[b:3kxgkscf][u:3kxgkscf]The untapped potential of franchulates[/b:3kxgkscf][/u:3kxgkscf]
I know that franchulates has been a hot topic in recent months, although there seems to have been some confusion about exactly what franchulates do and what they are for. A number of members of the CSDF, for example, consider franchulates (at least as the proposal currently stands) to be " a solution in search of a problem", and it is currently unclear exactly what they could achieve (as the proposal stands now), apart from permitting a few existing citizens to own a bit of mainland land a little more cheaply than they otherwise might, since (1) people have to be existing citizens to enfranchulate, and (2) franchulate holders cannot sublet their land.
With a few small changes, however, the franchulates scheme could be a very potent tool for expansion indeed, and could, potentially, with a little luck and a lot of determination, have a marked impact on SecondLife as a whole in the long term.
[b:3kxgkscf]Problems that franchulates solve[/b:3kxgkscf]
If franchulates as it currently stands is a solution in search of a problem, the slightly revised version that I suggest has found some real problems to solve. Those are:
* the proliferation of greifers on the mainland, and the fact that each landowner has to ban each griefer individually;
* the cost of having a premium subscription to own land;
* the higher relative cost of owning smaller parcels of land (this is what the current proposal seems mainly to be aimed at); and
* the fact that, on the mainland, enforcement mechanisms (of contracts in particular) are severely limited, limiting the scope and complexity of potential commercial transactions.
[b:3kxgkscf]My suggested modifications[/b:3kxgkscf]
The slight changes that I propose are:
* to permit people to become a citizen *by* enfranchulating their existing mainland land-holdings to us, so that that person would then hold land under the CDS and be a citizen thereby;
* to permit, in certain circumstances, franchulate holders to sublet parcels of enfranchulated mainland (but prohibit sub-sub-letting);
* to permit people to enfranchulate entire private islands if they want;
* to negotiate a notarised contract in each case of enfranchulation tailored to the particular requirements of the franchulate holder(s) in question, setting out that person's duties and rights as regards the franchulate, and for that contract to stipulate things like (a) requirements for [i:3kxgkscf]some[/i:3kxgkscf] sort of restrictive covenants on building to keep [i:3kxgkscf]some[/i:3kxgkscf] sort of theme (although not as strict as on the private islands, and the franchulate holder would get to decide the theme); (b) in the case of a sufficiently big franchulate, the provision by the franchulate holder of additional marshals of the peace to cover that area if thought necessary; (c) whether or not the franchulate holder would be allowed to sub-let (those who are should probably pay a premium rate, although that could be the subject of negotiation if the person has something to offer the CDS in other respects); and (d) the length of time that the franchulate holder would be allowd to go into arrears before the court could order repossession of the franchulate for sale to another potential franchulate holder (and only sale absolute if that fails);
* to have an automated mechanism of sharing CDS-wide ban lists between our franchulates and private islands, and an automated reporting mechanism for misdeeds on our land; and
* to put the Chancellor in charge of organising the franchulates and negotiating in respect of them, and let the Chancellor use her or his powers of delegation to permit franchulate holders who are allowed to sub-let become effectively provincial governors, setting planning controls, organising events, and other such things.
[b:3kxgkscf]Effect of my suggested modifications[/b:3kxgkscf]
If what I propose is incorporated into the franchulates proposal, then enfranchulation is transformed from a system to enable existing citizens to get mainland land cheaply to a system whereby we can expand very quickly indeed by offering a number of distinct advantages to mainland landowners, and generate extra revenue in the process.
[b:3kxgkscf]Advantages to landowners of enfranchulating[/b:3kxgkscf]
The advantages to [i:3kxgkscf]us[/i:3kxgkscf] are obvious: we get lots and lots more citizens, and more money. The advantages to existing landowners may be less obvious, but they are substantial. They are, in summary:
* "owning" land under the CDS does not require a premium account (and every good businessperson knows that the key to success is cutting overheads;
* as under the current proposal, neighbouring franchulate holders could each make their neighbour's fees cheaper by allowing the CDS to earn bulk land discounts, and pass some of that onto the franchulate holders;
* CDS-wide ban lists, coupled with a robust court and marshals of the peace system could provide highly effective protection against all but the most determined alt-happy griefers (on which see more below); and
* a robust judicial system could make contracts enforceable that would be impossible to enforce against people not in the CDS (on which see more bel0w).
[b:3kxgkscf]Further details on griefers[/b:3kxgkscf]
One way in which our system would be effective against griefers is that sharing of ban lists would mean that a griefer who is banned for griefing on one bit of land would also automatically be banned from everywhere else in the CDS, so that, for any given area of land, far fewer individual banning decisions would be necessary. Furthermore, as we grow, a ban from the CDS would be a greater and greater punishment, as a person would be banned from more and more territory. That alone might encourage at least some griefers to leave CDS land alone. Furthermore, our (soon-to-be, hopefully) judicial system would reassure people wanting to enfranchulate that a ban from the CDS really means something: that it is made judicially, on proper grounds.
Indeed, if we get big enough, the 300 allowed bans from SecondLife might not be enough: we might need more sophisticated banishment tools. What would probably work for that is an object that contains a script that automatically teleports home anybody entering the parcel in question whose name matches a list of names held in an XML file on a webserver somewhere. That list could, of course, have far more than 300 people on it. That object could also serve the dual function of dispensing blank notecards when touched, and sending notecards dropped on it to all the marshals of the peace, so that people could use it like a police call box: touch for a notecard, type a griefing report on it, drop it on the object, and wait for a marshal of the peace to come online and deal with the problem.
This would likely be an extremely sought-after service amongst many landowners who do not have the resources to maintain their own ban lists, and are plagued by marauding griefers who grief them, and, more importantly, their customers while they are offline. Smaller landowners would probably not have to provide marshals of the peace on their own, but larger landowners should be asked either to provide their own marshals of the peace (the landowner could just be one her or himself), or contribute financially towards others. (As an interesting aside, that would be an intriguing half-way house between a feudal system and a modern taxation economy). The anti-griefing structure alone would probably be reason enough for many to enfranchulate.
[b:3kxgkscf]The contract economy[/b:3kxgkscf]
One thing that strikes me about the SecondLife economy is that it is almost entirely composed of (1) land; and (2) the virtual equivalent of manufacturing industry. Nearly all retail seems to be undertaken by the manufacturers direcltly, and there are very few services to speak of (with the notable exceptions of sex and gambling, but that is perhaps not surprising, and the somewhat more surprising exception of banking, although many people are wary of the unregulated banks). One of the reasons for that is probably that, given that contracts cannot effectively be enforced in most of SecondLife, the only sort of business that can effectively be done is either where (1) there is no possibility of fraud; or (2) there is a high degree of personal trust between the parties. (1) covers basic manufacturer-retailing of objects, scripts, textures, etc. (with the exception of the possibility of photograph-stealing textures), and (2) covers closely-knit small business collectives, but, aside from that, the business that one can do in SecondLife is limited.
One cannot, for example, safely give a copy/trans permission object to a intermediary retailer and then trust that retailer to give one a fixed share of the proceeds of sale, nor can one enter into an insurance agreement with any real way of trusting that the insurer will pay out. Building projects, where lots of diverse groups not personally known to each other each contribute a pre-arranged little bit to a large overall plan for an agreed sum of money is also not workable without a way of enforcing contracts, and there are doubtless countless other examples of things that businesspeople would like to do if only they could enforce their agreements.
With our system of law, of course (as I propose it with my Judiciary Bill), people will be able to enforce agreements effectively. Of course, the enforcement is only really effective [i:3kxgkscf]against[/i:3kxgkscf] people who are already citizens of the CDS, so why would anybody join us just to make it more likely that he or she would be sued, without having any better chance of suing anybody else? The reason is that, if people (whether citizens or not) know that they can enforce against a business effectively by virtue of it being in the CDS, they would be prepared to do business with it on terms that they would not otherwise be prepared to do. The ability to be sued would be a strong [i:3kxgkscf]selling poing[/i:3kxgkscf] in any business that depends on trusting it to perform its obligations. If there are people out there who say "I'll only do business with you on those terms if you're in the CDS so that we can sue you if you don't deliver on your promises", then that is a strong reason in itself for people to enfranchulate. (Our provision of limited liability companies, too, would be a good reason for businesses to join us: perhaps one day we will even have our own stock exchange!)
If people were able to do business with CDS businesses on terms more sophisticated and mutually favourable than businesses outside our jurisdiction because our legal system would mean that the agreements could effectively be enforced (ultimately, by taking away the offending party's land if the person flatly refuses to co-operate at all), then that could conceivably have, in the long-term, a profound effect on the whole SecondLife economy, boosting the services sector in particular.
Overall, the combination of being able to dispense with a premium account, in some circumstances benefiting from bulk land discount, more effective protection from griefers than any small mainland organisation could provide, and enforceable contracts would quite likely make enfranchulation a very attractive option indeed for landowners on the mainland, especially those who run businesses or cultural attractions.
[b:3kxgkscf]What would become of our island sims?[/b:3kxgkscf]
Supposing that franchulates were to take off as I hope that they might, and large numbers of people were to enfranchulate, so that the number of franchulate holders exceeded the number of citizens of Neufreistadt and Colonia Nova, what then?
I like to think of us in those circumstances as a bit like the British Empire, only with mutual annexation instead of conquest, and mutual advantage instead of subjugation. Our seat of government, and centrepiece of Confederation cultural life, is the quaint, densely-populated island of Neufreistadt (and hopefully before long Colonia Nova, too), but our franchulate empire would extend much further than that, deep into the mainland, but our culture and government would still revolve mainly around our islands. The enfranchulated mainland would maintain much of its original identity, with an over-arching infusing of CDS government, justice and, sometimes, culture to hold it all together.
[b:3kxgkscf]Telling people about us and getting people to trust us[/b:3kxgkscf]
The two main things that we must get right if we are to succeed are (1) publicity; and (2) trust.
As to publicity, people are not going to enfranchulate if they do not know that we exist, or what the advantages of enfranchulation are. It is a great pity that we have recently lost our public information officer, and the Chancellor should make it her or his priority to find a suitable replacement. Once we get the judicial system set up, and work out the details of how franchulates work, we need to publicise them, and the advantages outlined above, as much as possible. We should take Adam Hawthorne up on his offer of a consolidated, CDS-owned website, for example, and make more progress with finalising the agreement for Dianne's flag so that we have a solid brand identity.
As to trust, people will naturally be wary at first of signing their land over to an unknown institution. However, since a large number of people already use the wholly unregulated SecondLife banks, there must be a goodly number of trusting people out there, and businesspeople may well think that it is worth the risk. Once a few people have joined us and found us trustworthy, of course, word will spread, and others, who may have been wary before, may come to trust us more, and join us based on the experiences of others. The more who join, the more who will want to join.
Important to trust, of course, as I have outlined elsewhere, is getting the balance of powers right, and having a fair, rigorous and independent judiciary, as I propose. People are likely to be far more willing to trust us if they know that any disputes can be settled through a proper judicial process, and that the government is as much bound by the rule of law as everybody else (both in theory and in practice, which is why it is important to have judicial appointments wholly independent of government).
[b:3kxgkscf]Conclusion[/b:3kxgkscf]
With the proposal as I frame it, the potential for us to expand, and, in so expanding, benefit not only ourselves, but possibly a huge number of other users of SecondLife by going some way towards solving some of the problems that have been inherent in SecondLife until now, and quite possibly transform large parts of the mainland into areas where people can be as free of griefers as we are in Neufreistadt, have their land more cheaply than they otherwise might, and able to conduct complex commercial transactions in confidence.
It might not work, of course: that is true with all great innovations, but, for the potential that it can achieve, it is very much worth a try.