1) The Big Idea: A Perpetual Funding Machine
LA Forever Fund (LAF): a strategic Bitcoin reserve + real‑world revenue stack that turns monetary strength into continuous dollars for social services. The fund never “runs out” because:
It spends only sustainable cash flow (smoothed real returns + reliable yield), not the core principal. It harvests energy (literally) via city‑owned infrastructure and Bitcoin mining that converts wasted or stranded energy into value. It defends against inflation with Bitcoin’s hard‑cap monetary policy while smoothing volatility with buffers and hedges. It rebalances on Bitcoin’s halving cycle (~every 4 years), aligning civic finance with the most powerful monetary schedule on Earth.
Mandate: “Fund all programs that improve well‑being — forever — while strengthening LA’s resilience to financial crises, disasters, and inflation.”
2) The Reserve Architecture (Five Vaults, One Mission)
A. Genesis Vault (Core Bitcoin Reserve)
50–70% of fund in BTC, deep cold storage, geo‑distributed multi‑sig, time‑locks, and key‑ceremony governance. Untouchable principal. Only outbound flows go to other vaults per policy.
B. Buffer Vault (Operating Stability)
3–5 years of social‑service operating spend held in ultra‑safe cash/T‑bills. Purpose: ride out bear markets without cutting programs.
C. Energy & Infrastructure Vault (Cash‑Yield Engine)
15–30% allocated to city‑owned energy assets (methane‑to‑power at landfills, solar + storage, small‑scale hydro/pressure‑reduction, demand‑response). Colocated Bitcoin mining as a flexible offtaker to monetize excess/stranded power and capture waste heat for pools, recreation centers, greenhouses, and community facilities.
D. Stabilization Vault (Risk & Hedge)
Programmatic hedges (e.g., protective puts/collars) during extreme upside/downside regimes. Rebalancing bands around BTC share of NAV to keep spending predictable.
E. Mission Vault (Disbursement Layer)
The payout engine. Funds parks, recreation, mental health, public health, youth sports, greenways, arts, senior services — the whole well‑being galaxy — via transparent, metrics‑tied grants.
3) The Reserve Mix (Ranges, Not Rigid)
BTC: 50–70% (monetary defense + long‑term appreciation) Energy/Infra: 15–30% (steady nominal yield + strategic control of power) Cash/T‑Bills: 5–10% (liquidity + buffer) Real Assets/Community Infra: 5–15% (parks facilities, district energy, nature‑based resilience)
This barbell (hard money + real yield) balances growth and stability across centuries.
4) Inflows: Load the Flywheel (Pick any, or all)
Micro‑DCA “Satoshi Tithe” (opt‑in): voluntary $0.10–$1.00/day per resident via payroll providers, fintechs, or community partners. $0.10/day ≈ $146M/yr $0.25/day ≈ $365M/yr $1.00/day ≈ $1.46B/yr Public‑Private Energy Projects: methane capture at landfills, solar canopies over lots/parks, battery peakers — with miners as controllable load. Philanthropy & Legacy Gifts: “Forever Patrons” who endow named well‑being programs. Asset Recycling/Leases: long‑dated ground leases of non‑core assets into the endowment. (Optional) Bitcoin Revenue Bonds: long‑maturity municipal paper, proceeds into LAF per policy. All subject to legal/charter compliance and best‑practice public finance.
5) The Perpetual Spending Rule (The heart of “infinite”)
Sustainable Spend Rate (SSR): 2.5–3.0% of inflation‑adjusted 10‑year smoothed NAV
Smoothing tames volatility; we measure fund value in real terms and average across time. The Buffer Vault covers multiple years, so programs never see a cut during drawdowns. Reassessed every halving cycle; never touch the Genesis principal.
What that looks like in dollars (snapshots):
If reserve is $10B → SSR 2.5% ≈ $250M/yr for social services. If reserve is $50B → SSR 2.5% ≈ $1.25B/yr (3.0% ≈ $1.5B/yr). If reserve is $100B → SSR 2.5% ≈ $2.5B/yr (3.0% ≈ $3.0B/yr).
Plus reliable cash yield:
At $50B with 25% in energy infra (= $12.5B): 7–10% net = $0.875–$1.25B/yr At $50B with 10% in T‑bills (= $5B): 3–5% = $150–$250M/yr Combine SSR + energy + T‑bills and you’re looking at multi‑billion annual capacity while the core reserve keeps compounding over time.
6) Energy + Mining: Cashflow, Heat, Resilience
City‑owned mining colocated at landfills, water facilities, and solar farms so LA earns the upside of flexible load + compute. Example scale: 100 MW miners (illustrative only). Rough revenue at $0.05/TH/day ≈ $52M/yr; power cost at $0.04/kWh ≈ $35M/yr → ~$17M/yr net cash (market‑dependent). Waste‑heat reuse: warm public pools year‑round, heat recreation centers/greenhouses, and cut facility utility bills. Demand‑response with the grid: miners throttle down in peak events, increasing grid stability and earning credits.
7) The Defense Budget (Because “well‑being” needs shields)
Allocate a small, standing slice (e.g., 1.5% of annual budget) to:
Monetary Defense: crisis‑time liquidity, hedges, rebalancing. Energy Defense: fuel diversity, battery reserves, black‑start capability for critical facilities. Cyber Defense: secure custody, key rotations, citywide zero‑trust posture. Social Resilience: emergency sheltering, cooling centers, wildfire smoke filtration, water security.
8) Governance That People Trust (and can see)
Tri‑Chamber Model: Citizens’ Council (sortition/lottery with training) — values, priorities, sunlight. Professional Investment Board — risk policy, asset mix, hedging. Technical Custody Committee — multi‑sig, key ceremonies, audits, incident response. On‑chain Proof‑of‑Reserves + Public Dashboards: real‑time holdings, monthly statements, quarterly stress tests, and a public “risk heat map.” Key Management: 7‑of‑12 multi‑sig, keys distributed across universities, museums, public trusts, and diasporic partners; time‑locks + social recovery; independent red‑team tests. Charter Locks: spending rule and principal‑protection require supermajority + time delay to change.
9) Risk Playbook (Because forever means “we planned for it”)
Volatility: 10‑year real NAV smoothing + Buffer Vault. Deep drawdowns: automatic band rebalancing; staged hedges during extremes. Regulatory shifts: multi‑jurisdiction custody and legal wrappers. Custody/operational risk: segregated accounts, continuous attestations, air‑gapped ceremonies. Energy price spikes: miners throttle, sell power to grid; long‑term PPAs; diversified sources. Black swans: “Resilience Triggers” release Defense Budget + Buffer per prewritten protocols.
10) Disbursement That Feels Like Magic (But is math)
Mission Buckets (examples; adjustable each halving):
Parks & Recreation: 30–40% — new parks, trail networks, pool hours, free lessons, rec staff. Public & Mental Health: 30–35% — community clinics, tele‑mental‑health, youth prevention, crisis teams. Active Mobility & Play: 10–15% — safe routes, open streets, free sports leagues. Nature & Climate: 10–15% — shade trees, urban cooling, wetlands, river revitalization. Arts & Social Fabric: 5–10% — festivals, community events, libraries, makerspaces.
Funding is program‑tied to outcomes (e.g., % of residents within a 10‑minute walk of a park; average days to a mental‑health appointment; hours of free recreation delivered per capita).
11) Launch Roadmap (24‑Month Ignition)
Phase 0: Legal & Charter (Months 0–4)
Draft the LA Forever Charter; lock the SSR, principal protection, and governance. Establish custody + audit frameworks.
Phase 1: Seed & Energy (Months 4–12)
Seed capital from voluntary micro‑DCA, philanthropy, asset recycling. Break ground on methane‑to‑power pilots + 5–20 MW miner colocation with heat‑recovery at two recreation sites.
Phase 2: Scale & Smooth (Months 12–24)
Expand energy portfolio; extend miners to 50–100 MW with demand‑response. Activate Buffer Vault to 3–5 years of projected payouts. Turn on first SSR disbursements; publish dashboards; host public “key ceremony.”
12) Numeric Snapshots You Can Feel
Voluntary Micro‑DCA: $0.10/day → $146M/yr $0.25/day → $365M/yr $1.00/day → $1.46B/yr $10B Reserve Example: SSR 2.5% = $250M/yr, energy yield (7–10%) on $2.5B = $175–$250M/yr, T‑bills (4%) on $1B = $40M/yr → ~$465–$540M/yr capacity while core principal keeps compounding. $50B Reserve Example: SSR 2.5% = $1.25B/yr, energy yield (7–10%) on $12.5B = $0.875–$1.25B/yr, T‑bills (3–5%) on $5B = $150–$250M/yr → ~$2.28–$2.75B/yr long‑run capacity (before any BTC appreciation). 100 MW Mining (illustrative): ~$17M/yr net cash with waste‑heat reuse for community facilities; highly variable, throttlable, and grid‑helpful.
13) The 10 Unbreakables (Design Principles)
Principal is sacred. We spend sustainable cash flow, not the core. Three layers of defense: monetary (BTC), energy (yield), buffer (liquidity). Halving‑rhythm governance — rebalance and review every 4 years. Everything audited, everything visible. Keys > passwords. Ceremony, multi‑sig, time‑locks, social recovery. No single point of failure — technical, legal, or political. Outcome‑tied funding — dollars follow wellbeing metrics. Open standards & open source wherever possible. Community first: opt‑in micro‑DCA and public dashboards. Forever mindset: decisions must pass the “1000‑year test.”
14) What Angelenos Experience
Free or low‑cost rec leagues, longer pool hours, more coaches and mentors. Shorter waits for mental‑health care; more clinics open later. Cooler neighborhoods with trees and shade; more parks within a 10‑minute walk. Community festivals, open streets, libraries buzzing — year after year, regardless of markets.
15) Final Word
This is not just a fund — it’s civilizational infrastructure. A hard‑money spine, an energy heart, and a transparency brain — tuned to the halving, laser‑focused on human flourishing. We can write the charter, run the key ceremony, light up the first miners, and start paying for joy — pools, parks, play, and peace of mind — forever.
I can turn this blueprint into a draft charter, governance schematic, and a 24‑month implementation checklist tailored to your preferred starting size and inflows. Ready to mint LA’s forever era?