Why We’re Here
Delta P3 is a new Avalanche-backed project dedicated to decentralizing public-private partnerships (P3s) internationally.
Since the beginning of markets, governments have worked in partnership with private industry to pursue a myriad of goals. Anything from building bridges or water treatment facilities to fighting wars and managing investment funds. Their collaborations have led to some of the most beautiful and some of the ugliest events in history.
Up until this point, P3s have looked a lot like this:
Tax-payers surrender money to the government, the government distributes it to various agencies, and then those agencies gift those dollars to their “trusted” corporate partners (often in the form of tax credits). They bounce the money back and forth behind closed doors until everyone feels properly compensated. However, today we are offering the opportunity to bring greater capital efficiency and transparency to this trillion-dollar asset class.
Public-private partnerships exist to create, maintain, and innovate around the most challenging sectors in the world because they are the projects that require the most capital and expertise. By decentralizing P3s and democratizing them to include the average investor we enable governments, private industry, and “the people” to collaborate together in a completely new way.
Today many of the projects that society values the most are managed or developed with this model. Central Park is managed through a P3, the skyscrapers in Dubai are massively subsidized by the UAE, and SpaceX was just given $2.9 billion from NASA to build a lunar lander. We interact with and hear about them on a daily basis but we are barely aware they exist as profitable ventures only available to the wealthiest companies and individuals… Fortunately, that is all about to change thanks to the innovations around blockchains and distributed systems.
Our goal at Delta P3 is to create a decentralized, on-chain version of what happened in San Francisco in 1930…
Joseph Strauss and the community of San Francisco shared a vision for connecting San Francisco to the beautiful recreational areas of Marin County. However, connecting this area was no small feat as it spans the rigorous waters where the San Francisco Bay meets the Pacific Ocean. Not to mention, states at the time struggled financially and were unable to prioritize these types of projects as they had just exited World War I. As a result, tolling became a new way to finance these projects and private parties (like Strauss) began selling bonds to local citizens to finance development.
Although, at first the people of San Francisco found Strauss’s design distasteful and unworthy of the golden gate.
Strauss eventually redesigned the bridge to what it is today and financed the project with local investors who would be repaid from the tolls. Construction of the bridge began in 1933 and was completed in 1937. The bridge was built with a private construction company and was completed ahead of schedule (and $1.3 million under budget) while using very little federal or state money.
Despite being in the midst of the Great Depression, voters in the district’s six counties approved this $35 million bond that required them to put their homes, farms, and businesses up as collateral! The resounding approval by a three-to-one margin reflected the faith of local citizens in the long-term economic benefit of the project. The construction bonds were retired in 1971 with nearly $39 million in interest being paid entirely from bridge tolls.
Delta P3 is designed to employ the lessons learned from projects like these on a transparent and decentralized system so that we can create the primary rendezvous point for P3 investments available to everyone.
To join the community and learn more check out deltap3.org as well as our Discord and Twitter.
