Package Disclosure: Verified Outcome Units · v2

What a package contains

A package holds verified outcome units. One verified outcome unit equals US$1 of Δx, the modeled gross output whose inputs and calculation the Oracle has verified; a package of Δx dollars holds Δx units. Δx counts output at every stage of the supply chain; it is not value added.

Potentiacta takes all of its own value added, including its team, taxes and margin, from RIL, at a norm of 30% of RIL, and invests the remaining 70% in growing Δf: more people with a prepaid basket and a larger basket per person. Beside Δx, each package discloses its value-added, employment, income, environmental, social and wellbeing results; they are not added to Δx.

How verified outcome units are calculated

A verified outcome unit is US$1 of Δx: the gross output that Potentiacta’s total final demand Δf causes across the economy, measured and verified by the Oracle.

1. Input Δf. Δf is the change in total final demand relative to the baseline scenario.
   $$\mathrm{\Delta }f=\mathrm{\Delta }{f}_{\text{basket}}+\mathrm{\Delta }{f}_{\text{operations}}$$

   Δf_basket is Potentiacta’s verified spending on sustainable goods and services provided directly to users through non-repayable basket credits. Δf_operations is Potentiacta’s verified external operating spending. Employee compensation, taxes, interest, depreciation and capital purchases are excluded. The baseline scenario is the economy without Potentiacta’s spending: Δf is Potentiacta’s gross verified spending, not adjusted for purchases users would have made anyway. Carbon credit purchases are not counted in Δf_operations. Each basket category is classified by U.S. personal consumption expenditures (BEA, NIPA Table 2.4.5U). Spending is converted to producer prices with BEA’s PCE bridge, mapped by the product bought rather than by the seller, cleared of imports and deflated to the year of the input-output table.

2. Output Δx. Δx is the modeled change in total gross output by sector required to meet Δf. A is the matrix of technical coefficients; L = (I − A)⁻¹ is the Leontief inverse, with elements L_ij, taken from the domestic requirements table. Δx includes the direct and indirect supply-chain effects of both user baskets and operating purchases; Δx_basket and Δx_operations are disclosed separately.
   $$\mathrm{\Delta }x={(I-A)}^{-1}\mathrm{\Delta }f=L\mathrm{\Delta }f$$
3. Multiplier m. The output multiplier of sector j is the column sum of L. The package multiplier is the average of sector multipliers, weighted by each sector’s share of Δf.
   $$m_j=\sum _i{L}_{ij},$$

   $$m=\sum _j{s}_j{m}_j,$$

   $$s_j=\frac{\mathrm{\Delta }{f}_j}{\sum _k\mathrm{\Delta }{f}_k}$$
4. Verification. Results are broadcast in real time. The Oracle verifies Δf, the sector mapping, the model inputs, the calculation and the resulting Δx. Only verified Δx enters a package as verified outcome units.

Rules that keep the results apart:

• The credits users receive are the right to receive goods and services, a social transfer in kind. Their economic effect enters through Δf_basket; their effect on wellbeing is measured through access and consumption.
• Services count in Δf_basket only when Potentiacta buys them from external providers.
• For testers, credits are pay in kind for taking part: the goods enter Δf_basket once, and the credits are not counted again in Δf_operations. Testers and other recipients are separate groups, and the same consumption is counted once.
• Carbon credits do not reduce Δx. They reduce only the net claimed climate effect.

Results disclosed beside Δx

Each package discloses six results beside Δx. They are not added to Δx or Δf, or to each other. Their values are given only after verification by the Oracle.

v, l, w and e are the value-added, employment, labor-income and emissions coefficients per dollar of output in each sector, taken from the same input-output table year as A. ΔL and ΔW cover the supply chains only; they do not include Potentiacta’s own staff.

Value added. vᵀΔx is the gross value added generated by suppliers and their supply chains. Potentiacta takes all of its own value added from RIL, at a norm of 30% of RIL, reconciled to Potentiacta’s audited accounts with any variance disclosed; the remaining 70% of RIL is invested in growing Δf. Potentiacta’s value added is generated in Potentiacta itself, outside the sectors of Δx, and is shown separately within the package’s total value-added result.

Income. ΔW is part of ΔGDP; it is disclosed beside it, not added to it.

Environmental result. ΔE_created is calculated from Δx using sector emissions coefficients. ΔE_compensated is the tonnes of carbon removal credits retired against the package ID, each meeting the conditions under Environmental responsibility. ΔE_created and ΔE_compensated are always reported separately in tCO₂e, and ΔE_net is shown beside them, never instead of them. Emissions are called compensated only when retired credits cover all emissions created; otherwise they are partially compensated, Y of X tonnes. Carbon credits do not reduce Δx; they reduce only the net claimed climate effect.

Social and wellbeing results. A credit issued proves access; it does not by itself prove better wellbeing. Changes in consumption and deprivation are measured against a baseline and, where feasible, a control group, and Potentiacta reports the measured change, not the credit.

What the basket contains

The basket combines digital productivity services and goods. For example, the first basket can currently be formed in this proportion: 36% digital productivity services and 64% goods. Goods come from these sections and categories:

All goods Potentiacta includes in the basket of goods and services hold a Sustainable certificate. A good whose certificate has not been confirmed does not enter the basket. Each good carries a recognized third-party product certificate, for example GOTS, FSC, USDA Organic, EPA Safer Choice, Nordic Swan Ecolabel or GRS, or comes from a certified B Corp or a Leaping Bunny–approved company.

Social responsibility

From the total number of users, Potentiacta identifies groups by current wellbeing, by relation to Sustainable communities, and by Potentiacta’s influence on their wellbeing and productivity. The size of each group in a package is given only after verification by the Oracle.

The change in wellbeing is measured for each group separately from Δx: against a baseline, through surveys, spending data and deprivation indices, and, where feasible, by comparison with a control group. The poverty measure states whether the basket itself is counted; the control group shows how much of the change Potentiacta caused.

Environmental responsibility

Potentiacta discloses the net climate effect of each package and compensates emissions by buying carbon removal credits. Buying credits does not cancel physical emissions: Potentiacta states that emissions linked to consumption are estimated and compensated with verified carbon removal credits, and counts a credit only when it meets these conditions:

• Additionality: the removal would not have happened without the revenue from the credit.
• Baseline and measurement: the effect is measured against a robust baseline and quantified conservatively.
• Permanence: the risk that stored carbon is released again is managed.
• No double counting: a credit is not claimed by Potentiacta, the project seller and a country at the same time.
• Separate from Δx: compensation does not reduce gross output; it reduces only the net claimed climate effect.

Disclosure Score · ESG

Each package carries a Disclosure Score from 0 to 100, with E, S and G sub-scores, shown on the package card. The score rates the correctness of the package disclosure; it is not an ESG rating of Potentiacta or of a bond issuer.

1. When the Oracle verifies a package, it runs the 21 checks below on the package’s data.
2. A check scores full points if it passes, half if the evidence is incomplete, and zero if it fails. A gate passes only with full evidence.
3. Seven checks are gates. If a gate fails, the package is not verified: its units are not issued, and the card shows “Not verified” instead of a score.
4. The Disclosure Score is the sum of points, rounded down to a whole number. Each sub-score is the points earned in its pillar divided by the pillar maximum (E 24, S 23, G 53), times 100.
5. Grade: 90–100 Verified; 75–89 Verified with notes; 60–74 Conditional: units are issued but not transferred until the checks that lost points are fixed; below 60 Not verified.
6. The score, the sub-scores, the checks that lost points and the Oracle’s signature are recorded with the package on Potentiacta Standard.

Note

Arrangers and issuers of social bonds calculate an order, send a pre-order and book a meeting with the Potentiacta team in Pre Order Board.

This disclosure is not an offer of securities.

Sources

• U.S. Bureau of Economic Analysis — Table 2.4.5U. Personal Consumption Expenditures by Type of Product (via DBnomics): the categories the basket is mapped to.
• ICVCM — The Core Carbon Principles: additionality, permanence, robust quantification and no double-counting, the conditions for carbon credits.
• The input-output table, its year and the sources of the coefficients A, v, l, w and e are stated for each package and checked by the Oracle (Disclosure Score, check 5).