7.2. Building blocks
Ideas
- The building blocks of Software Democracy are software components.
- These software components ensure respect for privacy and freedom to transact. They implement the economic rules defined by Software Democracy.
- Money circulates in the form of a cryptocurrency that is programmable, which allows for the automation of tax collection and the disbursement of Universal Basic Income.
- NFTs represent ownership titles and enable the automation and streamlining of economic activity.
- Two types of blockchain coexist: national blockchains and an international blockchain. The latter carries the global reserve currency.
Wallets
Several types of wallets can be distinguished, but they are all digital and money circulates in the form of cryptocurrency. This allows for the automation of tax collection.
Personal current wallet
This is an account in the national cryptocurrency, a simple address on the blockchain. It can be opened by anyone instantly. There is no limit to the number of accounts or addresses an individual can have; everyone can be their own bank!
Nationality allows for the opening of a unique personal current account linked to the digital identity of the individual. This account will receive the Universal Basic Income, and will enable authenticated transactions when necessary.
However, anyone can freely open additional anonymous or pseudonymous accounts. Regardless of the wallet, a privacy option can be activated on each transaction to anonymize it; an additional 1% fee will then be applied, which will contribute to the funding of the State.
The personal account can be used to make payments to professional or personal current accounts.
Professional current wallet
This is an account in the national cryptocurrency, a simple address on the blockchain as well. It must be opened under the digital identity of the company or professional.
It issues and receives payments from all other types of accounts. The professional account cannot anonymize its transactions.
The professional current wallet is at the heart of the automatic taxation strategy:
- Receipts from individuals automatically collect VAT, while purchases between professional accounts are exempt.
- Tax is automatically deducted from payments to personal accounts when it comes to salary disbursement.
NFT wallet
NFTs are digitized ownership titles on the blockchain. NFT wallets are therefore, by definition, nominative, for both individuals and businesses. However, nothing prevents an individual from having NFTs linked to an anonymous or pseudonymous account.
The definition of the NFT type allows for the management of automatic taxation; for example, taxes on the sale of real estate or the implementation of a capital gains tax for the purchase/resale of certain types of goods.
Blockchains
National blockchain
Like all the code that supports Software Democracy, the blockchain of the national currency is an open source project.
Its development is coordinated by a service of the Ministry of Economy, whose mission is to maintain the blockchain at the highest level of security and performance.
The economic rules of the national blockchain are set by citizens during votings and can lead to updates of the blockchain.
While everyone is free to run a blockchain node to make it a decentralized tool, the code version resulting from the citizen vote is authoritative.
The national blockchain must:
- Integrate the authority mechanism described above.
- Allow for a high volume of transactions with near-instant execution.
- Be programmable to automatically integrate tax deductions.
- Be extremely reliable and secure.
- Not primarily rely on mining operations, a privilege reserved for the global reserve currency.
- Remain convertible at any time with the global reserve currency and the global interoperability layer.
The global interoperability layer
An intermediate blockchain allows the conversion of all national currencies between them, and towards the global reserve currency.
This is an open source project coordinated by the Office of Economy. Programmable, its main objective is to streamline and facilitate global exchanges.
It also ensures that transactions passing through it do not escape taxation and implement the international trade rules desired by the various states.
The global reserve currency
This is an open source project that operates on the same principle as national blockchains.
As the ultimate store of value, the security of this blockchain is its primary attribute.
It could draw strong inspiration from Bitcoin, while making some fundamental changes:
- Modifying the issuance rules so that currency issuance adapts, or even participates in controlling the pace of economic growth.
- Strengthening cryptography to protect the protocol from quantum computers.
- Setting up one or more robust level 2 layers to enable economic and fast transactions (even if the purpose of the global reserve currency is not to be used daily, nothing prevents it).
Its operating rules remain much simpler than national currencies, which facilitates its security. At least at the first level of the blockchain, there are:
- No NFTs.
- No complex programmability.
Mining the global reserve currency is open to everyone but is subject to a license issued by the Office of Economy. It must be as decentralized as possible. This way, one can limit the mining capacity of an entity to 1% of the global computing power, of a state or a manufacturer to 10%, according to thresholds defined by international votation.