Instant compromise profoundly transforms our behavior because it reconnects us with the fundamental laws of nature. The current model reflects the basic necessity of earning benefits in exchange for work – working to survive, but the pay-per-time system in the labor market creates the incentive to get something for nothing. In the entire “stock stack”, everyone is improving their efforts to achieve this at different levels, as I will explain below. How can I get money for nothing? As we explore the effects of spot leveling across diverse industries, a fundamental gap between workers and clock watchers emerges, as I have argued throughout this series. Paper payments operate without instant settlement; Instead, the virtual balance arrives immediately and the actual settlement usually comes later. The Lightning Network enables instant settlement. This is a key advantage, and why Bitcoin is the only financial network that has the potential to realize the vision I describe in this series.
The paper money system trains us to play the rent-seeking game without realizing it, and it is not surprising that the best players become the richest. From our first jobs, we learn how to extract maximum pay for minimum effort, and incentives reward creative ways to do this. The first trick everyone learns is how to “milk the clock” by doing as little as possible without getting fired. A slightly more advanced approach is to learn how to take credit for the work of others. Skilled players seek promotions in order to access the work of others for their own benefit. This is the fiat game.
As if that wasn't bad enough, rent-seeking also erodes skills. Just as my results in the gym are related to the effort I invest in my workout, mastery on staff comes from effort. But time-based compensation rewards the passage of time rather than performance, allowing skills to atrophy. In technologically primitive societies, developing skills was essential for survival. The problem was the friction: assessing the value of every small action and compensating for each action individually. So the obvious way to reduce friction is to group all tasks into one variable, which is time. But after decades of time-based compensation and waning initiative, we have become inactive, weak, underskilled, and dependent on free money. The result is a culture of dependency, where the pursuit of easy money overshadows the pursuit of self-improvement. How many steps must we take to enslave our children in order to avoid work?
Perhaps the key to overcoming this fate is to decide not to chase the dreaded money, but to pursue other goals instead and use the money only to achieve them. Make a list of what you want in life and start working to achieve it. Instead of working for pay, saving money, and buying a house, you can build your own house. Yes, it will take years, but that's the point. Do your job! If you're protesting that you can't build a house, you're probably right. You can't do anything until you can. It is simply a matter of placing one brick on top of another, a roof on top of walls, and so on. Work changes us, making us better, faster, stronger and more skilled versions of our previous selves. Bitcoin preserves the value of your energy, allowing you to achieve your goals faster than is possible with fiat currencies. When you work for other people's goals, you should be compensated immediately, almost like double compensation. You can get skills and money. In a monetary system, when you get free money (money for time), you don't gain any skills, and the skills you do have start to atrophy because you're not using them. The only incentive that motivates people to do something is the fear of being fired. That's why they strive to find the right balance between minimum work and not getting fired.
But an undeniable obstacle remains: Why should I work for my money instead of just waiting for it and receiving it effortlessly? The status quo is comfortable, but comfort is the enemy. Defeating this enemy requires a collective desire to break free from the allure of easy gains and embrace a more natural and purposeful way of working.
Those who avoid time-based compensation will have the advantage of attracting and retaining the most outstanding individuals as employees. As these forward-thinkers continually evolve—growing faster, stronger, and more skilled over time—their products and services will outperform pay-per-view systems.
In the new market landscape I've described throughout this series, employees who are paid for their work rather than their time are no longer tied to a single company. The quality of products and services is driven by the collective efforts of shareholders rather than clockwork supervised and driven by management. Exploitation of labor becomes untenable, and pay for work becomes what retains the best talent. This is true simply because the best want to be paid based on results, and the only fair compensation for both employee and employer is pay per job, which is based on those results.
This newfound power may push individuals to focus on the things they want to see built rather than on what the company is asking them to build. Not only do they receive decentralized income, but they can also benefit more from the tasks they complete. If there is an open project to repair ten roads, I will contribute to repairing the road I use the most. This is the most selfish altruistic thing. This benefit is not private; Shared. The money I receive is private. As long as we chase money rather than projects, it is not surprising that we are indifferent to other people's problems. In this new paradigm, the balance of power is shifting decisively in favor of people, in line with their preferences and aspirations, rather than with the agenda of a single company.
In addition, the pay-for-work system reflects the competitive nature of the sport, where individuals are compensated for their time and effort, but winning depends on active participation and skill. In sports, the best players are distinguished by their superior skills, the effort they invest, and their ability to adapt in the face of competition. This natural dynamic, which favors the fastest, strongest and most adaptable, can now enrich the labor market. Survival and prosperity will depend not only on individual effort, but on the ability to outperform others in the pursuit of a greater share of the benefits. Even those who are just chasing money thrive simply by emulating Bitcoin. If you do something selfish in Bitcoin, the entire network benefits.
In the world of sports, fame and fortune often follow the best players, but their primary motivation lies in the desire to be the best. Encouragement in the pay-for-work labor market takes the form of payment, which stimulates continued dedication and progress. The accumulation of these payments, like encouragement, prompts people to hone their skills, improve their performance, and thus receive more Bitcoin for their efforts.
The reward in this system is not praise or praise; It begins as a necessity for money and progresses to satisfaction derived from work. Immediate settlement becomes the Trojan horse that guides us to this spirit. In this constant competition, unlike the win-win dynamics of war, everyone will win. Individuals work for themselves, driven by the desire to achieve their own goals, while at the same time the final product serves a common need because many of them are collective goods. Completing tasks that benefit society faster, more efficiently, and cost-effectively will result in a snowball effect where subsequent benefits pile up on previous benefits. In this interconnected network, where everyone coordinates efficiently, there is no theft or exploitation; Rather, it is a shared journey towards collective improvement.
By paying for time, people seek to climb the hierarchy and gain the privilege of delegation, allowing them to shift accountability and find scapegoats. In stark contrast, the pay-for-work system built on spot settlement systems operates like immutable and immutable laws of physics. Each individual takes full responsibility for his or her work. This model measures individuals not by their tendency to assign blame or focus on problems, but by their responsibility and commitment to accomplishing the task at hand. Better performance results in more money, so pay for work puts the job first, unlike pay for time, where more money results from more time passing, and the job is almost irrelevant. In a pay-for-work system, responsibility becomes a measure of personal and professional integrity, fostering a culture of focus on getting work done efficiently and collaboratively.
We shouldn't be telling people what experiences they should create in their apps, said Roy Shenfeld, Breez's CEO and my boss. I agree. The goal of the previous chapters was to spark interest in the possibilities so that experts can create those experiences. I am not the right person to say how construction, logistics, book publishing, and other industries should develop. I try to open the window for them to realize the potential they can create and build for all of us. If they do this we all win. They receive Bitcoin, and in return, we spend Bitcoin more efficiently on things that enrich our lives. This collaborative project is an invitation to explore, innovate and contribute to a shared future that benefits all.
Here's a quick summary of the takeaways from previous articles in this series:
First article: Construction industry
- what is the job?
- Conflict between people who are required to work but benefit from passing time without work.
- Reputation is based on the work done, not on someone's job title.
Second article: Logistics industry
- How delaying payments creates counterparty risk.
- How do intermediaries (banks) multiply this risk?
- How split payments align everyone's incentives to implement the project.
- Decentralization promotes competition
The third article: The publishing industry
- The immaterial economy is now on steroids
- The benefit of any business is determined more by the demand for it than by the supply of it
- Talking and selling are not the same thing, so commissions are the best way to compensate influencers
Fourth article: Live streaming payments
- Benefiting from work can be an ongoing process with flowing payments.
- Global benefits deserve global compensation.
- Selling seats at events can transform live entertainment.
Article Five: Gambling industry
- Fiat is gambling.
- Licenses and credentials harm the poor and enhance the power of the rich.
- How to invest wisely.
The transition period is crucial. If a company suddenly switches to a performance-based pay model without considering the existing workforce, it could lead to disruptions and prompt employees to leave for a full-time pay company. Those who recognize the need for change must take a long-term perspective and implement two payment methods – pay-per-time and instant settlement – simultaneously. The goal is to make these styles coexist, attract high performers and foster a culture of excellence. Once a company has established a base of high-performing individuals, it can then phase out the pay-per-time structure entirely. I draw inspiration for this approach from my distance mentor, Jeff Booth, as these two systems represent distinct paradigms, necessitating a careful and strategic transition rather than an abrupt shift.
These are my last messages:
Building utility, does not promise future riches.
Do not wait or ask for permission to do the work. Do the work you want to do.
LET'S FUCKING GO!
This is a guest post by Evan Makedonski. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
