Modern Monetary Theory

Portions of the economics driving Web3 are derived from modern monetary theory.

In order to understand the economics driving Web3, one must first understand the modern monetary theory. Modern monetary theory is a school of thought that argues that the government should be the sole provider of money and that money should be used as a tool to stabilize the economy. This theory is based on the belief that the government is better equipped to manage the money supply and to ensure that the economy is stable.

Illustration: Rose Conlon/Marketplace

However, this school of thought can be controversial, and there are many different opinions on how the government should manage the money supply. This also leaves room for debate on how Web3 should be structured in order to best take advantage of the government's role in the economy.

Web3 is based on the belief that the government should not be the sole provider of money, but that money should be created and managed by the people. This belief is based on the idea that the government is not always able to manage the money supply effectively and that the people are better equipped to do so. Web3 also believes that the people should have a say in how the money is used and that the money should be used to improve the lives of the people. This concept of power in the people's hands is a fundamental idea in web3.

Modern monetary is used in many countries today, such as the USA, UK, Canada, and Japan