CONCEPT PROPOSAL by INNOU.io : on Creation of the Global Emergency Reaction CryptoCurrency “S.O.S.”Based on Collective Participation of Major Cryptocommunity Leaders and Members

CONCEPT PROPOSAL

by INNOU.io

Vienna, Austria, E.U.

Los Angeles, California, the U.S.A.

March 2020

on Creation of the Global Emergency Reaction CryptoCurrency “S.O.S.”

Based on Collective Participation of Major CryptoCommunity Leaders and Members

INNOU.io

Proposal on Creation of the Global Emergency Reaction CryptoCurrency “S.O.S.”1

Based on Collective Participation of Major CryptoCommunity Leaders and Members

When in course of the human events, we face global emergency challenges whose scale, scope, depth and profound consequences demand coordinated national or international effort to cope with effectively, our only hope are governments, who are the only institutions capable to orchestrate and finance massive rescue endeavors.

However, precisely due to the tremendous complexities of the emergency situations on one side, and the governmental structures and processes on the other, the reaction time is often prolonged for too long. The price of such protraction may be — and in practice more often it is that it is not, very high — actually the highest: a human life, and, eventually, multitudes of human lives.

The modern science, industry and economy have all what is needed to provide effective remedies for almost any imaginable evils within the wide limits of our contemporary material knowledge. But the time needed to mobilize the resources in right mode and direction systematically prevents us from effective collective action, as in the crisis situations the stress placed onto the governments is exceptionally high, and thus their being behind the ball is somewhat excusable and inevitable.

While the infrastructure of the modern society and its major players may experience heavy situational shocks and thus need leeway time to recuperate, the grass-root entrepreneurial initiatives, including, first of all, those of the small and medium businesses, is largely untapped in times of emergencies. The conscientious entrepreneurs have the quick wit, work zeal, and often technology and production capacities to deliver necessary solutions as fast and effective as the urgency may demand, but normally they do not have adequate working capital and monetary resources to materialize their solutions in due time. In such situations, the money comes, sooner or later from the governments, but this financing may be retarded for too long without no bad will behind such delays, just inability of the system to do it faster. If the money be late, it will belate the rescue measures and rehabilitation processes, sometimes irretrievably.

Remember deficits of sanitary masks and sanitizers, test cartridges and other expendables at the very first days and weeks of the COVID-19 emergency? A plenty of independent factories and enterprises could redirect their ordinary production to manufacture and deliver quality medical products in volumes needed, but most of them had neither clear guidelines nor money to make such a bold maneuver. Government money flow slow, with rare exceptions.

To counter the existing mobilizing gaps and delays, the international cryptoCommunity can come up with a global buffer cryptoCurrency which will be based on the composite pool of installments by the members of specially created CryptoCommunity Emergency Council.

The principles of the Emergency Council functioning can be similar to the best-practice general principles of the existing supranational institutions, like United Nations, World Bank, International Monetary Fund, European Central Bank, leading charitable funds and non-profit associations, etc., but with a different state of mind of the participants and heavier deployment of the best available technologies to eliminate bureaucratic and procedural deficiencies and political imbalances.

The value of the cryptoCurrency will be based on the basket of the crypto-assets of choice donated into the general fund-pool by the members, who, being the core players of the cryptoworld, will also take effort to maintain the value of the Currency on the proper level. The form and amount of installment will be a matter of discretion of each member.

S.O.S. Emergency Digital Currency can be disbursed strictly under unanimous decision of the members of the Council to rapidly mitigate extraordinary situations and to provide relieving operative support to the independent business initiatives which have a high degree of probability to be further supported and refinanced by the national governments and supra-government establishments within relevant programs of anti-emergency measures. The disbursements would be provided as no-interest-bearing loans, which shall be returned by the recipients from the future profits, whose level in turn shall be regulated if they are to be derived during the emergency management periods. Alternatively, disbursements can be made as properly structured equity participation investments.

The S.O.S. cryptoCurrenry will be neither substitute for, nor supplement to the fiat money of a relevant jurisdiction. Rather, it shall be buffering liquidity means for moving on with action without unnecessary but objectively inevitable delays. Unless the government will decide not to finance the project at all. This is the intrinsic risk which the Emergency Council have to keep in mind when making decisions, that the disbursement might be not reimbursed as expected, and thus the S.O.S. currency allocated to a particular project might become an equivalent of charity donation expense for a good cause. Justifiable and acceptable risk, we presume.

The recipients of the disbursements authorized by the CryptoCommunity Emergency Council will be encouraged to use the Emergency CryptoCurrency in its original form for payments as long as business situation and value chains will allow, or, when necessary, to convert it into other cryptoCurrency prior to finally converting it to fiat currencies when further payments in cryptoCurrecy form will not be possible for normal running of operations. Individuals could not hold or trade in the Emergency CryptoCurrency other than strictly within purposes it was allocated for, i.e. for paying the expenses related to implementation of anti-emergency projects.

Further basic aspects of the Emergency CryptoCurrency are formulated in enclosed White Memo.

INNOU.io

acting as Initiative Team

White Memo

by INNOU.io

Vienna, Austria, E.U.

Los Angeles, California, the U.S.A.

March 2020

Los Angeles, California

March 2020

Basic Concept of the Global Emergency Reaction Digital CryptoCurrency “S.O.S.” (further “S.O.S.”).

Based on Collective Participation of Major CryptoCommunity Leaders and Members

1. To counter the mobilizing gaps and delays in global emergency situations, the international cryptoCommunity can come up with a global buffer cryptoCurrency that will be based on the composite pool of the installments by members of specially created Global CryptoCommunity Emergency Council (the Council).
2. Essentially, “S.O.S” will be specific-purpose basket currency built from the values of the installments of the members of the Council and backed by the full faith and credit of the members.
3. The value of “S.O.S.” will be calculated and defined by the weighted basket of the installments of the members and the volume of the “S.O.S.” actually issued into circulation.
4. “S.O.S.” will not be regarded as a claim against the Council assets, but rather as a prospective claim against the freely usable2 cryptoCurrencies and cryptoassets that have been issued or otherwise belong belong to the Members of the Council.
5. The principles of the Emergency Council functioning can be similar to the best-practice general principles of the existing supranational institutions, like United Nations, World Bank, International Monetary Fund, European Central Bank, leading charitable funds and non-profit associations, etc., but with a different state of mind of the participants and heavier deployment of the best available technologies to eliminate bureaucratic and procedural deficiencies and political imbalances.
6. All and any entities which made installments into the general fund will be represented in the Council, but this is not a one member, one vote system; voting power is determined by value of the installment at the day of the installment.
7. The voting rights of the members of the Council will be proportional to the installments they have made.
8. The value of the “S.O.S.” will be based on the basket of the installments of the members, who, being the core players of the cryptoworld, will also take effort to maintain the value of the “S.O.S.” on the proper level.
9. The exchange value of the “S.O.S.” will be maintained at the proper level by the dedicated committee, or currency board, under the Global CryptoCommunity Emergency Council, to alleviate speculative changes in the exchange rate of “S.O.S.”, its abrupt depreciation or appreciation which should trigger mandatory action by the members of the Council.
10. Being a single purpose composite crytoCurrency, “S.O.S.” shall be pegged to exchange values of the cryptoassets of the members of the Council.
11. “S.O.S.” can not be used as an instrument of savings.
12. “S.O.S.” will be disbursed strictly under unanimous decision of the members of the Council to mitigate extraordinary situations and to provide relieving operative support to the independent business initiatives which have a high degree of probability to be further supported and refinanced by the national governments and supra-government establishments within the programs of anti-emergency measures. The disbursements would be provided as no-interest-bearing loans, which shall be returned by the recipients from the future profits, whose level shall be regulated if they are to be derived during the emergency management periods. Alternatively, they can be disbursed as properly structured equity participation.
13. ‘S.O.S.” can also be used for pro bono projects approved by the Council.
14. The recipients of the disbursements authorized by the Council will be encouraged to use the “S.O.S.” in its original form for payments as long as business situation and value chains will allow, or, when necessary, to convert it into other cryptocurrency prior to converting it to fiat currencies when further payments in cryptocurrecy form will not be possible for normal running of operations. Individuals could not hold or trade in the “S.O.S.” other then within purposes it was allocated for, i.e. for paying the expenses related to implementation of anti-emergency projects.
15. S.O.S. will not be grassroot fundraising instrument.

1alternative name: “Green Star”.

2Where by “the freely usable”are meant cryptoassets that are widely used in international transactions and are traded in cryptoassets-exchange markets.