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The Gig Economy Is Unfair. Here's How Token Models Can Help – CoinDesk – CoinDesk

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Gys Hough is Managing Partner at Coinstone Capital, an Amsterdam-based digital asset investment fund focussed on tokenization. Gys is also a partner at Digital Asset Consulting (DIAC) a consulting firm specialized in asset tokenization. 

Imagine a web-based taxi company where the drivers are the co-owners: a company that automatically distributes its increasing profits to its drivers. Or imagine a delivery platform that pays its couriers higher wages as it gets more popular. 

Unfortunately, the driving forces behind the growing gig economy, companies such as Uber and DoorDash, do exactly the opposite. 

The growth of the gig economy is a huge concern for governments and policymakers worldwide. Technological innovation is a crucial part of every modern economy, but the companies that have created the new gig economy consistently exploit the rights of their workers and users. The examples are numerous: Uber drivers having to work 60 hours a week to earn the minimum wage, startups not contributing to retirement , and the list goes on. 

Blockchain-based coops can help governments create an economy of inclusion, and re-write the social contract for the 21st century.

There is a solution to this problem and it does not lie in stricter regulation. Traditional regulatory approaches for old fashioned companies don’t work well for borderless digital platforms. It lies in creating a regulatory framework for a viable alternative: digital cooperatives. Coops are usually associated with agriculture or banks, but the digital platforms of the internet economy – social networks, takeaway delivery, holiday rentals and taxi platforms – actually are the embodiment of cooperative work. The cooperative efforts of the contributors and customers of these platforms create the real value – the platforms themselves only coordinate the efforts. 

The technology that would enable the creation of digital cooperatives is blockchain. Bitcoin, the digital currency, has become the most prominent example of blockchain technology. But there are many more uses for it. The keyword is tokenization. Tokenization is the creation of a new digital currency – or tokens – that serves as the exclusive payment mechanism for these digital cooperatives. 

Let’s take the example of Uber. This web platform has been establishing footholds in many countries by initially subsidizing taxi rides. These cheap rides create demand from passengers, which leads to drivers joining. But as more drivers join, competition increases. Uber can then force its drivers to accept less pay and increase its margins. The beneficiaries of this race to the bottom are Uber’s investors and shareholders. 

If Uber, or a company like it, was a tokenized digital cooperative then the dynamics would change dramatically. The drivers of this cooperative taxi platform would be paid in its own currency, which would easily be exchanged for dollars or euros. Because a limited total amount of these tokens would be created, their value will increase as the popularity of the service grows. This would attract more drivers, which will lead to more customers, and another increase in demand and value for the tokens. 

This digital cooperative model has a lot of benefits for other sectors of the digital economy as well. Think of a social network, like Facebook, but one that pays its users for selling their data to advertisers. A network of users are also members, and have a say in the governance of it. 

Tokenized digital cooperatives will help people cooperate because everybody involved will benefit. Pooling resources, sharing equipment, or new kinds of pension and insurance schemes are a possibility as well. All transactions will be entered into a blockchain and can, therefore, be verified. Blockchain-based coops can help governments create an economy of inclusion, and re-write the social contract for the 21st century. 

A clear regulatory framework is needed for this to happen. The way these digital coops and their tokens can be created needs to be enshrined in law. Expanding current cooperative law by including digital coops and the creation of tokens, plus tokenized owner and membership, could be a good way forward. Regulators have been wary of the dark sides of bitcoin, which has slowed innovation in token-based business models. 

A clear legal status for digital coops would allow cutting edge technology to use market mechanisms to solve one of the bigger issues of our times: the shift to a digital economy that harms many workers. Tokenized digital cooperatives also provide the possibility for investors to support startups with capital in exchange for a certain amount of the tokens created. This way, they will become part of the inclusive economy and no longer need to gain wealth over the backs of customers or workers. 

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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