Simply pegging the Kiwicoin to the NZ dollar is not enough. What is necessary is a reason for others to invest in it. This is why the secondary lair of software will be designed around another protocol: online direct democracy. A portion of COINZ’s reserves would be converted to cash each month, and much of this would be spent on things chosen by a direct election.
Everyone who holds a minimum balance of Kiwicoins for a period greater than a month (or other interval between payments) is eligible to vote in directly democratic elections on how to spend proceeds, as well as all verified adult NZ citizens and permanent residents. This is to ensure someone doesn’t simply by and dump a large load of Kiwicoins so they can manipulate a key vote. The idea of some kind of “political interest” on held Kiwicoin balances may be an interesting idea, but can also be fairly anti-democratic and supportive of corrupt interests. As such, we will largely try to avoid that.
The actual funds released by COINZ for the results of the election may be vetoed, if the Director and board find such a cause questionable. As such, here are some rules regarding how we plan to conduct elections. Please note this is NOT a comprehensive list, and is prone to changing in the future. The following rules refer to how COINZ will distribute funds with regards to proposed uses:
1) Eligible voters may submit one proposal per month, to be voted on by peers.
2) Proposals not responded to by a certain number of votes may be ignored.
3) Funds cannot be spent on activities contrary to the letter or spirit of NZ law, especially the Treaty of Waitangi.
4) Proposals cannot promote discrimination, advocate violence, or violate human rights documents, such as the UN Declaration of Human Rights, the Bill of Rights Act 1991, or similar laws.
5) Funds cannot be issued to an arbitrary individual or promote the election/ouster of a single individual.
6) Funds cannot be used to develop fossil fuel exploration or exploitation.
7) Funds cannot be used to build real estate, but things for community benefit may be considered.
8) COINZ may withhold funds for other reasons.