Canon Coin

Canon Coin will be an Intelligent, agile currency, able to make significant changes more quickly than any existing currency. This will be achieved by leveraging a leaderless amplified wisdom of the crowd canonization process.

To date all crypto currencies are using dumb or unfair allocation methods to get currencies into circulation. Some currency creators just give a bunch away, most of them being given to the creators. In all cases, who gets what coins is determined by one or a few people attempting to build a hierarchy under them. Other currencies, like Bitcoin, use dumb hard coded 'mining' processes that produces coins at a fixed rate that can't change. Bitcoin's rate is about 12% new coins per year, and this rate will continue till 2017. This is basically a 12% tax off of what the currency would otherwise be worth, going to finance useless, even destructive "mining".

New Canon Coins will be put into production by people earning them. A canonization process will determine what work can be done, to earn them. This work will be determined by everyone with a larger vote given to the holders of Canon Coins. Hierarchically managed organizations and currencies they manage focus on doing what the leader at the top wants, which is usually to build their hierarchy. Instead of co-operation, they tend to just want to fear and destroy all competing hierarchies. The canonization process inverts this and focuses on asking and knowing, concisely and quantitatively, what the people at the bottom want, and then getting it. The focus will be on anything that makes the world a better place for the people at the bottom.

The rate at which new Canon Coins come into circulation, doing real work, will also be intelligently managed. Economies tend to have boom and bust cycles that are very damaging to society. Keynesian predict the presence of a dominant currency that is inflexible will make these boom and bust cycles significantly more extreme. The inability to control the usage of peer to peer currencies could compound the problem. An intelligent agile currency could help in such situations by intelligently managing their supply. Canon Coin could instantly dramatically alter the rate at which new coins move into circulation. It could even employ various tactics that could significantly reduce the supply of Canon Coins. Of course a dumb currency that has no ability to control it's supply, or it's demand would not be able to compete and would quickly crash. Even the threat of such actions, once fully understood by society, could decimate the perceived value of dumb currencies.

Crypto currencies, like stocks of a company, are bought and sold. But stocks in a company have a significant advantage over crypto currencies of today. For profit companies make money. This money, and the company making it, is legally owned by the shareholders. This puts a floor under the valuation of stocks. Crypto currencies are missing this, making the possibility of a rapid and complete collapse in price much more likely. Sure crypto currencies have new technologies and protocols. But anyone can copy these, leaving them open to the possibility of very rapid crashes in value with no such valuation floor.

Canon Coins have some of these attributes of stocks in a for profit company. Canonizer.com is a for profit company. There are lots of ways it could turn it's ability to communicate concisely and quantitatively, the resulting knowledge of what everyone wants, the resulting knowledge about what everyone thinks, and it's ability to do efficient collaborative work, into goods and services others would pay for. To the extent that these efforts are profitable, the Canonizer could decide to return these profits as dividends to holders of Canon Coins, or to develop more ability to make even more, just like any other for profit company. However, there is an important difference between shares of a company, and Canon Coins. Shares of a company give their holders legal ownership of the company, and any money it makes. In contrast, a Canon Coin grants no legal ownership of any part of the company Canonizer.com, nor any other legal rights.

Canon Coins are simply based on the idea of seeking true perfect justice, or at least as much of it as possible. When an open source volunteer freely does some work that benefits society, there can not be true justice until the work done is adequately compensated. In this way the open source volunteer holds the opposite of a "Debt to Society". They hold a "Debt OF Society". The idea of a Canon Coin is simply a way of tracking such debts, and giving the earner of such the ability to sell this "Society Owes You" to others. The Goal of Canonizer.com is simply to ask society what it wants, then grant coins to people willing to do the work that will most efficiently accomplish whatever this is.

In the long run, we believe that these intelligent attributes, and it's ability to both know and do what society wants, with a focus on the people at the bottom, will enable Canon Coins to act with decisive intelligence, out competing all inferior dumb coins. Lots of people have the working hypothesis that a fixed hard coded inflation rate that can't change is a good thing. We predict that, while this ignorant popularity may temporarily drive up the prices of dumb coins, eventually the market will prove the superiority of intelligent coins, and holders of dumb coins will end up paying significantly for their mistaken assumptions. All while the holders of superior smart currencies will reap significant increases of the most valuable kind of capital. They will significantly increase the amount of what society owes them.

For more information about Canon Coins, see the proposal to create them using Invictus Innovations' DACs.

Even though there is not yet a mechanism to trade them, Canon Coins can currently be earned by voluntarily contributing to Canonizer.com.

This open survey topic is part of the expert "Crypto Currency Survey Project".