Tagged: FTP

how much does running a car cost?

I’m returning to education, and because of the rural area in which I live, I shall need a car to get to schools to do supply on a daily basis. So, I shall have to ‘buy’ a car. Which brings into question how much a car costs to run, the issue of ownership, petrol costs, taxes, and so on. Also, a brief look at current ‘alternative’ solutions like Zipcar and a local car-trader down the road who is trying to compete with a low-tech solution, and then we’ll look at how an ecosquared car use may be financed. And if cars don’t rock your boat, we’ll look at other applications of the same math such as with health, revealing a fundamental core to economics: the relationship between capital (a static fund) and regular payments.


everyday running costs of ownership

Screen Shot 2014-01-05 at 15.17.00

These costs are ‘reasonable’ for running an average car; with new cars devalue, replace the ‘maintenance’ costs with devaluation. ‘Upgrade’ is the amount of money that is put aside to pay for a new car; eg sell a car at a loss of £500 over the year will mean that the new one will be bought to re-coupe that loss; that is, it will cost £50/month to just stay ‘level’.

Still, if you have a car, these costs are reasonable. That’s £3000 to £5000 a year! Cars burn money…

running costs of rental

Screen Shot 2014-01-05 at 15.26.15

Roughly £400, which is £250/£100 more than ownership. No head-aches of ownership. New car. Surely there should be a non-new rental deal out there? There was, but more of that later. Let’s look an a new ‘alternative’ to rent/buy.

‘alternatives’ like zipcar

Screen Shot 2014-01-05 at 15.38.21

 Based on a trip daily to work and back, clearly Zipcar isn’t the right solution. Another one is Uber, but that’s beyond the horizon at the moment; it’s touted to do to logistics what Amazon did to book-selling, and everything else-selling, kinda. It’s what ecosquared will be competing with a few years down the line, if we’re not clever.

a guy down the road called Darren…

I spoke with a guy last night, Darren Sharpe, an interesting guy. He was ahead of the curve and came up with ‘rent-a-banger‘, basically renting out non-new cars. He ran this for 15 years, but the insurance was a real head-ache, and people abused the system; as we know people take care of things they own, and tend to trash or neglect rented cars, flats, tools — a mentality shift which is critical for longer term sharing solutions.

Now, Darren sells five-year old cars for £2k, and guarantees buy-back at £50/week. So, if you want to return the car say 10 weeks down the road, he will buy it back for £1,500. Thus, cost of use is £200/month PLUS £100/£200 ownership costs. That is, using Darren’s system you need £2k capital, and it costs £150/month more than ownership.

summary of current offerings out there at the time of writing

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Looks like ownership is still the cheapest way to run a car, with all the head-aches that ownership entails. Basically there is a financial separation between the players: the owner of the car, those who build the roads and the insurers, the car-mechanics who maintain it, and the company employees who supply the petrol. They are all working together, using the same economic system, with the belief that competition provides us with the best service at the lowest cost.


Well, it depends on what scale the ecology is at. Let’s say it we have levels of social saturation, which I’ve used before, but in reverse order this time, from the ‘fantastic’ to the realistic, me now looking for a car:

  • Yellow Saturation with massive game-changing coverage
  • Blue Network where a wide sector of people are sharing within ecosquared protocols
  • Green Team of a few people connected and using the protocols
  • Red Solo just starting with only you using the protocols

Yellow Saturation

A world where there are enough people in the network to own Esso; where the users and employees of the petrol stations are the shareholders, have %-equity. Nobody is making a profit from the petrol you get at the station. You drive up, fill up the tank, resource use is tabulated, you drive away. No money transaction. Of course, your petrol use may be higher or lower than others, and this is related to how often you use the car. Remember, none of it is yours: its an economy of use, not possession.

(By the way, Esso is evaluated at $300b. 100million people putting in £3000 each (the cost of petrol for a year for some folk) could buy Esso outright. That’s something to think about. An FTP open moneystream of $300b; that’s everyone on the planet contributed $40 each. Will we ever reach this ‘fantastic’ situation? Well, we have the protocols. We have the intention and love and trust between us as friends and family… we just lack the trust in their operation. We are trapped by our traditional mechanics.)

And the cost of petrol is much lower in certain countries, those which have decentralised their government. Just like Esso is %-equity crowd-shared, so is ‘government’. A double win for the folk who manage that first!

Blue Network

A car-pool where insurance is brought within the fold. That is, a crowd-owned insurance company. Again, no-one is making money out of us. When an accident occurs, it is covered by FTP. Of course, it comes down to trusting people to drive cars around. Do you give a super-dooper car to a young man? Only if he proves he can drive well. Insurance companies have the math worked out in terms of rates of injury etc. We should be using this math to simply reduce costs of premium, or in our case FTP contribution towards this BitCar project. Money is not put into the organisation competing with other organisations, a massive marketing and advertising game, both externally and internally.

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This is from Direct Line’s 2012 Annual Report (p98).Operating costs 25% of revenue, over a £1billion. That’s a lot of ‘financial’ machinery being paid for.

In terms of ecosquared, we don’t want an insurance company; in fact, we don’t want any company for that matter. We simply use the assurance we have between us: MTTP for p2p, and FTP for one to many. If some network of people give a flash car to one of their group, and they don’t have the resources locally to cover it if things go wrong, then they will require other networks to subsidise them. This is the typical fission-fusion and 1:5 grouping that all kids are familiar with by the age of 11. Not complicated. Fractally complex, but essentially — mathematically and psycho-socially — simple.

Green Team

For this to work, the team has to be concentrated. That is, people who live close by, who share the same garage for example. Each participant ‘owns’ their car in the sense of paying for Road Tax and Insurance (£50-£100/month). Instead of paying for when the car breaks down, a contribution is made to keep the car running smoothly. How much? Depends on how many cars are in the network and the size of the garage, but let’s say around £50/month. They may need to take more people on during periods of stress, or pass cars on to other garages if the demand is too high, as occurs nowadays. And when things are slow, cars are invited in to upgrade them. The objective is to keep cars healthy, so that they do not ‘lose’ their value. Courses are put on to invite owners to be involved in the maintenance of their cars.

Instead of saving funds in private banks, or accessing credit, participants GIFT(£50/month) for the use of the car, FTP{Bitcar}. This accumulated FTP (within a year, 10 car-owners accumulate £6000) not only attracts other car-owners to the network, but can operate like insurance, and to buy in new car, perhaps when a member of the community gets to driving age.

Red Solo

Difficult. Two things possible: hack ownership, and share %-equity in the income enabled by car-use.

hacking ownership

Let’s say I manage to generate the funds to ‘own’ a car at £2k. Let’s say I give-it(car)-forwards-to the ‘BitCar’ project. I also give-it(£50)-forwards-to FTP. Which means I have 100%-equity in all three ecosquare value vectors, Vp Vk Vi, namely the Aggregate (ie the car), FTP or Moneystream (which will be £300 by summer), and SEA.

Who knows how I can leverage this in the future? Perhaps attracting others to the Bitcar project? Perhaps someone may wish to GIFT(car)(£50). Perhaps, I will be able to give my car to someone (rather than selling it), and produce the dynamics described in the Green Team? Either because I leave the country and don’t need the car, or I buy a new car. Perhaps I can use the FTP to buy a new car, and thus include the car within the BitCar network?

So, running costs are identical to ‘ownership’, only difference is, the money that normally goes into the ‘bank’ (for whatever nefarious purposes they put it to) when saving up is replaced with FTP, an open-money-stream:

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invest in people, not things — we are the ones ‘making’ the money anyway

Secondly, an alternative way of thinking about this, is to think what the car enables. I will be able to teach, making around £80/day after tax. The car enables this. Without the car, I can’t get to school. So, in a way, the person who gives me the car, is enabling me — they deserve some %-equity in my income. If I make £1600/month, what %-equity would they want? Same goes for the garage mechanic — how much %-equity do they deserve?

Whoever has contributed the car (£2k), the mechanics at the garage (£50/month), I still have to pay for insurance and road tax (£50/month). Based on a plan which is half-way between rent and ownership, at around £250/month, those who supply the car should get around £200/month, which is 12.5%-equity of my income stream.

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After one year, the ‘owner’ has recouped their investment, and the garage has made £323.99, regardless of the repairs. Total, £2400 to use the car.

Now, with this kind of relationship, if I kept using the car by the end of the second year, the car-gifter will have made £1722.78 ‘profit’, and the garage another £750 from the second year to cover the costs of maintenance. Total, £4800 to use the car over two years.

A few questions may come to mind, about what the gifter of the car may do — perhaps offer a better one, and if so, what is the rate now? And does the garage-mechanic keep getting more and more until they are taking all of the 12.5% equity reserved for car use? Well, funnily enough, no. It tends to a number. After 10 years, for example, the car-gift owner will be getting £50/month and the garage-mechanic £150/month. Perhaps the car will require that amount of maintenance, but probably not.

the core of economics: numbers and time

Whatever your interest is in cars, the math pattern deserves attention. Why? Because it shows the relationship between capital and regular investment. Think about this in a completely different field — health. Do you pay for health treatment when something goes wrong (capital), or should you be paying a regular investment for health (regular)?

This relationship is at the heart of all our finances: the difference between a static lump sum and regular payment.

FTP, the accumulation of money as an index of trust within a network, combines both: regular payments to a static ‘standing wave’ of money. Where is this money? Well, it is like a bank, but unlike a bank, accumulated FTP does not get used. Like MTTP guarantee, it remains in escrow between the parties. So, FTP acts more like a guarantee, to be released if not enough revenue is generated from what is co-created; to ‘buy out’ those who do not wish to have %-equity in the co-created product.

The thing to get your head around is that %-equity is at the base of new economics, ecosquared or otherwise. Moneyflow is secondary.

And there is a race going on: as capitalism gets finer and finer in resolution, turning everyone and his dog into a capitalist, versus the sharing economy, where we are all part of a greater whole, a collaborative commons, where we share everything. Capitalism has massive momentum, institutionally, mechanically (financially), and psychologically. The internet has cracked open a massive opportunity in the form of open-source and it rejuvenated the commons and after a decade a massive sharing meme. But are the proponents of the sharing economy fooled by their relative luxury, royalty within the citadel playing games because they live in a world of material abundance?

It’s a tough call, and we each have to make it. We do so in our daily actions. We do so with every single financial transaction. I for one, am not convinced, as I turn to ‘buying’ a car, filling it with petrol regularly, and fueling the current system which is so destructive to our environment, and our collective soul.

GIFT(x) FTP Invitation

So, FTP has been rolling around my head since the beginning of the year. I haven’t finished the math, or the website invitation, but after speaking with Patrick Anderson, I pulled together this provisional video. From even the briefest perusal of Patrick’s G+ About page, it’s clear he is insightful and working towards bettering the world.

In terms of the system, I already have a Stripe submission in play, though will be looking at alternatives for moneyflow for content, eg for this site, which constitute ‘Surplus’ which is divided in the ratio of SEA. That is, the system is minimally operational!

the triggering dialogue

david pinto
Interesting. I found you on linked-in… searched for your future product foundation thing on the internet, didn’t find you, but eventually came round to your g+ page — and you are already in my circles! How are things going with you?
1:57 PM
Patrick Anderson
Hi David. I’m doing well. How are you?
david pinto
Hi. Yeah, pretty good. Too many convergent thoughts since the new year. Way too many. Hence my rather rare attempt to outreach, eg with you. Perhaps a few other players who are on the fringes, who are exceptional, may share the… burden of exploration 🙂
2:32 PM
Patrick Anderson
I don’t know where it comes from, but once you see in a new way, you are compelled to show others. I see your G+ response to my old, repetitive post. In not really sure what you mean by math or model, but I am willing to work with you to develop those interpretations
2:38 PM
david pinto
Ah, nice. You talked about fractional ownership, I think. I was asking if you have any math for this? To track fractional ownership. If this is what you were working on, coding, etc? With your product future foundation?
2:39 PM
Patrick Anderson
Ah. Hmm… It seems so elementary that I don’t see how math would help
2:41 PM
david pinto
hehehahahahah ok, cool heheha I have the opposite problem. When I engage my peers who are trying to develop algorithms that track value, they don’t see the simplicity of our solution. So, good.
2:43 PM
Patrick Anderson
I may be wrong, and an willing to try, but let’s look at a small example and then scale up to see where we lose track
2:43 PM
david pinto
Well, that’s it exactly. Ok, you free for a quick chat? Or perhaps a major engagement? How serious are you about this? By major engagement, I mean, say, an hour, where we delve as deeply as we can. So that we establish the parameters of our engagement.
2:44 PM
Patrick Anderson
I am extremely serious about this. I can prove it is the optimal organizational form
2:45 PM
david pinto
Can you prove it financially? Are you loaded? Are you living in comfort? A life of luxury?
2:45 PM
Patrick Anderson
I want to chat right now, but I have to go to work in about half hour Just because I’m not living and luxury now doesn’t prove this approach invalid
2:46 PM
david pinto
Same here. However, if you can prove something mathematically, that’s a big bonus. Something useful to leverage with.
2:47 PM
Patrick Anderson
I haven’t actually implemented anything yet because nobody understands me yet
2:47 PM
david pinto
I’ll put £5 forward to engage you over the next 20-30 mins or so. Will you.
2:47 PM
Patrick Anderson
I appreciate your offer but I am so anxious to explain this solution that I would be willing to pay you:-D
2:49 PM
david pinto
Exactly, will you put money forward? I will take you at your word. Which means, if after we engage, you don’t think it has been useful, then don’t honour your word. From the little I have engaged, I believe we are worth £5
Patrick Anderson
You want me to pay you?
2:50 PM

david pinto
Not really, it just goes forward. Part of the discussion… I’d like to have a video up explaining it, but, that’s still in the pipeline. The actual math hasn’t been finalised yet. Hence this engagement. You might be part of the solution. Doesn’t prevent us from experimenting, though. So, I am willing to put £5 forwards. Are you? Actually, with this time now, let’s reduce it to £1 since we don’t have much time left…
2:52 PM
Patrick Anderson
The system I am trying to describe “cancels out” most of the need for money
2:54 PM
david pinto
Yeah, I know, I know. I need something to sustain my exploration. I’ve done enough over two years and have to go back to work because of ‘problems’ in communication. Let’s talk another time when you have the time and the £ interest. You definitely are saying the right things. It will be good.
2:55 PM
Patrick Anderson
We will need some money to start, but I’m sure a kickstarter campaign will work once we can explain it to others
2:56 PM
david pinto
Good luck! Get back to me when you are ready to engage logarithmically.
2:57 PM
Patrick Anderson
I am in severe debt right now going through a divorce and was out of work until just the beginning of this week
2:57 PM
david pinto
Tell me about it… That’s why our engagement will be valueable. Don’t waste it through this little text chat. You are highly valuable, so am I, and our engagement will be valuable. Don’t worry. If I had the money, I’d invite you personally, but I don’t. So, be assured, get back to me when you have time.
2:58 PM
Patrick Anderson
Okay, it would help me understand your needs if you would send me example of algorithmic engagement
2:58 PM
david pinto
ehehe — which comes first, understanding or experimentation? I have enough info from your posts that I want to experiment with you. Based on that experiment, I will have more understanding, and so it builds… It’s fine, don’t worry. This engagement has already been useful. Believe me. I will record something, post it, and invite you to review it.
3:01 PM
Patrick Anderson
Ok, set you later. *see
3:02 PM
david pinto
Cool. Have a good day, really 🙂
3:02 PM

readability of this post — the turning point of understanding and information

Editing a Google Hangout Chat has been a real pain. I hope it is readable. How well you penetrate this, how deep your reading, will determine the depth of our engagement, and the speed by which this protocol takes shape in 2014. Your temporal co-ordinates as you read (early January? Spring 2014, Summer? Perhaps 2015), compared to the current saturation of this (FTP) protocol in the current marketplace, will determine your importance in this process. You  know, early adopters and all that.

So it comes down to understanding. I have explained complex math to kids. I am a professional communicator. And yet, with ecosquared, the resounding response from the beginning has been lack of understanding — and get this — a demand for more explanation. Just look at this site — it is two years worth of explanation! I have risked my wellbeing, my family’s wellbeing, on ecosquared. I believe ecosquared holds the kernal of a global solution, and this FTP may be the actual turning point — it enables a means of moneyflow that helps us learn how to operate a completely alternative economics, an ecological and ethical one, one based on giving.

Is there enough information, through the video, this post, the other posts on this video — is there enough INFORMATION, that it warrants engagement? It is through the process of engagement that understanding will emerge. That is, is there enough INFORMATION that you are willing to conduct an EXPERIMENT? Not just theorise, discuss, chat, etc, but actually conduct a financial experiment?

But where does the money go?

Yes, that’s the trick, isn’t it? Where indeed…

You’d like to know where it goes, but as we know from our current situation, the money end up in the pockets of those who have it. Capital. Money attract money.

Ecosquared protocols perform two hacks on money, namely MTTP and SEA. FTP performs the equivalent function of ‘capital’, though it operates more like ‘insurance’.

For now, suffice to say, you will get a say in where the money goes if it ever has to leave the network. That is, FTP is merely the decision to give money forward to a future date where you and others decide what to do with it. What power you will have in where it goes, depends on the quality of engagement you have, the value you co-create, and so on. The money doesn’t really ‘go’ anywhere. It is like a standing wave of collective intention; the accumulated FTP indicates the health of the network, the level of trust we have in one another.

Perhaps faith. Once our engagement occurs, our initial faith in one another will be honoured by trust. With small amount of money, small periods of engagement, and small projects, and over time this grows — based on results. Just like any enterprise or company or government or any social organisation in recorded history. It’s results driven. But to have results, one needs experimentation.

It’s up to you. Right now.

So, are you willing to gift £x forward to an engagement? You don’t have to pay that up after the engagement if you didn’t think it valuable. Of course not. But if you do think it is valuable, you will be happy to, and indeed, perhaps give more money forwards as your confidence in what we are doing is proven. Yes, in what we are doing. FTP is the financial protocol for collective co-creation. It is the process by which teams form in a network. And it operates from the get go.

Perhaps you will need some more information, so read on. Perhaps you need someone social validation, an article in some trusted source gets written at some point, or someone you know invites you to FTP later in the year, and after a few invitations, your trust of your friend or colleague overcomes the need for ‘understanding’ and you give it a go. And then, you will have experiential evidence of the experiment: how money-trust-time operate in ecosquared. Then it is for you to decide what to do next. Lovely.

This is a win-win-win solution. It’s just a matter of time. It’s a matter of who reads this: those who already resonates with it, and those who are willing to risk their word-action to test it. And of those who participate, those who can iterate a better version of engagement than this first, rather crude, iteration of video and blog post.

I look forward to meeting with you!

MTTP animation

Been working with a bunch of people on a new version of SEA equations, to include things. Well beyond my interest or experience, however, it does have more traction in the current economic system. After deriving some equations, they are making moves.

Meanwhile, I returned to the original MTTP contract and have seen the potential for a new version that is not pure p2p, but is more like the ha-ha structure, and I’ve tentatively named it FTP. More of that later.

Here’s an animation of the MTTP in action with fake numbers. Each bar indicates a person who has been invited (or is attracted, bigger bars) to the entity using pure p2p MTTP. They appear, and when they leave, they leave with double their money (unless they were attracted). An attracted player is the equivalent of a government player, or charity, where the work that is co-created by participants is for social good alone with no monetary attraction. Co-created value that does attract money (ie selling stuff), is distributed by SEA. Since participants are covered by MTTP contracts, this is Surplus, and with enough surplus, players will want to plough that back into the system — this is the ‘attractors’. Alternatively, for the initial months of the entity, all surplus is ploughed back in to honour MTTP contracts without going through individuals, by default.

THE NUMBERS ARE NOT ACCURATE, they are representational only.

Notice the inverted pyramid effect. Those entering at longer time scales honour the payment of those who are exiting at shorter time-frames. The red figure is the amount of money that is static or fixed as the guaranteed part of the invitational protocol. That is, the red represents the people who are currently in the system at the NOW line. The green figure is the amount of money that honours the MTTP contracts. It shows the health of the entire entity. When the green hits zero, the entire entity dies, and whoever is left in the system NOW will only receive their half of the MTTP contract, that is the money they came with. That is, they don’t lose, they just don’t win. This is the failure state of the entity, and it is dependent on the number of people who are invited and at what values.

Of course, this is just the ‘boundary’ of the entity. The real stuff is what do people co-create? This is what is sold, or does social good, or both.