Creating a Decentralized Autonomous ECONOMY (DAE) to make it easier for entrepreneurs to produce physical goods and to facilitate the reuse/recycling of all resources.
05/17/18 EXECUTIVE SUMMARY:
This summary is intended to be the simplest and shortest possible explanation of this system while accurately conveying the main concepts behind the Economic System know as the TRMS, and its logical implementation within the blockchain ecosystems. Such implementation could create a seamless and complete automated global economic system that promotes lower barriers of entry for goods producers and promotes the creation of products with the highest level of recyclable and re-usable materials as possible. The expected long term results of operating an economic system like this is that over time there will be more and more resources and goods in the economy while at the same time the in-pocket money that the average person has as savings (available cash) will keep increasing and all while the currency value will stay STABLE, linked to recyclable commodity quantities and "added value" from labor in the economy. At some point people will have so many things and so many “dollars” that the perceived wealth will be so high that there will no longer be any need to sell anything for profit and we will be able to enter the era of the Resource Based Economy (RBE).
Although there have been a few examples of GOLD backed currencies in the modern era (the USA until 1933,1971 and Switzerland until 2000) after the Renaissance European royalty was compelled to expand the money supply beyond their stored gold and coin which brought about the first “Fractional Reserve” institution of money creation. The Rothschilds figured this one out, if the economy grows there needs to be an equivalent growth in the money supply or else the economy grinds to a halt. In fact neither INFLATION nor DEFLATION are desireable, one causes the devaluation of savings, the onther devalues assets, hence one discourages savings and the other discourages purchasing (think droping of RAM or computer prices as an example). The optimal monitary system should hold the value of money stable, so that pepoles savings holds value and business'es can invest with confidence about the future. Looking back at what happened one would have to concluded that the royalty were not to bright and got duped by the Rothschilds and the “Banksters” as the Banksters were allowed the ability to create money by the mere request of a borrower and his signature and run away with the intrest scott free.
Along comes the Colonies and they realized this same concept and created Colonial Script, but this time, instead of the Bankster’s getting to issue it at interest, the Government would spend the new money into the economy for public projects (like roads etc.) at no interest and based on the annual growth rate of the economy. As long as the government was accurate and not abusive of this ability to create money, then this system worked far superior to the Bankster Fractional Reserve system.
Enter blockchain, STEEMIT and Dan Larimer’s gift of putting a twist on the familiar and pushing the boundaries of possibility to new levels. Steemit follows this same concept, saying evidence shows economies grow and therefor a token economy can have some rate of Token Inflation which can responsibly be spent (eg. government) to the block producers and to promote desired behaviors (content creation: Steemit). This was a genius move that is a milestone in the history of cryptocurrencies and blockchain and glimmers at the future of yet unknown possibilities of these crypto ecosystems.
During the creation of the TRMS a re-evaluation of these money creation schemes was conducted and a question was posed:
The past showed the Banksters said “I care not who makes the Laws……". And the Colony Governments said “The Government will Create and Decide....” And the USA said Gold and Silver
But really,,,,, if the legitimacy for creating more monetary supply is that there is more goods and resources in the economy, then shouldn’t the people that “add wealth” to the economy be the beneficiaries of the “new money created”? How this would function will be be examined below.
These links are an educational series on the original non-crypto TRMS. They include issues that do not need to be addressed in a “cryptoTRMS” as the cryptoTRMS is a global system and has no concerns about import and export of materials:
https://www.facebook.com/notes/mark-traver/trms-101-finance-the-law-series/10150176954557553/
We live in a controlled economic system of Fractional Reserve money creation utilizing notes and bonds of personal and National debt (IOU’s) to create bank deposits and circulating Federal Reserve Notes. The beneficiary of this activity is primarily the Federal Reserve and the Bank of International Settlements.
We all recognize that this system is a form of slavery using a Keynesian economic model and is in serious need of change. Along comes Bitcoin and people feel in their hearts that the change is near, but yet we fall into our old habits and instead of rethinking the situation, we do the same old things, uncreative "DigitalGold" or just a plain currency.
“We can’t defeat the existing system; we must build a better one instead” - David McElroy
"Build a New Model That Makes the Existing Model Obsolete" - Buckminster Fuller
So we started using Cryptos like we already used fiat money in the existing inflationary/deflationary monetary system. We speculate and hope for gains and don’t institute new paradigms of lending or backing of the money and we haven't designed any behavioral motivations towards common goals, instead we keep using the current design that promotes only self interest and greed. We have this wonderful seemingly full of limitless possibilities new tool and we go and use it like a hammer, like the least intelligent tool in the box. All one hears is "Lambo" and "To the Moon".
What we need is a whole new economic system where the creation of money goes to the creator of the real wealth (retain-able recyclable content and added value) and not to the bank or some central entity like government. A brand new way of monetary creation that is used to encouraged social benefit and prosperity via stimulating ease of entry into both business and markets for entrepreneurs and intelligent design of products to maximize recycle-ability and reuse-ability. An intelligently designed Economic System that includes all aspects of the economy from Natural Resource extraction and Commodities Exchanges to Design and Recycling, with OpenMarketPlaces to exchange goods freely and arbitration and governance systems for continued smooth operation (Real Estate and Housing and some other topics are not covered in this Executive Summary) with a money backed by physical recyclable content in the economy.
1. It is the intention of this economic system to provide a stable currency backed by recyclable materials both in storage and in products within the economy.
2. to promote the usage of recyclable materials and modular technologies as well as reusable products.
3. to lessen the burden of labor costs on producers.
4. to lessen the costs for natural resource extractors.
5. to lessen the costs for building a home.
6. to create such abundance that the perceived cost of things becomes insignificant.
7. the elimination of corporations and Admiralty Law on the Land
THE 2 BRANCHES OF DAE (Decentralized Autonomous Economy) The DAE of the TRMS is composed of a governance token (TRMS) of its governing DAO and a circulating Monetary Resource Token ($MRT) whose circulation equals the sum of 3 sub components:
1. Recyclable Resources (in products or storage)
2. Natural Resources (not yet extracted)
3. Labor adding value to physical products
TRMS Token (“Terms Vote”)
The governance token will be widely airdropped to EOS accounts and TRMS Dapp developers as their observed concern for similar ideals makes them perfect candidates. EOS snapshot account holders with accounts of 100 EOS tokens or more that are NOT Exchanges will get TRMS tokens in a 1:1 manner, such that the amount given will equal 70% of the Distribution. The remaining 30% shall be divided in two parts, 20% will be given to developers of Dapps (aka the platform) and their support networks and finally 10% shall stay with the original designer (M. Traver) until he feels confident in ongoing performance of the DAE and sells off his influence (TRMS Tokens). Governance tokens will have voting rights on issues of VARIABLES in the Dapps’ systems (DAE).
MRT Token (“$mart Coin”)
The currency of the DAE for the TRMS is the $MRT (eg. $100MRT = “100 Smarts”) and is used for all purposes of commerce in this physical economy. The value is fixed to a ratio of recyclable commodity values including gold and silver. The monetary supply is set by the 3 forms of currency creation explained below. Some require the BURNING of the token when repaid at the end of the contract.
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Anyone who turns in recyclable materials will be compensated in $MRT for the recyclable content value less the cost of recycling of the product/materials turned in.
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Labor cost in the amount of 50% will be provided to physical product producers and will be due and repayable when the product is sold or 1 year, whichever is quicker. This will reduce the labor cost burden for business owners with new ideas and increase the money supply to approach the value added to the goods by that labor.
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Natural Resource Extractors upon submission of proper documentation of Resource Value, Cost of Extraction, Cost of Reclamation and Labor Costs can get 100% of the resource extraction costs, if they can prove a minimum 30% profit prior to extraction, for up to two years or when the resource is sold, whichever comes first.
Any product design with certified recyclable content may get that amount of recyclable content for production (less recycling costs) FREE of charge at the Recycle Center or location external to the DAE. This encourages product producers to make products with the highest percentage of recyclable materials possible and that they are as easily recyclable as possible, as this will reduce Production Costs significantly. Modular and Reusable products will get relative fair consideration.
The TRMS DAE will lower the entry barriers for new entrepreneurs by lowering startup cost both in the smart use of materials and in spread out labor costs. Lower Barriers means more employed people and a stronger economy with more competition and innovation. In exchange for this service all producers agree to make available all their products on the TRMS MarketPlace where the currency is $MRT. In this way all employees and others accepting the $MRT have a guaranteed place to spend them.
-“Render unto Caesar the things that are Caesar's” - Mark 12:17
-“What is NOT Caesar's use for TRUTH, JUSTICE and COMPASSION to fight the existing Principalities of Evil.” - Mark Traver (2018)
It is in the interest of everything that we reduce the waist stream and the easy way to do that is to make everything as recyclable as possible. It is also evident that a currency can also be money as when the USA was on a gold standard. If we consider that not only gold but any material that can be kept within the economy can be used as an equally good backing to a money, then any material that is recyclable in a product may be added to the backing of the money supply. Also when a worker “adds value” to a product by his efforts, that added value is for a temporary period in the economy.
For that reason 50% of peoples pay can be created in MRT and it can be repaid when the product is sold or within one year (by the employer/business owner), whichever is quicker. In this way the money is made available to buy products in the economy, but it is also burned as the product will eventually one day be broken or no longer serve a purpose at which point it will be recycled and no longer have any added value. Not only Labor can be assisted, if a product needs “recyclable material” that is not available FREE within the DAE then MRT can be created to pay for the amount of material that will be recyclable when purchased from a vendor outside the DAE. This new recyclable material remains for perpetuity as recyclable content backing the MRT and is now in the DAE forever. In this way, the DAE continually acquires recyclable resources and hold them as the “COMMON HERITAGE” of all people on Earth and all that choose to use the TRMS DAE are equally privy to its benefits.
The example of Table-1, shows two scenarios of a entrepreneur and his widget of either 50% recyclable material or 100% recyclable material. It compares what it would cost to “start up” (per widget unit) under our current system as well as between the recyclable content variable.
TRADITIONAL | TRMS
Economic System | Economic System
Product made with 50% Recyclable Content | Product made with 50% Recyclable Content
-------------------------------------------------------------------------------------------------------
Expense Owner System | Expense Owner System
------- ----- ------ | ------- ----- ------
Labor $50 $0 | Labor $25 $25
Materials $40 $0 | Materials $20 $20
Other $10 $0 | Other $10 $0
|
TOTAL = $100 $0 | TOTAL = $55 $45
| After Labor Repaid = $80 $20
SALE PRICE = $150 PROFIT = $50 | SALE PRICE = $150 PROFIT = $70
WOW! A 45% less startup cost and yet a 40% increase in profits! - That is PROSPERITY my brothers and sisters.
So what happens if the Recyclable content goes up to 100% ?
TRADITIONAL | TRMS
Economic System | Economic System
Product made with 100% Recyclable Content | Product made with 100% Recyclable Content
------------------------------------------------------------------------------------------------------
Expense Owner System | Expense Owner System
-------- ----- ------ | ------- ----- ------
Labor $50 $0 | Labor $25 $25
Materials $40 $0 | Materials $0 $40
Other $10 $0 | Other $10 $0
|
TOTAL = $100 $0 | TOTAL = $35 $65
| After Labor Repaid = $60 $40
SALE PRICE = $150 PROFIT = $50 | SALE PRICE = $150 PROFIT = $90
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WOW! Even more amazing with the Recyclable Content at 100%,,, the Entreprenuer only has to invest 35% compared to the Traditional Economic System and they walk away with 180% the profit. PROSPERITY KNOCKS,,, are you opening the door?
As can be seen, the incentives to make more recyclable products is HUGE and the assistance to labor costs is substantial. These two aspects of the TRMS will keep the DAE extremely liquid and active. In the current Traditional Economic System there is no incentive to make things recyclable (the system thrives on waist) and no consideration is given to labor and added value to products because the only concern is LENDING (or with Colonial Script the question of what the government wants to spend it on).
So, say in Table-1 that the product sells for $150, that would mean a person today would make $50 profit off $100 invested, not bad. The guy with 50% recyclable product at the same price makes $70 profit off of only $55 invested. Finally the guineas guy that makes the 100% recyclable product makes $90 off of only $35 invested. What an increadable difference,, from 1/3 profit to 3X profit off the same 100% Recyclable product.
That micro-economic analysis was amazing, almost unbelievable, but lets take a moment to consider the macro-economics. Lets look at what happens over time with a DAE full of the 50% recyclable producers, what happens in the economy? Lets consider a DAE of 3 producers.
Producer 1 makes electronics (a-z)
Producer 2 makes household goods (a-z)
Producer 3 makes musical instruments (a-z)a
For simplicity ALL producer will have cost structures of the upper right corner of Table-1. Each Producer starts with $370MRT and there is $240MRT of Natural Resources at the Recycle Center. There is one representative of Employee account value set to Natural Resource Center value. An Account of MRTs and Materials in the DAE. The first run of goods production will create 4 widgets.
(TO BE CONTINUED)