December 27, 2024

The cryptocurrency that will kill all existing money

original post was here

INTRODUCTION

This article describes the algorithm of a new type of cryptocurrency. Not another copy of Bitcoin (a variant of the level "buy from me - I figured out how to rip off others"), but a product from the series "Fully functional cryptocurrency version 2.0".

A blockchain product that has been maximally refined and optimized for the realities of the global economy, which will give unprecedented opportunities to everyone who uses it (and naturally also to those who are the first to launch it). This cryptocurrency will eventually (with the right approach) destroy all existing paper money on the planet.

The new cryptocurrency will enable countries with the strongest and most open economies (primarily Western countries) to exert greater influence on countries with weaker economies (pulling them closer to themselves). Weaken the ratings of governments of weak countries, strengthen their positions in these territories.

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PROSPECTS FOR THE USA, DOLLAR, EURO


First, it is necessary to recall the key points from the previously published blog article about the evolution of money:

Money is a full-fledged product, duplicating in its mass all other goods/services on the planet. Money is needed as a convenient temporary replacement in transactions of mutual exchange of goods and services. Paper money is a much more convenient product for transporting and storing valuables, in comparison with all other types of goods that humanity was able to create before 2009 (the year Bitcoin appeared).

Money, like all other goods on the market, is subject to the law of supply and demand. This means that if you print an additional amount of paper money and throw it on the market, you will get an overabundance of goods (supply) on the market, which will automatically lead to a decrease in the value of money, i.e. an increase in prices for all other goods. This is called "inflation". Inflation is a type of hidden tax, a way for governments to secretly rob the population. Such deception is carefully concealed by an abundance of pseudoscientific garbage ("the reptilians are to blame for everything", someone else... "all the goods themselves suddenly became more expensive"). Inflation in percent is the amount of paper money secretly printed by the government per year. The annual inflation rate can be used to determine the level of weakness of the economy, or the level of impudence of the country's leaders.

The United States, as the strongest country and economy on the planet, tries to prevent a noticeable depreciation of the dollar (the dollar depreciates by no more than 2% per year), which makes it a good "means of saving" for countries with weak economies.

In an attempt to maintain order on the planet, the United States relies on the international banking system, through which they try to impose sanctions on countries that violate international law. But as can be seen from world practice, this system, unfortunately, does not work reliably. In order for this system to work adequately, it needs to be firmly recognized by all countries of the world. But this is not the case, there are always dissatisfied people, opposition, rulers and parties change periodically in countries, dictators appear here and there who do not benefit from such a system of strong international control. Also, there is always a huge amount of paper dollars on the market that cannot be tracked, it is impossible to prohibit their transfer to other people (even in sanctioned countries, dollars always roam freely).

Also, in recent years, China has continued to noticeably strengthen with its yuan, which it positions as a competitor to the dollar, for which the yuan rate is carefully protected from depreciation by printing new yuan. As a result, such tactics will inevitably begin to weaken the dollar system.

Another stumbling block in the dollar's garden (as well as the euro) is the Bitcoin cryptocurrency, which appeared in 2009. Not only is there now a financial instrument on the market with a guaranteed minimum inflation (which will be lower than the dollar), but bitcoins can also be transferred around the world, bypassing the international financial system (i.e., trying to use it as a tool to bypass sanctions).

The actions of the United States are absolutely logical and understandable if you look at them based on the technologies and capabilities that were available at certain periods of time. In the era when the global economy was small by modern standards, you could get by with a gold dollar (gold was more or less enough to ensure trade turnover). When the economy grew and gold was no longer enough to ensure trade turnover, it was necessary to switch from "paper receipts for gold" to "paper receipts for everything." Then computers appeared - they began to be actively introduced into the international banking system. The United States, including as England's closest ally, has always focused on creating the most convenient conditions for trade, and computer systems provided this convenience. Then in 2009, thanks to the rapid and active computerization of the planet, the first mass blockchain appeared in the form of the "bitcoin" currency. Computerization is happening so quickly, while the variation of computer algorithms is so wide that a considerable part of humanity simply does not have time to keep track of all the possibilities of computer networks. Nevertheless, the bet should always be placed on new technologies and new types of tools that can be created using new equipment.

The world is a constant war. It is an evolution, a development of technologies. There is a constant modification of weapons (both defense and attack). To put it simply, everything in the world is a weapon for survival. Money is the same weapon, and it also evolves (develops). They try to keep the latest weapons developments secret in order to maintain an advantage. Anyone can make primitive types of weapons, so they are of little use. The same American dollar (and the banking system) - today many countries in the world counterfeit (there is the European Union with its euro, China is advancing). That is, the position of the dollar will inevitably be eroded over time, and eventually it will simply lose its weight, will stop giving the advantages that it previously had, which noticeably overtook the currencies of other powerful countries in the world. Therefore, we need to start looking at the transition to a new type of currency that others will not be able to counterfeit due to its complexity and architectural features (just as your video cards, your processors, and some other technologies cannot be counterfeited). Regular paper money is an easily counterfeited weapon, but a properly designed cryptocurrency is an extremely counterfeit-proof product that will give you a monopoly position in the market.


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At the moment, cryptocurrency v2.0 can theoretically be launched by:

1) USA. This country has all the possibilities for this. Launching in the USA will immediately make cryptocurrency popular in the world (because it is the center of the world economy, cash flows). The USA will be able to customize the cryptocurrency for itself in order to preserve certain advantages as much as possible (maintain control over cash flows, maintain its positions and get strong protection).

2) Any developed democratic country with low inflation and a low key rate of the Central Bank - can also launch a similar cryptocurrency without harming its economy. At the same time, it will also be customized to receive certain perks in its favor (ensuring itself with quite strong long-term advantages on the world stage). Countries such as Japan, Switzerland, some EU countries can launch it.

3) A team of programmers. If none of the countries wants to launch the algorithm specified in the article, then it can be launched by a team of programmers that does not advertise itself ("Satoshi Nakamoto Club"). At launch, the team will simply adjust the cryptocurrency for its maximum benefit (see below for how).


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Compared to existing analogues on the market, a super cryptocurrency should be a product of a completely new format. A format that will be extremely profitable to use for the inhabitants of the entire planet. A product that simply will not have alternatives and everyone will eventually use it (whether they like it or not).

Everyone looks at cryptocurrency (the same bitcoin) as a slightly more advanced, but still ordinary electronic money. This is a serious mistake. Cryptocurrency is not just a "digital gold coin" that, in the old-fashioned way, "one person passes to another by connecting with him via the Internet." Cryptocurrency is a huge customizable virtual world, where cryptocurrency is transferred by a robot configured in a certain way. The robot is different in that you "cannot give it a bribe", you cannot "threaten a robot with a nuclear missile", you cannot blackmail a robot and manipulate it in other ways that work on a person. A robot today is the most flexible, customizable, reliable and honest structure created by modern technologies. And cryptocurrency is a high-tech technology, a field where the most sophisticated algorithms for the movement of digital gold coins can be implemented. The mechanism for the movement of coins can be made extremely profitable and useful for society. With the help of cryptocurrency, the planet can be made more just and fair.

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In order to destroy regular paper money, a super cryptocurrency must provide the population with the following basic advantages:

a) a ban on the emission of new coins. The number of cryptocurrency coins must be strictly fixed, and the printing of new coins is prohibited. Because the cryptocurrency rate must constantly grow - so that the whole world can see it and start using this tool more and more actively. Printing additional new coins will automatically devalue the current purchasing power of the cryptocurrency, i.e. reduce its rate and worsen its popularity in the world.

b) the cryptocurrency must provide a constant 0% interest rate for mortgages and commercial loans.

c) the cryptocurrency must provide a good interest rate on deposits of 6-7% even with a constantly growing rate of the cryptocurrency itself.

d) the cryptocurrency must allow saving for a pension so that everyone can be confident that their old age will be provided for and no one can deceive them by taking away their pension and starting to pay pennies.

d) the cryptocurrency must allow punishing gopnik countries that do not comply with international laws. Fine and take crypto from their wallets.

e) cryptocurrency should strengthen democracy (the rights of the people) around the world.

g) cryptocurrency should give special advantages to those who launched it

h) cryptocurrency (optional) should allow for automatic tax collection.

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In order for a cryptocurrency to be guaranteed to capture the entire monetary market of the planet, it must have certain basic properties, which are described below. All points were calculated by the author. However, this is not the final version. The system is flexible, in the future it can be further improved and modified. This is a mathematical program - i.e. a flexibly customizable thing.

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1 PROPERTY - ABSENCE OF NOTICEABLE ADDITIONAL EMISSION

This property is similar to the Bitcoin cryptocurrency. It consists in the fact that the cryptocurrency should not have the ability to print a noticeable number of additional coins. The number of annually printed coins should either be zero or their number should be the minimum (not higher than the percentage of the annual population growth of the planet = annual growth of GDP, i.e. the growth of new coins is no more than 2% per year from the number of all previously existing coins). If we take into account these conditions, then the cryptocurrency rate will not fall, and will only grow in the time perspective. Over time, the entire planet will notice this. If we completely cancel the additional issue of coins, then the cryptocurrency rate will grow even faster, even more noticeably. (this will further accelerate the capture of markets by crypto). That is, it is more profitable to completely ban additional emission in the first 5-8 years, and then you can introduce it, but not more than 2% per year.

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2 PROPERTY - LOANS AT 0% OF THE CENTRAL BANK

In addition to the hidden printing of paper money, states also rob the population by making a high loan rate (the Central Bank takes all the interest for itself). It is necessary to take this opportunity away from them - this will also dramatically increase the popularity of cryptocurrency in the world.
In cryptocurrency, the cryptocurrency itself plays the role of the Central Bank, but it cannot print new coins to lend them out. Cryptocurrency should force those using cryptocurrency to lend part of their money to those who need it (without this, no one will take the risk and lend at a penny annual interest)

The algorithm is as follows:
According to the data that was found (they still need to be clarified, besides, they change every year) in developed Western countries, every tenth resident pays off some kind of loan every month (mortgage, car loan, commercial, etc.), spending 30-50% of their salary on payment. This means that all other citizens are obliged to lend this needy person a part of their money.

To do this, an amount of 1.5% must be withheld from each transaction from each crypto wallet, and 0.05% (five hundredths of a percent) must be written off from each wallet daily. This will give a total of 3% per month from the number of coins in each crypto wallet - this amount is called the "credit tax". Then these 3% of the credit tax are frozen for 2 years. During this period, the citizen from whose wallet these funds were frozen can deposit a certain amount of crypto coins in a commercial bank (from which the bank will then issue a loan to those in need) and the frozen credit tax will be returned to this user in the form of annual interest on the deposit.

The annual interest rate on deposits must be selected by the cryptocurrency system in such a way that a citizen can deposit 1/3 of his annual income in a bank once in his lifetime and then receive back the entire monthly credit tax paid for life. This will be somewhere around 7%.
These two parameters (what part of the annual income should be deposited and at what rate) are adjustable in the system. They will depend on the demand for loans (the higher the demand, the more money will have to be required to be deposited at the same annual interest rate).

To protect against fraudsters of the "I deposit it to myself from one wallet to another" type, the cryptosystem will allow paying the frozen credit tax only if the citizen deposited it to a wallet that already has at least 3,000 other deposits (i.e. a wallet that definitely belongs to a commercial bank).
And to protect against fraud of the "I'll split the amount into 3,000 new wallets and still deposit it to myself" type, all new wallets must be paid (cost a certain small annual amount, more on that later).

Calculation example:
10 people receive 100,000 rubles per month, i.e. each person's annual income is 1,200,000 rubles. Every tenth of them takes out a loan of 3,000,000 rubles to buy an apartment and pays it off over 10 years, at 300,000 rubles per year (or 25,000 rubles per month). In order for one citizen to borrow 3,000,000 rubles, the other 9 citizens must deposit this amount. The one who took out the loan also paid and will pay the credit tax, so it can also be added to the general formula. Total: 10 people must deposit a total of 3,000,000 rubles in the bank. This is 300,000 rubles per person, which is 1/4 of the annual income (12,000,000 rubles). Citizens put 300,000 rubles in a bank deposit for 10 years, and each year the commercial bank returns to them the entire credit tax they paid for the year, which is 3% of 100,000 rubles of their monthly salary, i.e. 3,000 rubles per month, and 36,000 rubles per year, which is 12% per annum (this is the deposit rate). If every fifth person needs a loan, then the rate will have to be only 6%, and citizens will have to put 1/2 of their annual income on deposit in order to automatically receive the entire "credit tax" they paid annually.
The current annual rate should be set by miners by their vote, based on current global statistics on loans. All miners are always noticeably smarter than ordinary citizens, they understand the market (statistics) better, and each miner is also interested in the cryptocurrency being maximally popularized and distributed around the world, so their votes will always choose the rate that is more favorable for the development of the cryptocurrency.

That is, the cryptocurrency system transfers the amount of the frozen credit tax to the wallet of a commercial bank, with the expectation that for a commercial bank this will be equivalent to receiving a loan from the Central Bank at 0% per annum (i.e. free money for issuing loans to the population). Then the commercial bank adds its small percentage to 0% and the client gets an ultra-low rate. The Central Bank rate cannot be set below 0%, because in this case, fraud from commercial banks is possible (they will issue loans to themselves in order to collect credit tax from the common fund).

More nuances:
First of all, loans should be given under a mortgage (they are easy to track and in case of non-payment, the bank will easily return its funds), car loans (also easier to track than small goods), commercial ones are important but the chance of non-payment is high - this area should already be regulated by the state (force to give commercial loans first).

It is also advisable to introduce a 3% monthly fee not immediately, but gradually. That is, first, for the first 4 years of the global launch of the cryptocurrency, make a 0.5% fee from each transaction. Then, after 4 years, add a daily deduction in the form of a final 0.5% per month. Then, after another 4 years, increase the commission from each transaction to 1%, and so on until the figure becomes 1.5% commission from each transaction and 1.5% monthly automatic deduction. This will allow you not to scare off new users immediately with a high commission and begin to smoothly launch the credit system.
Also, eventually (30-40 years after the launch of the cryptocurrency), it is desirable to make a 3% automatic monthly deduction, and completely cancel the commission for each transaction. This will give advantages to businesses (they will be able to transfer money more actively).

Regarding inflation - the annual inflation of even the dollar is 2%. For most other paper money, it is even higher. Inflation means that in a year the price of food becomes 2% higher. This means that with each salary a person will be able to buy 2% less. That is, this is essentially the same as a monthly deduction of 3% in cryptocurrency. That is, 3% deduction per month is equal to 3% deduction per year from the total income of a person (his entire purchasing power). This figure will be lower than the inflation of other paper currencies, which most often have figures of 5-7% and higher. That is, everything will probably even be felt exactly the same as with the dollar.
But in cryptocurrency, anyone can return all the "inflation" back to their wallet (making it equal to 0 for them personally). With regular money, such a trick would be impossible.

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3 PROPERTY - GOOD DEPOSIT RATE

Cryptocurrency should give the opportunity to anyone to put money on deposit at a good annual interest rate (the interest rate itself may not be high if protection against depreciation of the cryptocurrency rate is guaranteed, i.e. there is no additional emission of coins).
This property will significantly increase the distribution of this super crypto around the world.

The algorithm is as follows:

3% of the monthly wallet income - the amount is certainly not microscopic, but not large either. A lot of people will simply treat this amount as "inevitable bank fees". They will not put the required amount on deposit in the bank in order to collect the "credit tax" collected from them. This means that after 2 years of storage, all the previously frozen credit tax collected from them becomes available for receipt by others under a special scheme.
Priority when opening a deposit should be given to those who have a frozen credit tax. The higher the frozen tax amount, the higher the priority in the queue for opening a deposit. All those wishing to do so submit applications to open a deposit account through the cryptocurrency system. These applications are kept for a week and are satisfied in turn, starting with those with the highest frozen credit taxes. All applications are satisfied evenly (in turn). The funds collected by the credit tax, unfrozen after 2 years (having become nobody's), also become available for receipt by opening additional deposits. Everyone who has already opened a deposit has the right to put in exactly the same amount and receive annual interest on it, but from someone else's unfrozen credit tax after 2 years of storage. And so on the cycle repeats (everyone who already has a deposit can put in exactly the same amount, but receives interest from someone else's unfrozen funds.
This algorithm will make it possible to make a regular deposit to a bank (a regular deposit). But the interest will be guaranteed, they will definitely not be eaten up by inflation (unlike paper money). This will give an influx of new users.
In essence, the option of such a deposit will be a variation of guaranteed mining for everyone. In exchange for this, the depositor risks his money (banks can go bankrupt and depositors will lose all their funds). But otherwise, loans will not be possible (and they are needed).

More nuances:
A wallet that has put part of the funds on deposit in a bank has the highest priority in opening a new deposit (i.e. can extend its deposit indefinitely if desired).
A daily write-off of 0.05% is not applied to money that the system sees as "put in a commercial bank wallet for issuing loans" until the bank withdraws them from its account (to give someone a loan with them).

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4 PROPERTY - GUARANTEED HIGH PENSION

In old age, a pension is necessary. When using classic paper money, which is constantly noticeably depreciating (due to hidden additional printing by countries with weak economies), the worker has absolutely no guarantee that he will receive a decent pension. Crises, thieving managers can make a person's pension just a pittance.
Supercrypto should have protection against this, a good pension size should be guaranteed.
In the future, when the cryptocurrency strengthens around the world, prices will become fixed (stop growing). The law will be able to guarantee that in 40 years the worker will have such and such a pension (and he will know what he can buy with it, whether it will be enough for him to live).
In countries where this is not the case, the following can be done:
in the cryptocurrency there should be an opportunity to create a special "pension wallet". The daily deduction of 0.05% ("credit tax") does not apply to this wallet, but at the same time, money can be withdrawn from the wallet only 40 years after its opening. And per month, you can withdraw no more than 3x the average previous monthly payment.
That is, the following scheme will be obtained: in an unfavorable country, with a constantly collapsing paper currency, a worker at the age of 20 gets a pension crypto wallet and begins to transfer a certain percentage of his salary to it, begins to save up for his pension. After 40 years (at the age of 60), he has the right to withdraw a monthly pension.

More nuances:
So that the accumulated pension money is not lost, in the event of the death of the pensioner, all funds from the pension wallet are transferred to the pre-specified wallets of relatives (in equal monthly payments in the amount of x3 of the previous average monthly payments received into the account). The crypto must have such a feature built into it.

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5 PROPERTY - SELF-GOVERNANCE

The algorithm of this super cryptocurrency is much more complex than the Bitcoin algorithm. If the simple Bitcoin algorithm works "by itself and does not require any adjustments from the community", then the super cryptocurrency will need to be managed from the outside. It will be necessary to constantly make some modifications to the code (for the current realities), it will be necessary to adjust the deposit rate (based on current world conditions), it will be necessary to fine individual wallets and even countries. All this will be done by all users of the cryptocurrency.

The cryptocurrency does not require passport or any other data (this is its advantage and protection), therefore, within it, it is possible to distinguish 4 categories of people who will have the right to vote on certain issues:

Category 1 - miners. All computerized nodes of the system that support the operation of the network. The properties of miners are that in the cryptocurrency system, this will always be a much more competent and intelligent person (compared to the average person), he will be able to make more accurate and more independent decisions on many issues. The interest of each miner will always be to expand the coverage of cryptocurrency across the planet, but at the same time maintain the current transaction fee (or even increase it, which naturally will not be beneficial to all other participants in the cryptocurrency system).

Category 2 - commercial banks. Each commercial bank will accept deposits from the population to its specific wallets. This parameter can be used to separate commercial banks from the wallets of mere mortals. A commercial bank is always a competent person who is well versed in cryptocurrency algorithms, economics, and state laws. But at the same time, it is already an official person, and therefore more dependent on state politicians. Its decision will not be unbiased and independent. The obvious interest of all commercial banks will always be to increase the number of loans issued (this is the main income of any bank).

Category 3 - commercial wallets. Companies will use regular wallets on par with regular users, but the transaction volumes in such wallets will be orders of magnitude higher. Commercial wallets will be slightly smarter than ordinary citizens, but they will still have an extremely poor understanding of all the algorithms of the cryptocurrency, and will have a poor view of the market. Their only interest will be in the maximum reduction of the credit tax for commercial wallets and the priority of issuing commercial loans over household loans.

Category 4 - ordinary citizens. These are all other wallets. This is the category of people who are the least knowledgeable in all matters. They will not be able to sufficiently understand the algorithms of the cryptocurrency, world markets. Most citizens will not even want a reduction in the credit tax (they will have a poor understanding of what it is), but they will want improvements in their living conditions (more loyal laws, governments).

Based on the above data, certain parameters in the system will be determined by voting by a certain category of people - participants in the cryptocurrency system.

The deposit rate will be determined by a vote of all miners every two years. The more a node has managed to mine in 2 years, the proportionally higher its vote. Miners are interested in the maximum distribution of cryptocurrency around the planet, so they will always select the most optimal rate option to achieve a balance between economic development and the distribution of crypto.

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6 PROPERTY - INTERNATIONAL SANCTIONS AGAINST INDIVIDUAL PERSONS

Cryptocurrency is not just "some simple piece of digital when, a piece of gold coin", it is a flexible program, it is the latest technology. The international community and an individual state are a complex structure, and cryptocurrency needs to be adjusted to society so that it gives the maximum number of advantages. Society (even the most advanced like the USA) still has a very poor idea of ​​the entire potential here, how much a competently configured cryptocurrency can control the entire planet.

What does the whole world keep money in today? Answer: naturally in dollars, euros (not in constantly depreciating Moscow rubles). But dollars/euros are paper, their movement is not controlled by the USA. And crypto can be very strongly controlled. And when dollars and euros eventually disappear (they will be finally defeated by this currency), there will be no more or less reliable storage methods except crypto (stocks are risky assets, gold will start to get cheaper as crypto spreads, plus its price fluctuates a lot, you still need a cell in a bank, which is inconvenient). Crypto will be the only way to reliably save your funds, which means that all wallets on the planet will be under the control of the world community.

Money in each cryptocurrency wallet will disappear at a minimum rate of 1.5% per month (and even faster in the future), this means that to protect against burning, each wallet will always be forced to keep a certain deposit in the bank. To deposit in a bank, you need a passport, and databases from banks always leak into the network (this is a highly liquid product for spammers, advertisers, scammers and just special services). This means that the international community will always know which wallet belongs to which person. It is also possible to make a rule for public disclosure of data on certain accounts by banks; if a bank refuses to do this, then the fine will be applied to 25% of all bank deposits instead of a single wallet (i.e. this will simply bankrupt the bank).

The system will allow imposing "sanctions" (simply withdrawing all funds from certain wallets). Outwardly, everything will look like a completely transparent and democratic system, but at the same time, its algorithm will always give priority to Western countries (USA, EU) because they have the strongest economies in the world.

Select sanctioned wallets, i.e. wallets from which some of the funds (or all) will be withdrawn - will be all commercial banks in the world (because these are the participants in the cryptocurrency system, most controlled by the governments of their countries. The total amount withdrawn from the sanctioned wallets will be limited to the size of the annual turnover of the commercial bank (the more deposits the commercial bank accepted, i.e. the more it paid the credit tax collected by the system - the larger the total amount it can impose sanctions on).
The withdrawn funds are transferred not to the wallet of the bank that imposed the sanctions, but to the wallets of all other countries (so that the sanctions remain an instrument of punishment, and do not turn into an instrument of personal enrichment for the bank).

In cryptocurrency, the "imposition of sanctions" mode cannot be activated immediately. This will greatly slow down the spread of cryptocurrency. "Activation of the sanctions regime" should be included gradually 15-20 years after the cryptocurrency has already spread sufficiently around the world.

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7 PROPERTY - PENALTIES FOR COUNTRIES WITH BAD DEMOCRACY (THAT VIOLATE INTERNATIONAL LAW)

The cryptocurrency will have a function to "fine an entire country with bad democracy, i.e. frequently violating international law." Undemocratic countries almost always actively block the Internet (slow down its speed, block popular international services and many different useful sites).
The most undemocratic countries should be punished in an honest way: each mining node is given the annual right to choose the "least democratic state." Mining nodes are the people most interested in distributing cryptocurrency around the world (the more wallets in the system, the higher their income). At the same time, mining nodes are much more literate and intelligent users of the system, they will know much better which country limits the rights of the population, and therefore the rights of miners.

Each mining node has the right to vote in proportion to the cryptocurrency mined by it during the year from commissions.
3-5% of countries that have received the most negative votes receive a fine. The deposit rate for these banks becomes the lowest (6% or even 3%). This will lead to the fact that more and more credit tax will flow from this country to the general international bank, i.e. less will return to the country's credit market. Loans will become noticeably more expensive in such a country. But at the same time, everything will be within the rules, i.e. there will be no direct theft of money from the accounts of the country's residents.

Another variation - 3-5% of countries that have received the most negative votes - receive the lowest interest rate on deposits, the next 5% of countries - a little higher. For all the rest, the deposit rate will be proportional to the number of negative votes received by the country. But this option is worse (it will stimulate the emergence of cryptocurrency clones more strongly)

More nuances:
You can't make the percentage of countries to be fined too high - this will discourage the use of cryptocurrency and will provoke the emergence of its clones (without the possibility of fining anti-democratic countries).

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8 PROPERTY - DEMOCRACY THROUGH CRYPTOCURRENCY

With the help of cryptocurrency, it is possible to forcibly enable the strengthening of democracy in countries by adding a forced division into 2 competing territories (which will strengthen democracy and automatically create at least a 2-party regime in the country).
To do this, each pension wallet has the right to vote for the worst region of its country once every 2 years. The size of the vote will be directly proportional to the total amount that was deposited into the pension wallet over the past two years. Each region will have its own banks with their own wallets, based on this information, you can form a vote (against the wallet of the largest bank in a certain region). As a result, 49% of the regions, those who scored the most negative points, receive a lower deposit rate (9% instead of 12). Those who won 51% of the votes keep a 12% deposit rate.
It is necessary to divide into two competitors. This will lead to the creation of two opposing forces. Dividing into a larger number of competitors will only weaken this system (it will be more difficult for the population to navigate "who is a friend", "who is an enemy", "who to vote against").
The very use of this cryptocurrency with a voting function will be a painful blow to dictators. This will strengthen the division of each country into two competing camps (a prototype of a two-party system).
The fact that the right to a real, unforged vote is given to an ordinary citizen, who is not allowed to have the right to a real vote in all anti-democratic countries of the world, will automatically strengthen the position of this cryptocurrency in the world. That is, this will be its additional automatic advertising.

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ADVANTAGES FOR THOSE WHO LAUNCH CRYPTOCURRENCY FIRST

If one of the countries launches the cryptocurrency first, it can embed a double vote for 100-200 wallets of its commercial banks into the cryptocurrency code (this is for the USA and the European Union). If the country is small (like Switzerland), then you can even make x3 or even x6 votes for certain wallets of its commercial banks. This will not have much impact within the planet, but will provide a certain sufficient protection to the country that launched the cryptocurrency.

If the US launches the cryptocurrency, the mining algorithm must be reliably optimized for video cards (not ASICs). To do this, it can be made to change at certain short intervals. But even if it is not possible to optimize the algorithm purely for video cards, the US, as the world's leading chip manufacturer, will still receive a very strong advantage due to the constant sale of the necessary new equipment for mining. If the European Union (Switzerland or a similar country) launches a cryptocurrency, then the emphasis in mining should be on staking (not on processor power). And stake out for several of your commercial wallets the right to appoint a certain number of miners, who, until the amount reaches 5-10% of the total global turnover, will have priority in receiving commissions from all transactions (from all commissions received by miners).

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A MORE SMART MINING ALGORITHM

Cryptocurrency mining should not burn resources in vain (as is currently happening with Bitcoin). It should be a correct smart algorithm that would be as competitive as possible, more distributed, which would move the entire computer industry.

Therefore, when launching a cryptocurrency, it is advisable to make its mining consist of:

* 25% - mining by the size of a hard drive (analogous to the Chia cryptocurrency). At the same time, this type of mining should also be divided in a 50/50 ratio, half of this mining should have an emphasis on the speed of hard drives (the higher your hard drive speed is, the more earnings), and the second half on their volume (the larger the volume, the more earnings).

* 25% - mining by stacking, i.e. holding cryptocurrency in a wallet and at the same time your client program should be constantly online (communication node). This type of mining should also be divided 50/50 into two types: a) without the ability to join a common pool (i.e. only individual personal wallets of users, the more crypto in one wallet - the higher the staking rate for this user). b) with the ability to join a pool (when you can join with other wallets, but no more than 100 wallets in one pool).

25% - mining by internet speed, i.e. the higher your speed, the more earnings. This type should also be divided 50/50. a) the lower the ping (and higher the speed), the more mining. b) the higher the speed and at the same time the longer your connection without interruptions and failures - the higher the mining

25% - mining by the computing power of video cards (processor). The algorithm should be optimized as much as possible for video cards (and not for ASICs). The ASIC market does not develop the computer industry (but the video card market does). Therefore, it is necessary to make the types of calculations changing every 6 months, for which only video cards will be suitable (ASICs will not be able to provide such flexibility). This entire category of mining should also be divided 50/50. Half - with an emphasis on the size of the video memory (and the speed of the GPU is less important). The second half - with an emphasis on the speed and number of GPUs (and the size of the video memory is less important).

Thanks to the above algorithms, the entire computer industry will actively develop, and this will automatically improve Internet coverage around the world (and therefore reduce the censorship of dictators).
If the US launches cryptocurrency, then mining can be done 100% by video cards (to give an advantage).

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CRYPTOCURRENCY SPEED

There are 8 billion people on the planet. Each person makes at least 5-7 transactions per day. This is 48 billion transactions per day. We divide by the number of seconds in a day (86400 sec) and get 555555 TPS (transactions per second). This is the minimum speed that a cryptocurrency should provide in order to function normally on the entire planet (it will not be a toy, but a working tool).

It is necessary to optimize the cryptocurrency (mining) algorithms to ensure the specified speed. The speed of currently existing cryptocurrencies is insufficient.

Some transaction per second (TPS) metrics for different cryptocurrencies:
* Solana (SOL) — 65,000 TPS. The maximum transaction speed is achieved through a combination of Proof-of-History (PoH) and Proof-of-Stake (PoS) technologies.
* Polygon (MATIC) — 65,000 TPS. Fast block confirmation is ensured by the Proof-of-Stake (PoS) mechanism.
* Cosmos (ATOM) — up to 10,000 TPS. The Cosmos ecosystem does not have a fixed transaction speed — it has a modular architecture that allows individual blockchains to achieve different levels of transaction throughput.
* Algorand (ALGO) — 6,000 TPS. Until 2021, the TPS was 1,000 per second, but after the platform update in June 2021, the speed increased 5 times and reached 6,000 per second.
* Avalanche (AVAX) — 4500 TPS. The blockchain platform uses a special method Avalanche Consensus Protocol (ACP), which allows for fast transaction processing by creating mini-networks directly during the processing.
* Fantom (FTM) — 2500 TPS. The blockchain platform provides 2500 transactions per second.
* The average TPS of Bitcoin is 5 transactions, and the maximum value can reach 7 transactions

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PAPER VERSION OF CRYPTOCURRENCY


A new cryptocurrency must have paper bills. Without this, there will be no full coverage of the entire planet.
At the same time, they will definitely print a lot of counterfeits, there are a lot of different bills on the planet, a lot of poorly versed people, a lot of poor regions that cannot afford to have new machines for checking bills everywhere. To take all this into account, it should be like this:
Each bill must have a programmable microchip.
You put your smartphone with NFC, hold the bill over it (it reads the contents of the microchip in the bill) and shows whether the bill is real and how many coins it contains.
If you want, you can destroy the bill, transferring all its funds to your e-wallet. You can also transfer money from your wallet to any such bill with a microchip.
Manufacturers can start printing banknotes with embedded NFC chips today.
(add thoughts on how to check banknotes without the Internet via SMS)

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UPDATE OF THE CRYPTOCURRENCY ALGORITHM

Over time, as the cryptocurrency operates, its weak points, nodes and algorithms will be revealed, which will require updating and adjustments. It is desirable to embed such a possibility into the cryptocurrency mechanism. It should work like this: each miner has the right to vote (based on the amount of cryptocurrency mined by him over the past 2 years). The community offers an optimized cryptocurrency algorithm and miners (as the most literate users of the cryptocurrency and at the same time the least susceptible to influence and the least interested in the collapse of the network) vote for the best update package once every 4 years. The best package is applied. In this case, all the money from the old version of the cryptocurrency is automatically copied to the new version. In the old version, all wallets are emptied (i.e. everyone is forcibly transferred to the new version of the cryptocurrency) - this is necessary so as not to devalue the cryptocurrency rate.

The only downside of this option is that miners will be interested in increasing transaction fees and possibly making additional emissions, which will also go to pay miners' fees. This will have a negative impact on the popularization of the cryptocurrency and its rate. Therefore, after their vote, a vote is held among all wallets in the system and if 10% of votes against are not collected (and they will be collected if there is something clearly not beneficial to the population), then the package for which the miners voted is applied. If 10% of votes against are collected, then everyone waits another 4 years until the next opportunity to update.

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HOW TO CREATE COALITIONS WITH CRYPTOCURRENCY

(draft version)

Theoretically, with the help of a properly configured algorithm for annual voting by the population for the "most undemocratic countries", it is possible to eventually create coalitions (although it is better to do without them within the cryptocurrency).
To do this, it is enough to increase the number of annual losers. Make it not 3-5%, but 25%.
If you make 50% of losers annually (and the winners will receive a fine from them), this will firstly lead to a bipolar world (all losers will begin to unite against the winners), and then most likely lead to the emergence of a clone of the cryptocurrency, which will be launched within the common space by all losing countries. This will also significantly reduce trade relations between the two blocs. This is not a desirable, bad option.
The maximum stable number of annually losing countries is in the range of 15-25% (the very maximum). This number will not significantly reduce international trade, but will allow certain coalitions (USA, West) to influence certain countries that do not want to comply with international norms.