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Transaction Agreement Units
An architectural examination of
money-like forms
Doug McDavid
dougmcdavid@gmail.com
Last subst...
• This framework explores money, and “money-like” instruments.
• Key characteristics of money and money-like units include...
• To avoid unnecessary controversy and confusion we avoid the overloaded word
“money” in this presentation
• We draw on tw...
• An architecture of something represents the components of the thing, and how
it is composed (buildings, naval vessels, s...
• This is best read in screen-show mode to enable internal links to work,
assuming that you are using PowerPoint.
• You do...
• Legal tender
• Postage stamps
• Food stamps
• Coupons
• Green stamps
• Loyalty points
• Royalties
• Talley sticks
• Truc...
TAU-form
TAU-
function
TAU-manifestation
interrelationship
TAU-system
Operations
instantiated by
contributesto
spawns
comp...
TAU-form
TAU-function
Role-player
TAU-manifestation
compatibility
interrelationship
Purpose
Value Adjustment
Spendability
...
TAU-form
TAU-function
Role-player
TAU-manifestation
compatibility
TAU-system
Value Adjustment
Spendability
Media
instantia...
• Community purposes
• Retain money circulation within the boundaries of a particular community
• Increase velocity of cir...
TAU-form
pegged to
redeemed by
TAU-
form
TAU-formdenominated by
TAU-form
backed by
TAU-form
paired with
BackBack
TAU-form ...
Role
•Holder
•Spender
•Acceptor
•Regulator
•Accounting Service
•Issuer
Issuer scope
•National
•Regional
•Local
•Virtual
Is...
• Accepted as payment for
• Products
• Services
• TAU
• Partial payment (discount)
• Accepted by
• Network member
• Rolepl...
Value
Adjustments ReceiverPayer
pays receives
Agreement Details
elaborate
• Value adjustment types
• Accounting system sup...
Exchange mechanism
• Deliver physical item
• Pay point
• Mobile device
• Shown ID
• File transfer
• Smart phone app
• Comp...
Consumable
BackBack
TAU media
• Coins
• Bills
• Punch card
• Electronic swipe card
TopTop
Durable
Perishable
Grown Made
Na...
• User processes
• Create / Destroy units
• Spend units
• Accept units
• Hold units
• Redeem units
• Exchange units
• Acco...
• Loaned into circulation
• Interest-bearing debt
• Mutual credit
• Spent into circulation
• Gifted into circulation
• Exc...
BackBack
Accounting features and actions
•Create entry
•Calculate account balance
•Calculate network capital
•Perform netw...
Agreement types for TAU
Agreement types
• Formative
• Match purposes
• of community
• of roles within the community
• with...
BackBack
inclusion
AlgorithmSituation
• Member
• Geolocality
• Role-player
• Transaction type
• Calendar time
• etc.
trigg...
• Community purposes
• Attract top talent into community of practice
• Retain top talent indefinitely
• Create and refine ...
redeemed by
backed by
BackBack
TAU-manifestation to TAU-manifestation
relationships
Agreement Details
TopTop
exchanged wit...
Role
•Holder
•Spender
•Acceptor
•Accounting Service
•Issuer
Issuer scope
•Virtual
Issuer powers
•Authorized amount
•Defini...
• Accepted as payment for
• Learning services
• Partial payment (discount)
• Accepted by
• Network member
• Agents
• Merch...
Value
Adjustments ReceiverPayer
pays receives
Agreement Details
elaborate
• Value adjustment types
• Accounting system sup...
Exchange mechanism
• File transfer
• Smart phone app
• Computer UI
Storage mechanism
• Database
• Mind
mechanisms
Physical...
media
• Proof of work
• Virtual world coins
Symbolic
Exam
ple BackBackTopTop
• User processes
• Create / Destroy units
• Spend units
• Accept units
• Hold units
• Accounting
• Administrative processe...
• Gifted into circulation
• Performed into circulation
Creation / Destruction
• Born as TAU
Grown
Manufactured
Branded Gen...
Accounting features and actions
•Create entry
•Calculate account balance
•Calculate network capital
•Perform network audit...
Agreement types for
Agreement types
• Formative
• Match purposes
• of community
• of roles within the community
• Characte...
inclusion
AlgorithmSituation
• Community Member
• Role-player
• Offering type
• Performance level
• Calendar time
• etc.
t...
• There is no known example that has these characteristics
Known examples of this TAU types
Exam
ple BackBackTopTop
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Architecture of Moneys (Money Forms)

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This is an exploration of aspects of the phenomenon we loosely call "money". It was created in 2012 and 2013, and went through a number of versions, while I was working with a group of complementary currency advocates and community organizers in the San Francisco Bay Area

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Architecture of Moneys (Money Forms)

  1. 1. Transaction Agreement Units An architectural examination of money-like forms Doug McDavid dougmcdavid@gmail.com Last substantive edits to the framework were in Spring of 2013. Title page added 15 April 2015. Example edited August 2015.
  2. 2. • This framework explores money, and “money-like” instruments. • Key characteristics of money and money-like units include: • ability to buy things, including other money-like units * • now or in the future • existence via agreements • to accept for payment • granting exchange value (separate from any use value) • operation within some conceptual or physical boundary • enablement of marketplaces and economies • usage as rewards for deeds • measuring success and supporting self-esteem and public image Architectural Framework for TAU * Spending one form of money (TAU) for another is generally called “exchange”, whereas spending for non-money involves the mechanism of “price”
  3. 3. • To avoid unnecessary controversy and confusion we avoid the overloaded word “money” in this presentation • We draw on two of the money-like features – they are defined by agreements and facilitate transactions – Transaction Agreement Units (TAU) • Some things have nicknames, so we won’t necessarily refrain from using terms like “money-form” in conversation • We recognize that wealth comes in many forms, much not validly treated as “units”. This framework covers only wealth (value) that can be “unitizable” • Such units are complex and multifarious, hence the need for architectures and this framework • TAUs represent both: • store of value (capital) and • value exchange (flow) What do we mean by a “Transaction Agreement Unit” (TAU)? The “Warmoth Configuration” Medium of Exchange Store of Value denominates Unit of Account
  4. 4. • An architecture of something represents the components of the thing, and how it is composed (buildings, naval vessels, software systems, etc.) • Every money-like form has its own intrinsic architecture, which we seek to be able to expose and understand • Within communities agreements to trade with specific forms leads to design of local currencies that are based on their own architectures • An architectural framework provides a set of structures and characteristics that can be used in designing specific architectures, including how they interrelate What do we mean by an ”architectural framework”?
  5. 5. • This is best read in screen-show mode to enable internal links to work, assuming that you are using PowerPoint. • You don’t need to do anything special if you are reading a .pdf version in order for the internal links to work properly (though not on Apple, sadly) • Every underlined term takes you to another page, and the “back” arrows return you to an appropriate overview page • This is a concept and relationship model, similar to a class diagram. LEGEND How to read this presentation Clickable concept Unclickable concept one half of a bidirectional relationships recursive relationship
  6. 6. • Legal tender • Postage stamps • Food stamps • Coupons • Green stamps • Loyalty points • Royalties • Talley sticks • Truck • Scrip • Collateral • Vouchers • Reciprocal trade (barter) • Time-banks • Local Exchange Trading System (LETS) • WIR • Corporate securities • Shares • Options • Derivatives • Market basket • IOUs • American Open Currency Standard (AOSC) • Robert Burk’s Rational System • Participant reward (Kickstarter, e.g.) • Discounts • Mortgages • Credit cards • Cash back • Teaser rate • Debit cards • Personal checks • eBay • PayPal • Letters of credit • Insurance claims • Insurance premiums • Tokens • Turnstile • Vending • Casino chips • Gift certificates • Trade-ins • Attention • Eyeballs • Click-through • Reputation points • Favors • Donations • Pawn ticket • Usufruct • MintChip Known examples of TAU types • Money orders • Traveller’s checks • Guarantees • Recycling charges • Premiums • Lines of credit • Grants • Loans • Micro-loans • Crowd funding • Rebates • Patent • Copyright • Library card • Coffee card • Condominium “week” • Commodities • Products • Services • Energy units • Futures • event tickets (sports) • Virtual • Games, VW • Gloebit • Bitcoin • Qoin TopTop For more examples, see works by Greco, Lietaer, CC Research, etc.
  7. 7. TAU-form TAU- function TAU-manifestation interrelationship TAU-system Operations instantiated by contributesto spawns comprises Agreement Details templatized by interrelationship High-level framework for Transaction Agreement Units (TAUs)
  8. 8. TAU-form TAU-function Role-player TAU-manifestation compatibility interrelationship Purpose Value Adjustment Spendability instantiates motivates givesriseto embodies Operations performs templatizes TAU-Forms TAU-type classifies BackBack Agreement Types TopTop Media Mechanisms elaborate elaborate elaborate
  9. 9. TAU-form TAU-function Role-player TAU-manifestation compatibility TAU-system Value Adjustment Spendability Media instantiated by integrates embodies Operations perform s Agreement Details templatized by interrelationship driven by TAU-manifestation BackBack Purpose motivates interactswithunitsof TopTop Mechanisms elaborate TAU-type classifies Community serves
  10. 10. • Community purposes • Retain money circulation within the boundaries of a particular community • Increase velocity of circulation • Build ownership loyalty via capital-focused wealth-unit • Internal reward system • Create liquidity where there is a shortage of liquidity • Merchant purposes • Good will • Marketing • Loyalty • Niche (investment) marketing • Member purposes • Local discounts • Access to unique value propositions • Ethical urgings • Improve talent capability • Mentoring • Problem definition • Performance of capabilities BackBack Purposes (for spending/for accepting) TopTop
  11. 11. TAU-form pegged to redeemed by TAU- form TAU-formdenominated by TAU-form backed by TAU-form paired with BackBack TAU-form to TAU-form relationships Agreement Details TopTop TAU-form exchanged with TAU-form elaborate
  12. 12. Role •Holder •Spender •Acceptor •Regulator •Accounting Service •Issuer Issuer scope •National •Regional •Local •Virtual Issuer powers •Authorized amount •Taxing •Defining functions •Combining functions BackBack Role playerplayed by facet of Role players Social entity •Individual •Family •Legal Business Entity • Corporation • Bank • Non-profit • NGO •Jurisdiction • Nation • State • Town • Region •Network/ community • Capability • Organization • Agent • Investment • K-node TopTop compatibility Agreement Details elaborate operateswithin enabled by
  13. 13. • Accepted as payment for • Products • Services • TAU • Partial payment (discount) • Accepted by • Network member • Roleplayer • Anyone BackBack Agreement Details elaborate elaborate Spending Agreement conditions • Personally spendable • Free spend • Coerced spend • Investment • Locked • On-demand accessibility • Single use • Transferability • Divisibility • Defacement include Spendability (fungibility) To accept a unit of a TAU-form in payment is to accept a network of agreements TopTop
  14. 14. Value Adjustments ReceiverPayer pays receives Agreement Details elaborate • Value adjustment types • Accounting system support • Membership fee • Transaction fee • Incentive payment • Participant exchanges • Interest • Collateral • Jurisdiction impositions • Demurrage • Tax BackBack Value Adjustment TopTop • Cost • Storage • Security • Reporting consist of
  15. 15. Exchange mechanism • Deliver physical item • Pay point • Mobile device • Shown ID • File transfer • Smart phone app • Computer UI Storage mechanism • Vault • Refrigeration • Warehouse • Document • Database • Mind BackBack TAU mechanisms TopTop Physical Intangible
  16. 16. Consumable BackBack TAU media • Coins • Bills • Punch card • Electronic swipe card TopTop Durable Perishable Grown Made Named performers Service Recipe Availability (days, hours, etc.) Performance Generic performers Commodity / Product Utilitarian Symbolic Containment Shelter Desired Needed Calories Fine foods Fashion m aybe m aybe
  17. 17. • User processes • Create / Destroy units • Spend units • Accept units • Hold units • Redeem units • Exchange units • Accounting • Administrative processes • Agreement • Creation • Enforcement • TAU-Form processes • Create template • Accept template • TAU-manifestation processes • Clone template • Modify template BackBack Operations Agreement Details TopTop elaborate
  18. 18. • Loaned into circulation • Interest-bearing debt • Mutual credit • Spent into circulation • Gifted into circulation • Exchanged into circulation • Mined and assayed into circulation • Stolen into circulation • Swindled into circulation • Performed into circulation BackBack Creation / Destruction • Something put at risk • Born as TAU • Something becomes TAU TopTop Grown Manufactured Branded Generic Potential Demonstrable Time- based Results- based Creation Destruction • Redeemed • Demurraged • Spend-once • Hyperinflation
  19. 19. BackBack Accounting features and actions •Create entry •Calculate account balance •Calculate network capital •Perform network audit •Allow negative balance •Transparency - auditability − Of use − Of creation − Of validity − Of amount in circulation Accounting Account ownership types •Personal •Merchant •Community •Jurisdiction TopTop
  20. 20. Agreement types for TAU Agreement types • Formative • Match purposes • of community • of roles within the community • with purposes of the TAU instance or system • Characteristics of form, instance or system • Membership • Role expectation • Agreement to conform • Cooperative • Included cooperations • Excluded cooperations General stipulations • Contract enforcement • Expiration (longevity) Agreement Detailsare enacted by BackBackTopTop
  21. 21. BackBack inclusion AlgorithmSituation • Member • Geolocality • Role-player • Transaction type • Calendar time • etc. triggers assembles Clauses exclusion Agreement Details (T’s and C’s) Variables Invariants Logic statements Labels TAU-form to TAU-form relationships Spendability Value adjustment Operations TopTop Agreement Types Roleplayers Parameters consist of applies to enact
  22. 22. • Community purposes • Attract top talent into community of practice • Retain top talent indefinitely • Create and refine valuable intellectual property • Perform innovative engagement work • Agent purposes • Build relationships with top talent • Understand leading edge practices • Place talent on engagements with leading edge clients • Member purposes • Learn from peers • Teach peers • Build advanced IP • Practice on interesting engagements • Practice with innovative team members Purposes of – Nervezones Exam ple BackBackTopTop
  23. 23. redeemed by backed by BackBack TAU-manifestation to TAU-manifestation relationships Agreement Details TopTop exchanged with elaborate Exam ple National currencies Service performance National currencies
  24. 24. Role •Holder •Spender •Acceptor •Accounting Service •Issuer Issuer scope •Virtual Issuer powers •Authorized amount •Defining functions •Combining functions Role playerplayed by facet of Role players Social entity •Individual •Network/ community • Capability • Organization • Agent • Investment • K-node compatibility Agreement Details elaborate operateswithin enabled by Exam ple BackBackTopTop
  25. 25. • Accepted as payment for • Learning services • Partial payment (discount) • Accepted by • Network member • Agents • Merchants Agreement Details elaborate elaborate Spending Agreement conditions • Personally spendable • Free spend • Investment • On-demand accessibility • Divisibility include Spendability (fungibility) To accept a unit of a TAU-form in payment is to accept a network of agreements Exam ple BackBackTopTop
  26. 26. Value Adjustments ReceiverPayer pays receives Agreement Details elaborate • Value adjustment types • Accounting system support • Membership fee • Transaction fee • Incentive payment • Participant exchanges • N/A • Jurisdiction impositions • Community % Value Adjustment consist of Exam ple BackBackTopTop
  27. 27. Exchange mechanism • File transfer • Smart phone app • Computer UI Storage mechanism • Database • Mind mechanisms Physical Intangible Exam ple BackBackTopTop
  28. 28. media • Proof of work • Virtual world coins Symbolic Exam ple BackBackTopTop
  29. 29. • User processes • Create / Destroy units • Spend units • Accept units • Hold units • Accounting • Administrative processes • Agreement • Creation • Enforcement • processes • Clone template • Modify template Operations Agreement Detailselaborate Exam ple BackBackTopTop
  30. 30. • Gifted into circulation • Performed into circulation Creation / Destruction • Born as TAU Grown Manufactured Branded Generic Potential Demonstrable Time- based Results- based Creation Destruction • N/A Exam ple BackBackTopTop
  31. 31. Accounting features and actions •Create entry •Calculate account balance •Calculate network capital •Perform network audit •Allow negative balance •Transparency - auditability − Of use − Of creation − Of validity − Of amount in circulation Accounting Account ownership types •Practitioner •Community •Agent •Merchant Exam ple BackBackTopTop
  32. 32. Agreement types for Agreement types • Formative • Match purposes • of community • of roles within the community • Characteristics of form, instance or system • Membership • Role expectation • Agreement to conform • Agreement to create or improve offerings General stipulations • Contract enforcement • Expiration (longevity) 14 Agreement types in Nervezones Agreement Detailsare enacted by Exam ple BackBackTopTop
  33. 33. inclusion AlgorithmSituation • Community Member • Role-player • Offering type • Performance level • Calendar time • etc. triggers assembles Clauses exclusion Agreement Details (T’s and C’s) Variables Invariants Logic statements Labels TAU-form to TAU- form relationships Spendability Value adjustment Operations Agreement Types Roleplayers Parameters consist of applies to enact Exam ple BackBackTopTop
  34. 34. • There is no known example that has these characteristics Known examples of this TAU types Exam ple BackBackTopTop

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