Hello everyone! Welcome to the third and final part of “saving the world in three simple steps”.
In the first video, we have established that saving the world is practically optimizing the political and economic system. In the second video, we learned that community decision-making can be optimized by inclusion and equal average voting power.
Now we will connect the dots. The economic system motivates people through the allocation of resources. Ideally, it should maximize people’s contribution to society.
Let me share this formula: NI (net income) equals 1 + “P” (premium) times “I” (individual performance) times 1 minus “R” (redistribution). The average income before taxes is 1.
“P” ranges from 0 to 1; 0 means that individual performance doesn’t matter (universal basic income), and 1 means that it maximally matters (the top performer is awarded twice the average net income, and the worst performer gets nothing).
“R” is like tax, it also ranges from 0 to 1; 0 means no tax, and 1 means 100% tax. “Tax” can be spent just like net income – the only difference is that while you can spend your net income as you like, purchasing decisions for the redistributed amount are made by your communities (following the decision-making scheme discussed in the second episode). By the way, you can create, join, or leave any community at any time.
You can set “P” and “R” as you like, but there is a twist: the rate applied to your net income is the average of the rates of all members of your communities.
“I” is between -1 and 1; 1 for the best performance, 0 for the average, and -1 for the worst performer.
“I” is determined by how actively you participate in the decision-making. The more ideas you post, the more reactions your ideas inspire, the more popular your ideas are, and the more times you react to others’ opinions, the higher your performance will be.
One more way to improve your performance is to endorse someone or get endorsed by someone. Endorsements allow people to get credit for their intangible contributions to society, such as making others smile, keeping their environment clean, parenting, and so on.
Imagine this with millions of people, communities, and ideas. But who will execute those ideas?
To start a project, you must demonstrate that your idea is sustainable: you have a remediation plan for any impacts it may have on others or nature, and a cessation plan to restore the original state if needed. The project can go live whenever it gets public support, and it should be ceased whenever that support is lost.
Your project’s income is yours, there is no tax. You are free to choose how much effort you allocate to your projects and to participate in the decision-making; you can earn a living both ways.
Anyone can invest in any project; investors pay for the proportional part of the project expenses (up to their investment) and receive the proportional part of the project returns.
At this point, we can close the loop. You can earn money by participating in community decision-making or by investing in a project. You can spend your money on buying products or services from the projects (that need to demonstrate their sustainability to get the green light) or on investments in such projects.
Note that this “money” has a slightly different meaning when compared to today’s money. All cash flow is between individuals’ private accounts. Therefore, if you don’t spend your money, it “dies” with you.
You are not allowed to buy natural resources, like land, but you can create a project to use them.
All in all, this game balances collaboration and competition to maximize efficiency. After all, peace of mind is a human right.
I hope that I could provoke some thoughts. Let that sink in and I appreciate it if you share your thoughts! Thank you for your attention!
