Tag: token economy

By the time we reach Chapter Seven of Technofeudalism: What Kills Capitalism, Yanis Varoufakis drops the ledger sheets and spreadsheets and starts sketching utopia in crayon. Entitled Escape from Technofeudalism, it proposes—brace yourself—a workplace democracy. It’s aspirational, yes. Compelling? Not particularly. Especially if, like me, you’ve long since stopped believing that democracy is anything more than a feel-good placebo for structural impotence.

To be clear: the preceding chapters, particularly the first six, are sharp, incisive, and frankly, blistering in their indictment of today’s economic disfiguration. But Chapter Seven? It’s less an escape plan, more a group therapy session masquerading as an operational model.

So let’s take his proposal for Democratised Companies apart, one charming layer at a time.

“Imagine a corporation in which every employee has a single share that they receive when hired…”

Splendid. One person, one vote. Adorable.

“All decisions – hiring, promotion, research, product development, pricing, strategy – are taken collectively…”

Because there’s nothing more efficient than a hiring committee comprised of thirty engineers, two janitors, a receptionist, and Steve from Accounts, whose main contribution is passive-aggressive sighing.

“…with each employee exercising their vote via the company’s intranet…”

Marvellous. We’ve now digitised the tyranny of the majority and can timestamp every idiotic decision for posterity.

“Equal ownership does not, however, mean equal pay.”

A relief. Until it doesn’t.

“Pay is determined by a democratic process that divides the company’s post-tax revenues into four slices…”

Here, dear reader, is where the cake collapses. Why, precisely, should a randomly-assembled group of employees—with wildly varying financial literacy—be entrusted to divide post-tax revenue like it’s a birthday cake at a toddler’s party?

And how often are these slices recalibrated? Each fiscal year? Every time someone is hired or fired? Do we amend votes quarterly or wait until the economic ship has already struck an iceberg?

Varoufakis does suggest preference voting to tackle allocation disputes:

“Any proposal to increase one slice must be accompanied by a proposal to reduce expenditure on one or more of the other slices…”

Fine. In theory, algorithmic voting procedures sound neat. But it presumes voters are rational, informed, and cooperative. If you’ve ever seen a corporate Slack thread devolve into emoji warfare, you’ll know that this is fiction on par with unicorns and meritocracy.

“The basic pay slice is then divided equally among all staff – from persons recently employed as secretaries or cleaners to the firm’s star designers or engineers.”

Ah yes, the ‘equality’ bit. Equal pay, unequal contribution. This isn’t egalitarianism—it’s enforced mediocrity. It might work in a monastery. Less so in a competitive tech firm where innovation requires both vision and differentiated incentive.

Now, on to bonuses, which are democratically determined by:

“…employees each given one hundred digital tokens to distribute among their colleagues…”

Welcome to Black Mirror: Workplace Edition. This is less economics, more playground politics. Who gets tokens? The charismatic chatterbox in the break room? The person who shared their lunch? The ghost employee who never shows up but emails back promptly?

And how, pray tell, does one evaluate the receptionist’s contribution relative to the lead engineer’s or the janitor’s? This isn’t peer review—it’s populism with a smiley face.

We’ve all seen “Teacher of the Year” competitions turn into contests of who had the cutest class poster or best cupcakes. Now imagine your livelihood depending on it.

In summary, democracy in the workplace may sound noble, but in practice, it’s the bureaucratic equivalent of herding caffeinated cats. It doesn’t even work in small groups, let alone an organisation of hundreds. Democracy—when applied to every function of an enterprise—is not liberation; it’s dilution. It’s design-by-committee, strategy-by-consensus, and ultimately, excellence-by-accident.

Escape from Technofeudalism? Perhaps. But not by replacing corporate lords with intranet polls and digital tokens. That’s not an exit strategy—it’s a cosplay of collectivism.