How are currency brands to be evaluated in satconomy? How might a seller assess the value in a buyer’s currency brand? There are quantitative and qualitative measures of a currency brand’s effectiveness in the market, and market participants are free to decide which measures and evaluations mean more to them.
Quantitatively, one way to evaluate a currency brand is through the ratio of periodic currency inflow to outflow, or credits received from the market versus credits spent by the entity’s members. A balanced (1:1) or near-zero net flow is indicative of a highly self-regulating entity. Since each entity specializes in a particular market activity, the time period in which the flow ratio is assessed must necessarily take into account the nature of the entity’s market role. For example, some entities that only get seasonal yields may take months before being able to receive enough credits to restore balance in its credit-debit reserves. Each entity’s currency use and cancellation activity could be likened to an application of inventory management principles.
Another evaluation criteria might be the amount of currency issued per entity member in an accounting period of time. How much currency is being issued per member of an entity relative to those of other entities? Currencies that have time-based units would provide an easier means for determining currency issuance ‘fairness’ across different sociocultural contexts, while obscure currency units are more likely to confuse market participants outside the issuing entity.
Still another evaluation measure is the percent recovery of credits by an entity, which enables it to cancel a corresponding amount of its debits. Since the credits that an entity receives from the market are used only for the cancellation of self-accrued debits, an entity does not and could not realize a ‘profit’ after it has cancelled all its debt in a satconomic system. In reality, the majority of entities would probably be able to demonstrate market effectiveness with a percent recovery above 80% (varies with prevailing market climate), with an expected upward trend as the entity matures and becomes better at self-regulation.
Qualitative measures of a currency brand include the transparency of the issuing entity’s accounts and market activities, its member satisfaction, its adherance to industry standards and its adoption of best practices. It might also be possible to determine the market segments that an entity actually benefits, whether or not there are signs of unequal distribution of its product and services that do not conform to the entity’s declared specialization.
Many other ways of evaluating a currency brand could easily be developed once satconomy is implemented, similar to how stock and bond markets spawned different financial terms and ways of measuring investment performance.
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.