A main competency in dealing with the complexity of transformation and circular processes is the understanding of systemic aspects (Interconnected Thinking). With the environmental computer simulation games ecopolicy® and hectarium we will integrate a playful approach to experience dynamics and feedback mechanisms in complex systems. The playful approach allows an emotional and fact-based, effective co-learning and enabling process.
With ecopolicy®, players of all ages will interactively discover in the rule of a president of a ficitious country how to decide and how to balance investments and activities in order to achieve sustainablity and future proof developments. On the basis of this new competency they will use own and new simulation tools to adapt their knowledge to their individual situation in a school, in a municipality,in a region or a city. A new online version of the game and additional ICT tools will allow the co-operative development and interactive work of communities and delivers permanently adaptable online simulation and decision making tools.
Hectarium is a 2D mobile game project where you are given the mission to survive and improve your food consumption by living off exactly your share of global farmland. All the statistics and farmer stories feeding the gameplay are based on validated research and real-life encounters and feedback in the field. If you manage to reduce your greenhouse gas emission and your water consumption, you will be rewarded with an increase in your weekly money allowance at the end of each season.
We have developped a Value Instrument (VI) a complementary crypto currency plus UI to enable scalable, efficient and high-impact decentralised solutions for social innovation by leveraging Distributed Ledger Technology (DLTs).
Our main goal is to build the product in cooperation with the user, thus empowering communities to allow for financial inclusion and economic opportunities increasing the social capital. We want to learn and experience how to create a fair and cooperative management of economic means leaving no one behind. We show what new circular/ regenerative business models can look like in a real environment, and how privacy and security can new created in a meaningful way for a community.
We refelect with people how this software gets them thinking differently about alternative currencies, economic value and e.g. governance.
As a free simulation tool it can be used to allow anyone to simulate an economy.
VALUE Instrument offers an open source, Apache 2.0 licensed software that has been designed to take the complexity out of setting up ledger technology and tokens for the use in networks and present a smooth, “minimal-to-no-coding” user experience.
VI will be compatible with custom digital identity systems and offers new governance possibilities.
The software can run in several different economic contexts and is compatible both with distributed ledger technology and traditional centralized database infrastructure. VI is highly accessible. It is free, intuitive, and for the token user it requires no prior knowledge or downloads. It runs both in desktop browsers and on mobile browsers and features many commonly known and popular functionalities – specifically those that are useful for tokenization – such as Chat, Mapping, Marketplace, Crowdfunding and Participatory Budgeting. Many plugins to feature such functionality have already been included by VI. As such VI is built for communities.
VALUE is easy to integrate with popular chat apps, which makes the use of the token even more accessible, by integrating it where users already are. This is because it capitalizes on natural language to enable transactions. In order to illustrate this, Telegram, a popular privacy-conscious messaging app, is compatible with VALUE: the VALUE Telegram bot allows users to send transactions simply by sending a message with the usual VALUE commands, e.g. “Send Mary #3424 120 for gardening work”.
Setting up this system
Organizations It appears that a certain amount of non-anonymity is required to secure the system against sybil attacks. Value Instrument revolves around organizations as “trusted networks”. An organization issues the wallets to members and therefore creates a network and can also revoke memberships. Setting up this system through organizations is a security mechanism. Organizations, such as a coworking space community or a community center, have real-life interactions that authenticate members simply on a human level and even without official other documents (like passports). This becomes a decentralized network of organizations with members who are able to exchange using tokens in a distributed way. The choice of which identity solution will be used is in the hands of the community. We provide a default, which can be changed anytime. An identities contract, maps from address to approved, and can act as a proxy to experiment with different identity solutions. This is a crucial and difficult part to get right.
The following marks the four settings upon which the network may set their core token dynamic using VI. A token dynamic may be ‘locked-in’ or adjusted at any point, in line with embedded governance systems.
1. Network members may receive a regular token payout The regular payout is a mechanism to distribute new tokens equally to all network members.
2. Tokens may decay, if not used Tokens may have a lifetime, during which they decay. The amount of tokens in an account diminishes (e.g. linearly) over the set lifetime in this case. See also Figure 1 below.
3. Full lifetime is restored for transacted tokens The lifetime is reset for tokens reaching the recipient’s account. It would otherwise be unfavourable to the recipient to accept short-lasting tokens and tokens would become complicated in their use and valuation.
4. A transaction fee may apply A transaction fee can be set, which is useful to protect the system against ping-pong transfers to regain token lifetime.
People can now create own economies around their goals, beliefs, business models and network-behaviour using decentralized ledger technology. These economies emergecomplementary to existing markets and greatly contribute to local economic stability,economic integration, participatory behaviour and incentives, individual growth and entrepreneurship, as well as the creation of long term and sustainable assets. The special token dynamics make hoarding and speculation unattractive, which is specifically important for the intrinsic stability of the system.
People can now create secure accounting systems and mechanisms to greatly enhance the visibility and measurability of value created and exchanged within networks.
Currently there are several barriers to using distributed ledger technology: this new paradigm has to be understood by network leaders, including governments, followed by the need to design the governance, token dynamic, data protection and user experience, and lastly the need for time and financial resources to execute on implementation.
The presented innovations in VI make it possible for anyone to take advantage of distributed ledger technology. VI makes it easy for network leaders globally to activate tokens in support of achieving their goals.
The circulating tokens match the economic activity within the system. Newly issued tokens acts as an ignition to facilitate new exchanges. They either get used and carried on, or decay. The amount of tokens in the system therefore automatically increases and decreases depending on the number of network members and their transaction volume.
Basic Income aspects
The first principle of the Value Instrument allows for a regular payout, which resembles concepts around basic income for participants in of a network. The payout dynamic is primarily a way to get “spending tokens” to people, to provide an ignition. This is counteracted by the demurrage, which discourages hoarding and addresses inflation.
Value Instrument supports the idea of “no debt”, as no negative amounts can occur. It basically means that within the concept of Value Instrument an account cannot go below 0 and be “deemable”. A member of an organisation could still lend tokens to others in a agreement including interest, but “out of chain” not inside. What happens outside is a business of people participating. There is no way to effectively manage any debt within Value Instrument. Important is that there is no support for “reversed” tokens (negative) that would mean a debt to be paid upon next iteration.
The Value Instruments principles integrate into an ecosystem of activities in the field of cryptocurrencies, that address many issues and concepts mentioned in this paper. We name a few here that are placed in the Ethereum ecosystem in order to provide a broader view on the topics and an outlook for integrations. This list is by no means complete.
Aragon – Organizational models and Governance
Bancor Protocol – Token exchange
Bright ID – Unique Identification
DAO Stack – Organizational models
Loom Network – 2nd layer
The Value Instrument token design principles allow for highly flexible token creation for many individual use cases. They are open to be integrated into any Dapp, app, software or web-platform.