Friday, April 5, 2019

Axio as Money

Money started out as intermediate goods involved in a transaction that otherwise would have been barter. As intermediate goods, money had to be valuable, portable, and divisible. This is how a measure of gold or silver came to be used as money. Eventually, coins were devised to standardize the weight and therefore the value of money. However, this does not explain what is money?

Much has been written on this subject, yet it remains mysterious and highly debatable. The key to this puzzle is the relationship between money and goods, in which goods are the wealth while money is a claim on wealth. In other words, money is an instrument that acknowledges a debt owed. Simply put, money is an IOU (i.e., an informal loan agreement) that promises to repay a specific amount owed. 

If money is an IOU then it must be borrowed into existence. This also means that within a monetary system, the amount of money in circulation should be equal to the amount of the outstanding debt. Otherwise money is fiat with no intrinsic value.

The Axio is a project to create fully backed currency using basic blockchain technology. Specifically, a blockchain is used to secure the life-cycle of the Axio. Each Axio will be created as a loan and will be destroyed when it is paid out. This process of creation and destruction of the Axio will be secured with a blockchain. Consequently, the amount of Axio in circulation will be able to expand and contract in proportion to the demand for the Axio, while assuring that the Axio is fully backed by the full faith and credit of the borrowers. This would give the Axio many advantages over other cryptocurrencies, including a stable intrinsic value that does not depend on other currencies or commodities, free real-time transactions paid for by the interest on loans, legal basis of a security issued under the U.S. law, in addition to many other advantages the Axio monetary system will offer.

As a fully backed currency, the Axio would be able to compete with the fiat money, the value of which is set by supply and demand and people's faith in its worth. While fiat money loses value do to inflation, the Axio will have to contend with deflation, since the system will accumulate the value of the interest payments within a supply of a fully backed currency. Regardless of how the Foundation will deal with deflation, savers would be better off holding the Axio rather than fiat. Moreover, the Axio account holders will not be tied to their local fiat currencies, and any problems associated with these currencies. The ultimate goal is to be able to use the Axio as any other currency while providing advantages no other currency can offer.



The statements contained in this document are exclusively opinions and forward-looking statements, which involve known and unknown risks and uncertainties which may cause actual events or results to differ materially from the estimates or results expressed herein. We do not make any guarantees regarding estimates, projections or results contained herein, whether express or implied, and disclaim any liability therefor.

Friday, March 22, 2019

Axio Monetary System

A monetary system is the set of institutions by which money is maintained in an economy. At a minimum, this system must provide means for maintaining accounts, performing transactions, resolving disputes, as well as making and servicing loans. While money provides the means for implementing such a system.

The primary reason cryptocurrencies remain a mere curiosity is because they failed to provide a functional monetary system. For example, cryptocurrencies are able to provide accounts and to perform transactions, however they are not suitable for making loans or offer a means for resolving disputes. As a result, current cryptocurrencies are unusable for business purposes.

The Axios Foundation will provide an Axio based monetary system comprising an Axio bank, a currency exchange, and a legal system. These institutions will provide the minimum required to maintain an economy. The Foundation will also provide payment methods that will support free real-time transactions, enabling the Axio to compete against the established currencies.

Axio will be issued as a debt, and as this debt is paid a corresponding amount of axios will be extinguished thus increasing the value of the Axio by the amount of the interest paid on the debt. Unlike other debt-based monetary systems, this process of money creation will be recorded in a blockchain so that the system could be audited, and control of the system will operate in a similar way to a credit union, which is controlled by its members and operated on the principle of people helping people.

With so much going for it, the Axio is positioned to become a dominant player in the race to create the next generation of cryptocurrency. As such, it has enormous potential.


The statements contained in this document are exclusively opinions and forward-looking statements, which involve known and unknown risks and uncertainties which may cause actual events or results to differ materially from the estimates or results expressed herein. We do not make any guarantees regarding estimates, projections or results contained herein, whether express or implied, and disclaim any liability therefor.