Systems designers seek to make modules independent of one another. Derivatives designers do not. This 1% fee is similar to the stamp tax San Francisco (county I think) charged me when I sold my place.
An important point is people are buying future equity but BOOKING THIS AS AN ASSET. A FUTURE equity is not an asset at nominal value (face value of the future). A PROMISE is not worth much. But, that's how you get to $100T's of derivatives or whatever it is now.
IMO, Derivatives is the new Internet. its the new bubble. Most people are not into it yet.
A transfer fee program is used to attract investors like banks, Wall Street or the U.S. Government. The investment dollars would fund construction projects throughout the country. A fully implemented transfer fee program could create up to five million jobs affecting all industries.
Contrary to the article, the developer does NOT receive any of the 1% fees - the investor does, ie. the banks, Wall Street or the U.S. Government.
In California, Mello Roos taxes can cost homeowners up to 1% PER YEAR, to pay for the same services provided by a transfer fee which could occur every 8 to 10 years over 99 years.
This sounds similar in concept to ground rent in Baltimore. Developers of yesteryear were able to sell row homes for less because they created these ground rent deeds. The developer would sell the house, but not the land. Eventually these ground rent deeds feel into the hands of endowments and other entities. These deeds are often open ended, some have existed for over 100 years.