Hello, World :)
Let me introduce ourselves: we are the Karma project team.
Our project is a p2p-interchange ecosystem.
We are creating the platform with almost infinite types of relationships between community members: from hardcore pawnshop-type short-term loans to social loans with zero interest rate, zero collateral rate and without exact timing on repayments (e.g. borrower can pay when there will be an opportunity and the lender is OK with it). We believe, such agility and infinite relationships diversity makes the whole ecosystem more sustainable.
Today’s financial system is getting more and more obsolete:
- Unequality of capital allocation between countries and social layers is rising year by year. There’s a lot of countries witn zero-interest rates on credits and also there are 3 billions of people unbanked or with interest rates up to 30% and more.
- Rigidity of traditional banks: they can lend money only for huge collateral or for large corporations. If you’re an SME in Russa, Asia, Africa or Latin America — traditional bank will be like a pawnshop for you. They will begin conversation only if you have some real estate as a collateral and the valuation of the collateral shoud be 2 or 3 times more than the loan size.
- Fiat money system with regular defaults, bubbles, interest rates on money being just put somewhere, and big transaction costs is getting old. There are already some success experience on creating money-less ecosystem. One of this is WIR (Switzerland, since 1939), the second one is C3 in Uruguay (http://www.lietaer.com/2011/09/commercial-credit-circuit-c3/). We’d like to create one more, global ecosystem like this. When there’s no interest rate on lending, no cash gaps and no fiat money needed. It’s not an optimistic illusion — such kind of systems are already working.
- Insurance system is weird too. Only in US there’s more than 1 trillion USD spent only at health insurance per year. Also, there are 30% of administrative overhead and about 5% of insurance companies profit. So, if we can create p2p mutual aid insurance system, we could save a huge amount of money and make Insurance cheaper and easier. More on Mutual Aid System of Insurance you can read in Daniel Larimer blog (http://bytemaster.github.io/article/2016/01/01/Mutual-Aid-Society-vs-Insurance/)
In this blog we will discuss the current economical issues, the methods of creating new opportunities and the process of Karma project development.
Have a nice day!
PS.
If you’re interested in Karma, please, be welcome at our website: http://karma.red/
