How Value Moves

At first the board enters the Loop

When a board is brought into our system by its original owner we establish the board reference value, the daily usage fee 

The board has a reference value and a daily usage fee. Together, they define how many positions make up one complete Loop.

Let’s take a simple example:

• Board reference value: $320

• Daily usage fee: $10

• Loop length: 32 positions

$320 ÷ $10 = 32 positions.

The board therefore has 32 positions in each Loop, corresponding to the 32 days of use needed to reach its reference value.

At the beginning, the original board owner holds all 32 positions.

Then it becomes available to surfers

1. Surfer 1 uses the board

Surfer 1 uses the board for 11 days.

They pay: 11 × $10 = $110.

And acquire positions 1–11.

2. Surfer 2 uses the board

Surfer 2 then uses the board for 8 days.

They pay: 8 × $10 = $80

And acquire the following positions in the loop: positions 12–19.

3. Surfer 3 uses the board

Surfer 3 uses the board for 10 days.

They pay: 10 × $10 = $100

And acquire the following positions in the loop: positions 20–29.

4. Surfer 4 uses the board

Surfer 4 uses the board for 14 days.

They pay: 14 × $10 = $140

During the first 3 days, Surfer 4 acquires the positions 30–32. These are the last positions held by the original board owner.

The first Loop is now fully completed. 32 positions have been sold and the reference value of $320 collected. The original owner is compensated.

During the following 11 days, Surfer 4 acquires positions 1–11, previously held by Surfer 1.

The $110 paid by Surfer 4 for these positions ($10/position) are attributed to Surfer 1, with 25% allocated as a system contribution to sustain and support the Loop. Surfer 1 receives $82.50, and $27.50 is allocated to the system contribution.

Surfer 1’s net cost for 11 days of use is $27.50, or $2.50 per day.

5. Surfer 5 uses the board

Surfer 5 now uses the board for 10 days.

They pay: 10 × $10 = $100

And acquire the following positions in the loop: positions 12–21.

The payment is attributed to the holder who transfers the positions. In this case the payment is attributed to 2 position holders :

• Surfer 2 is compensated for position 12-19 : $80, less a 25% system contribution. They receives $60, their net cost for 8 days of use is $20, or $2.50 per day. Surfer 3 receives $15.  

• Surfer 3 is compensated for position 20-21 : $20, less a 25% system contribution ; and keep holding positions 22-29 until the next user came in the loop. 

And the Loop keeps moving

The same mechanism continues as the board is used.

Each new user:

1. uses the board;

2. pays the daily usage fee;

3. acquires positions in chronological order;

4. keeps those positions when they return the board;

5. later receive compensation when those positions are transferred to a subsequent user.

How this system is sustainable ?

Each time positions are transferred from one user to another, the full transfer value is attributed to the holder of those positions, with 25% allocated as a system contribution to sustain and support the Loop.

Part of this contribution is used to build a Security Pool. The Security Pool is a reserve designed to protect eligible position holders if a board can no longer continue progressing through the Loops while positions are still held.

The remaining contribution helps cover the costs and risks involved in keeping the Loop running over time, including natural wear of the board, local partners, and the technology and operations needed to manage usage, payments and position transfers.

This allows value to continue flowing between users while also helping protect the system against the risks involved in managing a physical asset over successive Loops.