A Theoretical Personal Cryptocurrency

{Story published in draft form for peer review}

We see a time of pause of humanity in the current pandemic.

Questions of what to do next abound.

We instinctively know something is very wrong with how we’ve been doing things, but no-one seems to know how to fix.

The symptoms include things like endless wars, massive global pollution, massive movements of starving refugees, massive populations of homeless, massive populations of persecuted peoples. This list itself is seemingly endless.

And now, our inability to deal effectively with a virus.

We see the elite reaction of wishing to restart the economy countered by the human reaction of wishing to protect the vulnerable.

The latter is true to some extent in all of us, both individually, and as a society, rich and poor.

Each of us judges every other, sometimes making our thoughts public, sometimes not.

Those with financial capital to invest, put it where they feel is most important.

Some saved to have that privilege.

Others just print it.

Big business and governments have demonstrated for some time now, that money can simply be conjured from thin air.

All that is required for any currency, is for everyone else to believe in it.

At its heart, that belief depends on the credibility of the issuer.

If the issuer; a nation state, a bank, or otherwise is seen as a party worth believing in, their issued currency goes up in value.

If not, it goes down.

Nothing could be simpler.

We see these centralised elite entities having a privilege not afforded to ordinary people.

Elites can issue money whereas ordinary people cannot.

Until now.

Now, there is cryptocurrency technology.

So far, that has been used to show how communities can issue their own money which has real value.

Intrinsic to that value, is the perception of the community of the relative corruptibility of their system.

Decentralisation appears to be key. No-one likes to think they can be manipulated by others.

A concept of personal sovereignty appears, in contrast to nation sovereignty.

The concept of individual sovereignty is not greed, if it is available to everyone.

Until now, it has only been available to Governments, Banks, and successful cryptocurrency communities.

Why not to the individual?

How could the money of an individual ever be worth anything?

The money of an individual is an expression of their free will.

Whatever the individual decides to put their money towards, indicates what they personally see as important, good, and desirable.

If everyone else agrees, by putting some of their money in also, then that individual’s money goes up in value, as does the value of whatever was invested in.

Isn’t that absolute fine-grained democracy, capitalism, and socialism all in action at the same time?

With the ability to create their own money, all individuals would have the power to create projects in whatever they decide is valuable to the world.

Those coming up with ideas seen as good by everyone else, would see others pitching in with their funds also, thus increasing the value of their project, making it happen.

Would human ego and jealousy not once again come along to spoil the party?

Not if it is found there is nothing to be gained by those things. Any entity obviously acting on those things, subsequently experiencing a loss in their value as a result, would soon learn.

How would it work in practicality? How could a person actually buy something with their personal currency?

OK so let’s say it looks like some tokens in an app on our mobile phone, and we have no money of any other kind.

We go along with our phone to our local food trader, to buy some food.

We inform our trader “Sorry I have no real money, but I have some tokens that I could give you, that represent my sincere intention to repay you for lending me some food. If I can’t bring you some real money, then I will give you my valuable watch, or do some work for you, in return for the food you give me”.

The trader, knowing us personally, believing us to be good for our word, agrees. She downloads the app, we transfer an agreed number of our tokens to her wallet, and she gives us the food.

Honouring our agreement with the trader validates the value we put on our tokens. Each time we honour our agreement with the trader, our credit rating, and thus the value of our tokens, goes up.

Breaking our agreement with the trader seriously reduces our credit rating with the trader, and thus the value of our tokens goes down.

Soon, as our good reputation spreads, our trader begins selling our tokens, which we gave to them in return for the food, and which now have value, as an alternative to us explicitly honouring our agreement.

As long as we keep doing things which are seen as positive by everyone, all is good, our tokens keep increasing in value.

Isn’t that the way things work already? Isn’t this just a form of social credit, like we’ve practiced forever?

The only difference is that now, we have the ability to issue our own money, a privilege which until now, has only been available to elites.

How should the mechanism of generating this personal money actually work?

Well, since this would be critical to the fairness of the system, it should really be defined by the collective, and it should be exactly the same for all people.

It should reflect how the natural world really works, with all humans generating some kind of value which is added to the planet, in return for the energy they consume.

That energy comes from the sun, which we could take as outputing power at a net constant rate.

Each human consumes a human amount of that sun energy every day.

It makes sense for the money generating mechanism to work in a similar way.

Each day, we take a certain amount of sun energy, and we convert it to value.

Our personal money is most simply a physical embodiment of that truth.

Our money most simply just represents the units of that sunlight-energy we’ve consumed, with our name stamped on it.

It doesn’t matter if the net output of the sun fluctuates. What matters is that there is no difference in the amount of sunlight consumed from one person to the next. They each consume one human’s worth.

So the overall money system, from which our personal tokens are derived, should be a distributed, decentralised machine, which replicates the action of the sun.

It should generate tokens in an incorruptible way, at a constant rate, multiplied by the number of wallets in the system. This should be divided amongst, and paid equally into each wallet, a single wallet allocated and claimed by each person, again in an incorruptible way, coded with the person’s identity, so as to enable the authentic stamping of their money, labelling it as theirs.

Each person would see a certain number of tokens appear in their personal wallet, every day, the same number. It could be one, ten, or a hundred tokens, it doesn’t matter, as long as it is the same every day, for every person, as long as they live, therefore fairly representing their portion of sunlight consumed.

Wallets can be claimed or unclaimed, giving everyone the free choice to opt into the system, or out.

Elites would be unlikely to opt in, if it was felt they had anything to lose, but in truth, they would have nothing to lose.

No-one would have anything to lose.

How would taxes work?

Given that the current system of government may not survive (all people are losing faith that democracy even still exists), it would be up to people to create projects for, and to invest some of their new found wealth in those utility projects. All people could be persuaded / shamed into contributing more or less to these kinds of project accordingly (Shame damages credit, and value).

As everyone’s money is stamped with their identity, it would be very obvious who contributed what.

The net value of a person would increase throughout life, assuming no major hits to their credit, as the value of the tokens they receive into their wallet each day would steadily increase.

Intrinsically built into this system, would be a natural tendency for all people to be rewarded for working together.

Nothing could be gained by hiding anything from anyone else.

There would no longer be any reason for partitioning and hiding information on, or from, the internet. All true news would be rewarded, by increases in credibility in the eyes of the collective.

Any individual could choose a career in journalism, art, science, education, engineering, any or all combined, or anything else seen as valuable by the collective, however they chose.

Credibility in the eyes of the collective, would be the only qualification that matters, for any chosen profession.

Every individual would truly be free, and yet every individual would be a valuable part of the collective.

The technology to do this is already in our hands. There are many throughout the world with the coding skills needed to implement it.

There are many more details which have been, and can be further clarified and analysed using the technology of Formal Systems Engineering, in which myself and many others are experienced.

Is this the basis of a good idea or not?

Is it worth working on?

What do you think of it?

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