Próspera is a charter city run by the Honduras Próspera Inc (HPI) in conjuction with the Honduras government ZEDE laws which enable setting up economic zones (i.e. charter cities) governed by a non-Honduran entity (like a corporation). The group established the first zone in Roatan in an area of unused land the size of Central park.
Their planned government is libertarian, emphasizing property rights, low taxes, and small government. The ruling council is composed of 5 elected members and 4 appointed by HPI which keeps it small (although the 4 appointed members would likely vote as a group and elected member would likely not i.e. political parties). 3D property rights would solve air rights issues (e.g. building a tall building) and a property token will be used to finance the development of the land. A 10% tax rate would attract people and busineses and they would cut 1% to the Honduran government.
Read Prospectus On Próspera.
- Trust is an important factor to economic prosperity, residents would need to place a lot of trust in a corporation and the government not renegging on ZEDE.
- The significance of persistence in predicting economic outcomes, but in this case, the entire institution is imported.
- In April 2022, the ZEDE laws were repealed and constitutional reforms will abolish existing ZEDEs pending confirmation in 2023
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Every financial transaction, no matter how simple or fast, has non-monetary transaction costs. For example, the mental overhead of making a decision “is it worth it?”, even for tiny amounts, adds up. In a world that is fully monetized and filled with micro transactions, the non-monetary transaction costs would be stifling.