A Decentralized Architecture for Gift Economies

J. Carrico

In contemporary society, we are accustomed to islands of abundance within deserts of scarcity, islands which must be defended against a constant pressure. Western ideas about economics are founded on this assumption, that there is not enough to go around. Something is considered to be valuable in the degree to which it is scarce, therefore an unlimited resource has very limited value. But this directly contradicts the basic nature of digital products – any sequence of bits can be copied any number of times. And so we are witnessing an enormous effort to prevent computers and networks from doing what they’re particularly good at: copying and distributing information. This contradiction can only be resolved by abandoning the idea that scarcity is the only measure of value.

A potlatch is a gift festival, a practice of native societies of the northwest coast of North America, and the foundation of the social and economic systems of these tribes. This institution evolved under conditions in which the basic necessities of life were available in great abundance (eg. salmon, cedar bark, etc.) The public display of generosity, rather than private accumulation, was the measure of social standing. These displays were often competitive in nature, challenges dependant upon the reciprocal nature of the potlatch: to maintain status, each gift must eventually be repaid.

By showing us a working economy based on abundance, gift, and reputation, the potlatch provides us with a valuable reference point as we try to imagine a society in which we don’t need to artificially restrict the infinite supply of digital goods in order to ensure that the creators and providers of those goods are properly rewarded.

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