CLAIM MARKET OVERVIEW
At Schock Market, we want to expand wildlife populations through creative public/private partnerships.
To test and value partnership ideas, we have created claim markets. Claim markets allow everyday citizens to claim (or bet) on those markets they like best.
Choose well and you could earn a cash payout!
The goal is to create a marketplace (a Schock Market) where thousands of citizens are creating and profiting from the advancement of creative public/private partnerships that benefit wildlife.
In the American West, pioneers filed land and mining claims by placing their name on a list.
At Schock Market, participants file claims by making bids in a market. Participants make bids with “play money” that is provided to them at time of registration.
How much play money? One hundred thousand dollars. Like a board game, participants use this play money to bid on claims and keep track of their projected payouts.
There is no way to lose this play money. (Even if you did, you would not owe anyone, anything.)
Now that we have said the above, keep in mind that our play money provides you with an opportunity to earn real money. For example, you might bid on a proposal for California Condors, with play money. If the proposal is implemented, you are eligible to receive a payout, in real money.
The real money would arrive as a check mailed to you, by the corporation that had the final, winning bid in the market.
Additional play money may be acquired by purchasing window decals at www.windowalert.com. These decals help prevent wild birds from striking windows. One envelope ($6.95) secures $10,000 in additional funds for your Schock Market account. The maximum account value for an individual is $5 million.
A market has three phases.
Exploratory phase: Thousands of participants file claims in a proposed public/private partnership. These participants talk it up and create a buzz around the proposal.
Qualified phase: Next, corporations enter the market and file claims in hopes of winning the partnership outright. The top bid wins.
Implementation phase: Governing authorities (local, state, or federal) approve the partnership. These authorities then manage how funds (paid by the winning corporation) will be spent on a particular wildlife species.
Participants in the exploratory phase (like you) may receive a potential payout from the winning corporation. This is an incentive for you to think up, talk up, and lobby government officials for more of these partnerships!
Participants at Schock Market bid on claims. Once you secure a claim, time starts to accumulate on your claim. The value of your claim is based on the bid price + time that has accumulated on the claim. We call this engagement value.
For this reason, claims at Schock Market are arranged as if on a ladder. Here is an example:
Rank: Participant: Bid Ticks: (A tick is 5 minutes of time)
1 A $500 100
2 B $400 100
3 D $200 75
4 C $200 50
Note that participant D and C have both bid $200, but participant D enjoys a higher rank. This is because participant D entered the market earlier and has accumulated more time than participant C.
Just like the American West, the earlier you secure a claim, the better.
BUMPED OFF THE BOTTOM OF THE LADDER
There are a limited number of claims in each market. If you have a position at the bottom of the ladder, you can be bumped off the ladder by another participant offering more for your claim. We call this getting “benched.”
If you get benched, you lose your claim. The good news is the entire amount you bid is returned to your account and you keep all of the time you accumulated on the claim.
For example, if participant C above gets benched, that participant gets $200 back and keeps 50 ticks. Participant C can now return to the market, place a higher bid, and apply the 50 ticks to a new bid. (A bid starting with 50 ticks is stronger than a bid starting with 0 ticks.)
In this manner, you may secure a claim and get benched, secure a second claim and get benched again. And this is okay, because each step of the way you are accumulating more time in the market. The more time you accumulate in a market, the bigger your potential payout.
FALLING OFF THE TOP OF THE LADDER
Schock Market is designed to reveal the market value of proposed public/private partnerships. If we multiply the number of claims in a market, times the bid price per claim, we get a total market value.
As participants compete for claims, the total market value rises.
Imagine we launch a claim market proposing the sale of corporate branded wing tags, on California Condors.
The market begins in an exploratory phase with thousands of citizens bidding. Imagine the total market value (total claims X bid price per claim) rises to $21 million. At this point, the market is paused.
The market is then relaunched in a qualified phase, with only ten corporations bidding. Imagine the winning bid is $20 million.
Note that our exploratory phase predicted a market value of $21 million, but in the following qualified phase, the winning bid was only $20 million.
In this case, participants in the exploratory phase that bid between $1 and $20 million, are eligible to receive a payout. Participants that bid over $20 million, are not eligible to receive a payout.
In sum, participants that bid too high risk becoming ineligible for a payout; they risk falling off the top of the ladder.
HOW MARKETS BEGIN and END
Exploratory markets are designed to rise in price, then plateau. Once bid prices plateau, we assume participants have become concerned about falling off the top of the ladder. This is an indication that the market has reached price consensus and is now accurately predicting a market value.
At this point, trading is paused. The time each participant has accumulated in the exploratory phase is recorded.
Next, in the qualified phase, corporations bid on the public/private partnership. Using our Condor example above, imagine the winning corporate bid is $20 million.
Next, the winning corporate bidder, and thousands of exploratory participants, lobby U.S. Fish & Wildlife (USFW) to approve the proposal.
If approved by USFW, and the winning bidder, the $20 million is distributed as follows:
1% to Schock Market
2% to eligible claimholders (those that bid between $1 and $20 million)
97% donated to U.S Fish & Wildlife (for Condor recovery efforts)
You may participate at Schock Market for free. Upon registration, you receive $100,000 in play money. You may acquire up to $5 million in additional play money for your account by purchasing window decals at www.windowalert.com.
This play money is used to bid on claims. Claims provide you with an opportunity to earn a payout, in real money.
Exploratory participants must strike a balance. If you bid too low, you risk being bumped off the bottom of the ladder (losing your claim to others). If you bid too high, you risk falling off the top of the ladder (losing your payout).
Once a market plateaus, the market creator will pause trading. Corporations then bid on the proposed public/private partnership. The winning corporate bidder and thousands of exploratory participants then lobby public officials to approve the proposal.
Once approved, funds are typically distributed as follows:
1% to Schock Market
2% to eligible claimholders
97% donated to recovery efforts
The ultimate goal is to propose a public private partnership in the conservation arena. We then use claim markets to predict the market value of that proposal and generate momentum with the winning corporation(s), and thousands of exploratory participants, lobbying public officials to proceed with the conservation cause. If the proposed conservation goes forward, everyone wins and wants to do it again!
We invite you to join Schock Market. We are the market, you are the key to changing the world.
Each claim market is a proposal. It is a form of free speech.
Many obstacles stand between this free speech and actual implementation of the market proposal. Some claim markets may be contrary to existing local, state, or federal laws, making implementation impossible without changes to applicable law. Schock Market makes no representation as to whether any particular claim market will result in a public/private partnership, tax savings, voter initiative or any changes or outcomes proposed by market creator or participants. Schock Market cannot guarantee that our market proposals will be implemented or that any payouts will be paid.
All participation is subject to the Market Rules, available here: www.schockmarket.com/marketrules.