Discussion Post Question 3: What are the Underlying Requirements to Bring Political Preferences On-Chain
Crypto spaces usually embody many different sub-spaces. In order to have satisfactory on-chain governance, codes must satisfy the parametres of each sub-space. This means that the unique governance logic of each sub-space must be captured. Very importantly, the legal logic must be captured, and the logic of every other subject matter that is captured within the concerned crypto space. The application logic, of course, will also have to be designed.
As regards law, one of the challenges faced in Rules as Codes (the movement dedicated to promoting the translation of legal rules into computer code) is the translation of physical space semantics/pragmatics into the virtual environment. In order for legal rules to be effectively translated into code, code must create digital/crypto space analogues of physical space semantics/pragmatics (semantics refers to the meaning attached to particular conduct, expressions or ‘speech acts’ while pragmatics refers to the influence that different contexts have on conduct and expression).
Where digital/crypto space analogues of physical space semantics/pragmatics cannot be translated into code, then new semantics/pragmatics could be developed for the crypto space. The challenge here is that physical space semantics/pragmatics are built on legal jurisprudence deviation from which might lead to unjust results. Although jurisprudence is itself dynamic, its evolution must be justified by results. Contract law presents a very good example of this challenge. This is seen in the rules relating to offer and acceptance. Contract law rules provide that the display of goods does not amount to an offer but is merely an invitation to treat. It is the buyer that makes the offer by proposing to buy at a particular price, acceptance of which creates a contract. A series of offers (counter offers) may follow an original offer until acceptance creates a contract.
These rules are premised on the ability of the parties to have a mental exchange. In the virtual environment, there are media that permit such mental exchange. Examples are electronic mailing services, chat platforms etc. However, there are other media that only permit selecting one or more options out of a range without the possibility of making a proposal. An example of such take-it-or-leave-it media are e-commerce websites that display products and prices without the possibility of purchasers negotiating the prices.
By the usual terms and conditions on e-commerce websites, display of goods are invitations to treat and purchasers who place orders on such websites are pragmatically deemed to have made offers. Such a convention does not conform to contract law semantics/pragmatics in physical space, as purchasers do not have the opportunity to propose their own prices. If such offerings were to be made to conform with conventional jurisprudence they would be regarded as offers and the purchasers’ action of placing orders as acceptance, since all vital contractual elements apart from acceptance have been set by the seller.
Another challenge in bringing governance standards on-chain is the reality of the incompleteness of legislation/contracts. Legislation and contracts are always incomplete because it is practically impossible for draftsmen/parties to contemplate all scenarios. This necessitates human discretion and oversight. Such human oversight is already provided for in article 22 of the European Union’s General Data Protection Regulation (GDPR). The Algorithm Accountability Act has been proposed in the United States.
In a nutshell, ensuring robust on-chain governance requires, amongst others:
- Translation of different subject matter logic and the application logic into code;
- Capturing the physical space semantics/pragmatics in code; and
- Putting in place structures for effective human sight, to guarantee discretion and evolution.
I will attempt to answer Discussion Question 4 (what are the most important areas for political systems to be integrated into the crypto/web3 design space?) in my next post.