Pre paid performance bonds and conflict resolution

Current numbers are here.

Mistakes are inevitable. Rather than spending huge amounts of resources to entertain the illusion of avoiding all mistakes, identify, correct, and clean up mistakes quickly. The only scientificly proven strategy I know of says to offer value first then see if value is reciprocated. Don’t expect it, or become attached to it, just notice reciprocation. If yes, it’s likely worth your while to contine interacting. If no, stop interacting.

Insurance was apparently a key aspect of the initiation of modern commerce. Against the Gods: The Remarkable Story of Risk documented this: England’s ships needed people to share risk in order for trade by ships to be workable. The cost of a lost ship was just too large to be carried by 1 or 2 people.

All challenges are always visible. Those insisting on transacting with an entity with 2 challenges is asking for trouble.

With CP, unintended consequences simply work out. Instead of arbitraily defining when a person is “of age” as 18, or 20, or when the average brain matures (22?), the person themselves defines their responsibility level via their actions. This is summed up by their performance bond amount. As people get small accomplishments under their belt, their bond grows. A person who trusts transporting a $100,000 car to someone with a performance bond of only $1,000 can’t complain if the car is damaged. The car owner is penalized for potentially “setting someone up to fail”.

Posts that don’t follow a sites contracted rules of conduct can be “challenged” by anyone.

Basic contract:

  • Do all you say you are going to do, don’t infringe on other people or their property. – Richard Maybury
  • Be able to back up “facts” before posting them, or else label them opinion.
  • Make amends by cleaning up inevitable mistakes.

This is strict…
NOT challengeable: “I think people will love the taste of this new recipe.”
Challengeable: “People love the taste of this new recipe.” Better be able to show proof within the max challenge period, otherwise don’t post.

Challenges and performance bonds

  • No exceptions. Exceptions mean the system is broken.
  • Challenges are always visible.
  • Any person, and or, event can challenge and or be challenged.
  • NOT challengeable: “My opinion is that people will love the taste of this new recipe.”
  • Challengeable: “People love the taste of this new recipe.” Be able to show proof within 4.0 wks, otherwise label info as opinion.
  • Each person and event, has a performance bond that is funded by withholding 15% of each transaction up to an ~industry standard safety factor of 3.0.
  • Performance bond amounts float up and down based on the max transaction of the past 4.0 wks.
  • The challenged amount will be the the lessor of half the challenger’s bond, or half the challengee’s bond, or the whole transaction value.
  • The moment a challenge is posted, half of both parties bonds are escrowed and their bond starts to be replenished.
  • The entity held responsible in a challenge, pays 1.5 times the transaction that was challenged, or half the challenger’s bond.
  • This has nothing to do with inefficient “precedent”, nor “punishment”, nor “laws”. Either a contract is honored, or not.
  •  If the challenged does not respond, they default.
  • Resolvers must have a bond 4 times greater than the challenge amount. They are self selected and decide either “Did Not Honor Contract” or “Honored Contract” with reasoning based directly on publicly verifiable facts.
  • If more than one resolver decides, 75% must to agree, or the challenger is held responsible. If no resolver posts, the challenger is held responsible. Another resolver has to add value, not just a “me too.” Otherwise they can be challenged.
  • No matter who is held responsible, the challenged or the challenger, one will pay the full challenge amount.
  •  If the challenger is not the entity who owns the property, the property owner and challenger split the payout 45:45. (People can challenge someone on behalf of someone else.)
  • If 1.5 is not enough or too much, add a stipulation.
  • Resolvers are paid 10% of the challenge value, but are liable for 20% if they make a mistake.
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