STH. Statutory Theft
... How do we use rule of law (LAW) to protect the citizen (CTZ) form losing his right to the full output of their labor (FOL)? How can we prevent the devaluation of predistribution of economic rents (PRF).
As soon as someone has collected artificial capital in the form of prefs, others will scheme to take the future value from those not wise enough to understand the value of their capital. How can we protect these people? How can we prevent accounts from exchanging value simply to devalue the prefs of other owners?
Via rule of law we will need to create a crime similar to statutory rape that outlaws the taking of prefs, or the proceeds of prefs from a citizen. Should this apply to entities as well? Yes, through a chain, the prefs paid to entities have value to the citizens that have supported the entity.
How will this work? This is a complicated issue and will need to be dealt with carefully. This is what we want to avoid:
A mother spends money to raise her children. She accumulates a massive number of prefs over 20 years. A 'banker' offers to buy the output of her prefs for $100,000. All of her value is future value and the prefs are probabilistically worth more than that. This person is trying to take advantage of the mother's vulnerability.
The value of a pref is only bounded by the lifetime of an account. Therefore the theoretical value is infinite. Anyone trying to claim that value for a value less than infinite is stealing and should be held accountable by rule of law.
In addition, the exchanging of cash between accounts simply for the increase in prefs that it brings should be punishable via rule of law. This includes passing money in a circular motion among a small group inside of a market. This type of behavior reduces the value of the prefs of other owners and should be considered theft. The public ledger can be used to compare prices paid in situations where this kind of activity is suspected
Implement laws punishing the underpayment to accounts for the rights to their prefs and passing of money where unfair value is exchanged and reduces the value of other prefs in the account.