FIREBIRD, in this aspect, favorably differs from other crypto-currencies, as it is secured not only by clearly defined supply mechanisms, but also by the principles of maintaining a permanent supply. In other words, we do not focus on creating the need to buy this crypto currency, but rather on the need to spend it and connect to this platform.
A million users, with ownership of certain tokens and wanting to exercise their purchasing power will inevitably create a market faster than a million users who are herding their crypto-currency portfolios.
As for the possible decline of FIREBIRD’s token value – the system protects its users from portfolio depreciation by directly issuing certain compensation. This compensation acts on the same principles as monetary easing but is better due to it being direct and measured. Thus, FIREBIRD tokens are built to incentivize spending, yet providing safeguards for ownership.
In a pyramid structure, new users provide profits to existing users at the expense of their investments. With FIREBIRD, a new user is not required nor able to make an investment. Tokens are distributed among all participants, both current and new.
A pyramid is destroyed when its growth stops, and the last entrants are left with nothing.
FIREBIRD in this case simply goes from user growth related supply domination to transactions related supply. Meaning that a so called “last user” also gets to make full use of the system as it continues to function. And if/when next wave of “new entrants” join, he/she get user growth benefits on top of transaction instigated token addition.
Looking closely at the crypto currency market, it is evident that it is generally a pyramid. Tokens are passed from one source to another, and each new holder aims to derive incremental earnings from further price speculation. Hence, this market can only grow as long as the incremental buyer has an upbeat view on further positive returns.
Existing crypto-currencies, therefore, resemble the pyramids structure to a greater degree than FIREBIRD, despite seemingly opposite first impression.
As for the benefits of early participants – this claim is true for a variety of businesses examples, and is closely related to the concept of first mover advantage and the time value of money. Moreover, early participation benefit in FIREBIRD’s system is calculated from the beginning, and designed such that the balance in the system is preserved.
We are used to living in the paradigm that something must be done to receive something. This would be true for a world that does not have its own prehistory and original environment. All material values in such a world would be created by active participants from nothing. The real situation tells us that:
In addition, a number of countries have raised the issue of unconditional basic income willing to implement it. According to Wikipedia, an experiment on the introduction of an unconditional base income took place in Finland on 01.01.2017, another experiment is planned in Canada and in Switzerland such an experiment was rejected by the referendum.
The first pan-European survey in April 2016 showed that 64% of EU residents would support the introduction of an unconditional basic income. 35% are aware of UBI, 23% say they fully understand the essence and objectives of this program, a quarter have heard of it, 17% do not know anything about UBI. Only 4% of citizens will refuse to work after the introduction of UBI. People believe that the most convincing benefits of UBI are that such social payments "reduce anxiety about basic financial needs" (40%) and help ensure equal opportunities for people (31%).
In FIREBIRD, the size of the incremental supply addressed to each user is always coordinated with the strength of the system. During periods of stagnation, supply will be significantly less than in periods of active growth.
As for money and living standards, you can consider 2 main scenarios.
Token issuance to users with low account balances, serves primarily to implement this, first scenario, but not the next. This is an attempt to create a system that will allow a person to retain their dignity despite circumstances dictated to them by adverse health or conflicted place and /or circumstances of birth.
As for money as a measure of relative well-being, there is no limit to comfort or standard of living in this scenario, since people tends to align their standard of living to whatever means are available to them. FIREBIRD in this scenario simply provides an instantaneous transactions platform, making a market which benefits from low-transactions users. This market can, therefore, serve as an additional tool for the “better-off” population to expand their relative wealth.
However, only the future will show whether the principles laid down in FIREBIRD will be able ensure minimal standard of living.
The principles inherent in the supply mechanisms of FIREBIRD tokens do not provoke inflation, but prevent deflation. In other words, the purpose of token issuance is to ensure that token (monetary) supply matches the growth of the economic system, therefore maintaining the purchasing power of each token, and its inherent price.
In the event of a fall in FIREBIRD token value, consequent supply distributed to user’s wallets is expected to deliver a number of tokens necessary to maintain the value of his/her previous savings.
As for the question of why purchase tokens that do not appreciate in value. FIREBIRD looks to prevent speculation in its own tokens whilst aiming to achieve maximum approximation to the ultimate money. Money that performs only the following functions: (i) measure of value, (ii) means of accumulation, (ii) means of payment and (iv) circulation. The society seems to have matured in its ability to accept such ultimate money.
Finally, as already mentioned, our main task is to create the need to spend FIREBIRD tokens, rather than to buy them. As the system begins to operate, tokens will appear on each user’s wallet, and as it happens market laws will come into play. And, hereafter the project will continue to develop in accordance with such market forces.
Due to FIREBIRD’s transaction based token issuance model, a risk arises of malicious users conspiring to create spurious transactions to rip the reward of such token supply.
In a closer examination, however, it turns out that such activity will be least beneficial to its own participants, because the created tokens will be distributed among all users. Thus, reducing malicious users assets, relative to other system users.
As for the issuance related to the addition of participants, manipulation is impossible here due to the mandatory verification of each user. Virtual and collective accounts can’t distort token creation.
Because encryption of data in FIREBIRD uses algorithms based on McAliece, the distributed networks of the system will be resistant to attacks produced from quantum computers.
As follows from the diagram of token distribution based on the results of the auction, the wallets with the lowest serial numbers will be the least risky. That is, even if the auction does not collect 1 million users, they will be issued a sufficient number of tokens to hedge the risks associated with participation in the auction.
We recommend 3 auction participation scenarios: