The Importance of History In Decentralization

Chapter 9 emphasizes the role of history in the creation of decentralized organizations. Access to historical records creates transparency and accountability and enables punishment and rewards in decentralized organizations which changes the motivations of members from a focus on immediate rewards to the future, en-couraging delayed gratification, and sacrifice for the good of the group. Historical review changes the game-theoretical perspective from a single-stage game, to a repeated game. This leads to more efficient cooperation instead of internal competition. Review helps create a decentralized history for decentralized organizations, which gives them momentum. History is the basis for making governance more effective. History brings clarity and stability