Oxidación Selectiva/en

De Demarquía Planetaria

Automatic evaporation mechanism of idle capital that transforms money from a static asset into a perpetual flow, eliminating stagnation. This mechanism makes compound interest unnecessary and aims to ensure that money is not idle but is always generating more wealth for everyone.

Selective Oxidation is the hemodynamic engine of the demarchical system. It is not a tax, but a profound transformation in the nature of money within the Tokenized Economy :

  • In the traditional capitalist system , money functions primarily as an accumulating asset. It allows value to grow over time even without productive use, enhancing compound interest and the transmission of generational wealth, without necessarily requiring ongoing social contribution.
  • The Tyranny of Compound Interest : the infinite growth of debt clashes with the finite growth of real wealth.
  • Disappearance of Interest, as a result of Selective Oxidation. Interest is no longer needed to incentivize the movement of money.
  • In Demarchy , money is fundamentally a flow. Its value is maintained or increased only when it is used to generate real or social value. If it remains idle, it undergoes a gradual "evaporation" through selective oxidation, incentivizing investment, lending, or participation in the common good. There is no interest, but rather a mechanism of reverse oxidation, evaporation, and rain, which transforms passive accumulation into a source of collective value.
Transformation of Money in the System
Aspect Capitalism Demarchy System
Nature of Money Static Asset Dynamic Flow
Accumulation Allowed indefinitely It evaporates (1% monthly)
Source of wealth Possession + interest Real value creation
Primary incentive Save More Invest / Lend
The Power of Money Grows Over Time Decreases if inactive
Result Hereditary concentration Dynamic meritocracy

Selective Oxidation and the disappearance of compound interest represent the overcoming of rentier capitalism, paving the way for a model where individual benefit always entails a positive collective return. Prospering in Demarchy is always synonymous with contributing value for all.

Introduction

The 2 problems it solves, let's start with the smaller one

Static money is the soul of rentier capitalism: RENTIER CAPITALIST CYCLE:

1. Person accumulates capital C

2. Capital generates interest → Grows simply by existing

3. You don't need to work, just own

4. Generations inherit → Capital grows exponentially while contributing little or even negatively to the rest of society

5. Result: Perpetual oligarchy, which greatly enriches one person while impoverishing the rest with their interests.

MATHEMATICS OF THE PROBLEM: 

Capitalist accumulates: 1,000,000 UVU
Annual interest: 5%
Year 1: 1,050,000 (earned 50,000)
Year 5: 1,276,282 (earned 276,282)
Year 10: 1,628,895 (earned 628,895)
Year 20: 2,653,298 (earned 1,653,298)
Year 30: 4,321,942 (earned 3,321,942)

Conclusion: In 30 years, he tripled his wealth without creating anything, based on interest that others had to pay.
Power is hereditary, automatic, irrevocable.

Selective Oxidation completely reverses this.

The Solution: Reversing Interest

Instead of money that GROWS over time, money that DECREASES if not used productively: 

Capital: 1,000,000 UVU (idle, uninvested)
Monthly oxidation: 1%

Month 1: 1,000,000 × (1 - 0.01) = 990,000
Month 2: 990,000 × (1 - 0.01) = 980,100
Month 6: 1,000,000 × (1-0.01)^6 = 941,480
Month 12: 1,000,000 × (1-0.01)^12 = 886,537
Month 24: 1,000,000 × (1-0.01)^24 = 786,314
Month 60: 1,000,000 × (1-0.01)^60 = 547,209

Conclusion: In 5 years, it lost 45% of its value due to inactivity.
Hoarding is financially suicidal.

Philosophical result: Money ceases to be an asset and becomes a responsibility.

If you have money and don't use it productively, you slowly lose it. If you invest it, you protect it.

The Biggest Problem It Solves: The Tyranny of Compound Interest

"He who sets rules against the current of the universe, always fights and always loses."

It is imperative to diagnose the fundamental disease that makes our current economic system not only unfair, but mathematically unsustainable .

The system is based on a deception that is as simple as it is devastating: interests .

The Inevitable Collision: Infinity vs. Finite

The money generated by interest is a number, and numbers, by their abstract nature, can grow to infinity through the magic of compound interest

The real economy, however, is not a number . It is a physical system, composed of tangible resources, energy, and human labor time. It has limits.

Herein lies the inevitable collision: the infinite growth of debt clashes with the finite growth of real wealth .

A debt with compound interest doesn't grow linearly in parallel with the productive economy; it doubles, quadruples, grows exponentially. If it continues, it demands to be repaid with more value than exists in the physical world.

Sooner or later, the mathematical curve of debt shoots up towards infinity, demanding an amount of resources that exceeds the atoms available on the planet to represent it.

Crises are not an accident, they are a programmed reset

When abstract debt becomes so enormous that it is impossible to repay with real production, the system collapses. We call this unintentionally programmed collapse an "economic crisis."

Crises are not an unforeseeable failure of the system; the system is like that , they are like earthquakes for the Earth, a readjustment to restore balance, a necessary and undesirable characteristic of it.

They are the violent "reset" mechanism that attempts to reconcile the fiction of infinite debt with the reality of a finite world. It is the way the system purges unpayable debts so that it can begin the cycle again.

Every "reset" translates into real human suffering :

  • Bankruptcies
  • Evictions
  • Mass unemployment
  • Forced austerity

...only to start the same deadly cycle again, inflating the next debt bubble which, however much is done, will inevitably—as centuries of history have shown—burst again.

The Demarchic Solution: Aligning Mathematics with Reality

Demarchy attacks this disease at its root. As we will discuss in detail below, it does so by prohibiting interest as the driving force of the economy and replacing it with:

It eliminates the possibility that abstract debt will grow faster than the real economy.

In our new system, value is created and shared in direct proportion to tangible economic activity, not through the fictitious multiplication of numbers.

The cycle of recurring crises is broken because the economy is no longer forced to follow the impossible rhythm of an exponential mathematical formula. A stable, fair system is built, and for the first time, one synchronized with the laws of the physical world .

The Direct Consequence: The End of the Hidden Tax in Every Price

Once the tyranny of compound interest is understood, its most tangible consequence in our daily lives is revealed: the invisible cost that inflates the price of absolutely everything we buy

The Hidden Tax

Various economic studies estimate that between 20% and 40% of the final price you pay for any product or service does not correspond to the labor, materials, or innovation

That percentage is the snowball effect cumulative cost of the interest on the capital needed at each step of the production and supply chain.

It is a gigantic hidden tax , a financial toll that we all pay to the banks and the owners of capital simply for allowing the economy to function.

From the bread you eat, to the clothes you wear, to the house you live in, a substantial portion of its cost is nothing more than the sum of the interest paid by the farmer, the transporter, the manufacturer, and the seller.

Even if you pay everything in cash, you are still paying the interest for others .

In the Demarchy, this Cost Disappears Completely

By eliminating interest and replacing debt-capital with partnership-capital ( the 50/50 Automatic Partnership ), and incentivizing the movement of capital through the "evaporation" of stagnant money, this financial "tax" is eradicated at its root.

The cost of a product becomes its real cost again:

  • Materials
  • Energy
  • Wear and tear of common resources
  • The entrepreneur's fair reward

The Result: Massive Structural Deflation

The result of adding:

  1. Total automation of production and administration
  2. Eliminate the chain of financial interest
  3. Eliminate chain fees and taxes
  4. Eliminate chain locks

It is a massive and beneficial structural deflation .

The purchasing power of each individual skyrockets by more than 90%, not only because they receive the Planetary Dividend , but because the cost of living plummets radically and permanently.

It is one of the most direct, universal, and tangible improvements that every citizen would experience from day one.

But without interest, how does money move?

That's where Selective Oxidation comes in. If you don't move the money, it evaporates

Mechanism: Oxidation of Capital

Oxidation Rate

Oxidation Rates by Capital Type
Capital Type Rate Period Justification
Liquid capital (money, tokens) 1% Monthly Maximum liquidity required
Idle assets (land, property, patents) 0.5% Monthly Lower liquidity
Actively invested capital 0% -- It doesn't rust (it's working)
Capital in project AU50 0% -- It does not rust (it is being used)
Capital invested in MIR 0% -- It does not rust (it is in active investment)

Mathematical Formula

Future Capital = Present Capital × (1 - r)^t

Where:
- r = oxidation rate (0.01 for liquid capital)
- t = periods (months)
- Future capital = remaining value

Example with liquid capital (1% monthly):
Month 0: 1,000 UVU
Month 1: 1,000 × (1-0.01)^1 = 990 UVU
Month 3: 1,000 × (1-0.01)^3 = 970.30 UVU
Month 6: 1,000 × (1-0.01)^6 = 941.48 UVU
Month 12: 1,000 × (1-0.01)^12 = 886.54 UVU
Month 24: 1,000 × (1-0.01)^24 = 786.31 UVU
Month 60: 1,000 × (1-0.01)^60 = 547.21 UVU

Assets (0.5% monthly):
Month 0: 1,000 UVU
Month 12: 1,000 × (1-0.005)^12 = 941.88 UVU (loses 5.8%)
Month 24: 1,000 × (1-0.005)^24 = 887.43 UVU (loss 11.3%)
Month 60: 1,000 × (1-0.005)^60 = 740.80 UVU (loss 25.9%)

Reactivation: Invested Money Doesn't Rust

FUNDAMENTAL RULE : If you invest capital in a project, the oxidation is PAUSED.

Oxidation vs. Activity
Capital State Oxidation Effect
100k idle Inactive 1%/month Loses value
100k inverted AU50 Active project 0% Protected
100k invested in MIR (partner) Assets in company 0% Protected
100k loaned to the Common Fund Current assets 0% It protects itself (without performance)
50k idle + 50k invested Mixed 0.5%/month in inactive part Part oxidizes

PRACTICAL EXAMPLE:

You received 200k AU50 :

OPTION 1 (Dynamic):

  • You invest the full 200k in the project
  • Oxidation: ZERO (active capital)
  • Project generates income
  • You recover capital, repeat the cycle

OPTION 2 (Fearful):

  • You invest 50k in the project
  • You save 150k as an "emergency fund"
  • Oxidation at 150k: 1%/month = -1.5k/month
  • Year 1: 150k × (1-0.01)^12 = 133k (loses 17k)
  • Incentive: "Why am I losing money by saving? I should invest more."

OPTION 3 (Hoarder):

  • You invest 10k in the project
  • You save 190k waiting for a "better opportunity"
  • Oxidation at 190k: 1%/month = -1.9k/month
  • Year 1: 190k × (1-0.01)^12 = 169k (loses 21k)
  • Year 2: 169k × (1-0.01)^12 = 150k (loses 19k more)
  • Year 5: 190k → ~104k (loses 46%)
  • Decision: "I lose so much by saving, I'd rather invest"

Oxidation FORCES productive action out of pure self-interest.

Redistribution: The Rain on the Planetary Dividend

Where Does Rusted Capital Go

Capital evaporation doesn't disappear. It's automatically redistributed.

PROCESS:

1. Blockchain records : Rusted capital every month across the entire economy

2. The total amount evaporated is calculated

3. It is automatically transferred to Planetary Dividend

4. It is distributed among all citizens

MONTHLY EXAMPLE:

Rain of Rusty Capital into the System
Source Oxidized Amount Destination
Inactive Liquid Capital 500M UVU × 1%/month 5M to DP
Idle Assets 200M UVU × 0.5%/month 1M to DP
TOTAL 6M UVU/month DP→Citizenship

IMPACT:

  • Total evaporated/month: ~6M UVU
  • Citizenship: ~100M people
  • Extra dividend/month: 6M ÷ 100M = 0.06 UVU per person
  • Annual: 0.72 extra UVU per oxidation

(Illustrative numbers, actual proportions according to scale)

Effect on the Planetary Dividend

The Planetary Dividend is financed from multiple sources, with oxidation being one of the main ones

Oxidation doesn't create new money. It redistributes what already exists.

Result: DP financed without inflation because the money supply remains constant. Only its location changes.

Effect on the Average Citizen

The Neutrality of Oxidation

Critical question: Won't oxidation harm me?

ANSWER: No, if you're average.

Oxidation is UNIVERSAL:

  • If you have average capital → Average oxidizes
  • If you invest it on average → You recover it on average
  • If you receive average DP → Compensates for oxidation
  • Net: Neutral

MATHEMATICS:

Assume a population of 100M citizens:

Oxidation Effect: Percentile Analysis
Percentile Average Capital Monthly Oxidation Monthly DP Net
1-10% (poor) 10k -100 +60 +300%
40-60% (average) 100k -1,000 +60 Neutral
90-95% (wealthy) 500k -5,000 +60 -4,940
99-100% (very wealthy) 2,000k -20,000 +60 -19,940

INTERPRETATION:

  • Poor : They oxidize little, receive DP → THEY GAIN
  • Middle class : They oxidize on average, they receive DP on average → NEUTRAL
  • Rich people without investing : They oxidize a lot, receive DP just like everyone else → THEY LOSE
  • Wealthy investors : They don't let their assets stagnate, they receive DP + profits → They EARN more

Result: Oxidation redistributes without the need for "taxes perceived as punishment."

Combination: Oxidation + Lack of Interest

Why There Is No Interest in Demarchy

Oxidation completely replaces interest:

Comparison: Capitalist Interest vs. Oxidation
Aspect Capitalist Interest Demarchy Oxidation
Who grows? Borrowed money Working capital
Incentive Save, invest in banks Invest, circulate
Effect on the poor Indebtedness, impoverishment Incentivizes action
Effect on the wealthy Passively enriches Boosts productivity
Speed ​​M (money) Slow (saving is profitable) Fast (saving is expensive)
Concentration power Increases (compound interest) Decreases (oxidation distributes)

Mechanism: Invest to Prevent Oxidation

Without interest, what incentive is there to lend money?

ANSWER: OXIDATION ITSELF.

LOGIC:

You have 500k UVU sitting idle:

  • Option A : Save → Lose 1%/month = -5k/month
  • Option B : Lend to the Common Fund without return → In year 1, you recover 500k (you didn't lose anything)
  • Option C : Invest in MIR as a partner → In year 1, you recover capital + dividends from the company
  • Option D : Invest in AU50 with a partner → In year 1, you recover capital + profits

In all options EXCEPT saving, you protect your money from oxidation.

RESULT:

  • Capital flows naturally without the need to "charge interest"
  • Those who lend to the Common Fund accept 0% because it prevents oxidation
  • Those who invest in MIR or AU50 assume risk but have potential reward
  • Money is constantly circulating

Private Investment Assumes Risk, Not Cost

In interest-bearing capitalism:

  • You lend 100k at 5% → You collect 5k regardless of the project's success
  • If the project fails → You still received interest
  • Incentive: Lending is a sure win

In Demarchy with oxidation:

  • You lend 100k to the Common Fund at 0% → You protect your money from depreciation, without profit
  • Invest in MIR 100k as a partner → Share risk and profits
  • If the project fails in MIR → You lose the 100k (real risk)
  • If the project succeeds in MIR → You share the profits (risk-reward)
  • Incentive: Investing is responsible; it requires trust.

Result: Investors only invest if they genuinely believe in the project.

Confidence Capital (CdC) Also Rusts

Reputation Oxidation

It's not just money that rusts. Trust Capital does too

If your CdC is 4.5 and you do NOTHING for 5 years:

Oxidation of CdC due to Inactivity
Years of inactivity Original CdC Oxidation Current CdC AU50 Capacity
0 4.5 0% 4.5 2M UVU
1 4.5 1% 4.455 1.98M UVU
2 4.5 2% 4.41 1.96M UVU
3 4.5 3% 4.365 1.94M UVU
5 4.5 5% 4.275 1.9M UVU
10 4.5 10% 4.05 1.8M UVU

CRITICAL DIFFERENCE: Oxidized CdC is NOT recoverable with money

Recovery is only achieved by ADDING VALUE:

Reactivation: Endorsement of Others

HISTORY: Sofia is an engineer, CdC 4.0 (rusted from 4.5 due to inactivity)

Liam is young, CdC 2.4, has a brilliant project but no track record.

PROBLEM:

  • Liam needs AU50 for 300k
  • His CdC 2.4 → Automatic AU50 = 150k
  • Missing: 150k, cannot find them

SOLUTION: Sofia vouches for it

MECHANISM:

  • Sofia offers her reputation as collateral
  • Risk: If Liam fails, Sofia's credit rating drops by -0.3
  • Profit: If Liam wins, Sofia CdC rises +0.25
  • Effect: Sofia is ACTIVE (contributing community value)

RESULT:

  • Liam gains access to capital he wouldn't have on his own
  • Sofia CdC is reactivated (oxidation pause) by contribution
  • Community wins project + generational transfer

If Sofia had made 3-4 successful endorsements in 5 years:

  • Sofia CdC: From 4.0 (rusty) → 4.35 (reactivated by mentoring)

CdC oxidizes by inactivity but is reactivated by contribution.

Case Studies

Case 1: Dynamic Entrepreneur

STORY: Carlos receives 150k of AU50

SCENARIO A (Active):

  • Month 0: Receives 150k
  • Month 1: Invests 150k in software
  • Oxidation: 0% (active capital in project)
  • Year 1: Project generates 200k
  • Recover capital, repeat the cycle

SCENARIO B (Fearful):

  • Month 0: Receives 150k
  • Months 1-6: Invest 50k, save 100k
  • Oxidation 100k: 1%/month
  • Month 6: 100k × (1-0.01)^6 = 94.1k (lose 5.9k)
  • Month 12: 100k × (1-0.01)^12 = 88.7k (loses 11.3k total)
  • Carlos thinks: "Why am I losing money by saving?"
  • Month 13: Invest the 88.7k
  • Oxidation: PAUSE

EFFECT:

  • Carlos had a choice: Save and lose, or invest and protect
  • He chose to invest (economic pressure, not obligation)
  • Community capital circulates

Case 2: Intergenerational Guarantee

CHARACTERS:

  • Maria: CdC 4.2, engineer, no projects for 8 years (CdC rusting to 3.8)
  • Diego: CdC 2.3, young, app idea but no track record
  • Project: Educational app, budget 200k

ACTION 1 (Without Maria):

  • Diego alone: ​​CoC 2.3 → AU50 = 100k
  • Missing: 100k
  • Diego doesn't get it → Project dies

ACTION 2 (With Maria as guarantor):

  • Maria's assessment: The project is solid, Diego is honest.
  • Maria offers her support: "I support Diego"
  • Risk: If it fails → Maria CdC -0.2
  • Benefit: If successful → Maria CdC +0.2

RESULT:

  • Diego accesses capital (thanks to backing)
  • María CdC reactivated (from 3.8 → maintained by activity)
  • Year 2: Successful Project
  • Diego CdC: 2.3 → 3.1 (first success!)
  • María CdC: 3.8 → 4.0 (successful endorsement, reactivation)

The oxidation of CdC INCENTIVA mentoring.

Case 3: Blocked Speculation

STORY: Roberto buys speculative land, hoping for appreciation

YEAR 0:

  • Roberto buys land: 600k UVU
  • Waits 20 years → Appreciation → Sells for 2M
  • Speculative profit: 1.4M (without creating anything)

WITH OXIDATION:

YEAR 0: 600k YEAR 1: Unused → Actives oxidize 0.5%/month YEAR 5: 600k × (1-0.005)^60 = 554k (loses 7.7%) YEAR 10: 600k × (1-0.005)^120 = 512k (loses 14.7%) YEAR 20: 600k × (1-0.005)^240 = 435k (loses 27.5%)

OPTION A (Roberto, rentier):

  • Wait 20 years, lose 27.5% → Sell at 1.6M (vs 2M without oxidation)
  • Profit: 1M (vs 1.4M)
  • Speculation is NOT profitable

OPTION B (Productive Roberto):

  • Year 3: Negotiate with a farmer
  • Productive land → Oxidation pause
  • Agricultural income: 5% annually
  • Roberto and the farmer both win.
  • Community gains productive land

Oxidation eliminates profitability from speculation without prohibiting it.

Economic Impact

Velocity of Money Circulation

Without rust (capitalism):

  • Money sitting idle is profitable (5% + interest)
  • Encourages hoarding
  • V (speed) = slow

With oxidation (Demarchy):

  • Money tied up is costly (1%/month = 12%/year loss)
  • Encourages investment/circulation
  • V (speed) = fast

RESULT:

  • Dynamic, fluid economy
  • Capital does not "rot" when idle
  • Constant value generation

Reduction of Inequality

SIMULATION: Capitalism vs. Demarchy, 30 years

CAPITALISM (5% annual interest):

Initial billionaire: 1,000M Year 30: 1,000M × (1.05)^30 = 4,321M (tripled without doing anything)

Initial middle class: 100k Year 30: 100k × (1.05)^30 = 432k (4.32×, better than accumulation)

Ratio: 4,321M / 432k = 10,000:1 (extreme inequality)

DEMARQUIS (oxidation 1%/month in stagnant capital):

Billionaire (without investing): 1,000M × (1-0.01)^360 = 31M (97% lose) Middle class (without investing): 100k × (1-0.01)^360 = 3.1k (97% lose)

Ratio: 31M / 3.1k = 10,000:1 (still proportional)

BUT: In Demarchy, nobody saves (oxidation makes it irrational)

Billionaire (invests): Generates 5%+ annual profits = Productive enrichment. Middle class (invests): Generates 3-5% annually = Productive enrichment.

Ratio: It reduces to ~100:1 (because capital generates real created value, not passive interest)

Inequality is reduced not by confiscation, but by a lack of rent-seeking.

End of Rent-Seeking

Rent-seeking = Living off money without creating value.

In capitalism:

  • Rentier: 1M × 5% interest = 50k/year (live off it)
  • Worker: 40k/year (work hard)
  • Rentier: More money for NOT working

In Demarchy:

  • Rentier: 1M unemployed → Loses 120k/year due to oxidation
  • Cannot live off it
  • YOU MUST invest in the project or lend to the Common Fund
  • If you invest in MIR or AU50 → Take risk, create value
  • If you lend to the FC → Capital circulates without return

Rent-seeking becomes financially suicidal.

Alternative Mechanisms to Protect Capital

How to Avoid Oxidation Losses

In Demarchy, if you have capital, you have options:

OPTION 1: Invest in AU50 (Co-investment)

  • Money enters productive project
  • Active capital → 0% oxidation
  • You share the risk and benefit with other investors
  • Ideal for ambitious projects

OPTION 2: Invest in MIR (Stock Market)

  • Capital is invested as a partner in companies
  • Money is active → 0% oxidation
  • You share the risk and the profits as a shareholder
  • Are you looking for companies with strong fundamentals?

OPTION 3: Lend to the Common Fund (Non-interest loan)

  • Capital is lent without interest (0%)
  • Money is active → 0% oxidation
  • You protect your capital from evaporation
  • No profit but no loss

OPTION 4: Guarantee in AU50 (Third-party guarantee)

  • Support someone else's project with your CdC
  • Your reputation is maintained/increased (community activity)
  • Third-party capital is protected
  • Intergenerational Contribution

OPTION 5: Participation in Democratic Governance

  • Community contribution without money
  • Your CdC is reactivated through participation
  • Verifiable intellectual work

OPTION 6: Small personal projects

  • You can start smaller-scale projects
  • Diversify investment
  • Invested capital → Doesn't rust

OPTION 7: Collaborative Economy / Solidarity Economy

  • Participation in cooperatives
  • Shared capital
  • Money working in the community

OPTION 8: Accept Oxidation and Receive DP

  • Your money depreciates by 1%/month
  • BUT you receive increased DP (redistribution of your oxidation)
  • Net: Neutral for middle class
  • You contribute to funding DP without "collected taxes"

Oxidation is not a punishment. It is an incentive to use capital productively or accept its redistribution.

Governance: Rate Adjustment

Votable Parameters

Demarchic Governance can adjust oxidation rates:

Current Rates (Votable)
Resource Current Rate Possible Range Change Effect
Liquid Capital 1%/month 0.5-2%/month ↑ more flow, ↓ less pressure
Idle Assets 0.5%/month 0.2-1%/month ↑ Activates land, ↓ Protects property
CdC without activity 1%/year 0.5-2%/year ↑ more meritocracy, ↓ less pressure

Countercyclical Adjustments

Oxidation acts as an economical thermostat :

IF the economy COOLS DOWN (low V, people save too much):

  • Assembly votes: Increase oxidation to 1.5%/month
  • Money tied up is more expensive
  • Encourages spending/investment
  • Economy reactivates

IF economy OVERHEATS (very high V, speculation):

  • Assembly votes: Reduce oxidation to 0.7%/month
  • Less costly idle money
  • Encourages saving
  • Low speculation

Oxidation = Automatic stabilizer better than Central Bank

Frequently Asked Questions

"Does that mean I always lose money?"

NO. You lose money if you HOLD IT and do nothing

If you invest or lend:

  • Active capital → 0% oxidation
  • You generate value → You recover more profits
  • You assume real risk → But without vampiric interest

Analogy: "Oxidation is the price of freedom. If you don't pay it (by investing), you suffer it (loss)."

"What if I no longer want to work on large projects?"

In Demarquía there is no forced retirement. You can continue working without needing a large amount of capital.

OPTIONS:

  • Mentor / Endorse : Support other people's projects. Your CdC is reactivated. Intergenerational contribution without creating a new project
  • Lending to the Common Fund : Protects money (0% oxidation) while the Common Fund uses it productively. 0% return for you.
  • Investing in MIR : You buy shares in companies as a partner. Capital doesn't rust. You share risks and rewards.
  • Citizen audits : Community participation that reactivates your Community of Community by verifying real value in projects.
  • Small projects : No pressure to scale. Invested capital doesn't rust. Personal satisfaction + community value.
  • Solidarity economy : Participation in cooperatives, collective projects.
  • Accept redistribution : Your money oxidizes, but you receive increased DP . Net neutral. You automatically support the community.

In Demarquía, "activity" has no age or scale. It has versatility.

"What if I don't have the capacity to take risks?"

Oxidation is not mandatory if you don't have money.

UNIVERSAL PROTECTIONS:

  • Universal pension (access to a guaranteed economic base)
  • Health (free of charge)
  • Education (free of charge, continuous)
  • Basic housing (guaranteed)

If you have money but are risk-averse:

  • Common Fund : Lending without return (minimal risk, you protect capital)
  • AU50 : Shared co-investment (distributed risk)
  • MIR : Diversification across multiple companies (reduces individual risk)
  • Shared guarantee: Multiple guarantees reduce individual risk

There is no pressure. There are options. Oxidation encourages, it doesn't coerce.

"Doesn't this favor the rich who know how to invest?"

NO. On the contrary:

RICH WITHOUT ABILITY:

  • Money oxidizes mercilessly (1%/month if not invested)
  • They cannot transfer power to heirs (oxidation consumes)
  • They must demonstrate competence or lose wealth.
  • It encourages meritocracy, not inheritance.

POOR + MIDDLE CLASS:

  • They oxidize less in absolute terms (they have less)
  • They receive increased DP (source of oxidation)
  • Access to AU50 , MIR , CdC is equitable
  • They can rise without usurious debt

RESULT:

  • Social mobility increases
  • Concentration of power decreases
  • Meritocracy is strengthened

Oxidation is the most anti-oligarchic mechanism ever designed

Positive Side Effects

End of Oligarchic Perpetuation

NO OXIDATION:

  • Billionaire perpetually accumulates power
  • Their influence blocks innovators
  • Capital concentrates without limit
  • Generations of control without merit

WITH OXIDATION:

  • Billionaire must maintain active (productive) capital
  • If it becomes inactive → Money rusts
  • Power erodes automatically
  • Generation is renewed without the need for "revolution"

Power without creating value is impossible to maintain.

Incentive for Real Meritocracy

Money is no longer perpetual power.

POWER is generated by:

  • Create real, verifiable value
  • Build trust ( high cost of ownership due to proven results)
  • Contribute to the community (endorsement, mentorship, audits)

An aging expert only retains influence IF:

  • Continue mentoring ( CdC is reactivated)
  • Continue to add value (successful endorsements)
  • Actively participates in Democratic Governance

If it disappears → Its capital oxidizes, its CdC decays, its power dissolves.

Meritocracy is ALIVE, it requires continuous demonstration.

Elimination of Financial Crises

Crises occur due to:

  • Speculative accumulation
  • Exponential interest-driven debt
  • Bank "runs" (everyone withdraws simultaneously)

With oxidation:

  • No profitable speculative accumulation (it rusts)
  • No exponential debt (0% interest)
  • Money always circulates (there are no "runs", nobody accumulates)

The system is self-stabilizing without the need for a Central Bank.

Natural Generational Transfer

No retirement but with oxidation:

GENERATION X (years 0-40):

  • Activate, create value, CdC rise
  • Invested capital → Doesn't rust
  • Economic power at its peak

GENERATION Y (1940s-1970s):

  • Generation X is still active but there is less new investment
  • Capital begins to accumulate (oxidize)
  • And he gradually takes on mentoring roles
  • Endorsements for Z begin

GENERATION Z (70s+):

  • Generation Y mentors Y-1
  • Generation X maintains influence IF it continues to contribute
  • Otherwise: Money rusts, CdC decays, power dissolves
  • Z assumes leadership roles

Automatic generational changeover without the need for coercive "retirement".

Radical Transparency: Verifiability

The Impossibility of Manipulation

With oxidation + verifiability of value, monetary manipulation is impossible:

ATTEMPT TO CREATE FICTITIOUS MONEY:

CHANGING OXIDATION RATES:

  • Someone is trying to reduce oxidation (promote accumulators)
  • Requires a vote in Democratic Governance (60% majority)
  • Public debate 30 days
  • Impossible to do it secretly

MANIPULATE DIVIDEND:

  • Someone tries to reduce DP privately
  • It's automatic, blockchain verifiable
  • Impossible to manipulate without public consensus

Oxidation + Verifiability + Blockchain = Radical Transparency.

See Also

References

Obtenido de «https://demarquia.org/index.php?title=Oxidación_Selectiva/en&oldid=4321»