In the ancient culture of Israel, God expected more than just a token contribution from the people to fund His work and influence their society. While today, many are struggling to finance the work of God with meager contributions, in biblical Israel, a far more substantial system was in place. Surprisingly, the Israelites were required to give an average of approximately 23.33% of their GDP through various tithes, a substantial figure that was meant to powerfully impact both their economy and culture.

The first tithe was 10% of one's increase and was given to the Levites. These Levites were actively involved in their society and economy, serving as administrators, bookkeepers, judges, and even guards. Instead of giving money, the people gave a portion of the products they produced, promoting the circulation of value and reducing the need for currency. The Levites who served as priests in the Temple were supported in gold or silver, which played the role of currency in that context.

The second tithe, also 10%, was to be spent on family celebrations during the three great festivals. These festivals involved traveling to specific locations, leading to a burst of economic activity as people sold and bought products locally and at the festivals. The final tithe, given either every third year or in the seventh year of a 49-year cycle, was designated for those dependent on financial support. It was distributed by local Levites and provided for the poor, strangers, or refugees. In total, these tithes significantly reduced the accumulation of wealth and increased economic activity, promoting prosperity for all.

These practices transformed the economy, making it robust and equitable. Instead of wealth concentration, wealth was continually in circulation, promoting growth. These tithes were an economic booster, fueling Israel's remarkable prosperity, and, according to biblical promises, such practices were blessed by God. The unconventional nature of these practices underscores that God's plan challenges the norms of Babylon, working in ways beyond human comprehension to bring abundance and prosperity.

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Changing the Paradigm of Giving and Economic Impact: Tithes in Israel

How it Works

Treasuries, paired with technologies like digital twins, computable contracts, composable proofs, and synchronized accounting, pave the way for a novel payment mechanism that sidesteps the need for currency. In this system, known as a settlement process, assets aren’t physically exchanged. Instead, ownership rights are transferred. It's similar to how stock exchanges or credit card networks operate. Think of the old-fashioned bank check: it wasn’t the actual money being handed over, but the right to access that money. However, there was a catch with checks: they might not be backed by actual funds. These traditional modes of transfer cost the world a whopping $1.9 trillion annually. Most of this money isn't physically moved; banks just adjust ownership rights, a process riddled with inefficiencies and vulnerabilities, not to mention the staggering $900 billion lost annually to illicit practices like bribes and kickbacks.

Leading global regions like Singapore, London, and Silicon Valley have identified the payment sector as ripe for innovation. Financial technology firms, targeting payments, are raising billions. The control over payment networks yields unparalleled power, and the data acquired is invaluable. Modern credit card companies don't just profit from fees; they also monetize user data, sometimes earning more from the latter. Envision a tech behemoth like Facebook or Amazon overseeing these networks. The centralized power, without proper oversight, can infringe on privacy and freedom. In such an environment, corruption is likely, and the potential to misuse such vast power is ever-present.

Addressing these challenges, the Sweet Economy movement champions the establishment of a global, decentralized network of treasuries. This network can finalize transactions globally within moments. Advanced technologies make the system both resilient against corruption and difficult to target for malicious intent. Settlements, with the aid of synchronized accounting, don't necessarily require currency. Digital versions of assets, not their physical forms, can be transferred at a fraction of traditional costs. Proposed estimates suggest settlements should cost just 0.1% of the value transferred, a stark contrast to the exorbitant rates today. This modern method can potentially save trillions annually, empowering individuals rather than governments or banks. The crux is: with the capability to transfer value directly without borrowing, we edge closer to an interest-free financial landscape.

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Treasuries

In ancient Israel, the agrarian-based economy thrived on trust, much like how small towns operate today, where everyone's reputation is well-known. Commerce was primarily localized and carried out within trusted relationships, and this high-trust environment fostered significant economic growth. Lack of trust, on the other hand, created friction that hindered economic development. Fast forward to our globalized, modern-day economies, trust remains a crucial foundation. However, with billions participating in complex commerce, establishing trust becomes more challenging. To address this, several technologies have emerged to facilitate high-trust environments. These include digital twins, which are data models of real-world items, computable contracts, which are data-driven agreements that can evolve over time, composable proofs, which use algorithms to confirm events without divulging specifics, and synchronized accounting, a real-time auditing system.

These advanced technologies, when combined, can revolutionize how commerce operates in a global setting. Digital twins, for instance, can represent tangible items, ensuring accurate representation in a digital space. Computable contracts offer an evolution from traditional smart contracts, allowing for real-time adaptation based on behaviors. Composable proofs enhance privacy, only revealing necessary information for verification. Meanwhile, synchronized accounting ensures real-time audits, reducing errors and fraud. While these innovations offer massive potential for global commerce, they also carry risks of creating an over-surveilled society, emphasizing the need for responsible usage.

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Digital twins

Seed Credits, as conceptualized in the Sweet Economy, are backed by tangible assets, offering stability against inflation or other economic downturns. Users have the autonomy to select the assets backing their credits, making it a shield against unpredictable economic scenarios, such as currency hyperinflation. These credits aren't directly owned by the user; rather, they dictate the type of asset class the system uses to represent their credit's value. Much like farmers in ancient Israel had to labor over their fields to ensure a bountiful harvest, in the Sweet Economy, individuals must actively engage in commerce, creating 'CROP', to continuously earn Seed Credits.

As the Sweet Economy grows, participants reap the benefits. These credits function like a renewable resource, returning even if they are spent, gifted, or invested, guaranteeing that value always comes back to the user. This transformative economic model mimics the cyclical, regenerative nature of agricultural systems in ancient Israel, ensuring that participants remain active contributors rather than passive beneficiaries. The end game? Reduced living costs for everyone, fostering an ever-growing economic landscape where spending within this ecosystem eventually leads to more benefits. The Sweet Economy, underpinned by Seed Credits, fundamentally shifts our understanding of economic growth and stability.

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Seed Credits

Drawing parallels between ancient Israel's land ownership system and the modern 'Sweet Economy', a fascinating economic evolution emerges. In ancient Israel, while the permanent loss of land was an impossibility, residents had the option to lease their territories until the Year of Jubilee, which recurred every 50 years. Bringing this concept into a 21st-century context, the Sweet Economy integrates this principle via a digital loyalty rewards system. Just as the Israelites had the 'Right of Use' for their land, ensuring they profited from its yield, the Sweet Economy provides 'Squares'. These digital units symbolize an individual's right to a share of the global economy’s profits. The associated 'Yield Right' permits users to capitalize on the monthly dividend these Squares yield.

In this modern framework, the 'Seed Credits' function as a metaphor for the crop yield from Israelite lands. However, to keep the flow of these credits consistent, an individual must consistently engage in commerce that nurtures the 'CROP' - the economic activity driving this ecosystem. Maintaining this commerce, much like the relentless farming in ancient Israel, ensures a continuous harvest of benefits. Interestingly, while the traditional 50-year cycle of the Year of Jubilee held significance in Israel, the Sweet Economy adopts a more flexible 25-year cycle, representing the average time an Israelite could lease their land. This deviation seeks to accommodate participants joining the system at varied intervals, offering a balanced blend of historical accuracy and present-day practicality.

Yet, it's crucial to understand the non-cryptocurrency nature of these Squares and Yield Rights. While they utilize Distributed Ledger Technology, similar to blockchain, they are asset-backed, providing them with tangible value. Their design ensures they represent real-world value and economic activity, far removed from the speculative nature of many cryptocurrencies. Rooted in principles from ancient Israel, these digital assets of the Sweet Economy offer a blend of historical wisdom with the dynamism of modern economic practices, all geared towards creating a fair and resilient financial ecosystem.

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Yield Rights

Imagine ancient Israel's economic fabric before kings' corruption set in. Here, land symbolized security, prosperity, and continuity. As an Israelite, you would possess land that remained within your family lineage. Even in scenarios like strategic leasing, misadventure, or business misjudgments, while you might momentarily lose control over your property, its ownership would inevitably revert to your family. This economic safety net, where one's primary asset was untouchable, presented profound societal implications. Furthermore, expanding your farmland was feasible either by cultivating virgin lands or by capturing cultivated territories from adversaries, but never at the cost of dispossessing fellow Israelites or compliant foreigners. As a testament to this design, every family was initially allocated an inheritance when Joshua led the Israelites into Canaan, seizing fertile expanses from existing occupants.

This land ownership system mirrors certain contemporary tenets, like the U.K.'s royal lands which are perpetually owned by the Crown. However, while human monarchies might be vulnerable to overthrow, the divine economy of Israel stood invincible, backed by an almighty deity. Drawing inspiration from this ancient model, the Sweet Economy movement has introduced rewards instruments, analogized as 'Squares', mirroring the permanence of Israeli land ownership. Not associated with physical territories, these Squares represent rights to a divine-inspired economy. Ownership of these Squares, much like the agricultural assets of yore, is perennial and unassailable by global jurisdictions. As an innovative parallel, every individual entering the Sweet Economy receives these Squares, reminiscent of the Israelites' inheritance upon entering Canaan.

In the Sweet Economy, the emphasis is on cultivating economic growth through 'CROP', a metaphorical yield symbolizing prosperity. Much like the Israelites' cultivation of lands, increasing one's Squares is achieved by fostering economic activities that expand CROP. A unique feature is the equitable distribution of these Squares only to real individuals, bypassing corporate entities and ensuring an economy grounded in human relationships. By introducing such a system, the Sweet Economy is attempting to revive the relationship-based commerce, reflecting God's original intent for humanity.

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Squares

**Scale**

To grasp how value is produced, think about an olive farm. Let's say we have a farm with 100 trees, and each tree produces a gallon of olive oil every year. If each gallon gives a profit of $20, then each tree generates $20 annually, and the whole farm produces $2,000 from selling the oil. This $20 from a gallon represents the value of a single product. However, since the tree consistently produces olive oil over many years, its worth isn't just that $20 but represents a continuous stream of products. Similarly, when we consider the value of the entire farm, it's not just the sum of the current year's profits ($2,000) but the accumulation of profits from the continuous yield of olive oil over time.

In the financial world, the future stream of value or profit from an asset is essential. For instance, if our olive trees are predicted to increase their yield in the future, their worth goes up. Conversely, if something threatens their yield, their value decreases. Investors use this concept when purchasing assets like homes or stocks. Let's say you invest in a house to rent out. The monthly rent is similar to the yearly yield of the olive tree. Over time, you expect the combined rent and the potential sale of the house in the future to be profitable. The entire system revolves around predicting the future stream of value. A larger scale, like a big company or an entire economy, can significantly amplify this value due to reduced risks and increased diversity. This principle of scale is seen everywhere, from our physical universe to our economies. The key is unity and diverse collaboration, ensuring growth and prosperity without harmful over-expansion, similar to how cells function in our body.

**Network Effects**

Network effects describe a phenomenon where the value of a network rises as more users join it. Think of it like Facebook: the more users it has, the more beneficial it becomes to its members. Similarly, a service like Netflix becomes more attractive as its customer base grows, allowing it to offer a wider range of content. In essence, the larger the user base, the more valuable and convenient the network becomes. Conversely, motivations drive our actions. While fear can prompt immediate responses, it's not sustainable as a long-term motivator. God's teachings in the Book of Malachi emphasize love and positive motivations over fear-based ones. Fear might change direction temporarily, but love maintains a steadfast path. Economically, positive motivations lead to more robust results. For instance, owners, driven by passion and commitment, outperform slaves, motivated by fear.

Network effects don't just apply to social networks; they have massive implications in the economic realm. Companies like Apple and Facebook have harnessed these effects to boost their values immensely. Businesses have been shifting to subscription models to capitalize on consistent revenue streams, further magnified by network effects. This is why giants like Apple command such high valuations. However, an economy truly thrives when its citizens are directly benefiting and are motivated to foster growth. In ancient Israel, God's design was for an economy that benefited its citizens directly, not just the governing body. This direct ownership meant that they had a vested interest in its growth and prosperity. Modern economies often miss this point, leading to a reliance on incentives to drive growth. In contrast, God’s design promoted decentralized action, where every individual could prosper.

**Growth Rate**

Historical analysis of Israel reveals a strategic underpinning to its rapid economic progression. Initially, the nation's swift territorial expansion played a role. Yet, the longevity of its growth was bolstered by an impressive birth rate, effectively doubling the male population over four centuries. This demographic boost amplified the nation's agricultural production, thereby elevating its overall economic stature. However, understanding the economics of growth requires diving into the nuances of growth rate, which can be positive or negative. The larger the positive growth rate, the more valuable future prospects become. Conversely, a negative growth rate reduces value, albeit not as intensely. This phenomenon owes its explanation to the principle of compounding, leading to surprising, sometimes non-intuitive results, making positive growth exponentially more impactful than equivalent negative declines.

Using a simplified financial example, consider a base amount of $1,000. When this sum grows by 10% monthly for a year, its monthly value reaches $2,853 by year-end due to the compounding effect. However, if the $1,000 decreases by the same 10% monthly, the value by year-end is only reduced to $314. This intriguing outcome demonstrates that a 10% increase has a significantly more profound impact than a 10% decrease. When extended over three years, a consistent 10% monthly growth leads to an astounding $299,127 in product value, showcasing the enormous potential of compounded growth, evident in tech giants like TikTok, which boasted monthly growth rates surpassing 38% between 2019 and 2021. Such rapid growth outstrips even the combined advantages of scale and network effects.

God's command to humanity, as depicted in the Bible, has always inclined towards growth, urging procreation and dominion over Earth. This notion inherently promotes economic growth, primarily via population increase. Israel's biblical economic model reflects this, emphasizing decentralization and unified protocols to facilitate endless scalability. While wisdom and effort would differentiate individual prosperity, the overall economic disparity would be considerably less than today's standards. The endgame of such an economy would see an increasing efficiency, eventually driving down the costs of goods and services. As we observe today's economic structures, it becomes evident that while some elite classes understand the potential of such a system, it directly challenges the interest-driven passive wealth accumulation model, as increased efficiency reduces the need for money. 

**Decentralized Scale**

God’s vision, conveyed through Moses, revolved around a decentralized economic framework anchored on family units. These families, driven by love and reflecting God's essence, were to align harmoniously with neighboring families, forming cohesive communities bonded through shared culture and economy. These communities evolved into tribes, each showcasing unique strengths but unified as a nation by their shared culture and God’s chosen status. Central to this design was the land, owned perpetually by families and immune to permanent loss. The absence of a monarch ensured wealth and power weren't centralized, fortifying Israel against external adversaries who coveted its prosperity. Historically, thriving nations become targets, as their wealth becomes an irresistible lure. Israel, a prosperous land without a king, seemed vulnerable. Yet, its decentralized wealth made conquest challenging. Israel's ancient, decentralized economy, when followed, delivered powerful outcomes, serving as a viable business model today. Distributing economic activity staves off destructive economic black holes, while linking pre-existing resources yields compounded benefits.

How it Works

In his book, "The Economic Awakening," Scott Nelson explains the structures and instruments to enable a kingdom-based economy. Explore the main concepts here, and consider purchasing the book for a deeper dive.

Changing the Paradigm of Giving and Economic Impact: Tithes in Israel

Treasuries

Digital twins

Seed Credits

Yield Rights

Squares

Four Economic Turbochargers

@2023 Ark Foundation

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