COINZ Official

Citizens Online Income New Zealand

Month: June, 2014

Hello World

Hello everyone,

We’ll be starting a crowdfunding campaign soon, to help our pilot projects and build some reserves for the WCF and Kiwicoin project. If you desire to send us some Bitcoins in the meantime, send ’em here:

13L7FcFXRG8kGVyJrozoPYvMiQEK1Mk45D

We’ll keep you informed as things develop.

 

 

Our Purpose

COINZ exists because of key changes in our economy. We believe that many of our current woes, such as inequality, cost of living increases, resource over-consumption, and environmental degradation are symptoms, rather than causes. Financial markets are distorted due to government and businesses are limited by their structural framework.

We believe that software can offer a solution to these issues. Specifically, we believe that business as normal is no longer an option. Automation and resource shortfalls mean that much of the current economy cannot be sustained. As such, many bureaucratic jobs in business and government will no longer exist. This does not mean the end of the world, though. It means the beginning of a new paradigm.

A thriving economy, like a thriving ecosystem, is characterized by diversity. A variety of small, medium, and large businesses with people spending and saving is preferable to a stagnant oligopoly. As such, a basic income to all citizens allows them to partake in, contribute to, and compete in the economy. We do not care about political drama, but instead how we can make life better for all.

Governments, businesses, and conventional nonprofits may be unwilling to invest in the expenses of a basic income program. As such, COINZ will pioneer different types of digital currency for this application. We’re also interested in integrating other programs, such as a national wealth funds, civic investment, and direct democracy, with our software. If it succeeds, it offers a model that can easily be emulated around the world. If it fails, it shows how others can improve upon what we have tried.

Basic income is a direct investment in the future. Are you in?

A Gold Bug’s Digital Income

Gold and other precious metals have long been the basis of currency, largely due to their relative scarcity. The advent of paper money, and then the information revolution, made digital fiat currency the standard worldwide. Gold, silver, and the precious metals were largely relegated to second-tier status and just another industrial commodity.

The central banks, which controlled the supply of fiat currency, remained monopolistic gatekeepers with little public oversight or transparency. The lack of openness allowed them to abuse their positions and shield themselves from any adverse consequences. They had much to lose if alternatives to fiat, such as precious metals, gained in use.

The advent of digital currencies presented a different model. The power to make money could be decentralized and distributed. An online currency had an innate value due to the software ecosystem that made such endeavors possible, often representing encryption and processing of transactions. However, the digital currencies presented issues in the form of price volatility and adoption. The vulnerability was that exchanges for fiat currency could be targeted, setting up a new barrier to adoption.

The point of COINZ is to promote a basic income via digital currency. We believe that a digital currency used for basic income would allow it to quickly be adopted rapidly. In particular, we believe that a peg (at least initially) for a digital currency would grant it vital stability. While we are working towards a peg on a fiat currency, there is no reason that this cannot be repeated for other commodities.

Imagine if a digital currency was pegged directly to the price of gold in a particular currency (or combination of currencies), and then used as a basic income. This would allow it to become widespread, and allow those who prefer physical gold to redeem it immediately. A “smart contract” could allow the peg to be adjusted for shifts in demand. This creates a software-administered social safety net, requiring no taxes in implementation. It puts a dampener on rampant speculation, given that the peg can be both fluid and reliable. This is why we believe that digital currency and smart property offer a way out of the economic and financial trainwreck around the world.

Project 2 Overview: The Kiwicoin Online Basic Income

The Kiwicoin (KWC) is a digital currency different than the standard altcoins. We plan to use it for a basic income. The principle aim and challenge of the Kiwicoin would be to keep it pegged to the New Zealand dollar at a fixed rate, so that it can provide a real basic income for all adult New Zealanders. We have devised a number of ways to maintain this peg, from alternative network structures to smart contracts/property to colored coins to more exotic structures. We have an initial implementation we’re aiming to develop, and adjust our approach from there.

Much of the principle rests on the charity being the only issuer of Kiwicoins. There would be no mining, per se, but there would be a decentralized network of computers running software to ensure network security and stability. The payment size and peg may require adjustment over time, but COINZ would try to ensure reserves of both currency and cash. Any proceeds that COINZ receives from the process, as well as a fixed amount of Kiwicoins per month, would be converted to cash and automatically moved into a “national wealth fund” for New Zealand to fund research, infrastructure, and education. The size of our reserves and total Kiwicoins in circulation would be publicly displayed, as to improve transparency.

In addition, we’d make our software open source to assist with development and refinement of this technology. We’re keen on spurring the development similar programs for other national fiat currencies as well: US dollars, British pounds, Euros, yuan, yen, and so on. Doing so would create a worldwide system for basic income and civic investment. In time, we may build other features onto this platform, such as a direct democracy voting protocol to assist with allocating priorities for national wealth funds. There are already similar programs in development, such as Eris.

The Kiwicoin project currently exists as a white paper, but we will be explaining more in the near future.

Project 1 Overview: World Citizen Fund

The World Citizen Fund (WCF) is a basic income program for which anyone in the world is eligible. The program is simply a Bitcoin wallet combined with an automated payment system. An applicant enters a wallet address, runs through a brief test to ensure they’re a human, and receive a weekly balance of Bitcoins. The total sum issued by the WCF in fiat currency would likely be small, and likely last for a period between one and two years, but could help those living in countries were $2 a day is a luxury to have. The fund itself would have a balance of Bitcoins that would run until all are expended, but donors would be able to contribute Bitcoins to renew this balance. However, the current site for the WCF is a work in progress. We’ll keep you posted.

Hi

Hi everyone,
Director of COINZ here. We’ve got more to follow on our site.