Using a Loyalty Reward Token Program to Reduce the Cost of Solar Desalinated Water.

Abstract

Desalinated water is often created using fuels that contribute to atmospheric CO2. These decisions of fuel and technical methodology are made using a cost benefit analysis which often ignores externalities. In such situations, Solar and clean solutions may lose out.

Loyalty and reward mechanisms using tokens or credits for consumers are often used to create value for marketing consumer goods, etc.

A lesser known fact is that the economics of loyalty or reward mechanisms can function like currencies with similar economic value properties emerging.

Currencies function like social protocols for the transfer of value among participants in an economic network. As such, the value of a currency emerges as a direct function of the number of participants. This emergent value effect has been observed in 50 of the world’s largest currencies, gold, and even Bitcoin. The cumulative economic effect of this currency phenomenon is valued at $16 trillion USD. The effect is emergent and ranges from $500-$5,000 per participant using a value transfer protocol be it currency, token or credit.

The potential to apply the positive economic externality effects of currency networks to help offset the negative externalities associated with carbon pollution are worth studying and applying.

The users of desalinated water are a collective economic network. As such they can create economic value which can be applied to reduce the cost of solar desalinated water, making solar a more attractive option than the use of fossil fuels in the desalination process. The proposed mechanism for this is a Token or reward scheme which distributes a portion of tokens to the users of said water and the purchasing agent or utility of said water.

Keywords: solar, desalinization, economic, blockchain, incentives, finance, water, environment, behavior