A typical organization of the economy

The organization starts with a person who wants to organize the economic activity of the system in a particular village. To do this, they must register themselves in the system, complete training, and get the right to be a registrar.

 

Let’s say this user’s name is Eugene. Having received the right to be a registrar, Evgeny arrives in a locality, for example, an urban-type settlement, such as Spasskoye. And he agrees with the local administration to provide him with a meeting room and help notify all residents about the possibility of registering in the ML system. To do this, you can write about the system itself in the newspaper and in local Internet sites.  

 

Then each resident of the village, having registered in the system, comes personally to meet with Eugene in order to verify their user profile, confirming that the person’s identity corresponds to the profile in the system. After most of the economically active residents have registered in the system, you can start organizing a farm based on ML. To do this, I will consider typical cases of economic activity implementation.

 

An example of credit-barter relations.

Let’s say that the egg producer Valentina sells 20 tons of eggs on credit to the farmer Konstantin, the builder Sergey and the handyman Vitaly, who does not have a profession and means to produce. Each sale implies a contract in which 10 eggs are valued in local credit money of the CD system, let’s call them after the village – Spas (SP). 

 

We have also established that the rate of the local currency of the joint venture should, as far as possible, correspond to the retail value of 1 kg of flour, which corresponds to 1 ecodual ED, the main currency of the system.  Let’s say that Valentina decided that 1 kg of flour corresponds to 2 eggs, and those to whom she sells them agree with this. 

 

To sell eggs, it creates a car loan contract for the service, with a value of 10 JV.  Everyone, taking eggs, pays for this contract, creating a public debt to Valentina in the amount of 10 JV, in total, the total debt to her is 30 JV, which is displayed for everyone.  

	Мария	Павел	Сергей	Антон	Долг
Мария	$	-10	-10	-10	-30
Павел	10	$	0	0	10
Сергей	10	0	$	0	10
Антон	10	0	0	$	10

In the table debt with a negative number, it should be considered as a positive balance of the existence of a joint venture, that is, free funds to spend.

Then everyone buys a bag of potatoes from farmer Pavel for 20 SP. Maria orders the construction of a shed from the builder Sergey for 100 joint ventures. Sergey hires Anton to help him, promising him 30 JV for this. 

 

Without taking into account past operations, it will look like this:

	Мария	Павел	Сергей	Антон	Долг
Мария	$	20	100	0	120
Павел	10	$	-20	-20	10
Сергей	10	20	$	30	10
Антон	10	20	-30	$	10

If you take into account previous purchases from Maria, then:

	Мария	Павел	Сергей	Антон	Долг
Мария	$	10	90	-10	90
Павел	-10	$	-20	-20	-50
Сергей	-90	20	$	30	-40
Антон	10	20	-30	$	0

 

The system automatically makes mutual settlements on all borrowed debts. From here we can see that Maria still owes 90 JV, which she can repay by further supplying eggs to other participants in the system. Pavel and Sergey respectively have 50 and 40 free SPS to spend.

 

Participants should make sure that no one in the system has too many debts that they will not be able to repay. If someone accumulates too much debt without planning to pay them, they will stop selling goods. In the opposite case, if the user has a lot of debtors, then the amount of how much they will have to determine their wealth.  

The current head of the system can limit the ability to increase the debt within a certain amount. For the first time, this will be Eugene. If necessary, it can also cancel a particular contract in the system. After the system is set up , residents of the village will be able to choose a new head of the local currency of the joint venture.