Companies that create applications, goods and services have the biggest incentive for a stable and thriving economy. That makes them the most trusted parties and qualifies them to receive TENDER emissions. Since the emissions are a loan, it comes as no surprise that the TENDER economy emits newly minted money to those enterprises that are in need of a loan. For instance, to fund further development.
The TENDER combines the funding incentive with the process of dynamic money supply. Newly emitted TENDER are distributed to economy enterprises who applied for (further) funding up to the point when their funding application is met.
Example of process
In the very beginning, Pacio will be the only party in the governing body. Thanks to 100% voting power, it can vote other projects/companies into the governance. These “other” projects apply for funding with a business plan which specifies the required sum, how it will be spent, what the business model is, where the users will come from, and the period before repayments start. The plan is used to decide whether the economy will benefit from the applicant’s business.
The governing members rate the applications. According to the rating, they are queued for funding. If they get no rating, they are on the bottom of the queue and will probably never receive funding. Newly funded enterprises get a seat on the governing body, diluting voting power and making the process more democratic.
Restricting governance to enterprises who previously applied for funding has an elegant side effect. It strengthens their loyalty to the economy and further increases their incentive to protect and support it.
Paying back the loan, participating in governance and positive behaviour increase the likelihood of being granted funding in the future since funding is granted when a project seems beneficial to the economy. What company would ever forgo a zero- interest loan?
When TENDER are emitted, they are distributed to applications that had previously applied for funding and had been approved. The emission mechanism depends on a variety of quantitative factors, such as the app’s ratings by the governing members, the emission rate, and the number of apps. When their funding request in TENDER is met, the next app in line receives emitted TENDER.