Primary Issuance of BP Money: Bulk and Derivative Claims

Given the ByProducts Economy, the primary issuance of BP Money to businesses is tied to the value of the byproducts they generate or utilize. To quantify this value and determine the amount of BP Money that can be issued, the system recognises an originating Bulk Claim and secondary market and Derivative Claims.

Contents:

1. Bulk Claims
2. Derivative Claims
3. Commodification: Origination and Monetarisation
4. Commodities-Based Primary Issuance
5. Related Articles
6. External Weblinks

Bulk Claim

• Determinant: The Bulk Claim is attached to the primary product itself. It represents the potential value of all by-products that can be derived from that primary product throughout its lifecycle.
• BP Money Multiplier: The Bulk Claim serves as the basis for calculating the BP Money Multiplier for the primary product. This multiplier determines the amount of BP Money that the business is authorized to issue for each unit of the primary product sold or processed.

Derivative Claim

• Determinant: Derivative Claims are associated with the second and subsequent order by-products generated from the primary product. They represent the value of these by-products and their potential for further transformation or utilization within the ByProducts Economy.
• BP Money Multiplier: Each Derivative Claim also has a corresponding By-Products Money Multiplier, which determines the amount of BP Money that can be issued based on the value and quantity of the specific by-product.

Commodification: Origination and Monetization

The distinction between Bulk and Derivative Claims allows for a more nuanced and precise valuation of by-products within the ByProducts Economy. It recognizes that the value potential of by-products extends beyond the initial stage of production and can be realized through multiple stages of transformation and utilization.

1. Incentivizing ByProduct Utilization: By assigning value to by-products through Derivative Claims, the system encourages businesses to explore innovative ways to utilize these resources, promoting a circular economy and reducing waste.
2. Dynamic Value Creation: The Perpetual Multiplier concept, where each by-product can lead to the generation of further byproducts, is supported by the system of Derivative Claims. This fosters a dynamic process of value creation within the ByProducts Economy.
3. Transparent Accounting: The use of Bulk and Derivative Claims provides a transparent and accountable mechanism for tracking the value of byproducts and the associated BP Money issuance.

Commodities-Based Primary Issuance

The concepts of Bulk and Derivative Claims play a crucial role in the primary issuance of BP Money. They provide a framework for valuing by-products and determining the appropriate amount of BP Money that can be issued by businesses. This system encourages sustainable practices, promotes a circular economy, increased job creation and facilitates transparent accounting within the By-Products Economy.

Related Articles

• BPM Digital Coin: Self-Sovereign Universal Fiat
• BP Money, The Currency of the ByProducts Economy
• Scientific Coherence of BP Monetary Systems
• The Perpetual Multiplier
• Governance & Issuance of BP Money

External Weblinks

• BPM Digital Coin Website