There are a few different ways we can build our USD reserves, but the primary one is through a crowd investment system that I've devised.
Investors will be purchasing, at a pre-negotiated discount, GD to be delivered at a future date. I call them "Future Gresham Dollars." Investors can sell their FGD to other investors in a secondary market to profit early or they can hold them until we succeed and reap their exact pre-negotiated returns.
We actually don't need to obtain more USD than the GD we're handing out. The phase during which we're backed by USD is only temporary. If we succeed, then GD is the coin of the realm and USD has become obsolete. The profits we generate (and the returns to our investors) will be in GD.
If we fail, the investors get nothing, which is normal.
Of course, we'd need measures in place to ensure that we don't abuse our power as the world's monetary authority. We shouldn't be allowed to create new money just to make ourselves and our friends rich.
I think these sort of measures could be built into the algorithms behind the management of the currency. The entire infrastructure could be run by bots. Cyber security will need to be tight, though probably not initially.
As I understand it, this is about social justice, ie, leveling the playing field. Post-transition for GD would mean that all accounts are activated to receive basic income, and they would do so on an equal basis. Initially, the currency is seeded in communities that need BI the most, and then becomes contagious to the world at large.
Ultimately, the system also prevents hoarding of currency and incentivizes exchanges.
I think these sort of measures could be built into the algorithms behind the management of the currency.
That's the idea. I'd like to set it up so that everyone can see that we couldn't abuse the system even if we wanted to.
As I understand it, this is about social justice, ie, leveling the playing field.
It's primarily about economic stability. Social justice is a side effect.
Post-transition for GD would mean that all accounts are activated to receive basic income, and they would do so on an equal basis.
Yes. In fact, the plan is for all accounts owned by individuals to be receiving a basic income well before the transition date. Obviously, businesses do not receive a basic income.
Initially, the currency is seeded in communities that need BI the most, and then becomes contagious to the world at large.
Yes, but only because those who need it the most have the highest marginal propensity to consume. This maximizes the initial circulation of GD. If you give it to a rich person, they're far less likely to spend it.
Ultimately, the system also prevents hoarding of currency and incentivizes exchanges.
Hmm. I'm not sure what you mean. For Gresham Dollar to work, it assumes some level of "monetary entropy," (I just made that term up). In other words, money starts at a higher velocity but ends up accumulating in hoards. Basic income provides a steady supply of fresh money to counterbalance monetary entropy.
What I understood was that, if GD is allowed to sit in an account, it will eventually convert to USD at the reserve rate for that account, thus losing value (assuming GD=USD in terms of purchasing power). Wouldn't this discourage people from keeping large sums of GD in their accounts?
OK, your other comment clarified the point for me. I thought that you would lose GD after the 30days because only a percentage of it would convert. I guess I assumed that the rest would be lost instead of resetting or rolling over.
In normal times, 100% of GD (subject to the Activation Cap) converts to USD and none of it rolls over. Only during Disruption is some of the GD held back from converting. And other weird stuff is going on during Disruption too.
Investors will be purchasing, at a pre-negotiated discount, GD to be delivered at a future date. I call them "Future Gresham Dollars." Investors can sell their FGD to other investors in a secondary market to profit early or they can hold them until we succeed and reap their exact pre-negotiated returns.
We actually don't need to obtain more USD than the GD we're handing out. The phase during which we're backed by USD is only temporary. If we succeed, then GD is the coin of the realm and USD has become obsolete. The profits we generate (and the returns to our investors) will be in GD.
If we fail, the investors get nothing, which is normal.
Of course, we'd need measures in place to ensure that we don't abuse our power as the world's monetary authority. We shouldn't be allowed to create new money just to make ourselves and our friends rich.