Quote from: jonald_fyookball on December 19, 2014, 05:20:00 PM

1. so if you can change anything at anytime,
what prevents you from making a burdonsome claim upon your debtors?

You could lend me 1 WIP and say tomorrow that
I owe money for it.

2. Since no one owns any WIP, i wouldnt be able to
get more of it to repay the loan unless I traded
freely for it. So that is already burdensome.

It is for those reasons that I've decided I no longer
want to borrow WIP. However, if you want to
give some to me a gift, I will accept it.

Dear Jonald_fyookball,

Regarding 1, it would not be possible for us to say that tomorrow you owe any other currency than 1 WIP, because transactions are pegged to $0 and it would be against everything at the stage of launch of the WIP currency for us to involve other currencies and metrics. It is simply not in our interests to peg WIP to any other value than a parity of exactly $0, and your example would go against this. Rather, we are pegging to a currency where actions are similar to actions performed as gifts, acts of friendship, or as favors, rather than having real-world monetary transactions. This is important for our adoption and means that all users of WIP are (in our opinion) without any risk of any kind at any point.

More broadly, within the context of sovereignty that we have outlined, and of pegging to $0, it is in our interests to be excellent stewards of the currency and demonstrate the fastest-growing and largest currency in an online community. We believe strongly in a strong sovereign state that is able to enact strict rules, eventually subject to some kind of constitutional oversight. For example, whereas other crypto currencies have no protection against simple ponzi schemes, the Federal Reserve of WIP is an extremely strong and centralized body that is able to outlaw ponzi schemes very strictly. We can simply and unilaterally remove WIP from anyone running a ponzi scheme, we can require proof of real (albeit gift) transactions to show that a ponzi scheme is not taking place, and so forth. Likewise we can bring to the table every rule that has resulted in a stable, safe monetary climate in the real world, all while remaining a risk-free gift economy.

Over time, by retaining immeasurable sovereign power over our currency and community, we believe we will be able to build the strongest, fairest, fastest-growing, best, perhaps even only sovereign online currency. In fact, in the sense of several analogies with real-world institutions (such as the Fed and ECB), arguably WIP is the only online currency currently in existence. (With crypto currencies being storage of value more similar to gold than a fiat currency.) That said, we are committed to pegging to a parity of $0 for the time being.

Regarding your second point: WIP was launched on December 17th two days ago and is already owned by several parties. We have seen approxiamtely 41.42% growth per day in the number of owners, which is a breakneck speed that we hope to continue for several more days or weeks (after some technical additions) with strong growth continuing thereafter. Also recall that Account numbers and transaction ID's were just introduced today, and the public ledger is still being updated by hand. At even a tiny fraction of this growth rate you will have more than enough counterparties to trade WIP freely among.

That said, I understand that you would not like to act as a bank or lending institution until you see more available customers or a gift-based business that can produce WIP in a gift economy. Therefore, I would propose the following solution to you:

The Federal Reserve of WIP has been considering the idea of selling Treasury Bills on the open market in order to finance its own gift economy. Although we were going to hold off, the Federal Reserve of WIP would be pleased to extend to you the offer (subject to all the previous mentioned conditions) of a T-Bill with par value of 5 WIP and maturing on January 1st, 2016, for a price today of 3 WIP. (This is not an open market price but your price today.)

Separately, we would be pleased to extend you a 3 WIP loan at 5% simple interest starting today and due in full on January 2nd, 2016, i.e. approximately 3.15 WIP will be due (a bit more due to the additional two weeks) will be due in 1 year's time. As the T-Bill that you hold will have converted the day before at a face value of 5 WIP, this will immediately give you a profit of a bit less than 1.85 WIP. This is very close to what you have requested, being a "gift". You are also allowed to sell and trade your T-Bill here with our approval, it will be in your possession subject to the same conditions as WIP that is in your possession. You do not run any further obligation or risk.

This is a very generous offer from the Federal Reserve of WIP and comes with no risks or downsides for you. Real-world T-Bills are considered to be essentially free of any risk whatsoever, since they have face values denominated in the actual currency sought and being purchased with.

On the side of the Federal Reserve of WIP, the WIP raised through the sale of the T-Bill will form part of the operating budget of the Federal Reserve of WIP, and be considered its debt. Although conceptually similar, selling to investors on the open market this way is preferable to printing money directly; for one thing it does not cause hyperinflation, for another it is a stable way to increase the money supply over time.

We reserve the right to withdraw this offer, but for the moment extend it as a risk-free alternative to taking on debt, and tantamount to a gift consisting of the difference between the par value of the note you hold and the total capital plus simple interest rate that you also take on, exactly as you have asked.

We hope you will find this offer fair and reasonable, and hope that you will join us on this exciting journey building a real-world analogy of some of the world's most stable and fastest-growing economies.

We look forward to hearing from you.

Best regards:

Chairman of the Federal Reserve of WIP