Volos 3.0 proposes decentralizing financing and funding through prepayment models for land, energy, and taxes. This allows communities and consumers to lock in prices for housing, utilities, and taxes by prepaying upfront and getting credits returned over time. Protocols like Land Partnership and Energy Partnership align stakeholders through sharing revenues and managing costs collaboratively. A Guarantee Society and Clearing Union use pooled funds to guarantee transactions and handle defaults, providing an alternative to interest-based financing. Prepayment models incentivize efficiency and sustainability by tying returns to actual usage of resources.

1. Volos 3.0
21st
Century Financing & Funding
Chris Cook
Volos 16th
July 2014

2. “21st
Century problems cannot be solved
with 20th
Century solutions”

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. 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. 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. 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. Prepay
Tax

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. 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. 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. 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. 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. Protocol - Land Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
OccupierOccupier
Rental
Prepay
%
%
ManagerManager
Rental

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. 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. 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. Protocol - Energy Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
ConsumerConsumer
Prepay %
%
ManagerManager
Payment

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. 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. 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. 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. 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. Volos Green Deal
Custodian
Volos Energy Pool
Custodian
Volos Energy PoolInvestors
Consumers
Manager
€ Energy
Loan
Buy units
at market price
€
Prepay
Prepay
Units
€
€

24. Guarantee Society - Seller accepts Buyer's IOU
Seller Buyer
IOU
Value

25. IOU is guaranteed by Sellers & Buyers mutually
Seller Buyer
IOU
Value
Pool
GuaranteeGuarantee

26. Seller & Buyer pay guarantee charge into Pool held
by Custodian
Seller Buyer
IOU
Value
Pool GuaranteeGuarantee
Fee Fee

27. Buyer settles credit in € or '€'s worth' eg energy-
based or land-based currency
Seller Buyer
Value
Pool GuaranteeGuarantee
Fee Fee

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. Service provider sets guarantee limits, handles
defaults & manages system
Seller Buyer
IOU
Value
Pool GuaranteeGuarantee
Fee Fee
Manager
FeeService

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. Clearing Union
Producer Consumer
Pool GuaranteeGuarantee
Fee Fee
Manager
FeeService

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. 21st
Century problems cannot be solved with 20th
century solutions.........

34. …....21st
century solutions pre-date modern finance