The 1% Solution
Investing People with Money
What is The 1% Solution?
The 1% Solution is a Peer to Peer created Virtual Currency designed to Invest People with Money. The 1% Solution recognizes the mutual nature of money and the need to maintain money as a Public Utility. The 1% Solution is similar to Crowdfunding except that instead of the crowd investing money and making a project possible, The 1% Solution creates and invests the crowd with money to make a new currency possible.
The 1% Solution is composed of an initial equal stake of the Virtual currency and an equal daily dividend that will counterbalance the tendency towards inequality that occurs in the market process.
Where is The 1% Solution?
The 1% Solution may be operated in any group or organization that wishes to put its principles to use. No fees, no permission, nor any central organization will exist. The governance of each branch of the 1% Solution will be with its local members. There will be a Virtual World known as Casino Fortunatus that will act as a clearing house where experiences with the 1% Solution can be compared and analyzed and open-source applications for its operation can be shared.
Why The 1% Solution?
The 1% Solution is a response to our dysfunctional monetary system. The current predicament is not new. It is the very nature of the market to concentrate power in fewer and fewer hands until the holders of wealth take control and restrict the market. This often leads to revolts that often sweep away cultural and scientific achievement in their levelling of society.
The 1% Solution uses a universal citizen’s dividend to balance the tendency of wealth to concentrate. This dividend is designed to maintain the free market. Monetary value is mutually created through common acceptance. The 1% Solution does not require that one stop operating in the conventional economy. It is an opportunity to learn about how all monetary systems work from a hands on perspective.
Will There be Math?
The 1% Solution will open wide a significant area of math that is important to both money and the modern physical sciences, but one need not go back to school to understand what is going on. The only skills required are the ability to calculate 1%, you just move the decimal point two places to the left, and the ability to add and subtract, and maybe just a bit of division. If you can keep a check book you can comprehend and operate the 1% Solution.
How Does The 1% Solution Work?
Once established The 1% Solution behaves much as would any existing money. You pay currency to another player when you buy something and receive currency from another player when you sell something. Payments are undertaken electronically when both buyers and sellers authorize the transaction. The buyer’s account is debited and the sellers account is credited.
The 1% Solution has two currency systems, Ouroboros and Nautilus. cvxzOuroboros is named for the mythological snake eating its own tail. Nautilus is named after the shell fish which grows ever larger without changing shape. They share the basis for the 1% Solution, a daily citizen’s dividend which is an equal share of 1% of currency in circulation. Ouroboros and Nautilus differ in how that dividend is funded. Any groups adopting 1% Solution may use either or both. Both is recommended.
Under Ouroboros the players invest each other with an account of 100 virtual currency bits. These currency bits can be used in the same manner as one uses money.
Under Ouroboros each account is skimmed (taxed, assessed, robbed) 1% every day. This will yield an amount equal to one virtual currency bit for every player every day. To calculate your skim you simply calculate 1% of your account, move the decimal over two spaces, and then subtract that amount from your account. You also receive your share of the skim and so you add 1 currency bit back to you account.
Each transaction using Ouroboros is assessed a 1% fee which is also distributed to each player. To calculate the assessment you take 1% of the amount of the transaction by moving the decimal point two spaces to the left. All these assessments are added together and distributed equally to each player.
d Nautilus are house chips but function more as a public utility. The 1% Solution is an experiment in altering the frequency of money.
Players who enter Ouroboros after the founding period also receive an account of 100 currency bits. The Ouroboros system keeps the average holding of all
The 1% Solution functions of the The Secure Virtual Environment must be able to process transactions, prevent theft, and guard against counterfeit. Any group that can establish such a secure virtual environment can start a branch of The 1% Solution. There are only three other skills needed.
1. The ability to take 1% of a Number. You do this by moving the decimal point two spaces to the left. 1% of 100 is 1. 1% of 50 is .50. 1% of 10,000 is 100.
2. The ability to add numbers. 100 + 1 = 101 56 + 7 = 63
3. The ability to subtract numbers. 57 – 27 = 30 5 – 1 = 4
If you have these capacities and skills in your group you can stake each other and begin operation. The 1% Solution has been simplified so that all participants might understand what is going on and defend the game.
These three skills (taking 1%, adding, and subtracting) are utilized in the twin aspects of The 1% Solution, Ouroboros and Nautilus. They are inverse processes but they will be tuned to the same frequency. Ouroboros will be skimmed 1% per day and the proceeds distributed equally. Nautilus will be diluted 1% per day and the proceeds distributed equally.
For Ouroboros all accounts will be taxed at the rate of 1% per day. You calculate 1% of the account by moving the decimal over two spaces and then subtract that amount from the account. All of the tax revenues are added up and divided equally.
For Nautilus the total amount of money in circulation is added up and 1% of that money is calculated by moving the decimal point over two spaces. That amount of money is created and distributed equally each day.
Here is a simple ten person model.