Module 7: The Economics of Sovereignty

Duration: 2 weeks Type: Economic Modeling & Sustainability Planning

Module Overview

If you can't pay for it, you don't own it.

Most "free" platforms aren't free—you pay with your data, your attention, and your sovereignty. In this module, you'll explore the economics of digital independence. How do we fund sovereign infrastructure? What business models support privacy and autonomy? You'll move beyond the "surveillance capitalism" critique to design viable economic alternatives: cooperatives, commons-based peer production, and sustainable funding models.

Learning Objectives

1. Analyze platform economics: Understand how surveillance capitalism works and why "free" is expensive 2. Design alternative models: Create business plans for sovereign tools (subscriptions, co-ops, grants) 3. Understand the commons: Learn how shared resources are governed and sustained 4. Evaluate sustainability: Calculate the real costs of self-hosting and digital independence 5. Critique "Web3" and crypto: distinguish between financial speculation and genuine economic sovereignty

Required Readings

- Textbook Chapter 12: The Economics of Sovereignty - Shoshana Zuboff, "The Age of Surveillance Capitalism" (selected chapters) - Nathan Schneider, "Everything for Everyone: The Radical Tradition that Is Shaping the Next Economy" - Trebor Scholz, "Platform Cooperativism"

Assignment: Economic Model Design

Week 1: The Cost of Sovereignty

Part 1: Audit the "Free" Web (Due: Day 3)

Calculate the monetary value of your data on a major platform.

Choose one: Google, Facebook/Meta, or Amazon. - Research their ARPU (Average Revenue Per User) - Estimate how much data you generate (searches, clicks, posts) - Compare this to the cost of a paid alternative (e.g., ProtonMail, paid search)

Write a 2-page analysis: - How much are you "paying" in data? - Is the service worth it? - What would a paid, privacy-respecting version cost?

Part 2: Sovereign Business Model (Due: End of Week 1)

Design a sustainable business model for a sovereign tool (you can use your project from Module 6 or a hypothetical one).

Choose your model:

Option A: Subscription / SaaS - Users pay monthly fee (e.g., ProtonMail, Hey.com) - How do you compete with free? - What's the value proposition?

Option B: Platform Cooperative - Users own the platform (e.g., Stocksy, Resonate) - How does governance work? - How do you raise capital?

Option C: Community-Supported / Donation - Grant funded or Patreon-style (e.g., Signal, Wikipedia) - How do you ensure stability? - What incentives do donors have?

Deliverable: 3-4 page Business Model Canvas + explanation

Week 2: Scaling the Commons

Part 3: Comparative Analysis (Due: End of Week 2)

Compare two approaches to funding digital infrastructure:

Case A: Venture Capital (VC) Model - Fast growth, high burn rate, exit strategy (IPO/acquisition) - Incentives: Scale, monopoly, user extraction

Case B: Sustainable / Bootstrapped Model - Slow growth, profitability focus, long-term survival - Incentives: User satisfaction, stability, independence

Write a 4-5 page essay: - Why does the VC model dominate tech? - What unique challenges do sovereign/bootstrapped projects face? - Can "slow tech" compete? - Which model aligns better with archaeobytological principles?

Deliverable: Comparative Analysis Essay

Assessment Rubric

- Economic realism (30%): Calculations and models are grounded in reality - Analysis depth (30%): Understanding of surveillance capitalism incentives - Creative problem solving (20%): Viability of alternative models - Critical thinking (20%): Avoiding utopianism or cynicism

"There is no such thing as a free lunch, and there is no such thing as a free search engine. We either pay with money, or we pay with our souls. Sovereignty means choosing to pay the bill."