How?

January 10, 2023

Typically, when one needs credit to expand their small business, pay their fees, pay for an unplanned medical expense, celebrate a special occasion, or even travel, we have two options, either approach a formal lender or approach an informal source.

While access to formal sources of credit are already cumbersome due to various reasons ranging from providing identity documents, ability to repay the credit, or providing “valid” reasons for the need (or as has become the norm in social credit, “poverty porn” leads to funding), informal sources have been well documented to exorbitant interest rates. A select few have the luxury of a stigma-free access to credit through friends and family.

At PRSPR, we believe,

• Everyone has a Right to Dignity,
• Financial models have created an unequal world, we want to do away with the dichotomous roles of lender-creditor,
• Financial services tend to make money through information opacity, high transaction costs and entry barriers, and do not leverage the power of the commons.

In PRSPR, the everyone contributes a minuscule amount daily, and only anonoymised requests for payouts by those in need will be made daily. Good members of PRSPR (those that contribute regularly, those that help other community members, members who have been around for a long time, etc.) will then vote on payouts if the payouts required are greater than the inflow on the day. Based on the communities’ decision, the payouts are made to those who have made requests on the same day. This decentralised and autonomous decision-making process can help reduce friction, transaction costs, entry barriers and opacity.

Those who maintain the commons, will be rewarded both within PRSPR and with other benefits in the real world, and those who do not help in maintaining and sustaining the commons will lose out on the fruits of a thriving commons.