I see an interesting contradictory phenomenon: global automation capacity has long been able to meet everyone's needs, yet there are still 800 million people who do not have enough to eat. The potential of renewable energy is 100 times the current energy consumption, while 3 billion people are still lacking electricity. The cost of replicating digital goods is almost zero, yet the acquisition of knowledge is becoming increasingly expensive.

Ultimately, the problem is not a lack of productivity, but rather that the distribution system is still operating under a 'scarcity logic'. This systemic failure is particularly evident on four levels:

**Mismatch between Production and Demand**
One third of the food in the world is wasted, while 9.8% of the population is malnourished. The housing vacancy rate is as high as 19%, yet there are 150 million homeless people. There is an oversupply of medicines in some areas, while access is difficult in others. It's not a lack of resources, but a misallocation.

**Algorithmic Distortion of Resource Allocation**
Algorithmic pricing has increased the price volatility of necessities by 370%. Data has been monopolized, and the cost of acquiring knowledge has risen by 42% in the digital age. Automation has replaced human labor, but investment in skill retraining has shrunk, accounting for only 0.3% of GDP.

**External Cost Transfer**
The social cost of environmental protection is only internalized by 17%, leaving 83% to be borne by the public. In the platform economy, data creators receive a pitifully small share of the profits.

**Concentration of Power Allocation**
The fundamental reason for these failures is that the allocation rights are held by a small number of intermediaries.

The KITE protocol aims to break this deadlock - by using real-time monitoring of material abundance, demand forecasting, and intelligent allocation mechanisms to construct an economic network based on actual wealth rather than artificially created scarcity. It sounds like it's addressing a blockchain economic design problem: how to use token incentives and smart contracts to ensure that resources genuinely flow to where they are needed.

This is not just a discussion of economic theory; it is a rethinking of how transactions, incentives, and resource allocation should operate in the Web3 era.