@dantheman : Thanks for this interesting post :)
Obviously there is endless complexity in all this. A model is only theoretical while reality is always supercomplex ( something a good model wants to take into account ).
One thing I think is important to mention in relation to both the representative democracy as well as the more decentralized systems : The importance of the informed citizen.
In many ways the main argument for representative democracy is a version of the wisdom of the crowd. And for all decentralized models the wisdom of the crowd is essential.
In any system above a certain size the wisdom of the crowd can only be maintained through a media which can transmit relevant and reliable information.
The better the quality of the communication between responsible government people, and the rest of the citizens, the more the crowd has a possibility of being wise.
This is maybe where the media we have had until now can be seen as a massive failure. Or said somewhat differently : there is incredible room for improvement. As informed citizens we should expect our politicians to be communication masters who share accurate reliable information with each other as well as with the public and who can behave like mature adults in public :
*They should focus on here and now and what can be done - instead of dwelling on the past.
*They should listen attentively to each other as they speak.
*And they should talk about how the whole country can be better ( instead of for example insulting the character of the other person).
*They should have these discussions in a context where there is plenty of time to dig deep into the issues and consider the various concerns against each other in a balanced and realistic way.
It is obvious to everyone that the political debate before most elections hold a level which is so low that we should expect children in the kindergardens to do it better. The debate in the US elections has maybe been an all time low.
This is obviously an insult to the intelligence of the crowd and the informed citizens and a kind of behaviour which ruins all trust in our leaders ( which naturally is at an all time low also ) and undermines the entire foundations of modern society.
Government models which depend on the intelligence of the crowd, demand an intelligent use of the media, where a high quality dialogue takes place about what how to organize society. Propaganda, abuse and cheap rhetorics is not acceptable among informed citizens when representatives are speaking about the future of the people.
A much higher standard of the media will be required if the blockchain based models which base themselves on the wisdom of the crowd are going to work. Media can not be used in a way which diminishes the wisdom of the crowd, but must consistently be used in a way which increases the wisdom of the crowd.
If a high quality communication can become the cultural standard for how to use social media, government by means of the wisdom of the crowd has amazing potential.