Fixed Price-List to Avoid Inflation
TOPIC #0010: Fixed Price-List to Avoid Inflation
We create 50 Trillion Digital Coins - enough for a population of at least 11 Billion people to work with - and give the cryptocurrency a very high accuracy so very small and accurate payments can be done with them. These coins are provided in steps. To give early adopters an extra incentive we could say that the first billion UBI-Wallet holders (adult or child) get a very attractive ᕫ10,000 to start with, the second Billion will get ᕫ8,000, the third Billion get ᕫ6,000, the fourth Billion get ᕫ5,000, the fifth Billion get ᕫ4,000, the sixth Billion get ᕫ3,000, the seventh Billion get ᕫ2,000 and any other person will get ᕫ1,000. If all 11 Billion people would receive this, ᕫ42T of the ᕫ50T stack of coins would be used. But more people will die and be born until we reach the expected maximum of 11.2 Billion people. The ᕫ50T coins will be all distributed several decades before the end of this century. Persons born after that moment receive no start capital, but will receive the normal available UBI-threshold from that moment, each day. The extra incentive for the early adopters, should however be transferred in tranches, where ᕫ500 per month seems to be reasonable. This to prevent extreme price inflation of sellers and to give people time to handle their capital. Advice on how to go about your UBI-Wallet will also be important.
Because there are no banks, no new coins are issued. So there can't be any "print-money-inflation". Interest rates not depending on any interest decision or any price development report. To create reference prices for people, we will make a list of thousands standardized products, like an egg of a non-battery chicken of 100 grams cleaned and packed at the factory, or 1 liter of drinking water in a plastic bottle at the factory etcetera. Just to be used as permanent benchmarks. This to make sure that price differences are only caused by productivity innovations or issues with mining or harvesting. Then we price all these products in a UBI-Wallet pricing reference list, fix the list and let it be reviewed by economists each year.
Cutting out inflation from the equation will result in being able to do much more reliable long term financial planning. Although the number of coins has been maximized, more value can be created in the world through continuous extraction of raw materials and continuous production. Due to the lower scarcity of these products, the price of these products will fall. In this way the average general price level can fall over the entire width, which you can also see as deflation. Because the price levels are adjusted annually and you can buy more per coin, this is in principle in everyone's advantage.