jueves, 17 de julio de 2014

B2P currency contract versus B2P property mortgage contract

Investors in capital goods acquire their property by a monthly payment of a B2P property mortgage.

To do so, they get in the market the necessary B2P currency of the manufacturer of the capital good.
The buyer gives the constructor an amount in B2P currency and in return the buyer gets an amount of share of the B2P property mortgage.

The B2P currency smart contract should include an XML text, human readable through an XSL transform, containing the data of the promise of goods. Equally, a B2P property mortgage smart contract should include an XML text containing the data of the given property.

The two smart contracts are almost the same. The main difference is :

the B2P currency circulates in the open multi-currency market and refers to any construction works of the builders company within a period, say a year
the B2P property mortgage circulates only between the builder and the buyer that has acquired the property, and the interchange happens trough all the payment period, say 15 years

The B2P currency contract

Is issued for the total value of the production of a manufacturer for a period
Is valid as means of payment around that period
The holder can be anybody
Can buy any product of the manufacturer produced anytime

The XML

<?xml version="1.0" encoding="UTF-8"?>

<Title>BUILDERS CO Property 2314</Title>

<contractURL>https://www.buildersCo.com/construcionsPlanned2013</contractURL>

<currencyName>BUILD</currencyName>

<currencyLongName>BUILDERS CO Currency</currencyLongName>

<currencyLogo>https://www.buildersCo.com/files/BUILDLogo.jpg</currencyLogo>

</Currency>

</ValidPeriod>

<Definitions name="producer">... legalIssuer ... is the producer of ... Merchandise ...</Definitions>

<Definitions name="authorization">... legalIssuer ... is the authorised institution by the EQUALITARIAN PEOPLES ASSOCIATION to issue money in the denominations indicated in ... Currency ...</Definitions>

<Definitions name="affiliation">... Collector ... are affiliated companies to the ... legalIssuer ... commercialising and selling its ... Merchandise ...</Definitions>

<Definitions name="holder">... holder ... of this voucher is any Citizen in possession of ... Currency ... money</Definitions>

<Conditions name="amounts">... legalIssuer ... will issue money in ... Currency ... for a total amount equivalent of all the ... Merchandise ... to be available for trade with ... Currency ... during the ValidPeriod</Conditions>

<Conditions name="prices">... Collector ... will indicate the prices of the ... Merchandise ...included in this contract in ... Currency ... on top of legal tender prices</Conditions>

<Conditions name="price guarantee">... Collector ... will not change the prices of the ... Merchandise ... in ... Currency ... from the date of the issue, until the end of the ... ValidPeriod ...</Conditions>

<Conditions name="redemption">... Collector ... commit to redeem the money in ... Currency ... of any ... holder ... for ... Merchandise ...worth the price in ... Currency ...</Conditions>

<Conditions name="optional redemption">Optionally, ... Collector ... may redeem ... Currency ... of non EQUALITARIAN PEOPLES ASSOCIATION ... holder ... the same way</Conditions>

<name>BUILDERS CO</name>

<long_name>BUILDERS BUILDINGS FOR EVERYONE COMPANY</long_name>

<address>C/Patronato Obrero, 67, 07006 Palma</address>

<email>builders@builders.com</email>

<url>https://www.buildersCo.com/</url>

<logo>https://www.buildersCo.com/files/buildersCoLogo.jpg</logo>

</holder>

<share>

</share>

</holder>

<share>

</share>

<name>BUILDERS CO</name>

<long_name>BUILDERS BUILDINGS FOR EVERYONE COMPANY</long_name>

<address>C/Patronato Obrero, 67, 07006 Palma</address>

<email>builders@builders.com</email>

<url>https://www.buildersCo.com/</url>

<logo>https://www.buildersCo.com/files/buildersCoLogo.jpg</logo>

</holder>

<share>

</share>

</participation>

</legalIssuer>

<name>Immosales</name>

<long_name>MallorcaWeb, SL</long_name>

<address>S'Estanyera 15 - 07150 ANDRATX (Illes Balears)</address>

<email>name@email.com</email>

<url>http://www.immosales.com/</url>

<logo>http://www.immosales/files/logo.gif</logo>

</Collector>

Any construction produced by BUILDERS CO anytime

</Merchandise>

</contract>

The B2P property mortgage contract

Is issued for the total value of the price of a concrete property
Is valid as means of payment for the mortgage time
The holder can be the builder and the buyer, nobody else
Can buy only one particulal capital good

The XML

<?xml version="1.0" encoding="UTF-8"?>

<Title>BUILDERS CO Property 2314</Title>

<contractURL>https://www.buildersCo.com/property2314</contractURL>

<currencyName>BUILD</currencyName>

<currencyLongName>BUILDERS CO Currency</currencyLongName>

<currencyLogo>https://www.buildersCo.com/files/BUILDLogo.jpg</currencyLogo>

</Currency>

</ValidPeriod>

<Definitions name="producer">... legalIssuer ... is the producer of ... Merchandise ...</Definitions>

<Definitions name="affiliation">... Collector ... are affiliated companies to the ... legalIssuer ... commercialising and selling its ... Merchandise ...</Definitions>

<Definitions name="holder">... holder ... of this voucher is any Citizen in possession of ... Currency ... money</Definitions>

<Conditions name="prices">... Collector ... will indicate the prices of the ... Merchandise ...included in this contract in ... Currency ... on top of legal tender prices</Conditions>

<Conditions name="redemption">... Collector ... commit to redeem the money in ... Currency ... of any ... holder ... for ... Merchandise ...worth the price in ... Currency ...</Conditions>

<Conditions name="optional redemption">Optionally, ... Collector ... may redeem ... Currency ... of non EQUALITARIAN PEOPLES ASSOCIATION ... holder ... the same way</Conditions>

<name>BUILDERS CO</name>

<long_name>BUILDERS BUILDINGS FOR EVERYONE COMPANY</long_name>

<address>C/Patronato Obrero, 67, 07006 Palma</address>

<email>builders@builders.com</email>

<url>https://www.buildersCo.com/</url>

<logo>https://www.buildersCo.com/files/buildersCoLogo.jpg</logo>

</holder>

<share>

</share>

<name>Jesus ANTOLIN</name>

</holder>

<share>

</share>

<name>BUILDERS CO</name>

<long_name>BUILDERS BUILDINGS FOR EVERYONE COMPANY</long_name>

<address>C/Patronato Obrero, 67, 07006 Palma</address>

<email>builders@builders.com</email>

<url>https://www.buildersCo.com/</url>

<logo>https://www.buildersCo.com/files/buildersCoLogo.jpg</logo>

</holder>

<share>

</share>

</participation>

</legalIssuer>

<name>Mallorca Mi Web</name>

<long_name>MallorcaWeb, SL</long_name>

<address>S'Estanyera 15 - 07150 ANDRATX (Illes Balears)</address>

<email>name@email.com</email>

<url>http://www.mallorcamiweb.com/</url>

<logo>https://sites.google.com/site/desperadostheory/files/mallorcaweb.gif</logo>

</Collector>

<Merchandise pictureURL="https://www.buildersCo.com/property2314/pitcures">Duplex apartment located on the 2nd floor of a 2 storey building. Area of 05m2 with 2 bedrooms + office (or bedroom for children).Lounge, dining room, bathroom with toilet, semi-fitted kitchen, double glazing, individual gas boiler. Without basement and attic. 32-33 Mortimer Street, 1st Floor,London W1W 7RE, UNITED KINGDOM

</Merchandise>

</contract>

miércoles, 16 de julio de 2014

B2P investments and profits

At B2P currencies , the basic idea is that every company planning to put a good in the market, can finance his operations by paying to his providers with a currency issued by the company as a share in the future goods.

Breach of contract

If they issue more money than goods they actually produce and this money represents, the enterprise will be pursued by law. Customers can claim that they came with the money and there was no goods in the stores.

Investments and profits

The consequence is that investments and profits have to be paid with the company B2P currency as well. Investments and profits have to be paid at the beginning of the cycle, and not after the annual sales cycle. On perishable goods, after a certain date, the B2P currency is worth nothing. The goods are rotten.

How it works:

Buy goods

To buy variable goods and services, like maintenance, raw materials or labor, that is, to pay the exploitation costs, they use their own B2P currency to pay their providers. The providers will use this money to buy themselves the goods this enterprise is producing or will put it into the exchange market for those who want the goods this enterprise is producing.

Buy other currencies

To invest in capital goods, they buy the capital goods manufacturers money, in order to pay the mortgages or leasing's. The capital goods manufacturers owners and employees will need the perishable goods money for their daily consumption of perishable goods.
Finally, to pay their shareholders profit or the managers the bonus, they buy in the exchange market any global luxury money that can be spend at a nice holiday in the Caribean.

If sales go wrong

Sales can go wrong from the beginning to the end:

It can go wrong at the beginning, if there is no interest at accepting this enterprise B2P currency , because there is no interest in the product. It means that part of the currency is not circulated. But there is another part in circulation, and those that have accepted the currency expect a percentage share of a given stated total production. At least the goods represented in the circulating money have to be produced. To adjust accounts, the most rigid cost is mortgages, the exploitation costs are partly flexible, and profits and bonus can always be deleted. Its up to the management to decide how to proceed. But its fair to assume that the company managers do not deserve a very high bonus.
It can go wrong at the end. Customers that were eager to acquire the enterprise B2P currency at the beginning, enthusiastic about your promised products, at showing up at the shop, or likely before, were disappointed by the product, were not able to get rid of the currency in the exchange market, and they preferred not to claim the product. There is no immediate damage for the enterprise. All has been paid, just part of the product will go to the bin. But it is a terrible warning. These customers in all probability will not accept the enterprise B2P currency next year. The enterprise should take immediate reaction at reducing production next year and make some investments to improve quality, all meaning that shareholders and managers will be punished with low chances to get any profit or bonus next year.

martes, 15 de julio de 2014

B2P currency mortgages

¿How could we buy capital goods (real estate, big machines, infrastructures) using B2P currencies without a banking credit system?

The two keys to the answer are the following:

B2P currency cannot be kept as “savings”. The B2C currency could eventually be stored under the bed to reappear in the future, but the goods it does represent cannot be put in a time machine to reappear in the future the same way. This time machine trick can be played with an undifferentiated currency such as fiat money, but not any more with money representing goods. At fiat money, when money disappears from the monetary mass under the bed cover in form of savings, the goods this money was supposed to trade, in order to be sold, have to rely on savings money reappearing from the past. Because at fiat money any money can buy any good. This is not any more the case with B2P currency. Money issued to promise the vegetables production of a given year cannot be saved to buy production of vegetables ten years later. If the money created for this production cycle is stored under the bed, some vegetables will rot on the shelves without being sold.
The manufacturers of capital goods, like a big truck, issue their own long cycle B2P currency, but need to eat every day. That is, they need to buy every day vegetables and meat, drinks, dressing, use telephone and electricity. In one word, manufacturers of capital goods with long duration and strong manufacturing effort, requiring large factories, need to buy in the perishable, short cycle, products market to do their job today and every day.

Overall, B2P currencies result in detaching the attribute of money as storage of value from the other two classic attributes: the attribute as a means of trade, and the attribute as a measure of value. In the new economy savings can be done by exchanging B2P currencies representing short period perishable goods, by B2P currencies representing long lasting goods. As it has always been done with gold.

As an example, real estate builders could issue their own B2P currency to pay their expenses in construction. Such builders would not be carrying any debt, except their obligation to provide the products they promised, on time. And they could capitalize new construction any time by issuing new B2C currency.

The real estate builder has both the ability and the responsibility to create enough purchasing power to absorb all of his production. This could be done by issuing each month enough (and only enough) B2P currency to eat this month and to buy the construction materials. The amount can be adjusted to ups and downs in production following future sales forecasts. The builder’s creditors are customers who have acquired the builder’s B2P currency in order to buy the buildings, or, more generally, to trade with the currency in the exchange market.

Under the B2P system, payment would be made directly by the buyer to the builder and the time-line of payment could be adjusted and negotiated at each selling contract according to the builder’s discretion and the customers needs. When a customer acquires a house, a contract would be signed between the parts scheduling that each month a share of the house property contract goes from the builder to the buyer, against a payment in the B2C currency of the builder. If the buyer is producing perishable goods, it will go to the exchange market to sell his B2P currency against the B2P currency of the builder. Capital goods producers will be very eager to put their currencies in the exchange market because, as we said, they need to eat every day.

The most remarkable benefit of this system is that it does not need or justify any interest, because there is no storage of value in the money, but only at the goods. The whole process follows a real time exchange of property on goods.

lunes, 14 de julio de 2014

B2P type of currencies as a promise of goods

B2C type of currencies are assumed to cope with most of the trade. B2C currency is essentially a bond currency issued by a for-profit or non-profit enterprise against its future production of goods.

The production and distribution of goods and services will have an optimal size at local, regional, national, continental or global scale. The geographical coverage of each of the B2C type of currencies will therefore be local, regional, national, continental or global.

It is not restricted to the members of one particular Equalitarian Peoples Association. Equalitarian Peoples Associations may overlap in geographical coverage, as for example different Unions do. B2C type of currencies can be used by members of all Equalitarian Peoples Associations.

These currencies are formally global (e.g. can be exchanged globally), although their value of use can be quite local. An example can be a B2C currency expressed as bonds for certain amounts of taxi services of the taxi association of a town. It has no value outside this town, but if somebody is planning to go there, anybody may buy it from any place in the world. There is no need to be member of any association.

The original proposer was E.C. Riegel , who proposed this type of money as early as in 1944. He explains his theory in Private Enterprise Money , or in Flight from Inflation. Today, the main defenders of these type of currencies are:

Bernard Lietaer http://www.lietaer.com/
Thomas H. Greco http://www.reinventingmoney.com/
Paul Grignon http://paulgrignon.netfirms.com/MoneyasDebt/

The basic idea is that every company planning to put a good in the market, can finance his operations by paying to his providers with a currency issued by the company as a share in the future goods. Of course, it has to have the reputation for their providers to accept this currency.

In ethereum, it can be created like this:

like in Ethereum ÐApps for Web Developers - Writing Your Own Currency http://hidskes.com/blog/2014/05/21/ethereum-dapp-development-for-web-developers/
init {
this.store[this.origin()] = 10000}
where 10000 is the number of shares representing all your production. You may name it as you like, for example "Johns Vegetables"

However, no ethereum smart contract will ever be so smart, - at least until the IoT provides each object with a label -, to know what goods the owner of one share of the currency can claim to the issuer, unless the goods are described in the contract in a way humans can read. When the holder of the B2C currency pays, only him, a human, can know and judge if he received the goods he was supposed to receive.

As it is a legal commitment, it would be preferable that all human-target clauses follow the same standard structure. It means that the smart contract should include an XML text, human readable through an XSL transform, containing the data of the promise of goods using the same XSD schema, so that all wallets display properly all B2P currencies, following for example the Ricardian contract schema or the INTERNET-DRAFT Ko Fujimura XML Voucher schema described at the Generic Voucher Language, so that a browser in the wallet can display an understandable message to the holder.

At this link a voucher.xsd schema can be obtained.

Of course, this information could be provided as linked data and hang from some URL, instead of inside the Smart Contract. In that case:

The data should be secured by a signature
The URL would need to be protected in something like namecoin, the content secured in something like a Bittorent

domingo, 13 de julio de 2014

P2B sovereign currency

The sovereign is the legal tender currency of a community organised as an Equalitarian Peoples Association, which could operate as an ethereum DAO, or several DAOs or DACs, one for each Governing Body or Public Service Body.

Sovereign is money issued out of the nothing by the members of the Equalitarian Peoples Association, in their monetary sovereignty, for a taxation period and lend to the Equalitarian Peoples Association using a P2P credit as financial instrument. It goes to the Governing Body of the Equalitarian Peoples Association as a credit. The Equalitarian Peoples Association returns the credit with the money collected at taxation, donation or membership fees. Once returned, this money disappears form the monetary mass.

In essence, the P2P credit instrument created for Peer to Peer credit purposes is used as well as a P2B credit instrument. The B(Business) is in this case the DAO of the Governing Body of the Equalitarian Peoples Association. It means that all monetary credit in the system comes in the end from the Peers or People, and nobody else. In a way, it is the money the Peers “impose” to their Governing Bodies.

As legal tender currency, it is the only currency accepted for the creation of new money in form of only-monetary P2P or P2B credits. It is the only currency accepted to pay the taxes. It is also the only currency used to pay the Basic Income. Additionally there is another kind of credit, self-credit, but it has to take the form of a B2C bond currency against future production of goods of DAOs operating as Equalitarian Peoples Associations for-profit private companies. That is, all other credit is in other currencies, and is not “monetary only”. It is credit against a promise of goods. Technically, it is created as any other ethereum currency, but at start it has zero (0) units in circulation. The People's Bank creates the currency like this:

like in Ethereum ÐApps for Web Developers - Writing Your Own Currencyhttp://hidskes.com/blog/2014/05/21/ethereum-dapp-development-for-web-developers/

init {
this.store[this.origin()] = 1.000.000.000}

instead of the name GenericCoin used in the above example we would name it "sovereign"

The Peoples Bank is authorised to generate as many sovereigns as it considers necessary, but only entitled to transfer money to the members loans accounts. Most probably, the Bnak will generate an excess of sovereigns to cover future needs.

The Bank transfers to the loans accounts of the members of the Equalitarian Peoples Association a transfer equal to the members reputation as moneylender.

In turn, the people can give P2P credits to the Governing Body DAO by an equal amount by each member as required in the Governing Body budget.

Whta is forbidden is a transfer from the People's Bank to any Governing Body or any other entity.

As explained in Commons Sovereigns for Equalitarian Peoples Associations, the poorest will pay their tax fee with the help of their Basic Income.

The total monetary mass of sovereigns in circulation is composed by the total mass of credit given to the Governing Body as credit by the people plus the sum of all P2P credit between Peers. In most real situations it will result in a gradual decrease of legal tender monetary mass along the year as people pay their taxes. The scarcity of money will probably result in a higher demand of P2P credit at the end of the year.

Whatever the real curve is, the effect we want to generate is that the mass of sovereign money in circulation is auto-regulated

first by the amount of money issued by the people as P2B credit to the governing bodies at each period, the expenditure of the governing body using this money, - under others to pay the basic income –,
and a supplementary amount of money issued by the people if there is starting to be shortage of sovereigns at taxes collection period, - when the P2B credit is paid back and money is destroyed -, in the form of P2P credits according the needs of the economy and the volume of the trade.

More information at El Soberano del Bien Comun (PDF, spanish)