[[This is an older explanation of Crowd Control.]]
1. The upper-half of this picture represents the usual vision of a "worker owned" system, where each stage of production, from left to right, is wholly owned by the person who knows how to operate that stage.
The product must be sold at each stage.
For example, the farmer owns the wheat field, and so sells the wheat to the miller who owns the mill, who sells the flour to the baker who owns the bakery who sells the bread back to the farmer and miller.
2. The lower-half shows each stage partially owned by each person who needs the final product.
The product is never sold because it is already the property of the person who needs it.
So in this scenario, the farmer, miller and baker each own 1/3 of the wheat field (and so 1/3 of the wheat), 1/3 of the mill (and so 1/3 of the flour) and 1/3 of the bakery (and so 1/3 of the bread) without any selling/buying of those goods.
This safely eliminates profit for those in that group, for that product, since the owners accept the product itself as the natural return on investment, and there is no sale, and so price == cost and profit is undefined.
When combined with a strategy of cross-committing work promises toward future production, we can reduce and nearly eliminate the perceived need for money even with full voluntary specialization and economy of scale.
Cross Crowd Predictive Production is a new business model that uses the IOTA to help people share property and swap promises for production at the real cost of that production and under their full control.
Value flow in typical business is like:
Attract investors who commit money now for money in the future (profit).
Attract investors who commit work now for money in the future (wages).
Use investor money to buy the Means of Production.
Pay wages to workers
Sell product to consumers
Pay profit to investors
We use property and promises to re-order value flow and pre-allocate goods and services to the users that need them:
Realize all investors and all workers are actually consumers.
Attract investors who commit money now for product in the future.
Attract investors who commit to work in the future for product in the present.
Use investor money to buy the Means of Production.
We do not Pay wages to workers, they are compensated through a Basic Outcome.
We do not Sell product to consumers, except Surplus, and under the terms of the Intra Owner Trade Agreement.
We do not Pay profit to investors, except when operating in hybrid mode.
1. Property owners receive the product itself as the natural return on investment:
For example, if you own 1% of a dairy, you automatically own 1% of the milk. This requires you also supply the consumable sources and labor needed for that production, or supply compensation for others supplying those inputs.
2. Property is the consumer's investment:
You receive Crowd Cache when you commit property (or money to buy property) toward future production. This can be viewed as 'pre-paying' for various goods and services.
3. Promises are the worker's investment:
You receive Crowd Cache when you cross-commit promises toward future production. This means the workers can move-in now, though at the very beginning, on-site shelter will be in temporary structures, maybe even tents. We want to do as much of the work ourselves, so food will initially be bulk purchase raw materials such as legumes, grains, living animals, part of which we use immediately to make beer and pizza, the rest we will propogate in a permaculture manner.
4. Profit is the payer's investment:
You receive Crowd Cache if you pay more than cost when buying products under this agreement. It is crucial that more than 0% of profit be used as the payer's investment. 100% is probably ideal, but not necessary (we can run in a hybrid mode where some % of profit is treated in traditional manner, paying Angel investors or bank debt I guess).
5. Division is the owner's right:
Subgroups may fork from the group at any time and for any reason without punishment while retaining their ownership so control remains localized even as the system scales.
Investors receive Crowd Cache when they commit Sources or Promises or Profit. Crowd Cache are a combination of Property and Promises and also a predicted quality and quantity of a good or service (the Product).
Investors are not 'paid' by a central authority, but own their portion of the product even before it is produced, simply because of their ownership in the sources.
This is obvious for a single person owning a small productive resource.
For example, when you own an Apple tree, you own all the potential Apples from that tree as a side-effect of owning the tree. You do not buy the Apples because they are your property already.
Similarly, when you own part of an Apple orchard, you own your % of all the potential Apples from that tree as a side-effect of co-owning the tree. You do not buy the Apples because they are your property already.
==Prepaying with Property
Investors may commit property directly or just pay with plain old money which will be used to buy property such as the physical sources needed for production, plus 'startup' products to bootstrap the VIPM and secure the workers' basic outcome.
==Prepaying with Promises
Workers are also investors when the promise to work in the future.
Those who invest promises in the VIPM also receive Crowd Cache, just as every other investor.
These investments are legally binding contracts to accomplish future goals for others within some time period.
==Prepaying with Profit
Consumers are also investors when they pay profit while buying surplus.
This only occurs when the consumer has insufficient source ownership.
This is a sort of 'accidental' investment caused by the payer's dependence upon the current owners.
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CrossCrowdPredictiveProduction.github.io
CrossCrowdPredictiveProduction.BlogSpot.com
github.com/CrossCrowdPredictiveProduction