With the advent of crypto-currencies, the possibility of implementing a commonly controlled financial system is within reach. I will outline the general processes of how a planned crypto-currency will function. This is by no means a complete ‘idea’ and I’m sure that there are different ways of achieving the same thing. Hopefully you will gain some insight into what is possible with modern cryptographic technology. At the least, I hope that you can take away some ‘basic building blocks’ that could be used to create alternative solutions.
There will be ‘primitives’ that I will refer to during the article.
Lets say that there should be a tax across all transactions, how much should that tax be? Using a popular average everyone would enter what they think should be the appropriate rate. The average of these values would be known as the ‘popular average’.
Imagine the situation of dividing a flow of money between entities. To handle such a situation I propose that a ‘bucket’ of certain size collects the flow of money, and when full, give the ‘bucket’ to the next person. They decide where the money should go. This process repeats across a population of people.
These institutions are responsible for ensuring that participants have only one voting account.
A tax would be collected across all transactions. The tax-rate would be calculated according to a popular average. The resulting taxes would generate a tax stream.
Bucket distribution of the Tax Stream
The size of the bucket would be calculated according to a popular average. When a bucket is full, the next person in the identification list would receive the bucket. They would then distribute the money in the bucket to Cooperative firms.
Can’t people just give the money to themselves? The system will be built in such a way that the money in the bucket will be ‘locked’. Cooperative firms have additional powers that allows them to unlock the bucket money.
Voting for Cooperative Firms
The number of Cooperative firms will be determined by popular average. Anyone will have the ability to create a Cooperative firm. The Cooperative firms will be decided by Preferential vote.
Voting for Identification Institutions
Initially the system will have only one Identification Institution. However, having a monopoly upon such information may not be a good idea. Therefore after a period of time people can vote for the number of identification firms by popular average. Anyone will be able to create an identification institution. The Identification institution will be determined by preferential vote.
Voting for net money supply change
Changing the supply of money will be accomplished by either taking money out of the bucket or adding it to the bucket. The net change will be determined by popular average.
Why isn’t anyone from the so called left thinking this stuff up?
The idea of ‘state’ is hard to define in such a system. Time for Revolution!
A demurrage fee will be applied to all money. A demurrage fee is like a negative interest rate. All money across the economy will be devalued periodically. For example if the demurrage rate is 10% per month, and you hold 100 credits, then you will be charged a fee of 10 credits. The demurrage rate will be determined by popular average.
For more information about demurrage google: Worgl, Currency Demurrage.