Seed to Vision

The secret weapon of Art is that with a tax rate of 0, and demurrage rate of 0, it is just money. Same as it ever was.

I want to seed the network with a standard debit card. This will necessitate the establishment of a bank. If we can convince the public that this is an endeavor worth exploring they will put their dollars with us.

When a dollar comes into us we can convert it to an Art at a 1:1 transaction rate pegged to the dollar.

During education and proliferation, this rate will stay 1:1.

We will begin issuing prefs as soon as accounts that are both with our bank transact. We can begin the blockchain with these transactions. When someone transacts with a non-account holder we can push the Art to a 'exchange fund' and distribute dollars. The exchange fund will be our responsibility. When new dollars come in we can sell them the art from the exchange fund. The goal will to expand the amount of cash that stays inside the network.

Eventually, with enough art in the system and stable expenditure patterns we can flip the demurrage switch. We can start it very small and keep the tax rate at 0. This will begin to start redistributing some cash via catch up. This will accelerate the adoption as people receive their statements and see the source of the increases in their accounts.

Once this process starts we can begin to put more pressure on merchants to open an Art account.

This is the key driver of Art. If the market reacts in the way we expect it to, Art will be what everyone will want to spend. Spending a dollar will get you nothing but the good purchased. Spending an Art will get you capital and the good. People may not want to hold Art for long periods of time, but when they go to transfer it to other currencies they will find a limited market for Art as everyone rushes to hold Art and the capital that comes with it.

Once the technology infrastructure is in place to accept Art as a separate entity to dollars we can break the 1:1 Dollar to Art ratio and let the market take over. This poses a significant risk to the organization we have started as the dollars we hold may soon begin to degrade in value.

At this point we begin to look toward nationalization. We expect the allure of easy taxation to be too much for the state to resist. With the population clamoring to exchange their dollars for Art we expect the quick nationalization of the system. We will transfer the issuing account to the government.

Government payments will begin to go out in the form of Art instead of Dollars. Once this occurs the democratic phase of our system will kick in. Once people are paying taxes to the issuing account they will have the power to lock the account. The government will need to issue citizen accounts to all citizens.

At this point we will see if this whole thing works or not. I don't always hack the economy, but when I do, I do it in America.

So our Generative language is as follows:

  1. Equivalence - Provide a form of money that is equivalent to the dollar.

  2. Education - Educate the public on the advantages of the pref system.

  3. Distribution - Flip the Demurrage switch and start distributing economic rents to the participants.

  4. Compulsion - Art is magnetic and people are compelled to use it as opposed to other coins because it has an intrinsic advantage and leads to an optimized and supercharged economy.

  5. Disconnect - We disconnect the exchange rate of 1:1 with the dollar.

  6. Nationalization - We allow the government to nationalize the currency as the dollar begins to fail.

  7. Democratization - Government agencies begin to be affected by the citizen veto and true democracy is established.

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