Putting the Current back in Currency


2 months ago by SeanBallard

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

― Buckminster Fuller

1) Volatility;

In order to fulfill the currency part of cryptocurrency, the environment needs to be conducive for passing through a charge, thus allowing energy to flow, so that it's able to power the society through an open economy (economy = buyers + sellers) & (electrical-circuit = positive charge + negative charge)

Volatility in price is an impedance to the flow of energy in a monetary system. Price volatility limits the ability for buyers + sellers to assess profitable actions in the now, based on what they think will happen to the price of the currency in the future, which causes trepidation for using the currency to exchange goods, thus halting activity/power being inputted into the currency system as a medium to conduct trade, and thus limits the overall charge & power of the system as a whole.

The Lotus Blockchain implements a system that limits the magnitude of volatility, which cultivates a better environment for a current to more easily flow, by way of creating a more stable & predictable price environment, which makes Lotus a more conducive medium for trade. In this way, Lotus acts as a better conductor for the energy exchange of a society, so buyers and sellers will seek its use upon experiencing that it is a better means of transferring their energy to one another (goods from buyer to seller).

So, as you may have noticed, getting to the initial meaning of the word currency, and why it was applied to money in the first place, will help to better understand the properties of a good money. It will help explain why the Lotus environment is set up in the way it is, and why it is better suited to act as a conductor for the energy exchange of a society, resulting in buyers & sellers utilizing Lotus to transfer their energy upon experiencing its superiority as a trade medium. The Lotus network will conduct this charge, and energize society. Just like the current of an ocean, or an electrical current, which is a flow of energy. A society's power can be said to come from the energetic charge which comes from the motivations of buyers and sellers, as expressed on the market.

MECHANISM for Stability:
Lotus utilizes the most basic law of Economics; Supply * Demand = Price, in order to achieve Price stability.
Most coins in the cryptocurrency market have a fixed & known supply issuance. It does not respond to Price. As a result, when the Demand goes up, raising the price, the supply remains the same, and coin prices can surge up 500% in a single day! The Lotus supply issuance is variable based on the price, with the price being derived from cost of mining. So, as the price goes up, more Lotus are produced, which dampens the price surge. As for downward price swings, their is a Lotus-burning mechanism. There are services that can be built atop the Lotus Blockchain that will burn Lotus in order to be used. StampChat.io is the first operational examples of such a service, with more in the pipeline, and Miners can increase burn rate of rewards in order to decrease supply in an attempt to dampen the effects of Price declines.

2) Utility

As previously addressed, the stability of the Lotus price makes it more useful for use in trade/commerce. Though, people need a compelling reason to start using Lotus in the first place so that they can experience the benefits of the network. This is where these Dapps (Decentralized Software Applications) come in and offer such services atop Lotus. In order to use these Dapps, you will need Lotus.

As of now, there is a faucet <https://faucet.lotuslounge.org/> as well as a dedicated Telegram group <t.me/GiveLotus> that are giving Lotus as a way to onboard users, get them to experience Lotus, and "buy into" the idea of Lotus and continue to use it because of its utility.

StampChat is the first such Dapp that will be implemented. StampChat.io is a private messaging app that requires Lotus in order to send a message. Thus, the StampChat service protects your attention from Spam, by attaching a cost to sending a message that would garner your valuable attention. StampChat allows you to set a price on your attention, so that the sender must *pay* for your attention accordingly. The current defense against spam is centralized through Major Tech company's Spam Filters (Google, Outlook, AOL, Yahoo, etc), which utilizes AI to automatically filter "spammy" emails. So they trade one form of spam, for a less frequent spam that is a more targetted form, but less noisy.

Thus, StampChat is a truly unique & competitive offering that will prompt those to Demand Lotus $XPI in order to use this service.

3) Marketing

A wise man once said, the proof of the pudding is in the eating. A major part of the marketing of Lotus is in the giving nature of the culture. With units of Lotus on the network acting as a Token of Appreciation, one can express to another their appreciation of them by seamlessly sending Lotus. This will spread Lotus across the world, by way of the internet.

Further, when Lotus is generated by miners, half of the mining rewards go to 12 organizations that develop the Lotus ecosystem & infrastructure. Similar to how varying organizations/companies are needed to develop a neighborhood (cable company, construction company, architect, civil engineer, etc.). For developing the Lotus ecosystem, organizations include Coding Teams that maintain the open source software (Bitcoin ABC), Software Developers to build valuable Dapps (Be.Cash + StampChat + others TBA), Educational services (Saipan Institute), Project Managers (Logos Foundation), amongst other potential project proposals that seek to add value to the Lotus ecosystem. Important in this endeavor, is funding charitable organizations that help those in need within society ie the sick, poor, orphans, disabled, victims of the justice system etc. Functions that are critical for a healthy society, which governments are not fulfilling adequately with their currency system. These charitable organizations will provide marketing opportunities, by first providing real help to people that are in need, and getting such people aboard the Lotus ecosystem as well.


Short-hand Recap:

buyers and sellers create a market. a volatile trade medium causes merchants (sellers) to not want to receive this volatile medium in exchange for their goods. If merchants did accept this volatile medium as payment, then profitability becomes more uncertain. Volatility increases the Noise in the search for the Signal; signal being what the customer values & thus what to create & sell in order to increase profit. Flipside, person using the volatile medium to buy goods, may not want to use it in trade because of the potential of its value to skyrocket. Thus, volatility limits both buyers + sellers desire to conduct trade though this medium. They would choose to use a medium that would maintain a predicatable value - thus maintain a current/charge/energy-flow in an economy, thus increasing trade & prosperity.

lotus is considered relatively stable because it has a variable supply based on demand. Other cryptos have a fixed supply with variable demand.

Lotus = conductor

charge = people trading. buyers and sellers

exchange = flow of energy


-Sean Ballard