welcome to project wallets category blueprint
automation platform
contracts + cashflow
who - project teams
what - automate contracts + cashflow
where - instantly on blockchain
why - to build faster!
how - w/ TRU$T
behavioral psychology – reward reinforcement
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clear goals (contracts)
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fast rewards (cashflow)
1.clear goals
The first necessary part of behavioral psychology’s reward reinforcement philosophy is to make sure that all parties can clearly identify a singular and clear goal to be accomplished.
clear goals = automate contracts
Using the smart contracts (if/then agreements) on blockchain, project wallets nest goals in the form of contracts + subcontracts so that all parties have clear goals.
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the contract (by phase)
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between the Owner + Contractor
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including sequential scope of work + value to be done
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broken down into phases (Contractor’s goals)
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subcontracts (w/invoices)
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nested inside phases
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between the Contractor + Sub/Supplier
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broken down with preset invoices (Sub/Suppliers goals)
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nested goals = cooperative game play
by nesting the Contractor’s goal as the completion of a phase, their reward is now dependent on the Subs/Suppliers completing & closing all the subcontracts in that phase.
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2.fast rewards
The second part of reward reinforcement is the fast/immediate reward. The longer the time delay from action to reward, the less effective and less likely to spur additional willful action.
Fast rewards = automate cashflow
Since smart contracts are self-executing if/then agreements, all we needed was to ensure that the funds were available for instant release “approve to pay”.
Contractor reward = phase OH&P
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goal – complete phase
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work – subcontract & complete all contracted work
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submit – Contractor submits completed phase
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approval – Owner approves the phase
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reward = phase OH&P (overhead & profit)
Sub/Supplier reward = invoice value
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goal = preset invoice
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work – scope of work in the subcontract
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submit – Sub/Supplier submits completed invoice
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approval – Contractor approves invoice
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reward = invoice amount
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blockchain technology – value automation platform
the cloud – was made to organize / store / and trade DATA
blockchain – was made to organize / store / and trade VALUE
blockchain was built to organize, trade, and automate the exchange of digital assets safely & securely between parties. A decentralized system with immutable ledgers and real-time access for all parties makes it the perfect place to use a combination of holding containers (wallets) and self-executing programs (smart contracts) to build an automation platform for contracts + cashflow.
blockchain parts
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smart contracts (if/then agreements)
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stablecoins (digital value)
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wallets (hold stablecoin)
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1 team - Owner, Contractor, Subs/Suppliers, Lender (optional)
ideal teams:
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multi-phase project
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nested contracts
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value speed​​​​​​​​​​​​​​
Owner – primary stakeholder
primary benefit: faster delivery
biggest change: advanced funding schedule​​​​​​​​​​​​​​​
primary actions
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funds into Owner’s wallet
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join a project wallet
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add funds to a project wallet
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fund the contract (by phase)
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approve phase to pay Contractor
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project closeout & archive
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download CSV for accounting​​​​​​​​​​​​​​
secondary actions
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change orders from Contractor (as needed)
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funds out of Owner’s wallet​​​​​​​​​​​​​​
Contractor – project execution
primary benefit: team automation
biggest change: automation platform adoption​​​​​​​​​​​​​​​
primary actions
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open a project wallet
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upload the contract (by phase)
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invite Owner
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issue subcontracts to Subs/Suppliers
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approve invoices to pay Sub/Supplier
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submit phase to Owner
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project closeout & archive
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funds out of Contractor’s wallet
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download CSV for accounting ​​​​​​​​​​​​​​​
secondary actions
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change orders to Owner (as needed)
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change orders from Sub/Supplier (as needed)
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cancel subcontract w/Sub/Supplier
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cancel work in contract w/Owner​​​​​​​​​​​​​​​
​Sub/Supplier – labor and/or material (multiple)
primary benefit: paid faster
biggest change: invoices/payments on platform​​​​​​​​​​​​​​
primary actions
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accept/negotiate/reject subcontract from Contractor
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submit invoices to Contractor
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funds out of Sub/Supplier’s wallet​​​​​​​​​​​​​​
secondary actions
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change order to Contractor (as needed) ​​​​​​​​​​​​​​
​Lender (optional) – financial stakeholder
primary benefit: reduce risk
biggest change: advanced funding schedule​​​​​​​​​​​​​​
primary actions
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add funds to Lender’s wallet
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add funds to a project wallet ​​​​​​​​​​​​​
secondary actions
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funds out of Lender's wallet​​​​​​​​​​​​​
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2 jobs – automate contracts + cashflow​​​​​​​​​​​​​​
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The acrostic “automate” explains the parts + flow from top-to-bottom.
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Contractor opens a wallet + uploads the contract
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Owner funds the contract (by phase)
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Contractor issues + funds subcontracts (w/invoices)
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Subs/Suppliers work + submit preset invoices
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Contractor approves invoices to pay Subs/Suppliers
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Owner approves completed phase to pay Contractor
change orders modify contracts (as needed)​​​​​​​​​​​
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​​​​​​​​​​​​​​3 steps – fund / work / approve to pay​​​​​​​
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instantly (live on chain)
Every blockchain wallet balance is live and only approved smart contracts can change the balance – moving at the speed of the blockchain cycle time.
“cycle/block time” = the time it takes to record a transactions & make a new block:
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depending on which blockchain: between 400 milliseconds – 10 minutes
what this means is that there is no more “digital twin” like there is with software, or need to reconcile activity in one system, against another system(s). everything executed is in real-time and is as current as the blockchain cycle time (max 10 min lag).
platform rules
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Contracts must be funded before they can be worked on
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Owner must fund contract (by phase) before subcontracts can be issued
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Contractor must fund subcontracts once Sub/Supplier accepts
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Subcontracts cannot be issued for more than the contracted amount
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subcontracts can be issued for less than the contracted amount (Contractor profit) – which is held by phase, until Owner approves the completed phase
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on/off ramp
The project wallet provider is responsible for connecting an on/off ramp to take fiat currency and convert it into the stablecoins for use on the project wallet platform.​​​​​​​​​​
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​4 parts – user wallets, project wallet, the contract, subcontracts
​​​​​​​​​using blockchain wallets + smart contracts we get the 4 parts of a project wallet:
user wallets
project wallet
contract (by phases)
subcontracts (w/invoices)
user wallets – wallet only
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owned/funded/managed by the individual User
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connected to an outside financial institution via on/off ramp
project wallet – wallet + smart contract
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Owner owned/funded/managed
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If/then – if there is a balance upon project completion / then it is sent to Owner
contract (by phase) – wallet + smart contract
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agreement between Owner + Contractor
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scope – work to be performed
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schedule – broken down by phase in sequential order
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budget – each scope line has a value + OH&P
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Contractor owned
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Owner funded from project wallet (by phase)
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scope of work (w/value) created when Contractor opened the wallet & approved by the Owner prior to funding
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note: Sub/Supplier cannot see contract
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if/then - if Owner approves the phase / then phase OH&P is sent to Contractor
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modified by change order (as needed)
subcontract (w/invoices) – wallet + smart contract
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agreement between Contractor + Sub/Supplier
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Contractor owned
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Contractor funded from contract
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Invoices preset at the time of subcontract issue
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note: Owner/Lender cannot see subcontract values – only progress
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if/then - if Contractor approves invoice / then amount sent to Sub/Supplier
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modified by change order (as needed)
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change the way Teams think / feel / act:​
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think
from: manual comes from a fixed mindset where everyone has to fight everyone to get their small piece of the limited resources available. Rewards are subjective, benefiting the loudest (the squeaky wheel gets the grease) with “stick” motivation tactics trying to
to: automation leverages a growth mindset + cooperative game theory, where all parties work together to achieve exponential returns faster, while using less input.
feel
from: RI$K (real or perceived) hijacks the brain’s amygdala & shrinks neural pathways, so only rote memorization can be executed – so no new ideas will flow and problem-solving decisions will be reduced to only those that have been proven to work in the past.
to: TRU$T from team automation releases oxytocin (known as the “trust” hormone) enhancing feelings of safety & connection while activating reward circuits that reinforce positive social interactions and cooperative game play. Creativity flows freely and problem-solving opportunities grow with exponentially beneficial outcomes.
act
from: FLOAT is the default action in the presence of RI$K (possibility of financial loss) as fear highjacks the brain’s amygdala - forces delay in both thought & action while reducing the number of solutions the brain can come up with. “hurry up & wait”
to: FAST with the “trust hormone” oxytocin released, the team grows interpersonal confidence, and individual neural pathways expand - achieving peak performance in both action and creativity. Peak performance, both personally and as a Team.
what is the cost?
there are 3 costs on a blockchain platform:
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converting currency into coins “minting” banks to blockchain
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transferring coins wallet-to-wallet blockchain to blockchain
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converting coins into currency “burning” blockchain to banks
software = access is fixed $ fee per user, transactions are unlimited
vs.
blockchain = access + wallets are free, but transactions cost a % fee
Most project wallet providers charge a % fee to the receiving party (like a credit card fee). Tying the expense to the party who receives the greatest gain of the platform.
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how does it integrate with my accounting system?
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user wallets (everyone) are treated as a digital bank account.
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project wallets (Owner/Contractor) are treated as a special purpose bank account created for the project, showing the inflows and outflows of funds.
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what are the applicable industries?
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construction- residential / commercial
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software development
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supply chain & manufacturing
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film & entertainment production
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ship building & aerospace
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mining & resource extraction
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telecommunications
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vocabulary
approve to pay – single action to both approve work & release reward instantly
blockchain – platform for the storage / organization / trade of digital value
contract – primary agreement between Owner + Contractor
Contractor - team leader & responsible for project execution
invoice – nested inside subcontract (Sub/Supplier’s goal)
Lender (optional) - financial stakeholder
OH&P – Overhead & Profit
overhead – contracted value directly to Contractor
Owner – primary stakeholder & decision maker
phase – sub-grouping of contract value (Contractor goal)
project wallet – Owner’s single-use wallet to hold project funds
profit - value in contract less the subcontracted amount
stablecoin – value of exchange on blockchain (pegged to currency - typically $1 USD)
smart contracts – self-executing if/then agreements
subcontract – nested agreement between Contractor + Sub/Supplier
Subcontractor - labor suppliers (multiple per project)
Supplier - material suppliers (multiple per project)
trust – mutually predictable action
user wallet – individually owned by the participating party
wallets – self-custody storage of stablecoin on blockchain