Finance

This part describes the approach of finance in the mature phase of the life-cycle. Considerations for earlier stages are in the part about implementation path.

Incomes come from the following sources:

• Membership fee, used to sustain and operate the structure

• Taxes imposed by nodes

• Voluntary contributions for projects

Nodes imposing rules on citizens should pay membership fees of all citizens affected by the rules and wanting to participate. For example a municipal or state government should pay membership fees of all of participants who are the citizens of the municipality or state from the tax income.

High level metagroups can impose relatively benign taxes only on members (like 1 percent of membership fee) and generate a sizeable revenue to solve global problems. This kind of income is against the budget of individual groups, legislated in a higher level, and as such enjoys priority against decisions made in lower levels against the same budget.

As fundamentals of tax-based public finance will not change (except the requirement to be absolutely transparent), we do not discuss it further here.

Membership fee is small and universal. We propose 1% of income here as an initial value, the exact parameters - as all of the parameters of the model - should be tuned.

The membership fee is equally divided and paid among the groups the individual is a member of. Half (a parameter again) of the membership income of any node should be used as a membership income of the node above. The other half should be paid to the elected officials of the node above as personal income. The division of the salary budget of a node can be done based on position, number of delegations for legislative representatives, and other parameters, the main rule is that 100% should be paid off for a given time interval.

The membership income of the top level node is used to finance the development and operation of the IT infrastructure used by the structure.

This way salaries are exponentially growing as we go up in the tree, with even first level metagroups being able to pay multiple individuals above the average salary. In higher levels, officials afford to have a personal team focused on her job responsibilities and/or not think about the chores of daily life.