Voting for a Democratic Economy
Decentralised communities as the true ground of a democratic economy…
Money is a contract among citizens, assured by the central authority of the state and central bank. The security of individual wealth and possession in the frame of classical finance requires a trusted third party; regulated by the governments and protected by the armed forces. Traditionally, the trusted third party role has been played by public and private banks, brokers and other financial institutions. Both social and economic consequences of the traditional system accumulated problems for people. Individuals do not have the freedom to directly own, hold, manage money and assets without involvement of secured third parties in this system. Moreover, crisis and currency instabilities are inevitable, due to decrease in general public trust or unsound policies of governmentsleading to hyperinflation.
Democracies fail, on the other hand, because of its representative execution and that it is not applied in the economic sphere at all. The democratic rights of the majority in the political sphere are restricted to choose the rulers, so decision-making participation is reduced to the right to choose the ones who can decide on behalf of people who vote. On the economic sphere, it is basically ineffective except for some work hours reduction in some western societies but mostly it was the rights to own and manage your assets under the authority of the central power. Moreover, socio-economic inequality has risen continuously and has transformed directly into political inequality. The lower third of developed societies has retreated silently from political participation; its preferences are less represented in government. The result was more centralisation of both economic and political power.
It is clear that for any effective democracy, personal and economic freedom are crucial because we should be able to take part into decision-making processes:
· Without discrimination;
· Without any social, legal or financial consequences.
Blockchain and cryptocurrencies are unique in the sense that they had revolutionary political and social implications and influence. Just by its invention and mass adoption, it removed the need for financial and political entities governing our lives with unmet promises of “protection”, or “common good”. DeFi by itself, changed the whole paradigm and the power structure, decentralised launchpads transformed the business structure and entrepreneurship. As Pinecone, we believe what it accomplished for businesses and blockchain projects, is not yet done for individuals at its full potential, because of its libertarian nature. Democratisation of crypto space possibilities rendering it accessible to everyone including the disadvantaged population is crucial and should be the next step.
Its wealth generation mechanism as well as financial tools in the DeFi space is open to everyone in theory but not in practice. As we now had the most solid ground to build effective democracies with empowered decision-making processes for the “common good”. We no longer need top-down management, hierarchical structures, concentrated power at the hands of the few. We can use this democratic participation to develop better and more effective products; to create environmental solutions and carbon negative tech solutions and can partake in fair redistribution of wealth, reduced socio-economic inequalities with collective financial investment methods distributing both the risk and the profit among experts and those who are new in the space.
LOVE IT OR LEAVE IT DILEMMA
For crypto newbies, the speed of innovations and change, price fluctuations, and responsibility of having the authority over one’s finances can be anywhere from mildly to extremely intimidating, and often leads to missing out the investment opportunities. Investment related risks in the crypto space are including but not limited to:
High cost: Asset ownership and management include multiple and expensive fees.
High Time Consumption: Construction of a diverse portfolio demands a high number of transactions and time spent researching.
Portfolio Management Complexity: If a user has a number of assets across a number of chains, that user needs to navigate across chains in order to buy more assets. This makes it quite challenging for individual users to monitor and manage their portfolios.
Technical Difficulties and Complexities of the Crypto Landscape: The world of DeFi is exceptionally complex to navigate, and hard for most newcomers to get their head around. This puts off a vast number of potential users. For those who do decide to take the plunge, the system is not user friendly, leading to confusion, hesitancy when performing transactions and overall, a great deal of time being taken up.
High Risk: Where ownership of individual assets is concerned, there is a great deal of instability, unpredictability. The climate is volatile, and can take a drastic change at any given moment.
PINECONE SOLUTION
We anticipate that the decentralized asset management community will be the remedy for the DeFi (decentralized finance) industry’s trade-offs (time required to accumulate skill and knowledge, information barriers, safety, bigger risks) whilst still reaping the benefits of DeFi. At Pinecone, we aim to minimize the above problems whilst fostering a welcoming and non-intimidating environment for newbies, with a strong emphasis on educating via a variety of channels.
Decentralisation brings everyone truly to the same level by the participation of a distributed network, which provides the ground for democracy. We believe that DeFi is not democratic nor truly decentralised unless:
• it is accessible to all with equal financial opportunity;
• includes active democratic participation for decision-making;
• creates eco-conscious projects to take the responsibility of externalised environmental costs of the industry.
GOVERNANCE TOKENS
Governance tokens allow the token holders to make an active contribution towards shaping the future of a blockchain innovative product. Governance tokens give holders the ability to exercise their influencing power regarding decisions made about the project. For example new feature proposals, fees or even changes to the governance system itself.
Proponents of the governance token system believe that they allow for greater user control. Indeed, it certainly seems to adhere to the original cryptocurrency ideal of decentralization and democratization. In the vast majority of cases, organizations who operate in this way, allowing their users to control development of the systems are referred to as Decentralized Autonomous Organizations (DAO).
In Pinecone Community all financial investment decisions are made by CONE governance token holders allowing the growth of a truly democratic economy beneficial for all.
VOTING SYSTEM
Pinecone index proposers are community members who are well-versed in DeFi and seek to redefine the index so that everyone benefits. As they gain more Pinecone governance tokens, their community standing grows, and their voting power and influence over the index increases.
Delegators are users who don’t have the time to suggest and vote on proposals made by more active traders on the platform. Instead, they can delegate their voting power to the traders based on merit. I.e., traders that have benefited the community are allocated more decision-making power based on their success, which in-turn benefits everyone. Meanwhile, delegators earn passively.
THE CONE TOKEN
CONE is the Pinecone community governance token with a total supply of 100,000,000 tokens available.
The CONE token is a governance token allowing the entrance to Pinecone financial eco-system and buys the decision-making rights. It operates as a fairly democratic protocol which rewards members who are actively participating the decision-making process:
1) by creating proposals to optimise portfolios as the market changes;
2) voting for portfolios proposed by others.
As the digital asset portfolio performs, the gain generated is diverted back into the community in the form of CONE tokens, where traders who proposed the index and the participant community members who voted for the proposal get rewarded proportional to their participation.
CONE operates with a voting structure built on active users’ degree of participation (proposing, voting), reputation gathered within the system, escalating their voting power accordingly through a mix of meritocratic validation of decision-making history and token staking.
THE PINE TOKEN
The Pinecone Asset Index (PINE) is Pinecone community’s portfolio asset underlying the core financial activities in the platform. It’s designed to be more stable and occupy the space between a stable coin and crypto asset. It’s designed to be a DeFi native asset, sustainable towards steady growth.
The Pine Asset Index (PINE) is optimised, continually rebalancing to ensure that the assets is not only outperform the market as a whole but that the index becomes inseparable from the market.
TOWARDS A DEMOCRATIC FINANCE
With awareness of the risks and difficulties of decentralisation which heavily burden individuals, such as security issues, information load, and time and effort required to carry out research, Pinecone aims to truly democratise DeFi by making it accessible to all through:
• educational webinars & guidance for inexperienced investors;
• collective asset management secured with a fair voting system which rewards participation;
- re-forestration activities.
We will produce the fair ground for democratic decision-making that could benefit each and every member, based on Pinecone core values. Financial decisions made through collective information sharing, education and public discussions are the best possible expression of democratic decision-making. Everyone’s opinion has a chance to be heard and not diluted against the numerically dominant voice of a single person and their opinion as in the traditional framework.
We envision a community based DeFi platform that combines the advantages of a decentralized organisation structure with democratic decision-making, in order to steadily accumulate wealth, grow expertise and benefit from the collective investing. Financial decisions made through collective information sharing, education and public discussions are the best possible expression of democratic decision-making. Everyone’s opinion has a chance to be heard and not diluted against the numerically dominant voice of a single person and their opinion as in the traditional framework. While collectively thriving, Pinecone also takes the responsibility of environmental influence cryptocurrencies create and externalises as it damages the humanity’s common resources. While making the financial gain accessible for all with ease and community support, Pinecone embrace the duty to reduce the environmental damage it causes guided with the principle of “common good”.
Learn more about the Pinecone Community on Gitbook: https://bit.ly/3qWIFfp
Join the Pinecone Community on Telegram: https://t.me/joinchat/vpyuEsoncpA1ODll
Join the Pinecone Community on Discord: https://discord.gg/YdXFDnrM6C
Follow pinecone at Twitter: https://t.co/YOrT2xx51z
