Monday, April 6, 2020

Axio and Deflation

The economic theory describes deflation as a decrease in the general price level of goods and services, and that it occurs when the inflation rate falls below 0%. Then the theory describes causes of deflation and its terrible consequences. However, this theory is only true for the current monetary system. For example, the theory states that one cause of deflation is when money becomes more expensive because of the scarcity of money. The theory does not consider that money itself can become more expensive since there is no mechanism for it. This is because the current monetary system is an inflationary system based on the decreasing value of money.


The Axio monetary system is a deflationary monetary system in which Axio will accumulate the value of the interest payments within a supply of a fully backed currency. This is because the Axio will be issued as debt and extinguished when it is repaid, while the resulting interest payments would increase the value of the Axio by the amount of the interest. However, deflation makes it difficult to repay loans with money that become more expensive over time. Left as is would make Axio unusable for business.

The obvious cure for deflation is inflation, however it has to be done in a productive way that would benefit everyone. The solution is to issue additional Axio for the balance between interest payments received and the balance of the bad loans that would cause inflation within the system. This amount can then be used to pay for operating expenses of the Foundation, and the remainder could be distributed as interest payments to all depositors.

This approach would solve the problems of deflation, stabilize the value of the Axio, and would provide interest payments to the depositors without the need for inflation. It would make the Axio monetary system less susceptible to the fluctuations in economic activity that create booms and busts of the Business Cycle associated with the current inflationary monetary system. And given all the other great advantages of the Axio, would allow it to compete effectively against the established fiat currencies.


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. 

Saturday, March 28, 2020

The Utility of Axio

Bitcoin was invented in 2008 as an attempt to create a decentralized Peer-to-Peer Electronic Cash System. This goal was achieved, and since then many improvements were made. Despite all this, cryptocurrencies remain technological curiosities incapable of competing against the established fiat currencies. The reason for this is that cryptocurrencies have fundamental problems. First, money is a financial obligation that represents an outstanding debt. This is why cryptocurrencies like Bitcoin are not money. Second, because cryptocurrencies strive to be decentralized, there is no one that is legally responsible for them and therefore they cannot be registered as a security or can provide for a legal recourse. These and other problems prevent the use of cryptocurrencies in business, relegating their use to enthusiasts and speculators.


The Axio was designed to address these issues so it would function as money, and to solve major flaws in the current monetary system, enabling it to compete against the established currencies. To accomplish this, Axio had to become a monetary system, meaning it had to incorporate all the major components of a monetary system. At a minimum, this system had to provide means for maintaining accounts, performing transactions, resolving disputes, as well as making and servicing loans. While the Axio was to provide the means for implementing this system. Within this system the Axio became an asset-backed cryptocurrency, with every Axio in circulation being recorded and accounted for. This system had to be able to expand and contract based on the demand for the Axio while remaining stable. It had to prevent the exponential growth of debt. It had to provide a legal framework, free transactions to both consumers and retailers, and to pay interest.

This opened endless possibilities for the Axio. For instance, because the Axio is not a national currency it will not be bound by borders allowing it to be used everywhere, and anyone would be able to open an Axio denominated account irrespective of their local currency. Such an account would permit transactions in Axio and other currencies while avoiding problems associated with some local currencies. For example, businesses in China would be able to offer their goods in any currency while maintaining their account in Axio instead of Yuan. And because transactions in Axio will be free, businesses would prefer payments in Axio over other currencies. Free transactions would eliminate the expanse of the existing monetary system, allowing Axio to compete against all other currencies. 

And that is just some of Axio's advantages. The possibilities are endless...


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, 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 money is?

Much has been written on the subject of money, 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 a financial obligation 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 due 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 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.