Nobel prize in Economic Sciences 2018 which affects you and 7 billion people
Decentralized Autonomous Community (DAC), Decentralized Autonomous Community Token Offering (DACTO) and Decentralized Autonomous Community Token Bills (DACTB) is a high tech, easy to understand and implement the solution for outdated and not working economies of developing countries.
In this economic model, I combine best practices from different fields, such as Blockchain technology, financial tools such as Treasury bills and ICO, psychology, economy, entrepreneurship, Socialism, Democracy and historical facts such as the Great Depression and the way out of it.
If you think, that these problems do not touch you, say you live in a beautiful and safe community somewhere in Bay Area (California), Stockholm (Sweden) or Cambridge (UK) — You are wrong.
Developed countries face massive immigration and refugee crisis.
Take a look at refugee crisis in Europe or United States. Tens of millions of people from developing countries leave their home in search of a better life. Still hundreds of millions of people live in terrible conditions: the old infrastructure or its complete absence, a not working economy, high unemployment rate, corruption and depression, low business activity and purchasing power etc.
Why Nobel prize?
It’s not self-nominating. It is a tiny voice to call for smart people in economics around the globe to take action and use your power of voice to help tens and hundreds of millions people from developing countries and cities. Because the only thing the real world need economists — is to improve people’s lives.
The Nobel prize in Economics has the following properties:
- Outstanding economists of the world will check the theory
- The prize ceremony is the most efficient PR tool to bring the idea to the leaders of countries, ministers of economy and bring it to life
About the author
Sergey was born in the middle-class soviet era family. Russian, growing up in Muslim country in middle Asia and after half of his life travelling and living all around the Globe in countries such as Capitalist’s United States of America, post-communist Russia and Vietnam, stuck somewhere in the middle, Thailand, close to socialist South America, spiritual Bali, where people are still worshiping the gods every single day, Sergey still like most of all Uzbek cuisine.
Through his life experience, Sergey traveled all 7 continents, including Antarctica, lived in multi-million dollar houses, in a car during a road trip through 9 US states, months in a 5 stars’ hotels and months in cheapest hostels, in shining mega-cities and poor villages with chickens and pigs on dirt trails, in developed and developing countries, next to millionaires and supermarket cleaners.
With no University education, Sergey’s technological college education was not related to Economics. The only science he love — is a science of a constant self-education.
As a computer geek, Sergey started his career as network and system administrator. After 7 years he decided to build a business and to be an entrepreneur. To do this, Sergey was forced to learn sales, marketing, psychology, new technologies, such as Blockchain, and a bunch of different skills that he never thought he will need in life. Why forced? Such things as sales or public speaking or delayed result in a long time interval, which is typical for entrepreneurship, Sergey hated since he remember himself.
When I was 19, I emigrated from Uzbekistan to Russia. Now I’m 34 and almost all people I knew in Uzbekistan (friends, relatives, colleagues) migrated somewhere in a search of a good life: Germany, Russia, United States, Australia.
Now his friends, relatives and ex-colleagues live a good life: working, studies, having kids and don’t want to emigrate somewhere else, except people who migrated to Russia. Because in compare to Uzbekistan, Russia is u much better choice but still a developing country, in the midst of a deep economic crisis.
To understand economics, you don’t even need a degree and have a deep look at numbers, just look at the picture: terrible infrastructure vs good one.
The problems:
1 — Governments don’t have resources to build infrastructure and even if they do have — they don’t meet community needs, slow response time, fail to deliver and control results on the way through the numerous hands of corrupt officials.
2 — Private investors and community do not invest in public infrastructure because it has no revenue.
The solution:
A Blockchain platform for Decentralized Autonomous Community (DAC) which use Decentralized Autonomous Community Token Offering (DACTO) as a tool for choosing and voting for infrastructure projects and Decentralized Autonomous Community Token Bills (DACTB) backed by the government as a guarantee of return for investments.
What is DAC?
Decentralized Autonomous Community is a digital analog for Homeowners Association, an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction that is run through rules encoded as computer programs called smart contracts.
What is DACTO?
Decentralized Autonomous Community Token Offering is an improvement on the ICO fundraising model that incorporates certain aspects of DAO’s.
What is DACTB?
Decentralized Autonomous Community Token Bills incorporate major aspects of Treasury bills, a short-term debt obligation backed by the Government Treasury Department, allowing it’s holder to get fixed-income when the bill matures, with additional properties — DAC-tokens.
DAC-token copies initial value of a T-bills, but can be transferred to the executor of the smart contract — construction company, a supplier of equipment or developer within platform as a payment tool for goods and services. Token bills properties stay with DAC owner.
The process
- DAC choose infrastructure project and vote (min. 51% required): Renew a school or hospital? Build a road? To install street lighting and put trash bins along the perimeter of the village?
- DAC Buys required amount of DACTB and, if necessary, attracts outside investment (other DAC, bank, business, investor)
- The contractor does the work: funds can be released all at once or spread over time
- After contractor finishes works — DAC confirm completion of work by voting (min. 51% required)
- The contractor receive remaining funds and rating from DAC
- Community receive required infrastructure, can withdraw DACTB right after completion with no interest (100%) or after bills matured (110%)
- Government receive infrastructure, working businesses, taxes, great economy
Now attention, dear economists from the world: does it BS utopia or Not?
1 — Treasury bills? Yes.
In Russia I (or everyone) today can buy T-bills, a short-term debt obligation backed by the Treasury Department (read government), and make 8.4% a year. Same in any other country.
2 — Public infrastructure problems? Yes.
Examples in Russia (w/photos): Omsk city (pop.1.1 million), Nizhniy Novgorod (pop. 1.2 million), Izhevsk (pop. 630k), Voronezh (pop. 900k), Krasnoyarsk (pop. 1 million), basically every Russian village or city.
Around the World:
- Video report from Canada
- Video “12 of the Worst Places to Live in the U.S.”
- Video “Why Is America’s Infrastructure Collapsing?”
- Belgrade, Serbia
- Warsaw, Poland
- Tirana, Albania
- etc
3 — Does community better now about needs? Absolutely!
I’m here, in Latoshinka Settlement, near Volgograd city, Russia. The settlement has no roads, no working street lights, no snow machine, only one site for collecting trash from 400+ houses (means residents just throw garbage where they can):
- Does somebody outside of Latoshinka known problems? No
- Does Latoshinka community see them every day and know how to fix them? Yes
- Does Latoshinka community have resources for roads, street lights? No
Different communities have different problems: while one needs a new road, another need a small university to teach residents new skills, because the steel industry on which the city was founded is no longer functioning. While president, city mayor or city officials focusing on one problem, hundreds another appearing. The system is not efficient, should and can be modified.
4 — Does massive infrastructure projects help economies? Yes.
- Railroads played a large role in the development of the United States from the industrial revolution in the North-east (1810–1850) to the settlement of the West (1850–1890). Wikipedia / Video
- American highway system connected every city and state thanks to Federal Aid Highway Act of 1956. Wikipedia
If you have never been to the US, just believe me, in 2014 I had a 2-month road trip from San-Francisco to Miami and back. A can assure you, it is one of the best road systems I’ve ever drive. However, it is also can be improved with today’s technologies.
- Dudai, UAE, Middle East. Today’s “miracle in infrastructure”. Video
- Singapore, Asia. One another “miracle in infrastructure”. Video
- NEOM city, a new ambitious project in Saudi Arabia. Video
Infrastructure is a major factor for economies to work!
5 — Does infrastructure projects solve unemployment and refugee crises? Yes.
People working and building a better place to live for themselves.
6 — Does it stimulates demand for new technologies? Yes.
The World already has a lot of technologies, but just few can afford them. If every community in country would have resources to buy and install new tech, then World Economy will see the next tremendous economic growth.
7 — Can we eliminate corruption? Yes.
With Blockchain. Check the principles in video below:
8 — Can we actually build such Blockchain platform? Yes.
A team of 10 to 30 developers in any country, using existing local laws and mechanisms can build and implement such Blockchain platform right during the pilot project.
In Russia, we can start from Latoshinka Settlement renovation and any other village in any other region.
9 — Can we start doing this? Yes.
By giving the community an access to resources.
Summarizing
Okay, we see problems, we have a solution, we have tools, we have people. Maybe it’s time to use a power and reputation of Nobel prize in Economic Sciences 2018 to spread the idea among smartest economists, Ministers of Economy and Country Leaders to:
- Turn on the money printing machine
- Give a Decentralized Autonomous Community (DAC) a tool in the form of Decentralized Autonomous Community Token Bills (DACTB) to build and renovate our infrastructure
- Test and pilot the idea in few villages and city districts
The PLAN and PILOT
The theory is not about words, but about actions!
1 — Government issue a Decentralized Autonomous Community Token Bills (DACTB)in limited quantity of 12 months of minimum wages per one member of DAC (home owner). A Treasury bills (1 year, 10%) with traceable unique number for Token tracking.
2 — Members of DAC choose an infrastructure project they want for their community. Say project costs $50k
3 — Members of DAC buy required amount of DACTB, in case they can’t collect enough money, they can invite investor or bank (1 year, 10%)
4 — Through Blockchain platform DAC places tokens on a smart-contract
5 — After project is finished and confirmed by DAC, contractor exchange tokens for real money
6 — After 1 year DAC members and investors (private or banks) return funds with 10% interest
In case of failure:
We will stay at the same place and same economy. NOTHING TO LOSE!
In case of success:
We will have a working economy and better place to live.
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Sergey
