“Everyone can create money; the problem is to get it accepted” – Hyman Minsky
Fluzcoin is well positioned with the global trend towards mobile payments. A fine tuned system of a) careful choice of limited initial geographic scope, b) focus on specific customer and merchant target group, c) aggressive commercial incentives d) heavy brand building efforts leading to share of mind as well as e) seamless crypto fiat conversion at retail POS are set to yield gradually to mass adoption. Examples like Paypal or WeChat Payment show the way.
The original promise of cryptocurrencies was to replace fiat money as a medium of exchange, and to become widely used currencies in people’s wallets and in people’s minds – thus freeing them from the vagaries of politicians, central bankers, the moral hazard of surplus inflation, and the debasement of their money.
The mission of cryptocurrencies still is to replace an antiquated and at least partially rigged and inefficient monetary system, with an elegant decentralised currency system fit for daily use – and in particular for retail – of clean, practical, structured and intelligent code that will independently maintain its integrity and functionality.
Fluzcoin, as an independent retail coin structured in computer-aided governance, solves the problems of speed, cost, compliance and excess volatility; ushering in a true retail coin ready for mass adoption. Fluzcoin’s Artificial Intelligence (AI) algorithm, EUNOMIA, overcomes crypto-economic volatility with real-time, computer-aided market corrections to the Fluzcoin supply and demand. The value generated by minting new Fluzcoins is maximized by Fluzcoin holders in the form of proof of stake; meaning the accumulation of Fluzcoin, results in an appreciation path similar to traditional cryptocurrencies even though the value of an individual Fluzcoin may never skyrocket.
Fluzcoin’s computer-governed economy results in a transparent and predictable fluctuation path, compared to FIAT and crypto-currencies. Fluzcoin’s clever, patent-pending (United States patent application pending 62/648,206) coin minting rationale creates additional value without the need for energy intensive crypto-mining infrastructure.
Fluzcoin holders enjoy effortless minting of new coins by simply holding the coin; making Fluzcoin the most rewarding retail currency available.
Retail prices in Fluzcoin are also likely to be lower than FIAT values, as merchants are able to pass transaction cost-savings to customers. Lower prices combined with strong commercial discounts, partially paid from the Fluzcoin Initial Coin Offering (ICO) raise, and an easy to use mobile app environment, incentivizes consumer adaptation.
Merchants benefit from Fluzcoin as it allows for cost and default-risk free transactions with collected funds available in real time, which are immediately convertible to FIAT currencies. All Fluzcoin retail participants will have cleared Know-Your-Customer (KYC) making it a compliant coin for the accepting merchant who gains exposure to a new generation of digital and mobile consumers.
Data Economy and Data Network Effects
Data is the new oil – as the Economist eloquently describes on its cover in May last year. And data is what merchants in the non-ecom sphere struggle to harvest. Fluzcoin enables merchants to glean data-driven insights that drive profitable decision-making. Aggregating over individual shoppers the Fluzcoin Consumer Insights API enables merchants to dock on and retrieve information and insights about the behavior, interests and intents of their shoppers.
Fluzcoin’s ability to create massive data-sets gives rise to data network effects. The broader Fluzcoin adoption; the better the consumer insights merchants can draw from implementing and incentivizing Fluzcoin – strengthening the depths and breadths of consumer insights.
Exploring blockchain as a technology necessary to fulfill the goals of a coin powering retail transactions.
First of all, let us summarise the outcomes that the technology needs to support:
- Zero-fee transactions for consumers
- Privacy for consumers – consumers do not want others to see what they are buying
- Independence for merchants
- KYC enablement – consumer wallets need to be upgrade-able by KYC to facilitate regulatory concerns of banks and servicing merchants
- Trust in the records of the distributed ledger for consumers and merchants
- Tradeability – the coin should be easily exchangeable into crypto assets on exchanges
- High transaction speed
- High throughput – retail is operating under load compared to conventional blockchain transactions. The transactions per second (TPS) threshold should be comfortably running at at least 250 TPS in the 1st project phase.
We now review the solution attributes including technical performance:
- Zero-fee transactions for consumers
- Privacy for consumers
- Independence for merchants
- KYC compliance for merchants
- Trusting the records of a distributed ledger for consumers and merchants
- Increased Transaction speed
- High throughput
- Tolerance to a large blockchain file and its indexing
- Fluz Coin usage in online Commerce, web and mobile payments.
How do you avoid extreme coin price fluctuation in your model?
Extreme coin price fluctuations – what we call “excess volatility” – are a major blocker to the mass adoption of cryptocurrencies. Fluzcoin disables the mechanism behind this excess volatility (fluctuating demand at very stable supply) by making supply grow more in tandem with demand. This is achieved by the Fluz Algorithm steering the issuance of new Fluzcoin and of drawing rights to the holders of Fluzcoin. In times of lower demand, the Fluz Algorithm would slow or halt the issuance and buy back and retire Fluzcoin in the open market. These open market operations are undertaken by drawing funds from the Fluzcoin Reserve which itself is built on parts of the ICO proceeds and is filled continuously with the proceeds from sales of new Fluzcoin when drawing rights are exercised by holders of Fluzcoin. See also the question on the Reserve below for more details.
In order to establish Fluzcoin, Fluzcoin Global Inc will undertake a compliant ICO. The proceeds of the ICO will be used to configure the technology and to engage in significant marketing efforts. Even though the coin and concept might be clear and value promoting, it is crucial to market the coin and to accumulate additional consumer trust through brand building and the creation of a monetary model backed by liquid reserves that will pride for the stability of the coin and the mitigation of potential volatility. While the initial targets will be in focused markets, the vision is to create an independent global currency.
Retailers are invited to participate in the ICO and are incentivized for early commitment. Post-ICO retailers will join based on current market conditions.
3,223,000,000 Fluzcoins shall be created for the initial ICO.
Use of Funds
- 50%: Marketing
- 3%: Legal&Compliance
- 10%: IT development and monitoring
- 7%: Admin overhead
- 10%: Fluzcoin Reserve
- 20%: Commercial retailer onboarding
For more information, please visit the links below:
Author: Tosin David
My BitcoinTalk Profile: https://bitcointalk.org/index.php?action=profile;u=1180815
Disclaimer: This article was published in terms of the bounty campaign. I am not a project team member or its representative but a supporter of this incredible project.