Whether an item qualifies as a public good is classified by whether it is excludable and whether it is rivalrous. Goods can be categorized into four types:
| Excludable | Non-excludable | |
|---|---|---|
| Rivalrous | Private Goods | Common-Pool Resources |
| Non-rivalrous | Club Goods | Public Goods |
Public goods are characterized by being non-rivalrous and non-excludable, meaning anyone can use them freely. In the Web3 space, public goods are particularly important. Web3 users rely on public-private key pairs to protect their private assets, and in this process, nearly all components used are public goods. From wallets, networks, public chains, and smart contracts to the cryptographic and networking knowledge involved throughout, all are part of public goods. Therefore, public goods are the foundation of the Web3 ecosystem. Web3 public goods must be open source. Here, "use" has two meanings: on one hand, it means utilizing public goods to provide services for oneself, such as public chains and smart contracts; on the other hand, it means using source code or files, such as modifying the source code of public chain clients or smart contracts to meet one's business needs. For non-open-source code or items, the above meaning of use cannot be satisfied, making them excludable and thus not meeting the definition of public goods. In summary, our understanding of Web3 public goods is:
Web3 public goods are non-excludable, non-rivalrous, and open-source items that anyone can use directly without authorization or permission. This includes decentralized organizations, permissionless public chains, smart contracts, as well as related code, documentation, and knowledge.
Public goods themselves require no authorization, and anyone can use them freely. In traditional domains, there are usually powerful institutions to help public goods achieve sustainable operations. However, in the Web3 space, such institutions do not exist, making the sustainability of public goods more difficult.
The Free-Rider Problem
As infrastructure, Web3 public goods can be used directly by anyone. However, many people may choose to use them directly without contributing to the public goods. The free-rider problem can lead to serious consequences: because public goods are continuously used for free, once developers' unpaid contributions and maintenance become unsustainable, those who truly contribute cannot gain returns.
Tragedy of the Commons
In public goods, if users only focus on their own interests and use public goods resources without restraint, violating the interests of other users, it may lead to the rapid depletion of public goods.
Governance Issues
In the Web3 space, collaboration methods are very different from traditional approaches, and traditional management methods cannot be applied. If governance issues lead to community fragmentation, projects may fail.
Financing and Distribution Issues
The sustainability of traditional public goods usually relies on support from large institutions such as governments or major corporations. Governments can raise funds through taxation, while large companies can invest using corporate profits. However, in the Web3 space, such institutions are lacking and not permitted to exist. Conventional donation methods can only raise limited funds to support the initial development of public goods. Without continued funding in subsequent stages, projects will struggle to sustain themselves. Many founding teams face even greater difficulty obtaining stable funding sources due to low visibility. Due to the non-excludable and non-rivalrous nature of public goods, it is difficult to raise funds through traditional business models. Therefore, alternative approaches must be found to support the sustainable development of public goods.
Public goods are an essential component of Web3, and both developers and users in Web3 benefit directly or indirectly from public goods. LXDAO also extensively uses public goods: we use effective economic models to allocate benefits, use open-source software for collaboration, and use contracts to establish reputation systems. Web3 users derive tremendous convenience and value from public goods. However, these public goods are not created out of thin air—they are the result of collective efforts by countless developers and volunteers. Therefore, LXDAO has a responsibility to support and give back to this public goods ecosystem to maintain its continued development and improvement. This is not only recognition of their contributions but also protection of our own interests. Only by collectively supporting the development of public goods can we ensure a future for Web3 filled with innovation and vitality. Web3 provides fertile ground for the sustainability of public goods. Builders can directly participate in the construction of public goods through governance, creation, and resource provision. Additionally, the transparency of Web3 allows users to better understand the operational status of public goods and how their contributions affect the entire ecosystem. Moreover, through blockchain technology and economic models, participants can directly share in the benefits of public goods, thereby incentivizing builders to continue contributing. LXDAO participates in building the Web3 public goods ecosystem, serving as an environment suitable for public goods to thrive, helping excellent public goods grow, and making our contribution to the Web3 ecosystem.
LXDAO is a decentralized autonomous organization (DAO) dedicated to promoting the sustainable development of public goods in the Web3 space. Through smart contracts and token economic models, LXDAO addresses key challenges in the sustainability of public goods, achieving more transparent and effective incentives.
Core Principles:
Decentralized Autonomy: Decentralized autonomy is the foundation of DAOs. Through smart contracts, we achieve automated protocol management, reducing human intervention and increasing transparency.
Incentivizing Innovation: Economic models create entirely new incentive mechanisms, encouraging developers to focus on creating quality public goods. Members can directly choose and support excellent projects, driving innovation.
Open Transparency: Transparent and open processes are key to DAOs. All decisions at LXDAO are made in an open and transparent manner.
Merit-Based Rewards: We uphold the principle of rewarding based on contribution, encouraging actively contributing members to receive their due rewards.
Equal and Open: At LXDAO, there is no hierarchy. We advocate a culture of equality and mutual respect, providing fertile ground for innovative ideas.
LXDAO is continuously exploring methods to address the sustainability of public goods, including:
Community Sustainability: DAO-based governance, on-chain governance, culture building, openness and transparency, freedom and equality
Builder Sustainability: FairSharing for equitable distribution, quantifying Web3 work, improving project management efficiency, while rewarding developers' on-chain reputation and experience
Financial Sustainability: Community treasury, Donate3 donation solutions, accounting reports, and quarterly strategy meetings