# FY1 S2 W1 Economy

Economy must support and motivate producers to benefit consumers more and more over time. 

# Financing Operation

We will finance the cost of operating the economy in following ways. 

**Membership Fee**

To participate in our economy (as a consumer or a producer), a person must pay for the membership. 

| $59 | $199 | $599 |
| --- | --- | --- |
| 4 weeks | 16 weeks | 52 weeks |
| $15.00 per week | $12.50 per week | $11.50 per week |
| $2.14 per day | $1.79 per day | $1.65 per day |

Membership fee must cover our cost of providing necessity for everyone including safety and support. 

**Transaction Fee**

To participate in a transaction in our economy, a person must pay transaction fee in proportion to the transaction. 

We did not decide on the amount yet. 

We are even considering letting people voluntarily determine transaction fee amount in an auction system. This way, we may be able to provide zero transaction fee for customers who are not able or not willing to pay. 

**Energy Fee**

Due to scarcity, a person choosing to perform an operation (production or distribution) may limit the ability of another person to perform the same operation. To motivate reasonable spending of scarce capital, we will impose energy fee. 

We expect to charge this on compute capacity and store capacity. 

**Other Monetizations**

To make up for any gaps in operating the economy for people, we will provide first party services and products including our own services and products to consumers, technology standards for producers, advertisements for producers. 

# Motivating Producers

We will allocate scarce capital to producers who can best utilize (create great utility from the same capital). 

The best way to estimate the future contributions of a producer is to check the past contributions of the producer. 

Other than the output performance of the producer, we can also take into account the input effort of the producer, to enable slow starters to practice patiently and shine when they are truly ready. 

**Inflation**

Constant inflation motivates constant production. 

Max level increases by approximately 6% every season to reach 10X after 10 years. 

| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Summer | 0 | 55 | 70 | 90 | 110 | 135 | 175 | 225 | 275 | 350 | 450 | 55 |
| Winter | 50 | 60 | 80 | 100 | 120 | 150 | 200 | 250 | 300 | 400 | 50 | 60 |

**Daily Tasks**

A user can earn a currency by following tasks that we give. The tasks may be for the day, the week, or ever. 

# Explaining Economy

**Currency**

Names are placeholders. Consider alluding to common items or precious jewels to make it easy for people to understand them. 

- Wons: You can use an AI mind using wons. A small model like ChatGPT costs only 1 won per message. Wons recharge over time upto capacity. Capacity grows if you keep using wons. Users can send wons to other users.
- Parks: You can recharge wons upto capacity instantly using a park. You can buy park with cash.
- Juns: You can convert juns to wons. You earn juns whenever other users use AI minds you made and published on the AI store.

**Levels**

| Level | 0%-20% | 20%-40% | 40%-60% | 60%-80% | 80%-100% | 100% |
| --- | --- | --- | --- | --- | --- | --- |
| Capacity | 100 | 120 | 140 | 160 | 180 | 200 |

A person can read 250 words per minute = 15K per hour = 120K per day (8H). 

ChatGPT API costs $2 per 750K words = $0.3 per day (8H) = $9 per month (30D). 

Let us add more expensive models like Stable Diffusion later. For now, calculate using ChatGPT. 

Let user at max level chat 60K words (4H) from full capacity without recharging wons. 

Let wons regenerate from zero to full capacity over 12H for max level. 

Charging Rate is constant for all levels. Time to Charge to Full Capacity is different due to capacity difference. 

A short text message is about 150 words long. 60K words is 400 messages in a conversation or 200 messages sent. Let a short text message cost 1 bar since there is probably no operation that is cheaper than sending a short text message. Then capacity for max level must be 200. Wons must charge at a rate of 1 per 6 minutes. 

We may want to consider exponentially growing capacity in order to concentrate capital to top contributors in the economy.