Smart Contract On The Blockchain For Local Authorities
For a while now I have been on a personal exploration of thinking through more on how local governments can deploy Smart Contracts. To bring about a better-automated process, community participation and community ownership, transparency, and cost-efficiency. None of the existing smart contract use cases that I have read about operate within the realm of grass route community participation or support the community lifestyle of the western world. So I am left with dreaming up and designing these propositions. It's absolutely free for anyone or any institutions to run and experiment with.
1. What is the worth of your residents' active engagement worth to you? How much (the value) do you already spend on all things to do with engaging with your residents, including mundane resource such as printing. Supposed we can take half of all that budget and put it into a residents engagement/consultation smart contract, no we are not giving the money to the residents, however what we can do is to achieve two things, (1) use those funds to keep more money in every resident pocket without giving them money, (2) keep the money in the local authorities balance sheet. How can we do this? Let's wrap this budget into a smart contract that rewards and empowers the resident to save money on their council tax, for every active engagement in surveys, consultations, good deeds in the community and many other things that can be added onto this smart contract between the local authority and its resident i.e. when a resident engages in a consultation, the smart contract will automatically notice and log this residents participation (without any human administrative intervention), this can count as a point or however the calculation is set up, the residents total engagement at the end of a quarter in a year, is then offset by the budget of engagement in the community, towards the discount that the resident will be having off their next month's council tax bill. No money is being paid to the resident, and no money is going out of the council either, its simply reallocated based on the internal savings that it is bringing into the local authority.
Although the phase two might not be necessary, what could also happen down the line is that the residents' engagement can be turned into some type of predictive bond that local authorities can sell to buyers in other for local authorities to release more liquidity to themselves faster. Although i'm strongly not for phase two, its to show the possibilities. Let's stick to the main idea here.
2. Smart contract that allows financially stable residents to contribute into a smart contract fund, and for residents in non-high priority debt and priority debt to access finance via the pool. Repayment comes through enabling the smart contract to automatically take e.g. 5% - 10% repayment on the borrowers monthly salary. The smart contract can be expected to make a low and reasonable return of 10% - 20% of the pool fund.
This could potentially be cost-effective as it will vastly be an automated app and API for other apps to integrate with such as "community debt support services" to interface with. Low administrative cost.
The return for the pool lenders is at a low interest rate, thus the motivation to contribute financially into the pool is not solely for a financial return but rather the awareness of knowing that other residents doing well financially is a net positive for the community, the in-flow of more capital into the community and getting others up the financial ladder.
3. I reckon I would certainly fall foul of this at least 3 to 5 times a year myself. An attendance smart contract for parents to agree to with their school lr with parents association at the start of the school year, stating - each participating parent will have to sign a smart contract with a value by staking eg. £50 for the whole year. For everytime that your child is late to school or that your child is picked up late after school, the smart contract will automatically deduct eg. £0.50 from your staked amount. Deducted amounts goes into the deduction smart contract pool. At the end of the school year, the smart contract will automatically distribute the total deducted 'pooled' amount to be equally shared amongst students (ie. Parents) with the 100% attendance record, it will also trickle down in tiers to let's say students with up to 90% attendance record. Alternatively it could go towards a school trip for students with top attendance. The left over amount staked by each parent will be released back to the parents automatically (no administrator needed) at the end of smart contract school year, not the deducted pooled amount.
>It incentivises parents to put in additional effort.
>The school attendance smart contract can have regular reminder tips built in that automatically goes out to parents on how they can maintain good attendance eg. Wake up 30mins early etc you’re doing great maintaining your 100% record.
>Parents can participate in a decentralised autonomous organisation whereby they modify and vote on how the smart contract can evolve every term or stick with the same.
>Onboarding might be a nightmare if the UX and UI isn’t ironed out well with simplicity and clarity. Ideally the parents should not be required to do anything more than 3 steps to participate, anything outside is probably going to be tough going.
That's it for now....
I love that I'm endowed with the creative mind to design and dream up potential solutions to our everyday challenges, although i have the experience in building teams and developing projects but more on the side of technology based projects, I've come to realise that without the full backing, leap of trust from the stakeholders with the resources, its actually 100x challenging to sustainably build and see through the implementation and impacts of these ideas. As an entrepreneur (I think I am one lol I do try), I'm constantly pushing forward and taking lessons from all my previous projects to make the new and next projects even better. You can check out the ongoing success with my active startup, Street Tag.