Module 3: Economic Architecture
7. Utility Token (UT) / Community Token (CT)
The Utility Token (UT) is the public face of the Community Welfare Program (CWP). It is the key to the outside world, the gatekeeper of the Internal Project Economy (IPE), and also a freely tradable token. Its strength lies in the multitude of functions: access, discipline, settlement, and trade.
UT is not a speculative game, but a mechanism of transparency. Its tradability makes value visible and verifiable. Where the Community Token (CT) is worth everything within the IPE but nothing outside, UT extends that value far beyond the borders. CT are as consumption vouchers at a party, the chips in a casino; UT is the cash register where value is converted and recognized.
Utility Token (UT) – the external benchmark
- Gatekeeper & Trading Token: UT opens access, guards discipline, and extends the power of CT outwards.
- Governance & voting rights: UT holders vote on upgrades, policies, and audits.
- Free tradability: UT is also a trading token; its price is the benchmark for settlement and external recognition.
- Final settlement in UT: value from the IPE is settled in UT numbers, not in equivalent value.
- Allocation: 50% Central Treasury, 25% Lending Pool, 25% other treasuries and reserves. Maximum 25% public circulation, with 8 decimal places for plausible liquidity.
- Metaphor: UT is the anchor value, the modern version of a gold standard — not hard money, but a mechanism that confirms value and provides transparency.
Utility Token Allocation (UT)
- 50% Central Treasury – permanently frozen, counter-value for CT, always 50% of total UT
- 25% Lending Pool – bridge to external value, determines velocity and new membership ceiling
- 7.5% Upfront Liquidity – financing of the start-up phase
- 3% CWP Treasury – operational execution
- 7.5% BDF Treasury – business initiatives within the Internal Project Economics (IPE).
- 3% Tech Treasury – Blockchain, Artificial Intelligence, and Application Development and Research
- 2% Team Pool Treasury – personnel budget
- 2% Backup Treasury – reserve for extraordinary expenses
All Department-Treasuries have an annual spending limit of up to 5% of their holdings. This percentage is always calculated on the remaining property, so that the expenditure decreases proportionally and exponentially. The Central Treasury remains permanently frozen and always accounts for 50% of the total UT‑supply. The UT Lending Pool must always contain at least 25%, although this may be in outstanding claims.
Community Token (CT) – the internal purchasing power
- Payment method & unit of account: CT is the means of payment and unit of account within the IPE.
- Fiat mirroring: CT reflects the value of the local fiat currency for comprehensibility, but it is not a currency in the classical sense.
- Basic monthly fee: CT flows directly into members’ wallets as an incentive to participate.
- Permissioned & transparent: CT only circulates within the IPE; outsiders cannot speculate.
- Governance function: CT flows are visible and traceable; members also use CT as a voice and influence.
- Exit mechanism: members can deposit CT to borrow UT; a fair bridge without leverage or speculation.
- Metaphor: CT are the chips or vouchers of the internal economy — valuable, tangible, but without a direct exchange rate between them. UT confirms its value externally.
David (CT) feeds Goliath (UT) with intrinsic value. Goliath extends David’s power far beyond the walls of the IPE. Where history chose struggle, this project chooses alliance. Just as Saladin and Richard I could have anchored peace, CT and UT together create an economy that is safe, fair, and rhythmic.
- CT = internal purchasing power
- UT = External Monetary Value
Their interplay prevents envy and disagreements: CT does not have to compete with other CTs, because UT is the neutral mirror. Settlement in UT closes the loop: value returns, purchasing power flows through the IPE again, and transparency is externally acknowledged.
Criticism & Misunderstandings
- “25% UT is too little liquidity.” → Liquidity is plausible and sustainable due to 8 decimal places and the Lending Pool.
- “The printer remains on, so inflation” → UT is finite; CT-printer only works within the closed IPE and under supervision.
- “UT is hard money.” → UT is not hard money, but a mechanism of settlement and transparency.
- “CT is less real.” → Within the IPE, CT is worth everything; UT extends that value to the outside world.
In short, the UT and CT are not competing tokens, but two layers of the same rhythm. UT guards the gates and establishes discipline, CT flows as a unit of account, and makes reciprocity tangible. Together, they ensure that access is never separate from responsibility and that value is never separate from legitimacy.
UT without CT would be an empty key; CT without UT would be a vulnerable flow. Their interaction makes the economy safe, fair, and rhythmic: access and value always move together, supported by the members and anchored in transparency.
8. Community Value Exchange (CVX)
The Community Value Exchange (CVX) is the digital heart of the internal economy. Where the Utility Token (UT) guards the gate, and the Community Token (CT) flows purchasing power, the CVX is the town square: the online hub where members find each other, where trade takes place, where bulletin boards and tenders are visible, and where the organization can reach everyone.
Marketplace & payment method
- CT as a means of payment: all transactions are made in CT, so that members can always pay with their own token and sellers receive their own CT.
- Goods, services & work: members find consumption, production, and exchange in one place.
- Micro-communities & VFEs: physical markets and wholesalers are digitally connected via the CVX.
- Fully economic hub: The CVX is more than a marketplace; it’s the infrastructure where all apps and features come together.
Clearing & machine logic
The CVX acts as a central payment gateway and clearing house.
- Mint & burn: When a buyer pays in CTXXX, and a seller receives in CTOOO, the CVX destroys the used CTXXX and creates exactly the right amount of CTOOO.
- On-chain confirmation: only after consensus is the transaction completed, leaving the accounting unquestionable.
- No ghost tokens: The machine logic guarantees that value always remains transparent and consistent.
- UT as a neutral mirror: all value is translated via UT, so that CTs do not have to question or compete with each other.
Within the IPE, the Utility Token (UT) has no internal value whatsoever. No participant may ever force another to pay with UT. All transactions are carried out exclusively in CT; That is, the living stream of the internal economy.
When different CT/VFEs trade with each other, the UT is only used “under-the-hood.” Oracles ensure that the value is translated honestly and transparently, without human input. For participants, it always feels like a CT payment; the UT remains the neutral mirror that keeps the ledgers the same. Thus, the separation remains absolute:
- CT cannot leave its own environment.
- UT cannot penetrate the permissioned hDLT.
- Their interaction is exclusively through machine logic and consensus, never through human choice.
The UT is therefore the gatekeeper to the outside world, but within the IPE, it remains neutral and passive. CT is the unit of account and purchasing power, UT the mirror and settlement. Together, they form a rhythm in which access is never separate from responsibility, and value is never separate from legitimacy.
Alliance between enclaves
VFEs function as standalone units, but they are connected via the CVX. If the fiat economy weakens locally, the community will continue to be supported by the others. Carrying and being carried: solidarity in digital form.
Extensions
- Public procurement: sustainable investments with public funds are tendered through the CVX. All members can sign up, ensuring fairness and transparency worldwide.
- Partial ownership certificates: participations in project-owned and private companies can be traded.
- Discipline & information provision: only companies that meet strict information requirements are allowed to participate, so that asymmetry is prevented.
- Cost structure:
- Free switching between partial ownerships; any surplus value will return to Pillar -2.
- Sales towards consumption (Pillar -1) means a cost levy of up to 15%, because the CT takes on a different meaning: from participation to direct purchasing power.
- In this way, partial ownership remains an instrument of functional prestige and discipline, not of speculation.
Narrative bedding
The CVX is not a copy of LETS, but an evolution:
- LETS-logic: reciprocity and internal circulation.
- CVX expansion: clearing, tendering, participation, and discipline.
- The result: a digital city square where purchasing power, transparency, and legitimacy come together.
The Community Value Exchange (CVX) is more than a digital marketplace: it is the economic nervous system of the IPE. This is where purchasing power, discipline, and reciprocity come together. Where CT is the daily flow, and UT is the neutral mirror, the CVX shapes their interaction.
The CVX makes trade transparent, tenders fair, and participation controlled. It is the town square where members meet, where solidarity becomes tangible, and where the organization makes its legitimacy visible.
With the CVX, we close the loop of access, value, and reciprocity. The foundation has been laid: members know that their transactions are safe, that their participations exude discipline, and that their purchasing power is supported by the community.
9. Stimulus Fund
The Stimulus Fund is the creative and social engine of the IPE. Where the CT flows the daily purchasing power and the CVX connects the trade, the Stimulus Fund gives space to members to enrich their communities. It is not a commercial counter, but a source of inspiration and solidarity: ideas are born here that support the culture, care, and education of the community.
Cultural & social instrument
The Stimulus Fund is open to all participants to support activities within the IPE.
- Grants & Grants: individually or in groups, provided they are aimed at the community.
- No private purposes: applications must always contain an objective and measurable impact.
- Support: applications with declarations of support from several members have a greater chance of being granted.
Discipline & inspiration
- One-off allowances: intended for events, workshops, education, counseling, and informal care.
- No structural business operations: those who move too much towards commerce are guided to other financing options (e.g., BDF).
- Creative space: inspiration may lead to commercial initiatives later on, but the fund remains socially and culturally anchored.
Governance
- Supply: monthly CT‑minting, 200% of the value of the base amounts flows into the fund.
- Consideration: Custodian Charter quorum reviews applications and nominates them for voting.
- Voting: Micro-community delegates vote weekly.
- Core: the CWP can allocate funds, provided that it is fully justified and exclusively for members.
The Stimulus Fund is therefore not corporate financing, but a source of creativity and solidarity. It provides room for inspiration and discipline, so that members learn that public funds should always be supported by a wider audience. In this way, the IPE will not only become an economy but also a cultural and social ecosystem in which participants support and inspire each other.
10. Stability fund
The Stability Fund is the structural backbone of the IPE. Where the Fund feeds the creative energy, the Stability Fund provides infrastructure, emergency support, and sustainable investments. It is the triad of care, infrastructure, and sustainability that makes the VFE’s stronghold so that communities not only function today, but also endure tomorrow.
Triad of care, infrastructure & sustainability
The Stability Fund is also funded by CT‑minting (200% of the base amount).
- 25% infrastructure: nodes, data servers, hardware for peer-to-peer payments, communication services.
- 25% emergency fund: support in the event of natural disasters, economic malaise, or solidarity with affected communities.
- 50% SFUs: Sustainable Funding Units for micro-communities, based on membership number.
SFUs as a right and incentive
- Right to sustainable finance: each micro-community receives SFUs in proportion to its size.
- Capital representation: SFUs are also mandated for delegation in the Custodian Charter and RAC.
- Additional SFUs: Can be earned through discipline and cooperation, especially through PoC activities.
- Honest behavior: Delegates’ reputations affect not only themselves, but also their communities.
Bundling & economies of scale
- Working together: bundling micro-communities increases strength and solidarity.
- Example of elderly care: from homely care → district facility → care center with professional guidance.
- Psychological effect: joint investments alleviate tensions and force cooperation.
Governance & tendering
- Public tender: all investments are tendered and tracked via the CVX.
- Audit: Custodian Charter provides financial and social audits.
- Public funds: remain transparent and tied to their purpose.
The Stability Fund is more than a pot of resources: it is a guarantee of continuity and solidarity. By distributing SFUs fairly, encouraging bundling, and making public procurement transparent, the IPE becomes a system that not only protects but also builds the future sustainably.
11. Proof of Contribution (PoC)
Proof of Contribution is the breathing of the IPE. No system keeps itself clean, no network runs by itself. PoC recognizes the efforts of participants and micro-communities that keep the foundation running: from node management to social tasks, from governance to AI support. It is the modern expression of Gotong Royong, the tradition of reciprocity and collective labor.
Recognition & commitment
PoC are necessary activities for infrastructure and social cohesion.
- Voluntary but rewarded: no one is obliged, but effort is recognized and rewarded.
- Reputation scores: strengthen privileges and status.
- Discipline: can be added later as a mechanism, but recognition is paramount.
Realistic participation
- 7–10% active core: gets the most out of participation.
- 20% opportunists: participate provided there is a reward in return.
- 70–73% passive: consume and carry the ball of the system.
- No condemnation: passivity is also a factor; consumption keeps the economy going.
Micro communities responsible
- Quotas per 3 months: additional SFUs when PoC goals are met.
- No punishment, but a signal: those left behind lose nothing, but are addressed.
- PoC via CVX: Communities can offer tasks for reward.
Categories of work
- Network systems: management and maintenance.
- AI‑support.
- Public tasks: Custodian Charter, RAC.
- Governance.
- Social tasks.
Gotong Royong
PoC is a modern expression of Gotong Royong: the Indonesian tradition of reciprocity and collective labor.
- More than chores: it strengthens solidarity and trust.
- Humanity: doing something for your neighbors because you are also someone else’s neighbor.
- Cultural anchoring: where Western traditions leave this to the government, Gotong Royong directly builds community cohesion.
PoC makes it visible that the IPE is not just a consumer economy, but a community economy. Those who contribute are recognized and rewarded; Those who consume keep the ball rolling. Together, active and passive participants form one rhythm. In this way, PoC does not become an obligation, but an expression of solidarity and discipline, which strengthens the fortress from within.
Combined conclusion: Stimulus Fund – Stability Fund – Proof of Contribution
While the Community Value Exchange (CVX) and the Business Development Fund (BDF) are the beating heart of the IPE — the trade and activity that keep the engine of the system running — the Stimulus Fund, the Stability Fund, and Proof of Contribution bring humanity to the whole. They ensure that the IPE is not just a machine of transactions and production, but a living organism in which solidarity, culture, and reciprocity are felt.
The Stimulus Fund provides space for creativity and social energy. This is where the activities that bring communities closer together are created: education, care, events, and initiatives that are not about profit, but about togetherness. The Stability Fund lays the solid foundation for this: infrastructure, emergency support, and sustainable investments that make communities resilient and prepare them for the future. Finally, Proof of Contribution makes it clear that commitment and reciprocity are needed to keep the fortress running. It is the modern expression of Gotong Royong: taking responsibility for the whole together, so that each member knows that he can build and count on the other.
The metaphor of the party makes this tangible. The Stimulus Fund are the activities at the party, by and for the visitors. The Stability Fund is the organization that makes the party possible, from infrastructure to healthcare. Proof of Contribution are the hands that keep the party running: the staff, the cleaning, the supplies. This makes it clear that these three pillars do not exist separately from each other, but together form the fortress — a structure that not only protects, but also builds strength from within.
This block is also a monetary foundation. Every month, 500% more tokens are minted than the base amount, not to flood the consumer economy, but to anchor discipline and trust. Earnings from sustainable employment flow into Pillar 2 and Pillar 3, so that their pace matches the long-term for which they are intended. This prevents overheating and keeps the consumer economy stable. The system corrects itself without the need for external buttons.
The governance concludes all of this. Applications for public funds are always supported by a quorum of delegates and the Social and Economic Core. No participant is alone: statements of support from the community are necessary to obtain public funds. In this way, discipline is not imposed from above, but carried from below.
Together, the Stimulus Fund, the Stability Fund, and Proof of Contribution give the IPE its human dimension. They show that while transactions and production are the driving force, the blood flows through the veins of the IPE thanks to human participation, solidarity, and culture. In doing so, this block closes the circle of the internal fortress and prepares the reader for the next step: the Partial Ownership program and the Dividend Policy, where the focus shifts from community strength to distribution of ownership and proceeds.
12. Partial-ownership program
Ownership within the IPE is not a shared property in which all members are inextricably tied to one course. We consciously opt for partial ownership because this gives members individual self-determination and prevents them from being held hostage in decisions with which they can no longer agree. Partial ownership is an individual right, but always embedded in the community of discipline. It is not a speculative instrument: the system discourages conversion to consumer capital, because it would weaken the capital structure. In this way, discipline is built in, and value is anchored sustainably.
Core
- Mechanism of ownership: Partial ownership runs through pillar 2 of the Community Welfare Program. CT is the unit of account; SFUs are only for sustainable investments and should never be used for partial ownership.
- Anchoring in micro-communities: Ownership is not automatically collective, but it is linked to companies that derive their raison d’être from demand-driven production within the IPE. The community decides on access to capital, but each member retains freedom in his own efforts.
- Protection against elite capture: Ownership is transparent and accessible only to members. Outsiders are only allowed if they provide demonstrable added value. Speculation is not prohibited, but it is limited so that it supports price formation and does not cause a concentration of power.
- Function of ownership: Partial ownership gives members a vote and a share in the long-term value of the IPE. It makes them not only consumers, but also co-owners of the productive infrastructure that serves their demand.
Conclusion
Partial ownership within the IPE is not a privilege, but a right that requires discipline and responsibility. It transforms the IPE from a consumer economy to a participatory production economy, in which members not only benefit from supply and demand but also co-own the productive infrastructure. This program paves the way to the Dividend Policy: ownership only takes on its full meaning when revenues are shared, and the cycle of consumption, production, and value creation flows back to the members themselves.
13. Dividend policy
Dividends are the concrete expression of ownership. It makes it clear that value creation is not only an abstract right but also a tangible return. Within the IPE, the dividend policy relates to project-specific production companies that emerge from the Business Development Fund. These companies derive their raison d’être from the demand that is filtered out of the consumption activities of the members.
Core
- 50 – 50 ruling: 50% of the profit is reserved for reinvestments and 50% for dividends. This forces companies to never stand still and secure their future.
- Distribution of dividend: 30 – 35% goes to partial-ownership holders, 15 – 20% to all members as compensation for their consumption This creates a fair distribution in which capital only gains value when it is put to good use.
- Distribution structure: Dividends are paid once a year, but distributed through micro-communities. They decide how the amount is distributed: monthly, via lottery, or partly as a buffer. Decision-making requires a large majority and is recorded on the DLT.
- Cultural mechanism: Spreading dividends prevents temporary peaks in purchasing power and the opportunistic behavior of sellers. The arisan system or lottery also strengthens cohesion within micro-communities.
- Warning: Dividend is not an addition to the Base amount. It is variable, depending on profitability, and should never be seen as a fixed right.
Conclusion
Dividends are not a stand-alone benefit, but proof of shared ownership. It shows that the IPE not only creates value, but also distributes that value fairly and disciplinarily. In this way, property does not become a paper right, but a living mechanism that strengthens trust and solidarity.
Combined conclusion: Partial-ownership program – Dividend policy
Partial ownership and dividends together form the legitimacy of value creation within the IPE. The Base amount is an advance on future value creation; production is that value creation itself. Partial ownership gives members the right to be co-owners of the productive infrastructure, and dividends show that this ownership also yields tangible returns.
Together, they make it clear that the IPE is not just a consumer economy, but a participatory production economy in which value is shared, and discipline is anchored. Non-dividend ownership is empty; Dividends without ownership are arbitrary. In their context, they show that the IPE is an economy in which legitimacy, responsibility, and solidarity form the basis of capital.
Slot Module 3 – Economic Architecture
Module 3 is the moment when the foundations of the fortress are no longer just stones, but rooms in which people live and live. Where Module 1 laid the foundation and Module 2 built the structure, Module 3 shows how the economy breathes into the daily lives of the members.
The Utility Token and Community Token give tangible purchasing power, the CVX makes trading tangible, the funds bring creativity and care, Proof of Contribution recognizes commitment and reciprocity, and Partial Ownership with Dividend Policy show that members are not only consumers, but also co-owners and shareholders in revenue.
Together, these components form the economic architecture that no longer reduces members to a problem but recognizes them as a source of value. It is here that the IPE shifts from a design to a lived reality: members feel that their effort, their consumption, their creativity, and their ownership together build a future that is in their own hands.
Module 3 thus concludes the human side of the project. It paves the way for Module 4, where the technological infrastructure is elaborated, and for the further modules in which bridges to the outside world and the Virtual Fortress Economy take conceptual shape.