reputation into a measurable and expendable currency.
All received karma coins must be given to other people before they can be used. The coins received could therefore be spent on various prizes previously established within the community.
According to the YKarma Manifesto, the currency of the project would have zero monetary value. The coins will be minted and directed to all members of the community each week and will remain worthless unless they are given to another person.
When they are spent, coins are not transferred but destroyed. This means that the coins are extracted from the economy forever after they have been spent. An interesting fact to note is that, as the network climbs, the coins will fall in value.
The author also made sure to differentiate YKarma, a reputational economy, from systems of national reputation such as the social credit system in China. Evans argues that model reputation as a private spendable currency is an interesting idea worthy of experimentation, while a national system is a "dystopia waiting to happen".
YKarma currently runs on a private Proof-of-Authority blockchain, the Manifesto explained, since running it on the public Ethereum's blockchain would be too expensive. A public network would also limit scalability, as data storage requirements and the number of transactions could quickly exceed the capabilities of Ethereum.
Is real life used for YKarma?
Evans described YKarma as more performative art than a real work software. The project is still under development and the ultimate goal is to make as many developers as possible work on its new iterations.
"What I would really like to see is a wave of experimentation with completely new economic structures and incentive systems," Evans wrote in the YKarma manifesto. He explained that the main obstacles hindering blockchain from venturing into new economic structures are the people who work there. "[They] they are more interested in getting rich in the cryptocurrency casino or building decentralized versions of existing centralized services, "he said.
And while one could criticize the project as more communist than utopian, Evans stressed that there could be many uses of the real world for YKarma. For example, companies could use the platform to create rewards for their employees, offering vacation days or other office benefits.
The platform could also be used by non-profit and charitable organizations – those for which they are considered the most deserving by the community could receive gifts, encouraging both donors and volunteers. Respected influencers could have an efficient channel through which they would receive gifts from the brands.
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