Instead of posting another development update, this time I’d like to present the role and perspective of a credit recipient in a market transaction under a satconomy framework.
The credit recipient in a transaction could be a seller, a tax collector, a nonprofit receiving a donation, a grantee, or others in a similar role. I hope that it is clear by now, after going through earlier posts, that each and every entity in satconomy issues its own currency brand, and therefore does not to receive credits from other entities in order to have currency to spend. It may be asked, then, what would be the point in having an entity act as a credit recipient in a market transaction, when that entity could already issue credits to itself (and its members)?
Remember that an entity issues or creates currency as credit-debit pairs. An entity accrues debits at the same time that it accrues credits. The rationale for accepting credits in a market transaction is for an entity to use those credits to cancel its self-accrued debt to the market.
An entity, by exchanging its products – goods and/or services – for the payment (credits) of a market participant does not receive profits, investment returns, cash or any ‘wealth’ in return. In a satconomy transaction, an entity simply gets to fulfill its self-determined obligation to the market. The partial or total fulfillment of its obligation to the market is quantitatively symbolized by the partial or total cancellation of its self-accrued debits.
The next question might be, why should a market transactor be selective as to which credits or currency brand to accept? It might seem counter-intuitive for an entity to reject any opportunity to cancel its debits. The answer should be found in an entity’s goals or mission statement, where it declares its specialization and target audience, and in the reputation of an entity with regards to its ability to provide value to the market. A trustworthy entity accepts its role in helping cultivate a robust and open market, so it should cater its products to benefit those entities that the market perceives as valuable contributors. If an entity is deemed to support unpopular regimes or monopolistic entities or free riders, then even though it has the ability to cancel its debt (using the credits received from the unpopular entities), market participants could still choose to reject its currency. In satconomy, noncooperation goes beyond the refusal to buy a product from an ‘unfair’ entity and extends to the rejection of that entity’s currency brand.