The goal of Knowledge Capitalism is to design mechanisms that maximize aggregate knowledge liquidity—the ease with which knowledge flows to where it creates value. Mechanism design theory formalizes how incentive structures can be engineered to achieve social goals in decentralized systems. Knowledge spillovers propagate through networks of researchers and institutions, driving innovation beyond firm boundaries. New primitives accelerate this diffusion: large-scale information search systems route queries to authoritative knowledge; decentralized protocols and programmable coordination platforms enable trustless coordination and Turing-complete compute; content-addressed systems make knowledge permanently retrievable. Language models compress vast knowledge into systems that can retrieve, synthesize, and generate—democratizing access to cognitive capabilities once reserved for specialists. As new media of exchange emerge to represent and transfer value in knowledge-intensive economies, the ultimate design challenge becomes creating institutions and protocols that minimize friction in knowledge exchange while preserving incentives for knowledge creation.