Chapter
The Tradeoffs in Bailing Out Failed Contracts
1:37:37 - 1:43:41 (06:04)
In this episode, the speaker discusses the tradeoffs that policymakers make when they bail out a specific contract that has failed, violating the core protocol rules, rather than letting it fail and causing short term pain.
Clips
The hack of a specific contract called the Dow DAO demonstrated that certain elites at the protocol level can exercise specific control over the system, where political control is a function of wealth in the system.
1:37:37 - 1:40:03 (02:26)
Summary
The hack of a specific contract called the Dow DAO demonstrated that certain elites at the protocol level can exercise specific control over the system, where political control is a function of wealth in the system.
ChapterThe Tradeoffs in Bailing Out Failed Contracts
Episode#173 – Nic Carter: Bitcoin Core Values, Layered Scaling, and Blocksize Debates
PodcastLex Fridman Podcast
Policymakers often avoid the short term pain of implementing safety nets due to their short term outlook and term limits.
1:40:03 - 1:42:17 (02:13)
Summary
Policymakers often avoid the short term pain of implementing safety nets due to their short term outlook and term limits. However, it is crucial to have safety nets to prevent a percentage of the population from suffering.
ChapterThe Tradeoffs in Bailing Out Failed Contracts
Episode#173 – Nic Carter: Bitcoin Core Values, Layered Scaling, and Blocksize Debates
PodcastLex Fridman Podcast
The economic principle of creative destruction conflicts with the human desire to uphold a certain quality of life, leading to a difficult tension.
1:42:17 - 1:43:41 (01:23)
Summary
The economic principle of creative destruction conflicts with the human desire to uphold a certain quality of life, leading to a difficult tension. Central banking is an example of this tension, as the bank has an incentive to lower interest rates despite potential long-term consequences.