american cryptofed DAO

the first Wyoming Decentralized Autonomous Organization

Mission: A monetary system with zero inflation, zero deflation, and zero transaction costs

Stakeholders in our economy

Employers

Merchants

consUmers

Banks

government

what is the american Cryptofed?

The American CryptoFed is the world's first digital monetary and payment system which issues a noninflationary digital currency (Ducat) for purchasing at participating merchants; all the while providing rewards per purchase and interest on Ducat owned.

Members of the American CryptoFed have the ability to hold Ducat, a stable digital currency with respect to purchasing power that is non-inflationary. By design, Ducat is the first cryptocurrency with a truly stable store of value.

Consumers and merchants of the American CryptoFed will earn Ducat back on every transaction at participating merchant POS. The reward rate is adjusted on a quarterly basis.

People earn annual interest on all of their Ducat holdings which is adjusted on a quarterly basis.

Participating merchants of the American CryptoFed pay zero transaction fees at Point of Sale (POS) on all transactions made with Ducat.

Participating banks have the ability to construct their own co-branded wallet application. Banks can onboard new consumers (under KYC/AML compliance) with the co-branded wallets.

All American CryptoFed transactions are real time credit push payments on the CryptoFed blockchain. All transactions are real time credit push payments using the CryptoFed blockchain.

american cryptofed's mission is the culmination of economic thought

Milton Friedman (Nobel Laureate 1976)

inflation is not an option

“Inflation tends not only to be higher but also increasingly volatile and to be accompanied by widening government intervention into the setting of prices. The growing volatility of inflation and the growing departure of relative prices from the values that market forces alone would set combine to render the economic system less efficient, to introduce frictions in all markets, and, very likely, to raise the recorded rate of unemployment.” Milton Friedman, 1976,page 283 – 284, Inflation and Unemployment, Nobel Memorial Lecture, Economic Sciences

deflation is not an option

“The length and depth of the deflation during the late 1920s and early1930s strongly suggest a monetary origin, and the close correspondence (across both space and time) between deflation and nations' adherence to the gold standard shows the power of that system to transmit contractionary monetary shocks. There is also a high correlation in the data between deflation (falling prices) and depression (falling output), as the previous authors have noted and as we will demonstrate again below.” Ben Bernanke and Harold James, 1991, page 33, “The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison” in Financial Markets and Financial Crises, ed. R. Glenn Hubbard, University of Chicago Press

Ben Bernanke (The Fed’s Chair 02/1/2006 – 01/31/2014)

Ronald H. Coase (Nobel Laureate 1991)

money was invented to reduce transaction costs

“I know of only one part of economics in which transaction costs have been used to explain a major feature of the economic system and that relates to the evolution and use of money. Adam Smith pointed out the hindrances to commerce that would arise in an economic system in which there was a division of labour but in which all exchange had to take the form of barter. No-one would be able to buy anything unless he possessed something that the producer wanted. This difficulty, he explained, could be overcome by the use of money.” Ronald H. Coase, 1991, The Institutional Structure of Production, Lecture to the memory of Alfred Nobel.

transaction costs are governance issues

“The overall object of the exercise essentially comes down to this: for each abstract description of a transaction, identify the most economical governance structure--where by governance structure I refer to the institutional framework within which the integrity of a transaction is decided. Markets and hierarchies are two of the main alternatives” Oliver E. Williamson (Nobel Laureate 2009), 1979, page 234-235, Transaction-Cost Economics: The Governance of Contractual Relations, Journal of Law and Economics, Vol. 22, No. 2.

Oliver E. Williamson (Nobel Laureate 2009)

Milton Friedman (Nobel Laureate 1976)

inflation is not an option

“Inflation tends not only to be higher but also increasingly volatile and to be accompanied by widening government intervention into the setting of prices. The growing volatility of inflation and the growing departure of relative prices from the values that market forces alone would set combine to render the economic system less efficient, to introduce frictions in all markets, and, very likely, to raise the recorded rate of unemployment.” Milton Friedman, 1976,page 283 – 284, Inflation and Unemployment, Nobel Memorial Lecture, Economic Sciences

Ben Bernanke (The Fed’s Chair 02/1/2006 – 01/31/2014)

deflation is not an option

“The length and depth of the deflation during the late 1920s and early1930s strongly suggest a monetary origin, and the close correspondence (across both space and time) between deflation and nations' adherence to the gold standard shows the power of that system to transmit contractionary monetary shocks. There is also a high correlation in the data between deflation (falling prices) and depression (falling output), as the previous authors have noted and as we will demonstrate again below.” Ben Bernanke and Harold James, 1991, page 33, “The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison” in Financial Markets and Financial Crises, ed. R. Glenn Hubbard, University of Chicago Press

Ronald H. Coase (Nobel Laureate 1991)

money was invented to reduce transaction costs

“I know of only one part of economics in which transaction costs have been used to explain a major feature of the economic system and that relates to the evolution and use of money. Adam Smith pointed out the hindrances to commerce that would arise in an economic system in which there was a division of labour but in which all exchange had to take the form of barter. No-one would be able to buy anything unless he possessed something that the producer wanted. This difficulty, he explained, could be overcome by the use of money.” Ronald H. Coase, 1991, The Institutional Structure of Production, Lecture to the memory of Alfred Nobel.

E. Williamson (Nobel Laureate 2009)

transaction costs are governance issues

“The overall object of the exercise essentially comes down to this: for each abstract description of a transaction, identify the most economical governance structure--where by governance structure I refer to the institutional framework within which the integrity of a transaction is decided. Markets and hierarchies are two of the main alternatives” Oliver E. Williamson (Nobel Laureate 2009), 1979, page234-235, Transaction-Cost Economics: The Governance of Contractual Relations, Journal of Law and Economics, Vol. 22, No. 2.

2-Token Economy

An inflation and deflation protected Stablecoin with unlimited issuance, constrained by algorithms targeting zero inflation and zero deflation. Ducat is used for daily transactions without conversion to fiats and as a store of value. Ducat comes from Swiss Ducat, a private token money, proposed by F. A. Hayek (Nobel Laureate 1974) in his 1976 book Denationalization of Money, page 46

A Governance token with a maximum authorized finite number of 10 trillion. Locke is used to stabilize Ducat and for holders to participate in network rule and decision making. The name Locke is derived from John Locke whose political-legal principles on government were reflected in the United States Declaration of Independence and will be implemented by American CryptoFed DAO via blockchain smart contracts.

Ducat and Locke will be issued pursuant to the token definition in Token Safe Harbor Proposal 2.0 outlined by SEC Commissioner Hester Peirce.  

MAG 2021 Annual Conference Networking Reception September 19, 2021 in Orlando

The MAG (Merchant Advisory Group) represents 165 of the largest U.S. merchants which account for over $4.8 Trillion in annual sales at over 580,000 locations across the U.S. and online.
Read more at MAG Website
In association with
Proud Sponsor of

Wallets


All banks registered under the American CryptoFed will have the option to generate their own wallet co-branded with the American CryptoFed. This wallet will be integrated into their existing mobile banking applications with an embedded payment option for Ducat payments at merchant Point of Sale (POS). As banks onboard new members into the American CryptoFed economy, wallets are created for each new user which also act as a Ducat revenue source for each bank.
There are two types of wallets: Class C wallets (Consumer Wallets) and Class B wallets (Business Wallets).

5 year vision

Dual price in US, UK, EU and Japan

Ducat vs. the US dollar

"The PCE price index, released each month in the Personal Income and Outlays report, reflects changes in the prices of goods and services purchased by consumers in the United States," published monthly by Bureau of Economic Analysis, US Department of Commerce.

Ducat is designed to appreciate against USD by the amount of inflation USD experiences. This ensures the Ducat does not experience inflation. The rate of inflation is derived from the PCE price index to define the Ducat TER (Target Exchange Rate) against USD.

Ducat in the currency landscape

Source: “BIS Quarterly Review, September 2017, page 60”

Coupling Cryptocurrency with Hayek’s Swiss Ducat

EOS Protocol Based American CryptoFed Blockchain

Banks and exchanges complying with Know Your Customer (KYC), Anti-Money Laundering (AML) and money transmission regulations issue CryptoFed bank or exchange co-branded wallets, similar to co-branded credit cards.
All individuals and businesses must acquire wallets from banks or exchanges the list of which will be published for enrollment after all details are worked out with state and federal regulators for Wyoming pilot and national deployment across the US.

The “OCC Chief Counsel’s Interpretation on National Bank and Federal Savings Association Authority to Use Independent Node Verification Networks and Stablecoins for Payment Activities” has provided the timely freedom for the banking industry to participate in the crypto transformation of financial services.

The necessity for a new currency

  • Inflation and Deflation control requires
    flexibility to adjust money supply.
  • Both oversupply and undersupply hurt
    the economy.
The US dollar will lose its Attributes and Functions of money as gold did, because the Federal Reserve has lost its primary policy tool (interest rates) to adjust money supply

Money Attributes

  • Flexibility in money supply adjustment
  • Stability against general price
  • Convenience for exchange

Money functions

  • Medium of exchange
  • Store of value
  • Unit of account
“But if a negative natural interest rate is the new normal, how can the central bank gain traction? The answer seems to be that it must create a self-fulfilling prophecy of higher inflation: it must convince the market that it will achieve inflation; this higher expected inflation reduces real interest rates; and lower real interest rates create an economic boom that generates the expected inflation.” — Paul Krugman (Nobel Laureate, 2008), 2018, It’s Baaack, TwentyYears Later

ducat as an ideal currency

Ducat is a Managed Floating Currency (relative to USD); managed by Machine Learning and Linear Control methods to target zero inflation and zero deflation. As the purchasing power of USD erodes overtime due to inflation, the exchange rate between Ducat and USD increases according to the Target Exchange Rate (TER).

Money supply decided by USD backup collateral. After USD decoupled from Gold Standard in 1971, it no longer had any precious metal backup. The only advantage USD has over Ducat is mandatory acceptance.

No collateral backup. Money supply decided by existing consensus protocol. For example, every 10 minutes, 6.25 Bitcoins are supplied.

No collateral backup. Money supply decided by the Target Exchange Rate (TER). Market price is managed to be close to the target via Machine Learning and Linear Control Theory applied to on-chain data.

PERMaNENT ECONOMIC STIMULUS:
DUCAT STABILITY AND MONEY SUPPLY MECHANISM

American CryptoFed DAO
Decentralizes & automates Federal Reserve money supply function.
Decouples money supply function from bank’s lending function.
Liberates macroeconomy from the risks of debt accumulation.
Ensures the flexibility of money supply for constant economic growth and job creation.
Shifts paradigm of fiscal policy of economic stimulus from government spending to consumer purchase incentives to generate effective demand for job creation across all industrial sectors through free market without government intervention and taxation.
What Are Open Market Operations? Monetary Policy Tools, Explained
The Fed's Statement on Longer-Run Goals and Monetary Policy Strategy

American CryptoFed’s Economics

Combining two schools of thought into one: The General Theory of Employment, Interest, and Denationalisation of Money

Full Employment is aggressively pursued, without government intervention and taxation,  via adjustable purchase reward incentives paid by CryptoFed to consumers (5.5% - 12%) and to merchants (1% - 4% ), and adjustable interest rate (3% - 5%) also paid to all Ducat holders, e.g. general consumers and entities, to maximumly generate Effective Demand to stimulate economic growth through the entire supply chains across all sectors, constrained only by zero inflation and zero deflation.

Incorporating Keynes’ Effective Demand generated by the "Visible Hands"
Incorporating Hayek’s Private Token Money with  zero Inflation and zero Deflation
In Ducat economy, the economics of Keynes and Hayek are cohesively reconciled and integrated, despite ongoing debate in the economy of fiat monopolies

“The debate about the validity of their economics remains open. It hinges on the question of the extent to which full employment is the normal or strong tendency of a decentralized system. Hayek thought it was; Keynes thought it wasn’t. Both could appeal to the facts to support them. Hayek could point out that the capitalist market economy had been the major factor in lifting the world out of poverty and reducing violence, Keynes to the fact that it achieved full employment only in ‘moments of excitement’; that its progress was punctuated by crashes which periodically threw millions out of work; and that the capitalist era had witnessed two of the most devastating wars in history.” — Robert Skidelsky, Keynes v Hayek: The Four Buts, page 164-165, in From the Past to the Future: Ideas and Actions for a Free Society, January 15-17,2020, A Special Meeting, The Mont Pelerin Society.