Volos 3.0
21st
Century Financing & Funding
Chris Cook
Volos 16th
July 2014
“21st
Century problems cannot be solved
with 20th
Century solutions”
Volos 3.0 ?
Volos 1.0 – decentralised but disconnected, physical
market presence
Volos 2.0 – centralised and connected, ma...
Volos Economy
Land – Volos as a location or place
Physical – resources embedded in (eg buildings) and
passing to/through (...
Financing & Funding
Financing
- short/medium term credit needed for circulation of
goods & services and creation of produc...
Protocols & Prepay
Protocols
- People-based (P2P) Credit – Guarantee Society
- Asset-based Credit – Capital Partnership
Pr...
Prepay
Tax
Tax Prepay
Tax Prepay – credit returnable in payment of taxes
Tax Return – 'stock' part of tally stick returned to Treasur...
21st
Century Prepay
Land – credit returnable in payment for land rental or
production from land
Energy – credit returnable...
Resource Resilience – Natural Grid
Since 1980 Denmark's GDP rose 78%
Energy use has been stable
Carbon fuel use has declin...
Resource Resilience - Natural Grid
Least Carbon Fuel Cost principle
- not 'least Danish Krone cost' (or least $, € or £ co...
Emerging Outcomes of Natural Grid policy
- decentralisation
- skills base of knowledge and knowhow: eg Vestas is
the bigge...
Protocol - Land Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
OccupierOccupier
Rental
Prepay
%
...
Land Prepay – Value Proposition
Community
- sells rentals forward and locks in price
- interest-free loan until prepay uni...
Land Prepay – the Value Proposition
Investor
- direct 'inflation hedge' investment in land
- Occupiers buy prepay credits ...
Land Partnership - Outcomes
Housing as a Service - relationship-based not transaction-
based model - costs transformed to ...
Protocol - Energy Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
ConsumerConsumer
Prepay %
%
Man...
Energy Prepay – Value Proposition
Community
- sells energy forward and locks in price
- interest-free loan until prepay un...
Energy Prepay – the Value Proposition
Investor
- direct 'inflation hedge' investment in energy
- Consumers buy credits fro...
Energy Partnership - Outcomes
Energy as Service - relationship-based not transaction-
based; costs transformed to revenue ...
Mega Watts and Negawatts
Mega Watt production of renewable energy sells at the
wholesale market 'bid' price
Nega Watt prod...
Volos Natural Grid
Investor pays £1k for Units in Volos Energy Pool
- 20 1Mwh prepay Units @ €50 each
- 2000 10 Kwh prepay...
Volos Green Deal
Custodian
Volos Energy Pool
Custodian
Volos Energy PoolInvestors
Consumers
Manager
€ Energy
Loan
Buy unit...
Guarantee Society - Seller accepts Buyer's IOU
Seller Buyer
IOU
Value
IOU is guaranteed by Sellers & Buyers mutually
Seller Buyer
IOU
Value
Pool
GuaranteeGuarantee
Seller & Buyer pay guarantee charge into Pool held
by Custodian
Seller Buyer
IOU
Value
Pool GuaranteeGuarantee
Fee Fee
Buyer settles credit in € or '€'s worth' eg energy-
based or land-based currency
Seller Buyer
Value
Pool GuaranteeGuarante...
If Buyer defaults: system pays sellers and collects
from buyer if possible
Seller A Buyer
Default
Pool
Collects
Pays
Selle...
Service provider sets guarantee limits, handles
defaults & manages system
Seller Buyer
IOU
Value
Pool GuaranteeGuarantee
F...
Clearing Union
Guarantee Society is the social contract within which
Sellers accept Buyers' credit and settle balances
Sel...
Clearing Union
Producer Consumer
Pool GuaranteeGuarantee
Fee Fee
Manager
FeeService
It'll Never Work
For 140 years, Protection & Indemnity (P&I) Clubs have
mutually guaranteed risks Lloyds won't cover
For 1...
21st
Century problems cannot be solved with 20th
century solutions.........
…....21st
century solutions pre-date modern finance
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Volos 3.0

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Volos 3.0

  1. 1. Volos 3.0 21st Century Financing & Funding Chris Cook Volos 16th July 2014
  2. 2. “21st Century problems cannot be solved with 20th Century solutions”
  3. 3. Volos 3.0 ? Volos 1.0 – decentralised but disconnected, physical market presence Volos 2.0 – centralised and connected, market presence through intermediaries Volos 3.0 – decentralised but connected, network market presence
  4. 4. Volos Economy Land – Volos as a location or place Physical – resources embedded in (eg buildings) and passing to/through (eg solar energy) Volos Intellectual – people of Volos and intellectual value created over millennia
  5. 5. Financing & Funding Financing - short/medium term credit needed for circulation of goods & services and creation of productive assets - people-based credit (P2P) issued by people individually or jointly (eg Company) Funding - long term credit embedded/invested in productive asset - asset-based (Peer to Asset) credit
  6. 6. Protocols & Prepay Protocols - People-based (P2P) Credit – Guarantee Society - Asset-based Credit – Capital Partnership Prepay – asset-based credit returnable in payment for use value over time (utility) of productive asset
  7. 7. Prepay Tax
  8. 8. Tax Prepay Tax Prepay – credit returnable in payment of taxes Tax Return – 'stock' part of tally stick returned to Treasury Rate of Return - rate over time at which stock is returnable for cancellation eg Prepay £8 for £10 tax - £2 profit 25% pa rate of return - not fixed - depends on existence & quantity of flow
  9. 9. 21st Century Prepay Land – credit returnable in payment for land rental or production from land Energy – credit returnable in payment for energy use Intellect – credit returnable in payment for use of intellectual property eg knowledge, software, video
  10. 10. Resource Resilience – Natural Grid Since 1980 Denmark's GDP rose 78% Energy use has been stable Carbon fuel use has declined How did Denmark achieve this?
  11. 11. Resource Resilience - Natural Grid Least Carbon Fuel Cost principle - not 'least Danish Krone cost' (or least $, € or £ cost) - minimum carbon fuel input for a given output of electricity, heat or power - investment in renewables, heat, transport, energy efficiency
  12. 12. Emerging Outcomes of Natural Grid policy - decentralisation - skills base of knowledge and knowhow: eg Vestas is the biggest global wind turbine manufacturer......in a country of 6m people - trend to energy security and energy independence - not forgetting........reduction in carbon use
  13. 13. Protocol - Land Partnership Custodian (Community) Custodian (Community) InvestorInvestor OccupierOccupier Rental Prepay % % ManagerManager Rental
  14. 14. Land Prepay – Value Proposition Community - sells rentals forward and locks in price - interest-free loan until prepay unit returned vs rental Occupier - prepays rental and locks in price
  15. 15. Land Prepay – the Value Proposition Investor - direct 'inflation hedge' investment in land - Occupiers buy prepay credits from Investors at best price below issue price & return against rental Manager - shares in gross rentals or production - interests aligned with Investor - no 'Principal/Agency' problem
  16. 16. Land Partnership - Outcomes Housing as a Service - relationship-based not transaction- based model - costs transformed to revenue shares Neutral – removes ego and politics Collaborative - stakeholder interests aligned Sustainable - all have interest in minimising cost over time
  17. 17. Protocol - Energy Partnership Custodian (Community) Custodian (Community) InvestorInvestor ConsumerConsumer Prepay % % ManagerManager Payment
  18. 18. Energy Prepay – Value Proposition Community - sells energy forward and locks in price - interest-free loan until prepay unit returned vs supply Consumer - prepays for energy and locks in price
  19. 19. Energy Prepay – the Value Proposition Investor - direct 'inflation hedge' investment in energy - Consumers buy credits from Investors at best price below physical energy price & return against supply Manager - shares in gross revenues or production - interests aligned with Investor - no 'Principal/Agency' problem
  20. 20. Energy Partnership - Outcomes Energy as Service - relationship-based not transaction- based; costs transformed to revenue shares Neutrality – removes ego and politics Collaborative - stakeholder interests aligned Sustainable - all have interest in minimising cost over time
  21. 21. Mega Watts and Negawatts Mega Watt production of renewable energy sells at the wholesale market 'bid' price Nega Watt production is made by consumers at the retail market price Uk Green Deal (bank loans to fund energy efficiency measures) has two problems - compound interest on bank £ loans - even if £ is saved, no guarantee energy will be saved
  22. 22. Volos Natural Grid Investor pays £1k for Units in Volos Energy Pool - 20 1Mwh prepay Units @ €50 each - 2000 10 Kwh prepay Units @ 50c each Fund invests through energy loans eg Volos hydro power; CHP/co-generation; cooling Loan repaid via energy bills through buying prepay energy units at market price Interest-free loan – return to investor in energy Unless consumers save energy they will not save €
  23. 23. Volos Green Deal Custodian Volos Energy Pool Custodian Volos Energy PoolInvestors Consumers Manager € Energy Loan Buy units at market price € Prepay Prepay Units € €
  24. 24. Guarantee Society - Seller accepts Buyer's IOU Seller Buyer IOU Value
  25. 25. IOU is guaranteed by Sellers & Buyers mutually Seller Buyer IOU Value Pool GuaranteeGuarantee
  26. 26. Seller & Buyer pay guarantee charge into Pool held by Custodian Seller Buyer IOU Value Pool GuaranteeGuarantee Fee Fee
  27. 27. Buyer settles credit in € or '€'s worth' eg energy- based or land-based currency Seller Buyer Value Pool GuaranteeGuarantee Fee Fee
  28. 28. If Buyer defaults: system pays sellers and collects from buyer if possible Seller A Buyer Default Pool Collects Pays Seller B Default Pays
  29. 29. Service provider sets guarantee limits, handles defaults & manages system Seller Buyer IOU Value Pool GuaranteeGuarantee Fee Fee Manager FeeService
  30. 30. Clearing Union Guarantee Society is the social contract within which Sellers accept Buyers' credit and settle balances Sellers and Buyers pay a guarantee charge and share costs of operation and defaults Manager allocates guarantee limits, manages platform, ensures transparency, handles defaults
  31. 31. Clearing Union Producer Consumer Pool GuaranteeGuarantee Fee Fee Manager FeeService
  32. 32. It'll Never Work For 140 years, Protection & Indemnity (P&I) Clubs have mutually guaranteed risks Lloyds won't cover For 125 years P& I Clubs have been managed by Thomas Miller
  33. 33. 21st Century problems cannot be solved with 20th century solutions.........
  34. 34. …....21st century solutions pre-date modern finance

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