Tagged: debit cancellation

Comparison to Stock or Bond Issuing Entities

Unit entities in satconomy have operational similarities with publicly held corporations, which issues shareholder stocks, and municipal governments, which issues bonds. However, there are important differences:

(1) Instead of quantitatively symbolizing the status of an owner as a shareholder or a lender as a bond holder, credits in satconomy are awarded based on the recipient’s perceived contribution to the entity’s goal or mission. 

(2) An entity may issue any amount of its currency according to its self-determined limits, as long as the currency is issued as credit-debit pairs. That is, for each self-determined unit increase in the entity’s credits, its absolute debit quantity must also increase by an equal amount.

(3) The credits are intended, but not guaranteed, to be redeemable into products of the market in general. Redeemability is not specifically limited to the products of the issuer.

(4) When the credits are redeemed for products in the market, the credits are cancelled together with an equal quantity of the product provider’s debits. There is no reusable currency transfer between entities. Each entity does not need to acquire currency from other entities since an enity could independently issue its own brand of currency.

For added emphasis, it is worth repeating that there are no guarantees that credits could be redeemed for products in the market, or that the debits of the entity would be cancelled eventually as a symbol of fulfilling its self-determined obligation to the market.