By utilizing community-based credit and its decay rate, we can unlock the potential of non-profitable investments and turn them into profitable ventures that benefit both investors and the community.
The decay rate of community credit is designed to match total credit in circulation with stocks of goods and services at issuing communities. It encourages circulation and utilization of credit while preventing any accumulation that would be disconnected from real wealth inside the community. A high decay rate means that credit loses value quickly if not invested or spent, providing an incentive for individuals to put their credit to work.
Lowering the decay rate of one's credit becomes a profitable strategy. Even investments that offer a modest or zero return can be financially rewarding due to the lowered decay rate. For example, if the decay rate is set at -100% per year, an investment yielding a 0% return is considered excellent.
One area where this investment approach shines is in funding green solutions and sustainable initiatives. Projects that may have been considered non-profitable or faced challenges securing traditional funding can now become financially viable. Even if a project yields a negative return, such as -20%, it can still attract significant funding if it brings positive returns to the community in terms of environmental impact, social benefits, or long-term sustainability.
Join us in harnessing the power of community-based credit, to drive meaningful progress and create a better future for all.
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