Method and system for monetizing the consumption of goods and services using blockchain contracts and cetes

Abstract

The present disclosure relates to CETEs embodiment as proprietary digital assets meticulously designed to foster widespread wealth and growth among the general populace, while avoiding speculation. CETEs may comprise various underlying assets while bridging the gap between digital assets, equities, commodities, and other stores of value now known, or later found. Through the embodiment of this innovation as software as a service (SaaS), coupled with a diverse array of APIs, and the establishment of a Consumers Earned Token Exchange, the digital infrastructure may be seamlessly superimposed or integrated adjacent to the extant infrastructure of any given nation, readily tailored to conform to the regulatory framework of that specific jurisdiction; while enabling the peoples of that nation to monetize their consumption of goods and services through the utilization of blockchain technology and digital assets, notably CETEs.

Description

[0001] Method and system for monetizing the consumption of goods and services using blockchain contracts and CETEs

[0002] DESCRIPTION

[0003] 1 RELATED APPLICATION

[0004] The present application claims priority to and the benefit of U.S. Provisional Patent Application No. 63448669 filed February 28, 2023, which is incorporated herein by reference in its entirety.

[0005] The present disclosure relates to a computer-managed system for the production

[0006] 2 and private distribution of CETEs upon a proprietary digital infrastructure comprised of novel methods that enable consumers to participate in the growth equations of emerging economies as well as established economies - without speculation. Through software as a service (SaaS) and mobile apps, the method and system provide a framework for consumers to monetize their consumption habits by

[0007] 3 leveraging blockchain technology and a proprietary system of Consumer Earned Tokens (CETEs) produced and privately distributed upon a private alternative trading platform (ATS) for CETEs, also known as the Consumers Earned Token Exchange, (CETE). CETEs may comprise smart contracts, stocks, commodities, tokens, cryptocurrencies, or any other tradable assets, resulting in restricted

[0008] 4 securities as defined within the accompanying smart blockchain contracts. CETEs are created by the system’s proprietary market makers on behalf of the business entities within the proprietary network desiring to reward their customer bases with proprietary digital assets. The business entities must also be registered members of the digital infrastructure’s self-regulatory organization (SRO) which includes

[0009] 5 automated regulatory compliance and monitoring for the entire digital infrastructure. CETEs are initially owned by the in-network consumers of goods and services until the restrictions within the accompanying smart contracts have been satisfied at which time they may be held or sold on the private CETE trading platform.

[0010] Consumers may register as family units or an equivalent. The computerized system

[0011] 6 tracks and records registered user’s consumption activities across various platforms, such as online marketplaces, e-commerce websites, physical stores, real estate rentals and the like. This tracking mechanism gathers data on in-network consumer spending, rentals, browsing behavior, preferences, and other relevant information and data that may also be co-managed and monetized by the user base through the proprietary system. Based on the tracked consumption activities, consumers earn fiat capital in their preferred currency as rewards from registered in- network business entities which are then converted to CETEs by the system’s market makers before private distribution on the private exchange. The computerized system applies predetermined criteria to calculate the fiat rewards, considering factors like the value of purchases, frequency of engagement, brand loyalty, or other specified metrics set and determined by the issuing business entities within the network. The system utilizes blockchain technology to securely store and manage the transactions and token balances for the consumer owners of the tokens. The system ensures transparency, immutability, and partial blockchain decentralization, enabling trust and preventing unauthorized modifications to the transaction records. In a partially decentralized system, certain aspects or components may be decentralized, while others remain centralized. This hybrid approach is being adopted to balance the benefits of decentralization, such as increased transparency, security, and resilience, with the need for some level of coordination, efficiency, and oversight that centralization can provide within a proprietary digital infrastructure within a regulatory environment. The specific characteristics and degree of decentralization in a partially decentralized system can vary depending on the context. For example, in the context of blockchain technology, a partially decentralized network may have a distributed consensus mechanism, where multiple nodes participate in validating and recording transactions, while certain administrative functions or governance decisions are still centralized.

[0012] To ensure widespread adoption and the efficient functioning of CETEs, the solution involves collaborating with established market makers and other prominent financial institutions. Their involvement will facilitate significant transaction volumes, resulting in significant wealth generation for the general populace without speculation. By harnessing the power of CETEs, individuals can accumulate wealth and new forms of market-based ownership without relying on standard speculative investment practices. To ensure compliance and to foster a fair and secure environment, the invention proposes the establishment of a self-regulatory organization (SRO) as an integral part of the digital infrastructure. This organization will define and enforce the rules and regulations governing the operations of the novel digital infrastructure and ecosystem, providing a framework for the safe and reliable participation in compliance with applicable government regulations and will feature automated regulatory compliance monitoring for the entire digital infrastructure.

[0013] Furthermore, the present invention relates to a fintech solution aimed at addressing the wealth disparity prevalent in stock market ownership all over the world. For example, as of 2021 , the bottom 90% of households in the United States held a mere 11 .2% of the country’s total stock market wealth. The situation is even more severe in other parts of the world. To address this issue and promote economic growth, hope, and new forms of market-based ownership for the general populace without relying on speculation, the proposed invention leverages blockchain technology and establishes the Consumers Earned Token Exchange, which is where the proprietary CETEs are created on behalf of the general populace who are then rewarded random growth opportunities, for supporting the economy. And as further described within, the method and system also provide business entities within the network that have intentions of re-incentivizing positive socio-economic behavioral patterns within distressed communities, with tools and abilities to set local terms and conditions for rewards. CETEs may likely case communities to raise standards of living as peer pressures evolve to reveal mutual dependencies and mutual benefits from lower crime rates, higher moral standards, and higher literacy rates to name a few potential goals among the business entities and the new and true stakeholders of the economies, we the people. For example, CETEs were designed as Rule 506 Reg D exemptions - restricted securities and therefore subject to FINRA, SEC oversight in the U.S. however, the SaaS is also designed to accommodate variations of regulatory compliance for any nation or jurisdiction the benefits of a self-perpetuating growth economy for its peoples. The distribution of CETEs is private by design on each nation’s Consumers Earned Token Exchange private platform however, there is the possibility of secondary market activity after the fact. BACKGROUND OF THE TECHNOLOGY

[0014] Human socio-economic systems that use currencies can be diverse and varied, reflecting the complexities of different societies and their economic structures. In a market economy, individuals and businesses interact through voluntary exchange of goods and services. Currencies, such as fiat money or digital currencies serve as mediums of exchange, facilitating transactions and trade. Prices are determined by supply and demand dynamics, and market forces shape resource allocation and production decisions. Capitalism is an economic system characterized by private ownership of resources and means of production. Currencies play a central role in facilitating the accumulation, investment, and distribution of capital. Profit-seeking individuals and enterprises utilize currencies to engage in economic activities, while markets and competition influence resource allocation and wealth creation. In socialist systems, the means of production are owned or controlled by the state or the community as a whole. Currencies are often employed to enable economic transactions and distributions of goods and services. However, the emphasis is placed on collective ownership, equitable distribution, and public welfare rather than individual profit maximization. Many modern economies exhibit characteristics of both market economies and planned economies. Governments play a significant role in areas such as regulation, public services, and social welfare, while private enterprises operate within a market-based framework. Currencies facilitate exchanges between public and private sectors, as well as between individuals and businesses. In some societies, a gift economy operates alongside or in place of market-based transactions. Currencies may not be used in the conventional sense, as the focus is on reciprocal giving and sharing without immediate expectation of return. Non-monetary units, such as favors, goodwill, or social status, can act as currencies in these systems. Complimentary currencies are designed to supplement or complement national currencies, aiming to address specific economic or social objectives. Examples include community currencies, time-based currencies, or local exchange trading systems (LETS). These currencies facilitate localized transactions, encourage community cooperation, and promote economic resilience. Islamic financial systems are guided by Sharia law principles, which prohibit the payment or receipt of interest (riba) and promote ethical and socially responsible practices. Islamic banking institutions utilize currencies compliant with Islamic principles, such as Islamic gold dinars or silver dirhams, and employ various financial instruments that adhere to specific rules and restrictions. And now, humanity has blockchain technologies to potentially change the entire world’s economic landscapes. The primary purpose for novel CETEs is to generate wealth and potential growth to the general populace - without speculation, as new forms of market-based ownership, by way of digital assets. This method and system provide a groundbreaking approach to monetize consumption while promoting significant economic growth. By integrating blockchain contracts and CETEs into a self- perpetuating consumption and growth modeled economy, this invention creates a dynamic and participatory ecosystem that rewards consumers, stimulates innovation, and drives economic prosperity.

[0015] Blockchain technologies play a crucial role in making digital assets possible by providing a secure and hybrid decentralized platform for their creation, ownership, and transfer. Blockchain platforms like Ethereum support the execution of smart contracts, which are self-executing agreements with predefined rules and conditions. Smart contracts enable the automation of digital asset transfers, ensuring that ownership is transferred only when specified conditions are met. They eliminate the need for intermediaries and provide trustless and tamper-proof execution of asset-related agreements. However, the administration of the overall infrastructure may be better served by being centralized which brings about a scenario of a hybrid economic ecosystem of community engagements. The introduction and commercialization of artificial intelligence, further automation, blockchains and other technological advances is signaling humanity to re-think financial systems to keep pace with the advances for the good of the whole and to ensure ' that humans have viable options for thriving in spite of automation and Ai. While cryptocurrencies have surpassed a trill ion-dol lar market capitalization, that version of digital assets faces many regulatory hurdles and much volatility before reaching mass adoption and especially institutional acceptance, if ever. CETEs are proprietary, tokenized digital assets produced exclusively by the private Consumers Earned Token Exchange Inc, whose primary purpose is to generate wealth and growth to the general populace - without speculation.

[0016] • CETEs were designed to neutralize most SEC concerns regarding digital assets,

[0017] • CETEs were designed as Rule 506 Reg D exemptions - restricted securities, • CETEs are initially owned by the consumers who make markets what they are,

[0018] • CETEs were designed for private sales to accredited and institutional investors,

[0019] • CETEs were designed to galvanize all communities as true stakeholders,

[0020] • CETES were designed to facilitate self-perpetuating local, regional and / or national growth economies, • CETEs may be created with many combinations of underlying assets by broker dealer market makers,

[0021] • CETEs are designed to bridge the gaps between digital assets, equities, and other stores of value including smart social contracts between people,

[0022] • CETEs are designed to give business entities the ability to implement peer pressure measures to better control crime in distressed communities,

[0023] • CETEs are designed to empower everyday people with pride of ownership mentalities versus an us against them mindset,

[0024] • CETEs are inclusive by default,

[0025] • CETEs will lead to a new national narrative of unity through ownership.

[0026] Currently, multiple nation’s central banks are transitioning to or pondering a digital currency also known as CBDC (central bank digital currency). Digital assets can go hand in hand with a CBDC and growth economy, except that they may be primarily market based instead of being directly controlled by governments.

[0027] This scenario creates a plethora of opportunities to innovate the digital fintech space in novel and productive ways in anticipation of the changing economic conditions throughout the world such as the commercialization of artificial intelligence which may cause a major dilemma for many humans who may be unable to earn a living as previously defined. The creation of CETEs is a pivotal moment because prior fintech art, cryptocurrencies, NFTs and other digital applications have not addressed monetizing the consumption of goods and services using the blockchain and digital assets within current regulatory parameters. CETEs were designed to neutralize most SEC concerns regarding digital assets as CETEs will only be available on the private exchange on which they were created. CETEs will provide human beings with self-perpetuating alternative sources for generating wealth and inclusion within growth economies as new forms of market-based ownership. Providing new forms of ownership for the general populace without speculation is the underlying primary purpose for the production and private distribution of novel CETEs. Consumers will be encouraged to register as family units or an equivalent.

[0028] The emergence of blockchain technologies and related applications such as cryptocurrencies, NFTs, smart contracts and other on chain applications may likely disrupt economies in a variety of productive ways. However, prior art in this field has not yet produced a method and system that enables consumers to monetize their consumption of goods and services by generating passive income from spending habits that reward new forms of ownership - CETEs. Beginning with the method and system’s automated compliance layer for the digital infrastructure or network, prior art in this field also does not address the value of integrating automated compliance mechanisms within a computer managed loyalty system that generates new forms of digital ownership in compliance with predetermined parameters within a predetermined regulatory environment. U.S. Pat. No. 10,339,537 B2, Tata Consultancy et al, describes a system that captures regulatory rules provided by a regulatory body for an organization etcetera, however, 537B2 does not claim integration within a digital infrastructure for determining compliance of digital assets being produced and distributed upon a private network. Furthermore, 537B2 methods alone do not support the production and distribution of proprietary digital assets invented as CETEs. Continuing on to the loyalty spending layer for the digital infrastructure, U.S. Pat. No. 10,482,488 B2, Target Brands, Inc. et al, teaches systems and methods for providing a loyalty and rewards system. However, 488B2 does not teach a method and system for monetizing consumption using blockchain contracts and proprietary digital assets as rewards while in automated compliance with designated regulatory agencies. Continuing on to the proprietary digital assets layer, U.S. Pat. No. U.S. Pat. No. 11 ,704,733 B2, Tzero IP LLC et al teaches multiple assets within a digital token, however, 733B2 does not claim a method and system for monetizing consumption using blockchain contracts and CETEs which would require novel methods of digital asset acquisition and automated regulatory compliance not claimed in the previously referenced prior art. While there may be other distinctions that differentiate the subject method and system from prior art to someone skilled in the art, the previously described distinctions are glaring indications of novelty. Along with the aforementioned glaring indications of novelty, there are several enabling and overlapping prior art references that should be acknowledged; in the field of trading derivative securities, U.S. Pat. No. 8,204,816 B2, to Chicago Board Options Exchange et al; in the field of loyalty programs, AU Pat. No. 2013206026B2 to Visa International Service Association et al; in the field of digital token exchanges, U.S. Pat. No. 10,225,085 B2, to Unity IPR ApS et al; in the field of digital wallets, U.S. Pat. No. 10,755,241 B2, to Coinbase, Inc. et al; in the field of EFT investing, U.S. Pat. No. 8,719,138 B2, to State Street Corporation et al, and by these references the preceding and listed patents are hereby incorporated in their entirety.

[0029] SUMMARY CETEs produced by the Consumers Earned Token Exchange Inc, are proprietary digital assets aimed at promoting widespread wealth and growth while avoiding speculation. CETEs address regulatory concerns regarding digital assets and adhere to restricted securities exemptions and they are initially owned by consumers. CETEs are intended for private sales to accredited and institutional investors, fostering community engagement, self-perpetuating and self-sustaining local, regional, and national economies. They can incorporate various underlying assets and bridge the gap between digital assets, equities, commodities, and other stores of value now known or later found. CETEs will empower in-network business entities to mitigate crime in distressed communities by enabling pride of ownership mindsets and productive peer pressure review among consumers. CETEs will promote inclusivity and aspire to create a national narrative of unity through new forms of market-based ownership wherever the method and system are applied.

[0030] BRIEF DESCRIPTION OF THE DRAWINGS

[0031] Fig. 1 is an overview and flow chart of the digital infrastructure’s methods and system of in-network consumers and entities software as a service (SaaS), for tracking expenditures, the processing of transaction data, the processing of rewards, and their conversion to CETEs to reside upon the blockchain and private CETE exchange.

[0032] Fig. 2 is an overview of the digital infrastructure’s Self-Regulatory Organization, (SRO), automated computer managed compliance system for entities.

[0033] Fig. 3 is an overview of the creation of CETEs comprising multiple tradable digital assets which then may be cloned as needed for wide distributions to consumers.

[0034] Fig. 4 is an overview of how participating consumers are scrutinized by the automated compliance system before the consumer is considered “in-network” and their earned CETEs can be listed on the CETE exchange.

[0035] Fig. 5 is an overview of how pre-authorized traders can buy the listed CETEs from consumers once the CETEs have satisfied any restrictions and the owners of the CETEs wish to sell.

[0036] Fig. 6 is an overview of how “in-network” consumers mesh with pre-authorized traders on the private CETE exchange and through the early reporting stage. Fig. 7 is an overview of the CETE exchange reporting and / or maintaining all records in compliance with the regulatory bodies of the Securities Exchange Commission (SEC), or an applicable equivalent. DETAILED DESCRIPTION OF THE DRAWINGS

[0037] The novel digital infrastructure comprises three primary SaaS embodiments; (1 ) a computer-managed system of automated compliance software for in-network entities within the SRO layer and for the screening and registration of compliant in- network consumers; (2) a computer-managed system for consumer expenditures tracking, entity pledges and resulting fiat rewards; (3) a computer-managed system for converting the rewards to CETES to reside on the private CETE exchange and blockchain:

[0038] Fig.1 is an overview comprising 101 through 112 which is a dashboard for registered consumers to track the processes of the system as it applies to their account as 102 represents the registration, KYC-AML compliance and assigning of a unique identifier for the consumer account to be tracked as 103 refers to a quarterly method of cycling through the processes of consumer expenditure tracking, entity pledge tracking, rewards tracking and conversion to CETEs tracking and exchange listings - then repeating. 104 refers to the self-regulatory organization (SRO) database of already compliant registered 105 entities and 106 is the point of sale (POS) ID generated by an entity for a transaction to be 108 processed. During the process, transaction details such as amounts, item details and other data are distributed to 101 the consumer dashboard pies, and 107 an entity’s spreadsheet and the total spend is factored with the entity’s 110 pledge % and that result is passed to the process quarterly 109 pool to be included within the quarterly calculations as rewarded fiat capital from an entity to the consumer which is then converted to CETEs by the exchange’s 111 market makers and / or broker dealers.

[0039] Upon conversion the CETEs are then listed on the exchange and 112 recorded on the blockchain. Fig. 2 is an embodiment of the automated 201 computer managed compliance system comprising member 202 entities within the self-regulatory organization 102 SRO and the various 203 measures entities must achieve to reach 204 compliant statuses, in order to participate in the 104 SRO database of FIG. 1.

[0040] Fig. 3 is an embodiment of the creation of CETEs comprising a variety of tradeable assets. Once 109 of Fig. 1 has been resolved, the CETE exchange’s market makers, 301 and / or brokers create Master Basket Tokens by selecting some preferred underlying assets that match the amounts of the fiat rewards and then 302 cloning that grouping to be 304 CETEs distributed to the 303 consumers who earned them. Once the 304 CETEs have been assigned to the consumer account which earned them, they are listed on the 305 Exchange but may not be sold until the restrictions have been satisfied via the accompanying 302 smart contracts. Fig.

[0041] 4 is an embodiment of the automated 401 consumer compliance methods leading to 404 in-network consumer status. Upon request to participate on the 402 CETEs platform a consumer’s identities are verified and other details and information are collected to ensure AML and KYC 403 compliance before CETEs can be assigned to a consumer account to be listed on the exchange. The 405 compliance office conducts on going internal audits of in-network consumer accounts to ensure compliance with laws. Fig. 5 is an embodiment of the 501 pre-authorized trader’s order flow on the 503 private platform. The platform’s 502 broker transmits an order which is sent to the 504 CETEs Matching Engine after which the executed order is confirmed. Fig. 6 is an embodiment of a 601 Consumer offering to sell a CETE(s) to 602 pre-authorized traders after restrictions have been satisfied on the 603 platform. Details about the transaction are then recorded within the 604 Blue Sheet database for reporting purposes. Fig. 7 is an embodiment of the 701 CETEs Trading Platform’s 702 order reporting process to regulatory organizations. A dedicated 703 Trade Reporting Facility processes the data, and the 704 Securities Information Processer sends the fully processed data to 705 brokers in the order chain before submission to the 706 Securities Exchange Commission.

[0042] BEST MODUS OPERANDI

[0043] DEFINITIONS: AML - anti-money laundering; APIs - application programming interface; ATS - alternative trading system; CETEs - consumer earned tokens; KYC - know your customer; SaaS - software as a service; SRO - self-regulatory organization;

[0044] Best Modus Operandi is best exhibited by applying the perspective of a nation seeking a self-perpetuating growth economy for its peoples. Via this invention’s embodiment of software as a service (SaaS), various APIs and the establishment of a Consumers Earned Token Exchange, the digital infrastructure can be seamlessly overlayed upon the nation’s existing infrastructure, and refined compliant to that nation’s regulatory environment, while enabling the peoples of that nation to monetize their consumption of goods and services via digital assets, (CETEs). The novel digital infrastructure comprises three primary SaaS embodiments; (1 ) a computer-managed system of automated compliance software for in-network entities within the SRO layer and for the screening and registration of compliant in- network consumers; (2) a computer-managed system for consumer expenditures tracking, entity pledges and resulting fiat rewards; (3) a computer-managed system for converting the rewards to CETES to reside on the private CETE exchange and blockchain alternative trading system (ATS), available to pre-authorized traders only.

[0045] (1 ) The computer-managed system for automated compliance software and consumer registration is a critical component of the novel digital infrastructure. This sub-system serves two primary functions: ensuring that in-network entities within the SRO layer are compliant with regulatory requirements and facilitating the screening and registration of compliant in-network consumers. The system incorporates automated compliance software that continuously monitors in-network entities for adherence to regulatory standards and requirements specific to their industry. This software includes algorithms and rule-based engines that regularly assess compliance metrics. When non-compliance issues are detected, the system generates real-time alerts to the relevant entities and regulatory monitors, ensuring swift corrective actions are taken. It integrates with external regulatory databases and sources to access the most up-to-date regulatory information, ensuring that entities' compliance statuses are accurately assessed. The system provides a user- friendly interface for onboarding and vetting compliant in-network consumers. Consumers may register as family units or an equivalent. This process includes identity verification, background checks, and the collection of necessary documentation. During the consumer registration process, the system conducts initial compliance verifications to ensure that consumers meet the regulatory criteria for participation in the network. It employs robust data encryption and security measures to protect sensitive consumer information and regulatory data. The system generates comprehensive compliance reports, including historical data, audit trails, and compliance status summaries for each in-network entity. These reports are accessible to both entities and regulatory authorities. It offers auditing features that allow regulatory bodies to independently verify compliance data and actions taken by in-network entities. To enhance compliance monitoring, the system leverages machine learning algorithms to identify patterns and trends in non- compliance, allowing for proactive risk mitigation. The system is designed to adapt to changing regulations by regularly updating its rule sets and compliance criteria.

[0046] In-network entities and consumers have access to customer support and training resources to help them navigate the compliance requirements and use the system effectively. The computer-managed system for automated compliance software and consumer registration is an integral part of the novel digital infrastructure. It ensures that in-network entities remain compliant with regulatory standards while streamlining the onboarding process for compliant in-network consumers, ultimately contributing to the success and integrity of the digital ecosystem.

[0047] (2) The computer-managed system for consumer expenditures tracking, entity pledges, and resulting fiat rewards is a crucial component of the novel digital infrastructure. This sub-system serves multiple functions, including monitoring and tracking consumer expenditures, facilitating entity pledges, and rewarding participants with fiat currency based on their activities within the network. The system continuously monitors consumer transactions within the network. It captures and records data related to purchases, payments, and financial activities. Transaction data is aggregated and organized, allowing for comprehensive insights into consumer spending behavior. This data includes purchase amounts, timestamps, and transaction types. The system provides real-time updates on consumer expenditures, enabling participants to track their spending and financial activities accurately. The system requires entities within the network to make quarterly pledges or commitments to support specific consumer incentive goals. These pledges may be based upon sales milestones, crime mitigation goals, or other conditions for rewards. All entity pledges are transparently recorded on the system, ensuring transparency and accountability in pledge fulfillment. The system may incorporate mechanisms for verifying and validating entity pledges, ensuring that pledged support aligns with predefined criteria and goals. The system calculates fiat rewards for participants based on their engagement, expenditures, and interactions within the network. This calculation may consider numerous factors, such as spending levels, loyalty, or participation in endorsed activities. The system provides detailed analytics and reporting capabilities, allowing entities and participants to assess the impact of pledges, track reward earnings, and evaluate the success of engagement strategies. Users can generate customized reports and dashboards to gain insights into their specific activities and financial data. Robust data security measures are in place to protect sensitive financial and personal information. The system complies with relevant financial and data privacy regulations, ensuring that all financial transactions and rewards distribution meet legal requirements. The computer-managed system for consumer expenditures tracking, entity pledges, and fiat rewards plays a pivotal role in the novel digital infrastructure. It not only tracks and incentivizes consumer spending but also facilitates entity support for various causes, fostering a vibrant and socially responsible digital ecosystem. (3) The computer-managed system for converting rewards to CETES (the digital assets) and its integration with the private CETE exchange and blockchain alternative trading system (ATS) is a critical component of the novel digital infrastructure. This sub-system serves multiple functions, including enabling participants to convert earned fiat rewards into CETES and providing listings on a private exchange for trading CETES among pre-authorized traders. Each quarter or other designated time span, consumer’s accumulated fiat rewards are processed by the system and converted to CETEs by the system’s brokers and / or market makers. The conversion process is secure, utilizing encryption and authentication mechanisms to safeguard participants' assets during the conversion on the private trading platform. The private CETE exchange is only accessible to pre-authorized traders and participants. Access control mechanisms and authentication protocols ensure a secure and regulated trading environment. Authorized traders can place buy and sell orders for CETES within the exchange. The system matches these orders to facilitate trading. The system provides real- time market data, including CETES price fluctuations, trading volumes, and historical data, to facilitate informed trading decisions. The exchange incorporates settlement and clearing processes to ensure the proper fulfillment of trades and secure asset transfers. The private CETE exchange is built on blockchain technology, offering transparency, immutability, and security for all trading activities. Smart contracts may be employed within the ATS to automate trade execution, settlement, and other aspects of the trading process. The system utilizes a consensus mechanism (e.g., proof-of-stake, proof-of-work) to validate and record transactions on the blockchain. The system employs advanced security protocols to protect digital assets, user data, and trading activities. Multi-factor authentication, cold storage, and encryption are some security measures. The system adheres to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations to verify the identity of traders and ensure compliance with financial laws. The system provides traders with tools for analyzing their trading performance, portfolio management, and historical trade data. Comprehensive audit trails are maintained to track all trading activities for regulatory and compliance purposes. Participants and traders have access to customer support for assistance with trading-related inquiries. Educational materials and resources are available to help users understand the trading process and maximize their trading experience.

[0048] The invention’s embodiment of software as a service (SaaS) and computer managed methods, provides automated compliance for in-network entities and consumers so that in-network consumers can monetize their consumption of goods and services using the blockchain and new forms of ownership called CETEs. INDUSTRY EXPLOITATION

[0049] The primary beneficiaries of a novel method and system that enables consumers to monetize their consumption of goods and services, are nations that seek self- perpetuating consumption and growth digital economies in preparation for the disruption to the workplace that more automation and artificial intelligence will likely bring about. A self-perpetuating consumption and growth modeled digital economy will benefit established economies as well as emerging economies because it better incentivizes everything, mitigates corruption, and enables growth for the nation’s peoples - without speculation.

[0050] According to ChatGPT, “If regulatory issues are effectively addressed and the cycle is sustainable, it (the invention of CETEs) could indeed lead to significant economic growth and widespread prosperity.” And furthermore, "It's an ambitious goal but one that, if realized, could have profound positive impacts on the well-being of people worldwide." And lastly, “In theory, CETEs have the potential to have a profound positive impact on emerging nations for several reasons:”

[0051] Exploitation of this method and system by nations is the highest order of industry exploitation however, other industries may also be productively and directly affected:

[0052] • NATION BUILDING (ECONOMIES)

[0053] • SECURITIES AND EXCHANGES

[0054] • FINTECH AND BANKING

[0055] • ADVERTISING AND PROMOTIONS

[0056] • RETAIL AND LOYALTY PROGRAMS

[0057] • LANDOWNERS AND RENTERS

[0058] • OTHER

Claims

CLAIMSWHAT IS CLAIMED IS: (refer to prior art in ‘‘Background of the Technology” pg.7)1 . A method and system for monetizing the consumption of goods and services HO using the blockchain and Consumer Earned Tokens (CETEs), that comprises three primary SaaS embodiments: a computer-managed system of automated compliance software for in-network entities within the SRO layer and for the screening and registration of compliant in-network consumers on the public platform layer;1 <| <| a computer-managed system for in-network consumer expenditures tracking, business entity loyalty pledges and resulting fiat reward calculations within quarterly or other recurring time periods comprising methods for measuring consumerism in mathematical equations against rewards-based opportunities for random growth of digital assets in the form of CETEs;<1 <12acomputer-managed system for converting the rewards toCETES to reside on the private CETE exchange and blockchain based alternative trading system (ATS), available to pre-authorized traders only, aimed at creating a self-perpetuating consumption and growth modeled economy for the potential international general populace of peoples,11 wherever the system is applied, without speculation.

2. The method and system of Claim 1 comprising software as a service methodology to provide a computer-managed automated system for regulatory compliance by member entities within the SRO layer of the digital1 4 infrastructure and the software embodiment includes algorithms and rulebased engines that regularly assess compliance metrics so when non- compliance issues are detected, the system generates real-time alerts to the relevant entities and regulatory monitors within the SRO.1 5 3. The method and system of Claim 2 comprising software as a service methodology to provide a computer-managed system designed to adapt to changing regulations in programmed international regulatory authorities byregularly updating international rule sets and compliance criteria for the programmed jurisdictions.

4. The method and system of Claim 1 comprising software as a service methodology to provide a computer-managed system that provides a user- friendly interface for onboarding and vetting compliant in-network consumers including identity verification, background checks, and the collection of other necessary documentation; whereas during the registration process, the system conducts initial compliance verifications to ensure that consumers meet the regulatory criteria for participation in the network while comprising robust data encryption and security measures to protect sensitive consumer information and regulatory data.

5. The method of Claim 4, whereas consumers may register as family units or an equivalent, with verifiable legal documentation and / or legal guardianship, family trust documentation or the international equivalents of the aforementioned documentation establishing a legal family entity or the equivalent for combined expenditures tracking.

6. The method and system of Claim 1 comprising software as a service methodology to provide a computer-managed system comprising multiple functions, including monitoring and tracking consumer expenditures, facilitating entity pledges, and rewarding consumer participants with fiat currency based on their activities within the network whereas the system continuously monitors consumer transactions within the network as it captures and records data related to purchases, payments, entity pledges and network financial activities.

7. The method of Claim 6 whereas consumer spending is weighed against entity pledges in quarterly or other pre-set recurring calendar cycles in order to calculate fiat rewards due consumers within said calendar period.

8. The method and system of Claim 6 comprising software as a service methodology to provide a computer-managed system comprising multiple system functions for consumer registrants as a mobile app.

9. The method of Claim 7 whereas fiat rewards due consumers are converted to CETEs comprising smart contracts, stocks, commodities, tokens, cryptocurrencies, or any other tradable assets comprising the underlying assets within CETEs and defined as restricted securities as assembled by brokers and / or market makers on the private alternative trading system on behalf of in-network consumers.

10. The method of Claim 9 whereas master CETEs are created by the brokers and / or market makers comprising similar underlying assets to be cloned and assigned to each in-network consumer account according to the rewards due the consumer(s) within the calendar period.1 l. The method and system of Claim 8 comprising software as a service methodology to provide a computer-managed system comprising a private blockchain based high frequency alternative trading system for listing the CETEs which are initially owned by the consumers who earned them while deemed restricted until the terms within the accompanying smart contracts have been satisfied at which time the CETEs may then be bought by preauthorized traders only on the CETEs platform.

12. The method and system of Claim 11 comprising software as a service methodology to provide a computer-managed system comprising a private blockchain based high frequency alternative trading system for CETEs as a mobile application.

13. The method and system of Claim 12 comprising software as a service methodology to provide a computer-managed system comprising a private blockchain based high frequency alternative trading system with API futuresfor potential secondary markets for trading CETEs.

14. The method of Claim 6 comprising software as a service methodology to provide a computer-managed system that enables in-network entities to set terms and conditions for rewards through pledging that encourages peer to peer scrutiny of social contracts among in-network consumers.

15. The method of Claim 14 comprising software as a service methodology to provide a computer-managed system that enables in-network entities to set terms and conditions for rewards through pledging to better control crime in distressed communities by enabling in-network consumer stake-holding within stated calendar periods.

16. The method and system of Claim 12 comprising software as a service methodology to provide a computer-managed system that enables a nationstate to overlay this novel digital infrastructure over or alongside its existing economic superstructure to better provide transparency and productive outcomes to the peoples of the nation who choose to be in-network.

17. The method and system of Claim 16 comprising software as a service methodology to provide a computer-managed system that enables a nationstate to overlay this novel digital infrastructure over or alongside its existing economic superstructure to better allocate the wealth of the nation to the in- network consumers who support the economy through consumerism.

18. The method and system of Claim 17 comprising software as a service methodology to provide a computer-managed system that enables nations to better measure and better grow the assets of that nation-state as the measures can include the cumulative value of its in-network consumers and all that they own through the novel digital infrastructure.

19. The method and system of Claim 18 comprising software as a service methodology to provide a computer-managed system whereby sharing in the wealth of the nation’s economy is a birthright of its in-network consumers as manifested by the monetization of their consumption from birth.

20. The method and system of Claim 1 comprising software as a service methodology to provide a computer-managed system for monetizing the consumption of goods and services using the blockchain and Consumer Earned Tokens (CETEs), that comprises novel methods for providing the international general populace with new forms of market-based ownership, hope and potential economic growth, without speculation.

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