A better engineered cryptocurrency
Frequently Asked Questions (FAQs)
Instead of capitalising on a great opportunity to create a truly better monetary system in the digital world, but grounded economically in the physical world, modern cryptocurrencies have been copying the worst aspects of government fiat currencies.
The most heinous aspect of government fiat currencies is that they have zero intrinsic value. This is an historically new scam that allows governments to print money with abandon, without creating any concomitant value. In this way, the wealth that populations create is eroded through debasement of the money they use to store the value of that wealth. It is effectively transferred to governments as a form of tax on top of the stated tax. They tax ever more money as they digitally “print” and distribute through organisations (banks) who thoroughly endorse the whole process because they are primary beneficiaries.
The fundamentally criminal process of Inflation Tax has destroyed hundreds of trillions in wealth over the last 50 years. Economies drag along, governments always borrowing to survive, always increasing taxes as the value of the money they confiscate continues to erode, demonstrating that modern governments are genuinely unsustainable.
Yet innovators continue to create new and better technologies, solve important problems and discover new markets of people by generating ever more wondrous products—and economic growth. They truly carry the world on their shoulders, as governments basically defecate on them by borrowing to fund ever-growing organisations that deliver very little real value to their people, leaving subsequent generations with ever greater debt and a looming state bankruptcy that young people had no part in creating.
Government bureaucrats don’t care about you. They don’t care if you live or die, or if you are healthy and happy. They run for election as actors, spewing the line on how they want to “change”, because that’s what their marketing surveys have determined—that people think the value they deliver isn’t worth a damn, and want it changed. Over and over, election after election, they pitch “change”. Give them a dollar, and they’ll give you a penny as change (see the blog “Americans Pay 99% of Their Salaries for their Government”).
With cryptocurrencies we have a chance to actually alter this brainless cycle of fraud as the foundation of financial society. To counter wholesale misrepresentation, we have to try something else as individuals.
Hence, the rise of Bitcoin. For all its innovative potential, it is still a fiat currency, with no intrinsic value. It is a digital blip with network effect. Luckily, it has been successful in capturing the public’s desire for change, or we would not have any chance at all to alter our sorry state of affairs.
There are many Cryptofiat currencies today, the Bitcoin is just one of them. Worldfree has designed the alternative FreeMark to truly be a better medium of exchange, but we need your help. We’ve engineered the FreeMark to give earlier buyers and users a great return for their risk, and incentivise switching with Growth Rate Royalties. The FreeMark is an asset-backed digital currency, a critically important foundation for a better world, and automatically pegged to a basket of 20 commodities, providing inflation and deflation resistance.
Because 65% of the funds raised are put in an endowment, which in the beginning remains liquid, until after the ICO when it is moved to the FreeMark Reserve Endowment to provide liquidity and ROI growth in the asset-backing.
After the ICO, the percentage of new funds that acquire FreeMarks will rise 90% placed directly in the asset-backing, thus raising the percentage backing overall from 65%.
In addition, there are 1% transaction fees, 1/4 of which go to FreeMark owners who validate transactions (available to everyone), 1/4 to the FreeMark Reserve Endowment, 1/4 to Worldfree, and 1/4 to partners who use the FreeMark for their transaction processing.
Thus 0.25% of transaction fees will go towards the FreeMark Reserve Endowment asset-backing, and the projections plan for 100% asset-backing within three years of the ICO, with ROIs of 6-7% annually after fees in the FreeMark Reserve Endowment.
7.5% * the growth rate. For instance, if an investor invests at the $1m tranche, and the FreeMark money supply grows to $25m, that is a growth rate of 25*7.5%, or 1.875 Xs, which is 187.5% times their investment.
In the second year, the rate will be automatically varied from 5% to 10% by the system, in order to maintain asset-backing ratio growth. That means it will be as high as possible, as long as the asset-backing ratio is increasing, but a minimum of 5%.
There is a risk inherent in the system. The primary value provided by the FreeMark is to maintain the purchasing power of your FreeMarks by pegging them to a basket of commodities, which will reflect inflation more accurately than government-generated inflation indexes, while minimizing the effects of supply and demand on any one commodity with a basket of 20 different ones.
It is a rationally-designed alternative.
However, as it is a value and must be achieved, a risk is involved to keep growing the asset-backing FreeMark Reserve Endowment. No reward without risk, that is a general principle of life.
If the 1-year goal of $250 million FreeMark money supply is achieved (unlike other cryptos, the FreeMark money supply keep expanding the money supply to keep up with demand, because savers benefit), then the return for those who buy in the first $1m tranche is 250*7.5%, or 18.75Xs.
For those who purchase FreeMarks in the second tranche of $3m, the return is one third of that, or 250/3*7.5%.
Thus, the 20Xs return is not for everyone, only the earliest buyers.
Because the return declines from very high levels rapidly, only a small portion of buyers can attain such high returns. As a consequence, the liability for the returns is very small (only 1/250th or 0.4% of buyers can get the highest returns.
Since the returns are paid after the money supply growth, they do not become liabilities until after funds from sales of FreeMarks have already been collected. FreeMark sales are currency sales, different than equity or product sales, as a different asset class, discussed more thoroughly in the Business White Paper.
FreeMark sales are not investments, but currency exchanges, although we utilise some of these revenues for development purposes and the FreeMark Reserve Endowment provides liquidity for all FreeMark owners.
The financial plans for the growth of the money supply project 100% asset-backing before the end of year 2020.
Yes, commodity prices go up and down for many reasons, including the arbitrary whim or the possible misinformation driving the decisions of any particular currency buyer or seller.
For FreeMark owners, if the commodities drop in price, savers are covered. The system remembers the average price they have paid for their FreeMarks and allows them to withdraw them at that price.
Alternatively, if the price of commodities goes up, for whatever reasons, then FreeMark owners benefit by the increase in FreeMark price.
In this way, they have both inflation and deflation resistance. Because the price of the FreeMark is pegged to a 6-month moving average of commodities, savers also have resistance to general market volatility.
Right now, we are introducing the $fm, but later will will introduce the AU$fm, £fm, the €fm, the ¥fm, ₹fm, the ₽fm, and other currencies that are local to our users.
Because of inflation/deflation resistance, they are covered, and because each of these different FreeMarks are priced in the local values of the same amounts of the same commodities, they provide the same inflation/deflation resistance. There will be some variation, for instance between a commodity in one currency jurisdiction and another, they will have slightly different values, but mostly commodity prices are maintained at different places because of international arbitrage trading.
We seek to make money honourably by providing genuine value in free exchange, by helping you make money with tools that help you more capably deliver genuine value to your potential customers. Worldfree respects your right to be financially successful, and it is the most important thing you can do to defend your human rights. Worldfree is founded expressly to help you create value and exchange it for a profit—the foundation of economic sustainability and political liberty. The name Worldfree means exactly this.
The only thing that you or others can do to defend yourself against the removal of all your liberties is to create wealth. This is why it is so often condemned. For this reason, the Worldfree Network is built to help you create wealth—we are founded with the intent of helping you become unequal economically—financially better off than the competition. If we help you make money, you will help us on explicit terms to do the same. This is what drives our engineering and performance.
By working together, respecting one another’s right to be successful, we can each stand on our own more easily. This does not imply violating laws, but being smarter and better prepared than your competition, and better understanding your existing or potential clients.
Almost all peoples are subject to the irrational, misrepresented and often violent whims of governments. Governments have power, and they cannot practically be regulated. Freedom of speech is a regulator, that is why these comments are frank—people should know their governments’ intentions. Elections are not generally free, and even if you were to be elected, the system is oligarchic by its nature. The world does not even have democracies, as discussed in the White Paper. This is the nature of the tyranny that people have grown to accept, incorrectly as the only alternative.
First and foremost, people should face reality honestly: governments generally could care less about them. In order to control you, they mostly want you to be poor. The poorer you are, the less power you have, and the more they can use you in exchange for nothing in return. They promote the human-invented code of altruism to con you into sacrificing yourself. They intend to collect your sacrifices and give you nothing for them—that is the point of promoting the value code.
Envy is their overt justification, but it is only their excuse. What they really want is for you to be effectively a slave in their collectivist state. Radical point, but sadly accurate. They will deny it, but they are generally lying. Why would they possibly admit that, and undermine their objective?
For many decades communist collectivists have understood that without wealth, people cannot defend their political liberties. The definition of “slave” means to lack political liberties. This is the first thing that happens in a collectivist tyranny such as Venezuela: they strip political opposition of their wealth. Hundreds of thousands of people now must escape the starving, socialist slave-state tyranny of Venezuela every month, recognising its hopelessness, even as Venezuela has the world’s largest reserves of oil.
Bureaucrats globally are fully aware of their lack of value creation. They do not generally provide much value to others. They survive by forcing others to pay them, and instead spend their time trying to convince other people of their importance, usually by attacking those who are creating wealth by free exchange, or making their jobs appear more complicated or difficult than they are. It is a miserable world that is forced to listen to these confiscatory animals bicker. If they want to be smart, they should learn to create value in the private sector, where it can only be paid for with the consent of the buyer, and quit their government jobs.
How long do governments violate human rights and tolerate death and destruction before they change their MO? There is a better way, and this has to be made explicit.