National Bitcoin FrameworkCompetitive Currencies with Limited Emission and Inclusive Initial Distribution

https://nationalbitcoin.org/

This Framework is designed for interconnected regional commonwealths to soften the shock of the inevitable upcoming modification of reserve currencies.

MANIFESTO 3

DESCRIPTION 4

Core Idea 5

Distribution Principle 6

Territorial Principle 7

Protocol 8

Obtaining National Bitcoins 10

IMPLEMENTATION 13

Implementation by Governments 13

Implementation by Private Sector 14

People’s Monopoly on Money 15

CONTENTS

The post-Cold-War policy consensus has failed to deliver on many of its promises. It opened the path for vast deindustrialization and overbearing “financialization” in all First World countries. The well-tested world order — where countries competed as self-sustained entities — is disoriented. Now, most nations, including the USA, are links in the global supply chain dangerously influenced by transnational corporations with limited responsibility.

World Money is Compromised, Again

The US dollar is gradually losing the necessary reserve of respect and strength. Bitcoin has eventually failed to become independent money as well: most of the coins are concentrated in few hands and controlled by the same clans that oversight fiat money. More fiat power comes into Bitcoin as financial institutions develop rules and policies. Billions of idle and freshly printed dollars are looking for an alternative to gold and stocks. 

Thinking Decades Ahead

Many people, including the National Bitcoin community, undertake efforts to prevent the strengthening of irresponsible transcontinental influence. Our resistance strategy is to promote competitive regional reserve currencies and limit the monopoly-oriented monetary powers with the free distribution of National bitcoins.

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MANIFESTO

DESCRIPTION

Original Bitcoin has proven: the scarcity-of-asset principle works. The problem is that today financial institutions possess most of the bitcoins, control all major bitcoin businesses leaving no chance for ordinary people to benefit from it. 

To redress the balance, to create the spirit of fairness and impetus for economic development at the start, new bitcoins should be distributed among as many people as possible.

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CORE IDEA

National Bitcoin is a framework that allows the definition of self-sufficient territories where separate money networks operate independently.

The 13% factor means that, for each territory, 18,347,513 National bitcoins out of 21,000,000 ever-to-exist are created with block 1 to be evenly distributed among as many residents of the corresponding countries as possible.

To avoid bureaucracy, we implement a refined distribution process. To receive National bitcoins, one should have an offline CAPTCHA app that creates National Bitcoin public/private keys pair and validates the

recipient based on proximity alerts of fellow users.

Yet-undistributed National bitcoins are strictly excluded from circulation. As the distribution halts on the specified date, the unclaimed National bitcoins will be randomly distributed among general delivery accounts via social networks.

Accruals will be made on a unilateral basis, meaning that no effort is required to create an account. National bitcoins will be stored in the “on-demand” mode indefinitely long. To extract bitcoins, at any time, one must simply confirm the fact of ownership of the corresponding social network account.

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DISTRIBUTION PRINCIPLE

One possible distribution of National Bitcoin networks

We recommend using the Bitcoin Core protocol with the

following changes:

• Edwards-curve Digital Signature Algorithm (EdDSA) that

exploits the Ed25519 signature scheme

• SHA3-512 is used to generate digests when signing

transactions and messages; SHA3-256 is used in address

generation

• Smooth emission curve; emission adapts to sudden

changes in the network hash rate

• Block reward doubles when the difficulty changes sixteen

times

Please refer to GitHub for details.

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PROTOCOL

TERRITORIAL PRINCIPLE

All fairly self-sufficient territories are welcome. The particular number

of territories is not critical. For example, according to Richard Haass and Charles Kupchan who published their manifesto to call the “Concert of Nations” in April 2021, there are six primary territories and four secondary ones. Other researches have different visions:

"Territory", in this context, means a group of countries that are potentially able to CLOSE themselves behind the iron curtain when nothing gets through the border. Nothing. In this case, the minimum population to survive is at least a few hundred million. If it is significantly less, the territory would not be able to master the full cycle of modern technological chains, so it will cease to exist independently.

Of course, once the USD loses its dominant position, many nations will attempt to upgrade their national fiat currencies and get a status of regional reserve currency issuer. However, in the modern world, it takes digitizing the candidate fiat currency, as it already happened with the Chinese RMB. And that is dangerous for democratic institutions because power concentrates in the hands of financial officials. Direct interaction between the central bank and citizens threatens the entire commercial banking industry. Besides, if the Brazilian real or the Indian rupee, for example, undertake a direct monetary expansion, the irritated neighbors may prevent Brazil’s and India’s success on other foreign policy fronts.

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OBTAINING NATIONAL BITCOINS

To get your National bitcoins, you only need to live in the

corresponding country. You do not need any documents to obtain your

bitcoins. No personal data will be requested at all stages of the

process. If you are asked for any personal data to get your bitcoins,

you deal with fraud. 

STEP 1

Install the application required by the National Bitcoin being distributed

on the territory of your country. Collect the specified number of

proxxings within the designated time frame. Warning! It is necessary

to use the same smartphone. If the device is lost or broken, start the

whole process again.

How to get a proxxing?

When you are near another user of the same application (up to approx.

20 meters, at least for a few seconds), the two smartphones engage in

a blind handshake via Bluetooth. Every NEW such case (with a person

carrying a smartphone that has never "blind-handshaked" with yours

before) gets you (and the person you digitally handshake with) one

proxxing. You don't need to verbally or digitally communicate with

anyone. Your smartphones do everything for you.

STEP 2

Once you have collected the required number of proxxings and, thus,

physically confirmed what territory you reside in, you will be credited

with your National bitcoins. Naturally, the sooner people around you

learn about the possibility of getting bitcoins, the sooner you will get

yours.

!

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2

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National Bitcoin is decentralized. It does not depend on a single technology provider.

and payment systemYOU ARE YOUR BANK

IMPLEMENTATION

no monopolies, no manipulation. No leaks of national wealth. No hostile takeovers to be orchestrated from abroad.

Since national bitcoins are distributed among a lot of people, those who would typically take advantage of the proximity to the monetary powers get no privilege. The credit leverage is now in the interest of all people, not only first-line bankers.

While each National Bitcoin territory consists of several countries and is self-sustainable, a single national government is no longer a monopoly. Each government has to keep proving its monetary effectiveness.

This time

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1. Although no official infrastructure is involved to issue and maintain National bitcoins, anyone (including governments) can buy them and influence the amount in circulation. 

2. These days, governments distribute "helicopter money": the national currency is allocated to certain categories of people and companies. Giving money in return for the corresponding amount of National bitcoins makes the same sense for citizens but, as a result, the government has more than just the records of transactions. The national Treasury acquires irreplaceable tokens (“digital gold”). 

3. Emission of fiat money backed by National bitcoins would be a subtle coordination game, an algorithmic seigniorage. The ability to automate moves in this game may increase the seigniorage outcome. 

4. Unredeemed National bitcoins remain in the hands of citizens. They may receive a market valuation, which can be influenced by conventional instruments such as timely interventions and regulation of private trades. 

5. If the popularity of this tool increases, governments’ costs at the initial stage may be compensated. 

6. Governments can sell National bitcoins to residents to encourage the transfer of household assets from foreign and conventional cryptocurrencies to the tool more controllable within the domestic economy.

7. Foreign governments can also buy National bitcoins, making certain preferences in price based on place of residence. This way, the national fiat currency gets some additional international circulation. 

8. Thus, peoples of the economically self-sustained territories issue a finite amount of money and allow governments to buy it from them. 

9. As governments compete, not financial moguls and speculators, a competitive regional reserve currency is formed. 

10. Residents of more productive territories get a higher price for their reserve currencies.

11. National bitcoins can be redistributed in various patterns, multiple times. The authorities of country A can buy National bitcoins from the citizens of country B and distribute them among the citizens of country C. There is an important technical circumstance: document verification is not necessary, since the captcha application reliably determines the actual residence. Therefore, intervention scenarios are possible.

12. Why would the authorities give out national bitcoins to foreigners? To seize new markets. Once a significant number of foreigners have National bitcoins in their wallets, the authorities notify certain local businesses supplying goods and services to the global consumer market that the government guarantees the purchase of a certain amount of National bitcoins from them. The management of these enterprises, knowing that the National bitcoins are in the hands of foreigners, carries out appropriate marketing activities and increases sales. In this way, the state essentially subsidizes the business (which it has been doing lately anyway). The difference with direct subsidies is that new markets may be conquered.

13. Taking into account the effectiveness of specific enterprises, the process can be repeated. The amounts allocated for buying national bitcoins from businesses can be varied based on a set of metrics: the number of foreigners involved, the density of mentions in foreign media, the relative growth of trade turnover, and so on.

IMPLEMENTATION BY GOVERNMENTS

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A typical objection to the above logic is that no government is going to buy National bitcoins. Probably not in 2021. Probably, there soon will be no governments as we know them. In any case, the scenario of value accumulation by National bitcoins does not depend entirely on the behavior of governments.

The fact that everybody potentially possesses some National bitcoins creates a new dimension for inclusiveness. Actuarial math teaches us that inclusiveness turns into value. Reciprocity pays off if the community is large enough.

When Alice passes some National bitcoins to Bob, they perform one elementary act of physical calculus. This event is “fundamentally local” — it only takes Alice, Bob, the bitcoins, and the law of transaction that Alice and Bob carry in themselves. The great complexity of physical phenomena we see around us is the result of endless iterations of similar “local acts”: circles from a stone thrown in a pond don’t need a concentric dispatcher.

Current relevance data is accounted for in the form of likes, mentions, reposts, upvotes/downvotes, etc. These things are easy to counterfeit. National bitcoins are yet mere symbols and everyone can collect them from others painlessly, as a sort of a vote, or a receipt. The point is that no verification is needed. National bitcoins can not be forged and each person is expected to have some of them.

Whenever one needs to physically confirm an involvement, a bundle of accumulated National bitcoins is perfect proof that at least that many people were contacted. When accepting National-Bitcoin-supported applications, organizations save money on validations. No-spam environments can be created.

The cost of evaluating information forces recipients to look for third-party evaluators. With National bitcoins, evaluations by different agents can be easily summed up. The higher the National bitcoins turnover through an organization, the higher its reputation because the trace of National bitcoins in the distributed database can not be forged. If an organization has some National bitcoins, it unequivocally means the corresponding amount of appropriate service was provided.

As time goes on and the cycle rotates, the value of National bitcoins grows together with the overall spending in the system.

IMPLEMENTATION BY PRIVATE SECTOR

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Just because the source of all value in the world is people and what they do plus natural resources (which belong to the people), the only source of money (and, consequently, power) is the people, not presidents or governments. Despite being written down in most modern constitutions, this principle is never actually implemented.

People’s Monopoly on Money

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We dismiss the thesis that fiat money

stands on trust. That "trust" is originally the violence, and now the money system is essentially private. So we all have to “trust” some shady oligarchs who often have no local identity. They own the means of production, which is ok as long as we want to stay in capitalism. But they also own the emission centers of national currencies in most countries, which is not ok at all. This state of affairs seems to have come to an end. The ongoing crisis is the chance to create a vector to an economy where citizens can finally claim their countries back.

2021 is the tipping point. We see a decline in international trade and the destruction of global supply chains. Some nations found themselves face-to-face with the irrationality of trade wars. The National monetary authorities can no longer impose their civilizational worldview on others. Although Americans work well and hard, the US dollar is compromised and a sweet spot is never empty.

With this document, we offer a third way (after fiat money and ordinary Bitcoin) to introduce money to people. But the technology of money is only a part of the economic system. In a broader sense,

National Bitcoin paves the path towards the type of economy that is a hybrid of the Western-style economy-of-trade and the Eastern-style economy-of-distribution.

The main feature of the proposed system is the nontransferable co-ownership of assets. Citizens must be shareholders of their country at the municipal, regional, and national levels. Of course, there must be no right to sell such shares or transfer them by inheritance. This co-ownership is direct, equal, and without intermediaries. In particular, without the intermediary of bureaucrats. This “solidarity economy” is not limited to the corporatization of assets. It involves — following the transformation of national property relations — the changes in strategic decision-making.

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TOWARDS SOLIDARITY ECONOMY

https://nationalbitcoin.org/