This document provides the economic model for the "Peace Dividend"—the value unlocked by the successful implementation of the 1% Treaty. A one-time "activation energy" investment of $1.2–$2.5 billion is projected to unlock $16.5 trillion in annual global economic value currently lost to violence and conflict.
This model quantifies how that value is distributed:
This demonstrates that VICTORY instruments are a high-leverage investment in human prosperity, offering both superior financial returns and one of the highest social ROIs achievable.
The "Peace Dividend" is the total economic value reclaimed by reducing global conflict and redirecting destructive spending toward productive ends.
Total Annual Value: The global economic impact of violence was $16.5 trillion in 2021, equivalent to 10.9% of global GDP or $2,117 per person. This is the total latent value that can be unlocked.
Sources of Value: This value is derived from multiple streams, as detailed in our Quantified Costs of War analysis:
A Note on Scale: Just 1% of this annual $16.5 trillion dividend is $165 billion—a sum more than six times larger than the entire $27B treasury we aim to create. This immense underlying value is what makes the financial model for VICTORY instruments so robust.
To unlock this multi-trillion-dollar dividend, a significant but comparatively small upfront investment is required. This "activation energy" is estimated at $1.2–$2.5 billion over 36 months.
This investment is allocated as follows:
The core of this model is the clear and transparent distribution of the unlocked value.
Investors who provide the activation energy are rewarded directly from the $27+ billion annual treasury created by the 1% military budget redirection. This is their primary mechanism for financial return.
This captured value is the engine that makes the entire initiative possible, by providing a compelling, market-beating return that attracts the necessary upfront capital.
The vast majority of the peace dividend flows directly to the public.
Calculation:
Distribution Ratio:
($27B / $16.5T) * 100 = ~0.16%This means for every $1 of value captured by investors, over $600 in value is returned to the global community.
The Peace Dividend model demonstrates that the 1% Treaty is not a zero-sum transfer of wealth, but a positive-sum value creation event. VICTORY instruments offer a unique opportunity to:
This makes it one of the most highly leveraged and impactful investment opportunities in human history.
The economic model is uniquely robust due to the immense asymmetry between the investor value pool (the $27B treasury) and the societal value pool (the $16.5T peace dividend). The societal pool is over 600 times larger, allowing for unprecedented investor returns while still delivering the vast majority of value to the public.
To illustrate this, let's model a hypothetical scenario where VICTORY instruments deliver a 1,000x return to the initial investors who provided the activation energy—a return that would be the highest in financial history for an investment of this scale.
\$2.5B * 1,000 = $2.5 trillionEven with this historic payout, the distribution of the annual peace dividend remains profoundly beneficial for society:
\$16.5T - \$2.5T = $14 trillion(\$2.5T / \$16.5T) * 100 = ~15.2%(\$14T / \$16.5T) * 100 = ~84.8%This demonstrates that even in an extreme success scenario for investors, nearly 85% of the value unlocked in a single year still benefits the global population. This unique feature allows us to attract the world's most ambitious capital by offering a deal that is too good to refuse on both financial and ethical grounds.