kvartalo project

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Cryptocurrency & governance system for neighbourhoods

kvartalo is a set of tools to provide local currency & governance system for neighbourhoods.

Consists on a ecosystem where each neighbourhood can deploy its own cryptocurrency tied up with a governance system, where for example, people can use their wallet to vote in which social projects of the neighbourhood will be sent the specified % of fees of the transactions.

It's a live project, being developed while it's deployed in a real neighbourhood in Barcelona as a first pilot

It aims to create circular economy in the neighbourhoods, while empowering people and experimenting with the potential of blockchain technology.

Economics

• value 1:1 with eur
  • tokenized eurs
  • with possibility to unlink the value from eur in the future, but for the moment is a fixed rate
• token creation
  • each entity that will participate in the experiment, says which quantity of eur will be able to block
  • each entity 'blocks' / 'frozes' that quantity of eur, and receives that quantity in kvt. That action is a trusted action, as the entity is a trusted entity by the ecosystem
    • in this way, all the kvt quantity of the ecosystem will be backed up with eur
  • to adquire kvt people can go to one of the entites that participate in the experiment, changing their eur for kvt
  • a person that have kvt will be always able to change them back to eur
• a multisig owned by the different entities manages the suply of kvt
  • when a new entity want to go in, will hold the eur and will receive the same quantity in kvt that are created (minted) by that multisig
• no money value is created in any moment. All the kvt are 'tokenized eur', in other words, the kvt are representations of real eur
  • all the inputs and outputs are always equal

Governance

• for each transaction, there is a 1% fee
• each month, the people using their wallet will be able to vote in which social cause will go the fees of that month
• in this first phase, to avoid cheating, only addresses with more than a threshold kvt amount during X window time, will be able to vote
• kvt from fees will go directly to the address decided in the votation

Usability tradeoffs for the first version

• common addresses limited to maximum of 20kvt
  • it's a low amount for the first phase of the experiment
  • to avoid acumulation and risks
• shop addresses will be able to hold more kvt, as they will need to accumulate the transactions of the payments
• a proposal could be that the products selled in kvt will have some kind of % discount, to incentivize the use of kvt instead of eur