Fondo Común/en

De Demarquía Planetaria

The Fund That Changes Everything: 5 Revolutionary Ideas About the Economy of the Future

Introduction

We live in an economic system that generates constant anxiety. We drown in the complexity of taxes, insurance, bureaucracy, the difficulty of obtaining capital for a good idea, and, above all, the paralyzing fear of failure. It is a labyrinth of opaque rules designed, seemingly, to squeeze us dry rather than support us

But what if there were an alternative model? One radically simple, centered on a single, powerful mechanism: a "Common Fund" that functions as the joint bank account of all humanity. A system where personal prosperity and collective well-being are not only not in conflict, but are one and the same by design.

This article explores the five most surprising and impactful ideas that emerge from this concept. Ideas that not only redraw the economic map but also transform our relationship with capital, risk, and everything else.

1. You are "Married" to all of Humanity (and it's the Best Economic News You'll Ever Receive)

This model begins with an idea that is both intimate and expansive: the 50% Universal Partnership (50P) unites you in a "planetary marriage" with every human being. Under this bond, 50% of all income generated by any economic activity flows into a "Common Fund" (CF), which is, in essence, the joint account of this great human family.

This relationship is not optional or symbolic; it is a structural commitment governed by the most important economic votes you could ever cast:

"In sickness and in health, in wealth and in poverty."

Why is this revolutionary? Because it transforms solidarity from an act of voluntary charity into an unavoidable structural reality. The "non-optional solidarity" of this system gives way to "Enlightened Selfishness": a logic where the suffering of others becomes, literally, your financial loss, and the success of others your direct gain. Helping others ceases to be altruism and becomes the most profitable financial strategy. The Planetary Dividend you receive monthly from this Common Fund is not charity; it is your "marital right" as a co-owner of the common enterprise called humanity.

2. The End of Taxes: You Participate Instead of Paying

In this system, ALL traditional taxes are eliminated. Say goodbye to VAT, income tax, corporate tax, and all the accompanying tax bureaucracy. The 50% contribution of profits to the Common Fund is not a tax, but rather the share that belongs to humanity as a universal partner that capitalizes you, supports you, and shares the risks with you It is a fundamental paradigm shift that redefines the relationship between the individual and the collective:

"You're not paying taxes: You're participating in a universal stock exchange."

This simple mental adjustment changes everything. We move from an "extractive" system, where a state entity takes your money, to a "participatory" system, where you share the profits with your global partners. It's crucial to understand that the Common Fund is not the state; in fact, in this model, the state as such no longer exists. The 50% that the entrepreneur retains is worth "infinitely more" than 100% in the previous system because the Common Fund capitalizes it and is free from the burden of taxes, insurance, social security contributions, accounting costs (which the system assumes), and the "hidden tax" of financial interest embedded throughout the supply chain.

3. Automatic Capital for Your Ideas: The Common Fund is Your Silent Investor Partner

Do you have an idea but no capital? In the current system, that's usually the end of the road. In this model, it's just the beginning. The Common Fund, which isn't a state entity but rather the shared pool of all the planet's co-owners, acts as an automatic co-investor for any venture. Instead of begging banks or investors, the system provides you with up to 50% of the capital you need almost instantly (within 24 to 48 hours) and without red tape. This access to capital doesn't depend on your prior wealth or connections, but rather on your verifiable reputation, measured by your "Trust Capital" (TC), a verifiable, algorithmic reputation metric that determines the maximum amount of capital you can access. This radically democratizes innovation, allowing talent without money to attract resources and turn ideas into reality.

The Joint Venture is the perfect "silent capital partner": it provides capital and shares the risks with you, but in exchange for its 50% share of the profits, it "doesn't interfere in operational management." Autonomy and control of the company remain with the entrepreneur.

4. Honest Failure Is Allowed (and Guaranteed)

The fear of failure is the biggest killer of innovation. The risk of losing everything paralyzes millions of potential creators. This model tackles that fear at its root with the Solidarity Risk Fund (SRF), a mechanism financed from the Common Fund itself If a project fails honestly, two extraordinary things happen. First, the Common Fund, as a 50% partner, assumes its share of the loss. Second, the FSR intervenes and covers up to 25% of the entrepreneur's personal loss. In this way, the risk is socialized, protecting the individual from financial ruin.

"Failure ceases to be an economic death sentence, becoming a lesson learned collectively."

This approach is structurally vital because it fosters a "purpose-driven economy" and "entrepreneurship by vocation." By removing the vertigo of financial ruin, the system frees people to pursue their passions instead of working merely to survive. Entrepreneurs have a safety net that protects not only their wealth but also their reputation: in the event of honest failure, their Trust Capital doesn't collapse drastically, encouraging them to take risks again.

5. The Fund is a River, Not a Swamp: Money Never Stagnates

One of the biggest concerns about a large collective fund is that it will become a quagmire of bureaucracy and corruption. The design of the Common Fund, which is not a state entity, completely prevents this. It is not a treasure trove that accumulates wealth, but rather an "automatic redistribution channel" that functions as the beating heart of the economy. It has three main sources of income: returns from the 50% Universal Partnership (AU50), royalties from the use of common resources (RUAC) —a fee paid for the exploitation of planetary assets such as oil, minerals, or the electromagnetic spectrum—and the value recovered from the "Oxidation" of idle money. It immediately distributes these funds to three main destinations: the Planetary Dividend for all citizens, the financing of essential services such as the Common Health Fund (CHF) —which universally covers healthcare needs—and reinvestment in new AU50 projects.

The key mechanism that guarantees this perpetual flow and prevents crises is " Selective Oxidation ." This system is the cure for the "Tyranny of Compound Interest," the mathematical engine that generates the inevitable debt crises of our current system. By causing stagnant money to slowly "evaporate" and its value to flow back into the Common Fund, the incentive for passive accumulation is eliminated, ensuring that capital is always circulating. This breaks the cycle of bubbles and collapses, creating an economy that is stable and dynamic by design.

Conclusion

The Common Fund is not just an economic mechanism; it is a social engineering tool designed to align, for the first time in history, self-interest with the common good. It transforms fierce competition into natural collaboration, fear into boldness, and artificial scarcity into shared prosperity These ideas don't just patch up a broken system; they reconfigure our economic DNA, transforming the zero-sum game of competition into a positive-sum reality where the smartest self-interested strategy is to ensure everyone else prospers. The final question is unavoidable and challenges us all:

What would we be able to create, individually and collectively, if our economic system were designed to support us instead of exploiting us?

Comparative Analysis of Public Treasury Models: Planetary Demarchy vs. Traditional Systems

Introduction: The Logic of Collective Treasure

The concept of "treasury" or public funds is the financial heart of any society. More than just a state entity, it represents the central mechanism through which a community manages its wealth, finances its ambitions, and mitigates its shared risks. The architecture of this treasury is not a mere technical detail; it defines the fundamental relationship between the individual, the community, and the value they both generate. This paper presents a rigorous comparative analysis between the innovative Common Fund (CF) model , proposed by the Planetary Demarchy, and the public treasuries of traditional economic systems, both capitalist and communist. The comparison will focus on the fundamental differences in their underlying philosophy, their funding and expenditure structures, and the practical implications each model has for society, economic stability, and individual motivation.

2.0 Philosophical Foundations and Nature of Property

The way a society defines ownership of natural resources and the means of production is the cornerstone of its economic system. This philosophical principle is not an abstract matter; it fundamentally determines the structure of its collective treasury, its collection mechanisms, and ultimately, the power dynamics between the individual and the community. It is the axiom from which all other rules of the economic game are derived

The Universal Planetary Co-ownership (UPC) in the Demarchy

The foundational axiom of the Demarchy is Universal Planetary Co-ownership (UPC) . This postulate is not presented as a moral ideal, but as an "inevitable conclusion of reality": the Earth and all its resources are the equitable and inalienable property of every human being by the simple right of birth. This is an ontological revolution that radically transforms the status of the citizen: no longer a "subject" or a "tenant" in a world owned by others, but a "legitimate co-owner of the planet ." The Common Fund, therefore, is not an external entity like a state, but the financial materialization of this co-ownership: the "common fund" of the association of co-owners of the planet. Crucially, this institutional architecture posits that the Common Fund IS NOT THE STATE; THE STATE NO LONGER EXISTS .

Private Property in Capitalism

Capitalist systems are based on the principle of private ownership of the means of production and natural resources. Within this framework, wealth is generated by private actors (individuals or companies). The public treasury, embodied in the state, exists under a "social contract" to provide public goods and services (security, infrastructure, etc.). Its financing depends on the coercive extraction of a portion of private wealth through a complex tax system. The relationship is, in essence, that of a sovereign entity that taxes the activity of private owners to sustain itself.

State Ownership in Communism

Traditional communism, in contrast, is based on the abolition of private ownership of the means of production. All productive property is consolidated in the hands of the State, which acts as the sole manager, planner, and owner on behalf of the collective. In this model, the concept of "taxation" becomes obsolete, as the State directly appropriates 100% of the value generated, a dynamic that the demarcist model crudely summarizes in the comparison: "Before (communism): Creator 0%, State 100%."

Comparative Table of Fundamentals

Principle Planetary Demarchy Traditional Systems (Capitalism/Communism)
Source of Legitimacy Birthright. The Earth is an inalienable common heritage Capitalism: Right to private property.

Communism: Collective ownership exercised by the State.

Role of the Citizen Legitimate co-owner. Shareholder of the planet by birthright Capitalism: Owner/worker subject to taxes.

Communism: Member of the collective, subordinate to the state plan.

Nature of the Treasury Common Fund. Co-owners' association fund Capitalism: State Treasury, financed by tax extraction.

Communism: The State itself, as absolute owner.

This axiomatic divergence on ownership is not merely theoretical; it inescapably dictates the architecture of treasury financing, forcing a fundamental choice between participation as a partner and extraction as a sovereign.

3.0 Financing Mechanisms: Partner Participation vs. Coercive Extraction

The ownership philosophy of each system translates directly into the institutional engineering of its financing. This raises a fundamental strategic question: are treasury funds generated through structural and automatic participation in value creation, or are they obtained through the coercive extraction of wealth once it has already been generated by others?

Planetary Demarchy: The Flows of the Universal Partner

The Common Fund is fueled by three income streams that, by design, are not taxes, but rather the returns that correspond to him as a co-owner and universal partner.

  1. 50% Universal Partnership (AU50): This is the core mechanism. Far from being a tax structure, AU50 formalizes a "planetary marriage," an economic and existential bond that acknowledges our interdependence. In exchange for the automatic co-investment of capital and sharing 50% of the risk, the Common Fund receives 50% of the net profits from all economic activity. This is not a withdrawal, but rather the legitimate dividend of a capitalist partner.
  2. Royalty for the Use of Common Assets (RUAC): This represents the fair fee paid by companies or individuals for the private use of resources that are the common heritage of all (minerals, electromagnetic spectrum, land, satellite orbits, etc.). It is the payment to co-owners for the exploitation of their common assets.
  3. Selective Oxidation: This innovative mechanism is the slow and automatic "evaporation" of idle capital. Its main function is to replace the tyranny of compound interest and thus eliminate the mathematical cause of boom-and-bust cycles ("crises as programmed resets"). The value that "oxidizes" does not disappear, but rather flows into the Common Fund, forcing the constant circulation of money.

Capitalism: The Tax Extraction System

In capitalist systems, the public treasury is financed through a system of coercive taxation . Once individuals and businesses have generated their wealth (100% of which is initially considered private), the state intervenes to claim a portion through multiple taxes (VAT, personal income tax, corporate tax, etc.), a structure that the demarc model seeks to eliminate entirely

Communism: Direct Appropriation

In traditional communism, since the state is the sole owner of all means of production, there is no "taxation" mechanism in the capitalist sense. The treasury is simply the state itself, which appropriates 100% of the surplus generated by state-owned enterprises and then reallocates it according to its central plan.

Synthesis of Mechanisms

  • Planetary Demarchy: The Common Fund acts as a universal partner . It receives its share of the profits (AU50), charges for the use of its assets (RUAC), and benefits from the fluidity of the system (Oxidation).
  • Capitalism: The State acts as a sovereign tax collector . It extracts a portion of the wealth already created by private actors through a mandatory tax system.
  • Communism: The State acts as the absolute owner . It appropriates all the value generated by the economy it centrally controls.

The financing architecture inevitably determines the distribution logic. Therefore, the question that arises is: once the treasury is financed, how and for what fundamental purpose are those funds distributed within each system?

4.0 Spending and Distribution Logic: Universal Dividend vs. Public Spending

The way a collective treasury distributes its funds reveals a society's fundamental priorities and its vision of the individual's role. Is the primary goal to directly empower citizens through a right to share in wealth, to provide services centrally, or to direct the economy according to a predetermined plan?

The Common Fund: Direct Distribution and Reinvestment

The Common Fund's spending is designed to be automatic, transparent, and focused on direct capitalization for citizens and the economy. Its four main uses are:

  1. Planetary Dividend (PD): This is the priority allocation. The majority of FC's income is distributed directly and monthly to each citizen, unconditionally. It is not charity, social assistance, or a basic income: it is the legitimate dividend that corresponds to each citizen as a co-owner , analogous to "marital rights" in planetary marriage.
  2. AU50 Capitalization: A portion of the funds is reinvested to finance 50% of the new companies, ensuring a virtuous cycle of innovation and growth.
  3. Solidarity Risk Fund (FSR): A percentage is allocated to this fund, which absorbs a significant part of the losses in business projects that fail honestly, and the claims of both companies and individuals, making private insurance unnecessary and socializing the risk.
  4. Common Administration (CA) financing : Covers the costs of essential and auditable common goods, such as the Common Health Fund (CHF) and basic infrastructure.

Public Spending in Capitalist Systems

In capitalism, public spending focuses on providing services and programs defined by the government. The main expenditures are typically defense, the bureaucracy, social welfare programs (often conditional and not universal), and a significant allocation for servicing the public debt—a cost that does not exist in the democratic model.

Distribution in Communist Systems

In traditional communism, distribution is not an "expenditure" but an allocation of resources according to a central economic plan. The state decides which sectors to prioritize (heavy industry, defense) and provides universal services (health, education) directly and centrally, without a monetary transfer analogous to a dividend.

Comparative Table of Return to the Citizen

System Main Return Mechanism Nature of the Return
Planetary Demarchy Planetary Dividend (PD) Property rights. A direct dividend for being a co-owner.
Capitalism Services and Social Welfare State benefit. Aid or a service provided under a social contract
Communism Direct Provision of Goods and Services State Allocation. Resources distributed according to a central plan

This divergence in distribution logic has direct and profound consequences on the incentive architecture that drives (or hinders) wealth creation in each system.

5.0 Impact on Individual Motivation and Wealth Creation

Individual motivation is the ultimate driver of any economic system. This section assesses how each model of wealth and ownership aligns (or misaligns) self-interest with collective well-being to foster innovation, productivity, and collaboration.

Demarchy: The "Enlightened Selfishness"

The institutional engineering of the Demarchy is designed to channel natural selfishness through the concept of " Enlightened Selfishness . " The architecture of AU50 (where 50% of all profit goes to the Common Fund) and the Planetary Dividend (which everyone receives from that fund) creates a mathematical reality where "the success of others is literally your success ." Since any increase in the prosperity of another increases the income of the Common Fund and, consequently, one's personal Planetary Dividend, the dynamics change radically. Collaboration becomes the optimal strategy, because, as the model states, "the most selfish strategy is to be extraordinarily generous and collaborative." With survival guaranteed by the Planetary Dividend, entrepreneurship ceases to be a desperate necessity and becomes an expression of vocation and creativity.

Capitalism: The Profit Motive and Competition

Motivation in capitalism centers on individual profit and competition . While this system is a powerful engine of innovation, its incentive architecture often fosters a zero-sum mentality ("for me to win, you have to lose"). This can lead to the creation of monopolies, the externalization of costs, and increased social inequality, misaligning private interest with collective well-being.

Communism: Collective Duty and Ideology

In traditional communist systems, motivation is theoretically based on collective duty and ideological adherence . Historically, the absence of a direct personal reward for extra effort or innovation has generated well-known disincentives. When individual results are not distinguished from collective ones, productivity and creativity tend to stagnate due to a deficient incentive structure

These different motivational drivers not only affect wealth creation, but also have profound consequences for the resilience and systemic stability of each economic model.

6.0 Economic Stability and Crisis Management

Long-term stability is a crucial objective of any economic system. Treasury architecture and its associated mechanisms—such as money management, risk hedging, and failure response—are key determinants of systemic resilience.

Demarchy: Stability by Design

The Demarchy incorporates anticyclic mechanisms designed to create an intrinsically stable system.

  • Selective Oxidation vs. Compound Interest: By replacing compound interest (which generates exponential debt growth in a finite world) with selective oxidation, the mathematical cause of bubble and crash cycles is eliminated. Oxidation forces the circulation of money, acting as an automatic stabilizer.
  • Solidarity Risk Fund (SRF): This mechanism socializes business risk. An honest failure does not lead to personal ruin, but is considered a "collective learning experience ." Society, through the FC and the SRF, absorbs most of the loss, fostering a culture of bold innovation.

Capitalism: Cyclical Instability

Capitalist systems are known for their inherent instability, characterized by cycles of expansion and recession . These crises are described in the demarchic model as a "programmed reset ," the inevitable moment when the fiction of exponentially growing debt collides with the reality of a finite physical economy. Entrepreneurial risk is private, but systemic failures are often socialized through state bailouts

Communism: Rigidity and Scarcity Crisis

Stability in communist systems manifests as structural rigidity . By eliminating markets, financial crises are avoided, but this rigidity often leads to shortages, massive productive inefficiency, and a chronic inability to adapt to changing needs and technological innovations

Managing Business Failure: A Direct Comparison

  • Demarchy: Losses are shared. In the event of a total loss, the Common Fund (partner's 50% stake) covers half, and the Solidarity Risk Fund (SRF) covers an additional 25% of the total loss. The entrepreneur only assumes the remaining 25%. Failure is a shared lesson, not personal ruin.
  • Capitalism: The risk is 100% private. The result is the potential personal bankruptcy of the entrepreneur, unless the company is so large that it requires a state bailout with public funds.
  • Communism: Failure is entirely absorbed by the state. It is often hidden within the general inefficiency of the central plan and does not result in efficient systemic learning.

These approaches to stability and risk prepare the ground for a final synthesis on the paradigms that each system represents.

7.0 Concluding Synthesis: Three Paradigms of Collective Wealth

This analysis has revealed three fundamentally different visions of how a society should generate, manage, and distribute its collective wealth. Each model of public treasury reflects an underlying paradigm regarding ownership, risk, and the relationship between the individual and humanity. The capitalist paradigm is defined by the primacy of private property and a public treasury that operates as a sovereign tax collector, financed through taxation. Its driving force is competition, which generates a high capacity for innovation at the cost of cyclical instability and a tendency toward inequality.

The communist paradigm is based on absolute state ownership and centralized control. The state itself is the treasury, appropriating and reallocating all the value produced. It seeks equality through planning, but historically has sacrificed individual freedom and economic efficiency.

The Planetary Demarchy paradigm , through its Common Fund, proposes a third way: universal co-ownership and automatic participation in the value created . It is neither private nor state-owned in the traditional sense; it is a common patrimony managed by all as a universal society. Its architecture seeks to resolve the inherent contradictions of the other two systems by mathematically aligning individual interest with collective progress . By making every citizen a capitalist partner of the planet by birthright, the Common Fund model transforms the economic dynamics of zero-sum competition or forced collectivism into a system of collaboration based on "enlightened self-interest," where the success of one is, by design, the success of all.

What is the Common Fund?

The Common Fund (CF) is "The Fund" of the "Community of Co-owners of the Planet" It is not a state entity since the state as such no longer exists.

The Planetary Demarchy is managed as a community of collaborative co-owners in a horizontal relationship without hierarchies.

It is, among other things, the investment fund owned by all citizens, which makes them co-owners of 50% of all companies on the planet through the 50% Universal Partnership (AU50) mechanism ; it is the common piggy bank where we deposit 50% of our income and the entity that distributes the Planetary Dividend.

The Common Fund is primarily funded by 50% of all income, whether personal or business income.

It is not a state fund or a government entity with bureaucracy. It is an automated structure managed by the ASI-AdC and overseen by the Citizens' Assembly , whose purpose is:

  1. Capitalize the productive economy by acquiring (buying or increasing capital) 50% of all companies.
  2. Receive 50% of the company's profits as a return on that shareholding.
  3. Receive 50% of the net income of individuals, whether from employment income or other sources.
  4. Manage other collective income ( RUAC , oxidation ) and channel it towards the common good.
  5. To finance the Common Administration (CA) and its projects such as the Common Health Fund (CHF) and the Solidarity Risk Fund (SRF)
  6. Redistribute those remaining profits directly to citizens through the Planetary Dividend .

The Common Fund does not "control" the companies. It is a silent capital partner : it provides capital, shares risks, receives profits, but does not interfere in operational management . The entrepreneurs continue to decide what to produce, how to produce it, and how to manage their businesses.

Origin of the Common Fund

The FC is created during the transition from the current system to the mature Demarchy. Its construction involves three stages:

Phase 1: Infrastructure Construction (1-3 years)

During this initial phase:

  • The Common Vault is being built , the technological infrastructure that supports the entire system.
  • The FC does not yet formally exist, but its legal framework is being prepared and resources are being released through:
* Elimination of obsolete bureaucratic spending.
 * Progressive tax simplification.
 * Preparation for the IUT .

New entrepreneurs are invited to voluntarily join the AU50 pilot program, where the fledgling venture capital firm provides them with seed capital in exchange for a 50% equity stake. This allows for small-scale validation of the model before a large-scale rollout.

Phase 2: IUT and AU50 Operational (4-6 years)

Once the infrastructure is ready, the FC is capitalized through three simultaneous sources :

1. Collection of the Single Transitory Tax (IUT)

During this transitional phase, companies and self-employed individuals not on AU50 pay the IUT: a 50% tax on all personal benefits withdrawn into consumption accounts.

By way of example, and understanding that it is merely illustrative:

This revenue generates between 80 and 100 billion euros annually (figure for Spain; scale proportionally according to country), coming from:

  • Savings from eliminating tax bureaucracy: ~€60,000M/year.
  • Formalization of the underground economy: ~€25,000 million/year.
  • First returns from companies already integrated into AU50.

These funds are entirely intended to capitalize the entry of existing and new companies into the AU50.

2. Purchase of 50% of Existing Companies

The FC does not expropriate . It buys 50% of the companies through two options that the entrepreneur freely chooses:

Option A: Direct Sale

  • The company sells 50% of its capital to FC at a fair market valuation (audited by an independent IA).
  • The owner receives immediate liquidity in currency or Pre-UVU tokens.
  • He continues to manage the company with full autonomy.

Option B: Capital Increase

  • The FC injects capital equivalent to 50% of the company's current value.
  • This doubles the available resources without diluting the original capital.
  • Example: if your company was worth €1M, it is now worth €2M, with FC at 50%.

The entrepreneur chooses the formula that best suits their needs: immediate liquidity, capital for expansion, or a combination of both.

Irresistible incentives to join AU50:

  • Zero taxes and insurance premiums forever (goodbye VAT, corporate income tax, personal income tax, self-employed contributions, fees...).
  • Automatic capital of the FC for expansion, R&D, robotization.
  • Shared risk : the FC absorbs 50% of potential losses.
  • Access to subsidized robots and AI to compete with large corporations.
  • Zero tax bureaucracy, zero paperwork : Your business partner handles the accounts and administration. Your job is simply to produce and sell.

3. Capitalization of New Companies

Entrepreneurs starting new businesses choose between:

  • IUT option : operate independently, paying 50% on profits withdrawn for personal consumption.
  • AU50 Option : partner with the FC from the start, receiving 50% of the necessary capital without direct taxes.

The FC provides automatic capital to fund thousands of new companies each year. For example, in Spain, with €80 billion available annually, approximately 3 million companies (new and existing) can be funded with an average of approximately €25,000 per company.

Phase 3: Single Treasury Account and Mature Economy

After the Single Fund , FC reaches its definitive state:

  • It owns 50% of all companies on the planet operating under AU50.
  • The IUT disappears completely: zero taxes for the entire economy.
  • The FC automatically receives 50% of the company's profits in perpetuity.
  • These benefits are redistributed directly as a Planetary Dividend to all citizens.

Sources of Income of the Common Fund

In a mature demarc economy, FC is fed by three main sources of real value :

1. RUAC ( Royalty for Use of Common Assets )

Natural resources ( oil, gas, minerals, water, electromagnetic spectrum, satellite orbits, airspace, oceans) are the common heritage of humanity .

Any entity (company or individual) that exploits these resources privately pays royalties to the FC proportional to the value extracted or the use made:

  • Mining extraction: royalty on tons extracted.
  • Fishing exploitation: royalty on catches.
  • Use of electromagnetic spectrum (telecommunications): annual royalty per frequency.
  • Satellite orbits: royalty for use of orbital positions.

These royalties are not arbitrary taxes: they are fair payments for using resources that belong to everyone.

2. AU50 Returns

Fifty percent of the profits of all companies and private incomes on the planet flow automatically into the FC. We are all partners in each other. It's not a tax, but the natural return to the partners who own 50% of the corporate capital and private income. It's like a community property marriage among all of humanity. Each quarter, each AU50 company automatically transfers (via the Common Vault) 50% of its net profits to the FC. This flow is:

  • Automatic : no declarations, no bureaucracy.
  • Transparent : auditable in real time by any citizen.
  • Proportional : more profitable companies contribute more; companies with losses do not contribute (FC absorbs their share of losses).

3. Oxidation

Oxidation is a programmed property in certain types of tokens that causes stagnant money to automatically lose value, and that "evaporated" value flows directly to the FC to be redistributed as a Planetary Dividend Indicative oxidation rates:

Asset Type Monthly Oxidation Rate Destination
UVUs in Productive Investment 0% Not applicable
UVUs in inactive account 0.5 to 1% Common Fund
Inert Assets (stored gold, unexploited patents, vacant land) ≈ 0.5% Common Fund

Oxidation is not a punishment: it is an economic thermostat that incentivizes (replacing obsolete compound interest) the circulation of money

What does the Common Fund do with those revenues?

The FC does not accumulate wealth . It is a channel for automatic redistribution .

  1. Monthly Planetary Dividend : The majority of income is redistributed directly to all citizens as a property right, not as a universal basic income.
  2. Reinvestment in AU50 : Financing of new companies, capitalization of expansions, collective R&D.
  3. Common Health Fund (CHF) Finances health and medical research, prioritizing it over any other expenditure.
  4. Solidarity Risk Fund (FSR) : Absorption of losses from companies and individuals due to accidents, replaces insurance.
  5. Public infrastructure : Maintenance and expansion of the Common Vault , energy networks, transport, education, health.

5. Strategic reserve : Buffer for planetary crises (pandemics, natural disasters, disruptive technological transitions).

The FC does not finance armies, unnecessary bureaucracy, or politicians . These concepts do not exist in a mature Demarchy.

Benefits of the Common Fund for Each Actor

For citizens

  • Guaranteed Planetary Dividend for life, regardless of whether they work or not
  • Zero taxes forever.
  • Shared risk : the FSR and the FSC replace all insurance free of charge and automatically.
  • Economic security : automation benefits everyone, not just robot owners.
  • Radical transparency : they can audit in real time how much the FC generates and how it is distributed.
  • Real collective ownership : each citizen is an indirect co-owner of 50% of the entire planetary economy.

For entrepreneurs

  • Zero taxes forever.
  • Automatic capital from FC to grow without going into debt.
  • Shared risk : the FC absorbs 50% of potential losses.
  • Zero tax bureaucracy : no more declarations, agencies, defensive auditors.
  • Restored competitiveness : access to robots and AI at the same level as large corporations.
  • Non-interfering partner : the FC does not participate in operational decisions; it only receives dividends.

For society

  • Structural inflation = 0 : the FC redistributes existing value, it does not create money out of thin air
  • Shared risk : You no longer need insurance.
  • Architecturally limited inequality : it is impossible to accumulate capital indefinitely without adding value (oxidation + AU50).
  • Automation = shared prosperity : robots work for everyone, not just an elite.
  • Elimination of structural poverty : the Planetary Dividend and the insurance system guarantee universal dignity.

The Common Fund Is NOT...

It is NOT a state fund

It cannot be, because the state no longer exists. It has no bureaucracy, officials, ministers, or politicians making discretionary decisions. It is an automated entity managed by transparent algorithms and democratically overseen by the Citizens' Assembly.

It is NOT expropriation

The FC buys 50% of the companies at fair valuation. The entrepreneurs receive liquidity or fresh capital in return. Nobody loses anything; everyone wins

It is NOT communism

Private property exists; there is no state ownership (the entrepreneur retains their 50%, and the other 50% is privately owned by the rest of humanity and managed by the FC). Businesses compete freely in the market. The FC does not centrally plan what is produced or how. It is capitalism with automatic mixed private ownership . Personal private ownership + collective private ownership

It is NOT a "slush fund for politicians"

Professional politicians do not exist in the Demarchy. The Citizens' Assembly, selected by lottery, oversees the FC, but cannot spend a single cent at its discretion. All capital outflows are algorithmically programmed and auditable in real time.

Supervision and Transparency

The Common Fund operates under radical transparency :

  • Public Common Vault : Any citizen can audit in real time:
* How much money does the FC have?
 * Where the income comes from (AU50, RUAC, oxidation).
 * Where each UVU is allocated (Planetary Dividend, reinvestment, FSR...).
 * Which companies are associated and how much they contribute.

* Audit ASI-AdC decisions in the management of the FC.
 * Modify parameters (oxidation rates, percentage allocated to Dividend vs reinvestment).
 * Dismiss and replace the ASI-AdC if it detects critical malfunction.
  • Open source code : The algorithms that manage the FC are public and auditable by any independent expert.

Comparison: Current System vs. Common Fund

Concept Current System With Common Fund (Demarchy)
Taxes VAT, Personal Income Tax, Corporate Income Tax, Property Tax, Social Security, fees... (20-50% of total burden) Zero taxes (the FC receives 50% of profits as a shareholder)
Business Ownership 100% Private (or 100% State in socialism) 50% Individual Private, 50% Collective Private (AU50)
Redistribution Via taxes (inefficient, opaque, discretionary) Via Planetary Dividend (automatic, transparent, universal)
Automation Benefits only robot owners → mass unemployment Benefits everyone via FC → shared prosperity
Bureaucracy Armies of civil servants, agencies, tax advisors Zero bureaucracy (automated management by ASI-AdC)
Business risk 100% assumed by the entrepreneur 50% shared with the FC (Solidarity Risk Fund)
Transparency Opaque (hidden budgets, discretionary spending) Radical (auditable in real time by any citizen)

Frequently Asked Questions

How is the 50% stake in a company that the FC buys valued?

Market valuation audited by an independent AI. If there is disagreement, an additional AI audit from another consortium or even independent human arbitration may be requested

What happens if an AU50 company goes bankrupt?

The FC absorbs 50% of the losses through the Solidarity Risk Fund. The entrepreneur is not personally ruined; they can try again without carrying debt.

Can the FC force me to sell my company?

No. Integration into AU50 is voluntary during Phase 2. Only during Phase 3 (Planetary Single Box), when the entire economy merges, is the universal transition complete. But even then, you can enter Island Mode ; Demarchy is not mandatory.

Who decides how FC's money is spent?

There are no "discretionary decisions". The flows are algorithmically programmed:

  • X% → Planetary Dividend (majority).
  • Y% → Reinvestment in AU50.
  • Z% → FSR and reserves.

The Citizens' Assembly by Lottery can modify these percentages with the due procedure, but it cannot arbitrarily "spend" it on discretionary projects without technical justification validated by the ASI-AdC and the AdC.

Does the FC cause inflation?

No. The FC redistributes existing value; it does not create new money. The Planetary Dividend transfers existing UVUs from the FC to citizens. The total sum of UVUs in circulation (M) remains constant. Therefore, M × V ≡ Q holds, and inflation is zero by design

See also

50 Percent Universal Partnership • Planetary Dividend • Oxidation • Transitional Single Tax • Common Vault • Universal Unit of Value • Artificial Intelligence in Governance • Single Treasury Account During Planetary Takeoff

Explore Demarchy in Greater Depth

Philosophical Foundations

Understand why Demarchy is necessary and how it is founded:

Diagnosis of the Current System

Analysis of the Conditioned Individual

Foundations of Individual Liberation

Mathematical and Architectural Principles

Solutions for the AGI/ASI Challenge

Understand why Demarchy is Necessary to Face the Future:

Economic System

The architecture that aligns individual prosperity with collective well-being:

Governance

How collective decisions are organized without permanent elites:

Technology and Infrastructure

The tools that make the system possible:

Law and Justice

The legal framework that protects sovereignty:

Culture and Society

Human Transformation in the Post-Scarcity Era:

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