Beyond Market Failure: The Economy 2.0 Framework

This paper presents Economy 2.0, a systemic engineering response to the existential risks posed by mass technological displacement and the structural instabilities of contemporary market capitalism. The framework introduces a macroeconomic architecture built on cooperative ownership and algorithmic coordination, designed to maintain civilizational stability without requiring perpetual GDP growth. At its core is Anchor-Based Participation Theory (ABPT), which models voluntary participation through personal welfare anchors rather than coercion or ideology. To resolve the conflict between automation and labor, the Augmented Value Layer (AVL) creates a structurally protected tier where human-centric work remains non-substitutable. The transition strategy utilizes a Choke Point model to navigate the period of maximum systemic vulnerability during the displacement of up to 400 million knowledge workers. Mathematical formalizations include a Resource Allocation Algorithm with O(nlogn) runtime and anti-concentration rules that cap market share at 15%. Stress tests across eight adversarial scenarios indicate that the system achieves 2-3x faster shock recovery and 95%+ resource utilization efficiency. Furthermore, the model demonstrates a 1000x reduction in destabilization risk by eliminating the rational basis for systemic threats from displaced professionals. Economy 2.0 relies on proven technologies like AI and blockchain to outcompete incumbent structures on purely economic and resilience terms. Ultimately, the paper frames this transition as a vital risk-management protocol for a post-scarcity era.