If you haven’t done so yet please check out part 1 of this series before continuing. Its best to understand the full context of what is about to be discussed. As we touched on in part 1, the main long term goal of the New Money project is to create a one trillion Sollar economy around the world through our open source money technology. We plan to look at areas of the world and its societies and see where our money could best be utilized to advance cultures and spur on economic growth. This is while simultaneously installing in those places the notion of life liberty and the pursuit of economic happiness for all individuals no matter who they are or where they live.
For this to happen in a way that is independent and wholly authentic to the original founder’s vision we must be as financially independent from the old banking system as possible. Although it is not entirely possible or even all that desirable to be completely independent from a system a majority of individuals depend on everyday, there are smart ways to go about doing it. There are also dumb ways to go about doing it. We plan to stick with the smart ones because at the end of the day we want to inspire people to rethink their dependency on the old banking system. We talked about one way that is smart in showing our independence in part 1 here is another.
The Reserve… Yes it is a play on The Fed. Now for crypto-heads the first thing that comes to mind is probably an entity or company. And I can assure you as an open-sourced project this is far from the case. The Reserve is not one company or entity. Instead it is a clever PR term that will refers to a number of completely independent entities with the “Sollars” or “Reserve” brand in their name. The one mission that will connect all these entities is the initiative to increase demand for Sollars and Sense as a smart currency around the world. They will implement this mission in their own unique ways. For now I have conceptualized three main independent entities for this open-sourced project. They are as follows:
SOLLARS AND SENSE DEVELOPMENT FOUNDATION
This development foundation will be a non-profit that will be set up for the strict development of open-sourced Sollars and Sense technology. We will both create our own technologies and also use and combine with open-source money tech that is already out there. This entity will be set up after our upcoming KickStarter and auction/crowd-sale. The Sollars and Sense non-profit development foundation will be headquartered in Chicago IL.
RESERVE LABS INSTITUTE
This will be an independent research institution created for the research of applying smart monetary policies as code within a blockchain network. For instance taxation with representation, inflation for stability of automated monetary units, smart supply distribution, automated supply and demand pricing, automated and decentralized FDIC type insurance, mutual aid societies and other policies or structures that could work as code and smart contracts.
It will closely work with the development foundation and other currency communities working on open-sourced technology within the same field. It will also facilitate an academic outreach program to get computer science heavily involved with New Money as a project throughout the world. This entity does not have a set date on when it will be created or started as an initiative. It will be done when the timing is right for the overall project. Right now it is simply not necessary.
SOLLARS RESERVE INC
This entity will be set up to deal in Sollars and Sense and manage the official Sollars and Sense Reserve. The reserve refers to revenue that comes in from any business models connected to the founder. This entity will not deal in any other currency other than Sollars and Sense and other borderless digital currencies such as Bitshares, Ethereum and BitCoin. This will also be the main financial entity of the project set up for business development and financial outreach.
Sollars Reserve Inc will finance itself and The Reserve primarily through the SSS bond fund and its derivative token assets. It will also be set up (when timing is right and jurisdiction is fully researched) to issue whatever SSS bonds have not been auctioned on the crypto market through derivative tokens. SSS bonds will be distributed to necessary participants for their individual contributions to the New Money project. This includes, developers, designers, ambassadors, Investors (of different types), other independent entities within the Reserve and other useful participants to the adoption and spread of Sollars and Sense as the common economic language for all.
The jurisdiction of this entity has not been chosen yet due to its nature. This will be further researched and decided on as the project starts to involve more legal heads. This entity will be entirely funded and operated off of various Sollar Bond types (the first being SSS bonds). It will not be owned by shares as people cannot own the United States government with shares. When this entity is officially created we will release a white paper for the Sollars DAC.
SOLLYWOOD TV and NEW MONEY (Publications (this blog))
These entities will technically be subsets of Sollars Reserve Inc (at least for the founder’s shares (me)). But unlike Sollars Reserve Inc which is essentially a holding company in this case (Alphabet to Google) Sollywood TV and New Money (publication) will take on traditional start up structures. It makes $ense for those product initiatives to be owned with shares instead of entirely by bonds. It is the same way American companies are owned by shares but their country is owned by bonds. Although these two products will take traditional start up structures we will still use Sollar Bonds and our other crypto-assets to hire individuals onto the team.
As a “business” this currency model is a completely new model that has never been tried before. The closest model would be the US government funding of itself through the Fed or private companies issuing bonds with the help of banks. But even that is not a clear cut analogy. The truth is people are only recently being experimented with the possibilities of blockchain technology and money code. Similar currency projects that are experimenting with different currency models include Ethereum, Ripple, Stellar, Nxt, eMunie and the currency community I belong to Bitshares. Bitshares in my opinion is the most successful and continues to be the most innovative in terms of independence and self-reliance. But all those projects should be commended for trying out different models.
Bit Torrent and RedHat Linux should also be mentioned as pioneers of mixing open-source development with commercial type businesses and venture. All we have to say is keep on experimenting. Give the market as much as it can handle and let consumers decide on what they want to use.
THE RESERVE’S COLLECTIVE RESPONSIBILITY
So The Reserve as a collective will be the official representation of the Sollars and Sense movement and its larger community of stakeholders and bondholders. It does not have to be the only representative since this is an open-sourced project but it is the official. The Reserve will be responsible for maintaining the code base, facilitating projects and initiatives (market makers) that will increase demand for Sollars and Sense. These independent entities will exist to gather strategic partners that increase demand for Sollars and Sense, scale the education and understanding of Sollars and Sense network to the globe. The Reserve exists so this project has a clear consumer facing “entity” that represents unity of message and unwavering vision. But as always there is nothing stopping anyone from creating their own entities when this system has its own DAC or forking the code. It will all be open sourced.
In Part 3 we will talk about Sollars and Sense eventually becoming its own DAC or blockchain… or what we have more properly described as the “Smart Money Tree”