Do we witness to dawn by politicefi?

In a previous article on why Memecoins matter, I argued that Memecoins introduce a new era with bourgeois commitment by forming speculative markets where citizens are able to trade coins bound to government policies. I suggested that proprietor distributions and market caps in these markets would signal popular support for underlying policies to legislators who would then take them into account when drafting public politics, promoting a new form of political dialogue between citizen and state.

I called this dynamic policy and presented it as a constructive use of memcoins.

With the Trump administration coming to the office and the chosen president and first lady launching Memecoins, this is a good time to ask if we enter the policy era and if so if we should welcome it.

I think the answer to each of these questions is yes. The convergence of a Meme administration, a Meme citizen and Meme-advocates have created fruitful conditions for policy policy and perhaps modintuitive for better decision making.

Meme admin, meme bourgeoisie, meme advocacy

PoliticeFi requires the installation of meme-sensitive government actors or a “meme-admin.” In the original piece, I suggested that the incoming administration fit the bill because it understood and respected Meme’s power. When I wrote it, I mainly thought of Elon Musk and his association with Dogecoin, but also on Trump’s own adeptness to create and exploit Memes on the campaign track and while he was in office.

Admittedly, the presidential issue of his own Solana Memecoin (Trump), soon followed by his wife’s (Melania), a few days before he put Oath of Office even surprised me. (I suppose the timing was driven by concern about the remuneration clause.)

Trump Memecoins immediately rose, drained liquidity from each crypto ecosystem and almost broke Solana blockchain. If you are a crypto-native, you will always remember where you were when the chosen president and soon first lady announced the launch of their memcoins.

The Trump coins split sharply the crypto industry. But more importantly for the current purposes, they cast a doubt that Americans had chosen a “meme -Admin” who was prepared to engage in funded memes and therefore were more likely to engage in them while they was in the Embed.

The Trump coins contributed another essential ingredient to Politicefi: the mass boarding citizens to Memecoins and especially political coins. The statistics of Trump and Melania Memecoins, explicitly marketed as a form of political expression, are staggering and narrative. Most holders were new retail buyers. About 50% had never bought a Solana Altcoin (ie tokens on Solana blockchain exclusive sun and stablecoins) before. Almost half of buyers created their wallets the day they bought tokens, and more than 80% of Trump and Melania holders have less than $ 1,000 worth of assets on Solana, which further suggests retail popularity.

Many of these meme recruits seem amazed at what to do next with their crypto. (I expect them to find out.)

Alongside this meme-admin and meme, the bourgeoisie is the spread of more (and more innovative) politically focused Memecoins. Many of the political memcoins that I mentioned in the original piece, such as Department of Government Efficiency) and SBR (Strategic Bitcoin Reserve), attracted significant trading volume when the new administrator joined and investors began to speculate in its original political steps .

Read more: IVO Entchev – Why Memecoins matter

However, these political tokens are still relatively primitive from the perspective of Politicefi because they place greater emphasis on attention streams or prediction (as a prediction market) than on engagement with government actors.

Another token, milk, fits the thesis better. The explicit purpose of the Milk Meme token is to change American food policy to enable the sale of unpasteurized milk. The milk community promotes that the concrete political position through its token stocks (2,000 people has milk), the Token Market Cap (as high as USD $ 1M) and society’s production of milk on social media (constant). In an era of Politicefi, we would expect to see a Cambrian explosion of tokens in the shape of milk.

A dialogue with Leviathan

The expression of political will through Meme policy markets is necessary, but not sufficient for politics. Governments must also start talking to these markets when drafting politics. We may also see early indicators for this.

President Trump has long seen public markets and especially the stock market as a barometer for his performance and has tried to satisfy them. Recently, he has adopted a similar attitude to the award of Bitcoin (which in itself is a brand of financial policy) and undoubtedly monitors the price of his own Memecoin, representing the majority of his net worth of paper. Other members of the political establishment from Elon Musk to Senator Cynthia Lummis (R-WY.) Has engaged to Memes who carry government policy.

Politicians have not yet been in the process of narrow prescription Memecoins, such as milk. If this were to change, I would expect it to occur in disturbing areas that have provided several general memes, such as government efficiency (eg DOGE), industrial policy (eg E/ACC) and health policy (f. Ex. Maha).

Is policyfi good for governance?

If we assume we move on to Politicefi is that a good thing? There are a few strong reasons to believe it is.

First, the introduction of speculative markets in government decision making improves the quality of the most important input in decision making: Information. Speculative markets can process a large amount of information by motivating people to acquire them, share it through trades and crystallize it at consensus prices that persuade a wider audience. A form of government known as “Futarchy” is exploiting speculative political markets specifically to improve information streams within the government and the overall decision -making.

Secondly, policyfi creates positive externalities in the form of bourgeois engagement and education despite being driven by greed. In fact, anyone who hopes to make money in policy policy is an expert on how the government works, how the policy is made, and what new policies are underestimated and why. It is difficult to imagine a stronger incentive for ordinary Americans (who are already wonderful sports players) to engage constructively with politics. Politicefi Degen is paradoxically a model citizen.

Third, policyfi engages an expanding class of citizens who are internet nod and used to express themselves through speculative markets. It was the citizen drove gamestop Frenzy, which was about income adequacy and stabbed it to Wall Street, just as it currently drives the price of Memecoins such as SPX and Fartcoin, which lamps traditional funding. In short, the public financial markets have become the medium of ridicule, satire and political expression of a new generation that would much rather buy a Memecoin or send a stock to the moon than write their congressman.

A general objection to political markets is that they are susceptible to manipulation of our enemies. This is a concern, but perhaps not as great as assumed. The same argument was applied to the polyming field, the permitted prediction market that consistently favored a crucial Trump victory in the election. Despite the strong incentive for foreign interference, the polyming field was not only the best barometer of voting atmosphere that led to the election, but also the best prediction of the election results, confirming the information processing power in speculative markets.

My goal here is not to go in for Politicefi or to be an apologies for MEMECOINS in general. However, I think Memecoins represent a strong viral capital formation technology that matters and will affect a number of domains, including politics. I want to look closely, and so should you.