June 6, 2016

About Credit Markets

In modern society, the dominating method of controlling behavior within citizens is penalizing negative actions.  When we run a red light, we receive a ticket; when we commit a crime, we go to prison.  The inherent flaw in this methodology is that it fails to incentivize good behavior.  Deciding to eat a healthy meal or recycle trash provides little added utility, encouraging citizens to do the bare minimum to not receive a penalty rather than going above and beyond to benefit the environment and society.

In short, BFF (formally E2F2) plans to remedy this discrepancy by providing the activation energy needed for local governments or business value networks to augment the status quo of existing policies and programs. Through the creation of money-bound credits linked to positive community behavior, we will create a whole subsidy market for sustainable choices and ultimately benefit the common good. To investigate the home-related data, BFF will rely on the creation of working groups designed to compute how sustainability data affects a homeowner’s propensity to earn credits.  These groups will seek to reward the positive externalities created by living a sustainable lifestyle.


Who is Eligible

Any community member is eligible to earn credits for sustainable behavior.   By simply owning a home, you can start earning Home Energy Credits; by owning a car, you can start earning Automotive Credits.  As you continue to live a sustainable lifestyle, these credits automatically accumulate and can be easily tracked through software by both homeowners and industry contractors.


Woman with ivy and recycling binEarning Credits

By participating in sustainable actions that have an external benefit to public health or overall environmental conservation, you earn immutable credits that are stored on our DHL system.  These credits can be tracked by you and provide transparent sustainability metrics to the larger industry.


Minting Credits

These immutable credits will convert to money as they are collatorized and sold to key industry stakeholders.  Such a marketplace allows for monetary value to be innately attached to these sustainable credits, incentivizing homeowners to be more cognizant of their daily actions in relation to the community and environment.


Forging a Sustainable Future

Through this system, we hope to provide an incentive to make socially and environmentally healthy choices, both in homes and within businesses.  Through this new model, we can renovate modern capitalism to promote social benefits and encourage energy efficiency, health, safety, and green personal choices.


Tier 1 – Priority Credits

Priority credits are the initial, important drivers of homeowner and industry adoption of the BFF / E2F2 proposed inter-operability standards.

imageedit_1_7472454197.gif_64x64  Energy Efficiency Credit (EEC)

A lack of proper rewards exist for sustainable home energy performance.   While the SREC market tries to capture the positive impact of a solar panel installation, it fails to chart the value of other sustainable actions in the home that contribute to a greener society.  By incentivizing these actions, we will contribute to more energy conscious homes throughout the nation.

home  Home Public Health Credit (HPHC)

Though green homeowners providing the service of improving the overall quality of the community through reduced waste and pollution, they are not compensated for their contriubtion.  Through this credit, we seek to change the public’s mindset toward community-specific sustainability.

Tier 2 – Additional Credits

Additional Credits are in the process of development and will eventually be implemented as supplemental measures to be released after Priority Credits.

apple  Personal Public Health Credit (PPHC)

A definitive lack of tracking exists for positive healthy behavior, though certain diets and lifestyles provide the positive effects of reduced carbon emission and increased resources.  Most estimates claim that between 1,800 and 2,500 gallons of water go into producing each pound of beef.  According to The Sierra Club, that same amount of water “could produce 16 pounds of broccoli, 25 pounds of potatoes, enough soybeans for three pounds of tofu or enough wheat for nearly five pounds of whole wheat bread.”  By implementing a working group to track and model positive dietary and health choices, we can combat long-term climate change and increase health awareness through incentivization.

car  Commuting Credits (CC)

Positive social behavior, such as carpooling, has the added benefit of a reduced carbon footprint and a more efficient community.  As an example, carpooling both decreases the amount of carbon dioxide emitted significantly and reduces traffic congestion, leading to less congested roads and highways.  As more people take part in carpooling programs or organize carpools within their workplaces, overall traffic congestion will decrease, which reduces fuel consumption, commute time, and the cost of road repairs.

network  Social Benefit Credits (SBC)

Contributing to the community through methods such as reducing pollution or recycling can have a significant impact on the overall well-being of its members.  By tracking social actions through easy-to-prove the capabilities of internet-connected cars and phones, we can incentivize these interactions.