How can we decentralize the construction of brick-and-mortar houses?
categories:
- "blockchain"
- "governance"
This is why construction is so corrupt
Global Corruption Report 2005: Corruption in construction and post-conflict reconstruction
Diversity of Housing Design
No two buildings or skyscrapers are identical. Engineers can craft various sustainable designs and gain approval from the decentralized governance. These designs may incorporate diverse features such as supermarkets, playgrounds, office spaces adaptable for remote work, natural parks, and forests. Additionally, inclusive community amenities like schools and hospitals contribute to a well-rounded environment.
Free Market: Demand and Supply Transactions and Investments
Consider an investment scenario: a skyscraper costing 10 Crore, requiring 5000 people to contribute Rs 20,000 each. These investors, whether from different countries, states, or the same locality, each own shares worth Rs 20,000 in the property. Residents of the house pay for their shares through installments, facilitated by systems like Universal Basic Income (UBI), incurring a minimal 1-5% interest; these interest payments go to the investors. The entire housing construction supply chain is automated through smart contracts, ensuring efficiency and cost-effectiveness.
Smaller skyscraper with smaller budgets can also be done, and also good for experimentation to start with.
To deter speculative practices and ghost housing, local rent seekers stake an amount upfront to secure rental reservations. The stake is only released upon the completion of the last ownership installment, akin to a prepaid plan.
If one use a native token instead of a stable coin, it's challenging to pay installments with a fixed native token due to price fluctuations. The price of the native token can be determined through the price oracle, allowing you to pay the installment value in native tokens based on the stable coin's value, without need of stable coin. The native token proves useful for designing incentive systems for governance and investments.
Governance Involvement
The governance structure involves various stakeholders, including those who have invested money, rent seekers, engineers, local communities, and environmentalists. Each stakeholder may have different voting power based on their expertise and integrity. Effective voting methods are implemented to make decisions collectively.
Reducing Bureaucracy through Governance Approval
Ensuring the safety, longevity, and earthquake resistance of housing is imperative. One also needs to put a halt to the unoptimized use of land, including issues like urban sprawl and ask for sustainable energy sufficient (e.g using solar panels) housing design. The governance body monitors the entire process, from building design approval to construction. If an engineer or worker deviates from the expected standards, the governance system has the authority to vote them out.
Transparent Pricing and Accounting of Materials
Material suppliers participate in a transparent bidding or auction process. The skyscraper's governance approves material selections based on quality and pricing, ensuring accountability in the construction process.
Transparent Payment to Engineers and Workmanship
Transparent payment systems are in place for engineers and workers, promoting accountability and fair compensation.
Discouraging Landlord Issues
Landlords in cities have become a problem with inflated house rents and also contribute to wealth inequalities. To combat these issues, housing can be owned collectively by the community. To discourage traditional landlord practices without compromising housing investments, an incentive system within the smart contract can be implemented. For example, one can allocate a portion of the rent to the owner who has paid the full transaction fees for the room, and the remaining portion can be directed to a community treasury.