Digital Hryvnia of Ukraine — HRN
National cryptocurrency: created by and for the benefit of people using blockchain technology
The purpose of the HRN project is to be integrated into the Ukrainian financial system of internal payments and transactions. The project team commits itself to replace the fiat (standard) system of Ukraine with a digital one using HRN in government payments.
The HRN distribution
Every Ukrainian citizen will be able to get 190 HRN (100 + 90) for free within AirDrop and Bounty programs:
• From November 1 to December 1, 2018, any Ukrainian citizen can apply and receive 190 HRN (100 + 90) on one account;
• From December 1 to July 1, 2019, only verified citizens of Ukraine will be able to receive 100 HRN free of charge after passing the procedure of identity verification and confirmation of Ukrainian citizenship.
190 HRN are distributed as follows:
1. The AirDrop program. 100 HRN will be credited to your wallet within 5 working days after applying for and undergoing the KYC procedure (confirmation of your identity and Ukrainian citizenship, except for the period from November 01 to December 01, 2018, when the verification procedure is simplified). You require no action other than registration in the system, an application for HRN receiving and simple confirmation of your identity: https://docs.google.com/forms/d/e/1FAIpQLSfyj_zqRno3sXDtXHJs6bJ33DfHtV7zxqyz7UHAaOxwzVXiiw/viewform
2. The Bounty program. 90 HRN will be divided into 6 equal parts and the same number of tasks. You will receive 15 HRN for each simple task. For example, to help the community in FB become part of our community: subscribe to a group, ‘like’ the post and share it in your feed. You will receive 15 HRN for 5 minutes of your time and for helping us in the promotion. And there will be only 6 tasks that are similar to the example above and of the same complexity. The received HRN are summed up and paid after completing all the tasks to which you agreed. The Bounty program will launch at the end of 2018.
Total: E-Ukraine will transfer 100 HRN free of charge within the AirDrop program and then 90 HRN for completed tasks within the Bounty program.
Note: HRN can be easily purchased regardless of the Airdrop/Bounty programs at the established rate. For this, it is enough to apply in the E-Ukraine system.
Extra opportunities during the HRN Airdrop
The authors of the project have created a Refer-a-Friend program to encourage and motivate the involvement of friends and relatives in our decentralized system. This program is not mandatory, but it is only one of the tools to help our project operate at full scale; it can be used once, several times, or ignored completely. This is at your personal discretion.
Multi-level referral program (+5 HRN for each level) is financed from the development fund (out of 95 million HRN):
Level 1. You sign up yourself — no one receives a bonus for your activity.
Level 2. An acquaintance, stranger or a family member engages you — the one who engaged would receive + 5 HRN on his/her bonus account. You can sign up all members of your family yourself without age restrictions but with their consents or consents of their guardians. And for each of them, you will have + 5 HRN on your account.
Level 3. + 5 HRN is for the first level; + 5 HRN is for the second one.
Level 4. + 5 HRN is for the first level; + 5 HRN is for the second one; + 5 HRN is for the third one.
Level 5. + 5 HRN is for the first level; + 5 HRN is for the second one; + 5 HRN is for the third one; + 5 HRN is for the fourth one.
Level 6. + 5 HRN is for the first level; + 5 HRN is for the second one; + 5 HRN is for the third one; + 5 HRN is for the fourth one; + 5 HRN is for the fifth one.
Note: the system does not receive referral bonuses, as well as their team members whose activities are financed by the DEPS.
This program will be described in more detail later in a separate post.
HRN price and quantity assessment
1. HRN tokens are issued in the amount of 2.1 billion.
2. 1.9 billion HRN will mostly be distributed among Ukrainians through the AirDrop and Bounty programs, for 190 HRN per person (a minimum of 100 HRN, a maximum of 190 HRN).
3. The reserve is 105 million HRN or 5%.
4. The rest of 95 million HRN will be directed to the implementation of the project and increase the HRN liquidity (including the Refer-A-Friend program).
5. Starting a fixed rate of 1 HRN at the time of the project’s launch is equivalent to 10 USD.
6. The HRN free distribution programs will be continued until July 1, 2019.
7. Before entering the market, the HRN rate will be re-calculated. The E-Ukraine project provides for the creation of a stable cryptocurrency pegged to the real GDP of Ukraine. This means that at the end of the HRN distribution the real amount of active HRN will be determined (at least 1 transaction, for example, HRN received on your account. Exceptions are the HRN reserve fund and the development fund), and this amount will be pegged to the real GDP of Ukraine.
The following cases may occur:
Case #1. The demand for HRN is less than expected, and there is an unappropriated reserve in HRN as of the final date.
What will happen next?
We will burn all undistributed HRN from the citizens’ fund, which currently accounts for 1.9 billion HRN.
Then, we recalculate the HRN amount according to the formula:
the actual data of real GDP of Ukraine divided by the sum of all active HRN
An example of the calculation, when we burn 1.5 billion HRN, and we have 600 million HRN left:
87.342 billion USD/0.6 billion HRN = 145, 57 USD for 1 HRN;
it is the approximate cost of 1 HRN if only 600 million HRN become active and the real GDP of Ukraine in dollar equivalent will remain unchanged.
This rate is 14.5 times higher than the currently used one in the calculations. The less HRN we distribute, the more expensive they will be on the calculation date before entering the market.
Case #2. The demand for HRN is higher than expected, and before the final date, additional amount of HRN was issued to meet demand.
What will happen next?
Let’s say, we issued additional HRN several times more before July 1, 2019, and finally, the amount of HRN issued was not the planned 2.1 billion HRN but 5 billion HRN.
We will recalculate the amount of currency according to the formula:
the actual size of real Ukrainian GDP divided by the sum of all active HRN
An example of the calculation:
87.342 billion USD/ 5 billion HRN = 17,47 USD for 1 HRN;
it is the approximate cost of 1 HRN, if 5 billion HRN become active, and the real GDP of Ukraine in dollar equivalent will remain unchanged.
This is 7.5 USD more than the starting rate, which is applied in the current calculations. The more HRN we distribute, the cheaper they will be at the recalculation date before entering the market but, at the same time, they will be more expensive than those applied in the initial calculations.
Case #3. The demand for HRN is equal to the expected one, and, as of the final date, there is neither balance nor an additional issue of HRN.
What will happen next?
We will recalculate the amount of HRN according to the formula:
the actual sum of real Ukrainian GDP divided by the sum of all active HRN
An example of the price calculation in this situation:
87.342 billion USD/2.1 billion HRN = 41.59 USD for 1 HRN;
it is the approximate price of 1 HRN at the moment if all issued HRN become active and the real GDP of Ukraine in dollar equivalent will remain unchanged.
Your assets will grow from 10 USD for 1 HRN by more than 4 times:
190 HRN * 41, 59 USD = 7902 USD.
The higher the real GDP of Ukraine, the higher HRN rate will be. Since our country has one of the lowest GDP per capita in the world, and there is the potential for growth, with the right approach, we can predict GDP growth at least 10 times in 2–3 years, which means that your HRN rate will become higher and can be 10 times higher than from the date of the market entry.
How often will the course be changed, and how will it be regulated?
At first, E-Ukraine will determine the cost of HRN based on the data of the annual report, and with access to interactive data on Ukraine’s GDP, it will be possible to automate this process and set the rate in real time for the current moment.
Liquidity and value of HRN are zero-priority tasks for E-Ukraine. The creators of the project have chosen the strategy of stable cryptocurrency which does not have strong volatility.
For example, USDT is a cryptocurrency supported by real US dollars but, in reality, it traders don’t own those real US dollars. This project is successfully gaining value and has liquidity, and its hard pegging to the US dollar does not hinder this project but rather helps traders avoid volatility and losses in the cryptocurrency market.
HRN differs adventurously from stable cryptocurrencies by pegging not to the money machine but to the real economy of the real country. The higher the GDP, the more expensive HRN will be.
The usage of HRN in transactions
HRN is created as the internal DEPS E-Ukraine cryptocurrency. HRN is an issued token created on a stable and developing NEM blockchain (it is called “mosaic” inside the system).
From the moment of receiving HRN to the platform wallet, each user of the system will be able to transfer HRN at any time to any holder of the NEM wallet. Transactions are not free and cost 0.1XEM which costs about 0.01 USD as of November 01, 2018 (XEM is a cryptoactive asset and fuel for payments in the NEM blockchain).
Users can sell and buy HRN at a fixed price.
The project’s moderators will monitor the market and prevent HRN dumping attempts, as they intend to create a liquid and valuable crypto asset, and the E-Ukraine community does not want to see HRN in the list of speculative and manipulative financial instruments.
A bank and an exchange of E-Ukraine will help system users exchange HRN for goods, raw materials, services and other assets. Smart cities and territorial communities will use HRN to automate payments, and the state will use it in all transactions to prevent corruption.
All these benefits will increase the value of cryptocurrency and gain access to the international financial market.
A roadmap on the creation of a liquid asset from HRN
(Updated, as of November 01, 2018)
That is how we create a real national value from the digital code and use zeroes and ones to make liquid money that will grow in price and be quoted in the world market:
1. Creating national cryptocurrency of Ukraine at one of the international stable blockchain platforms (NEM). Implemented, tokens are issued on the NEM platform.
2. Creating funds using multi-signature and HRN distribution as it was intended. Implemented, funds are created; multi-signature and transactions between funds are tested.
3. The launch of the development of a forum for user communication, internal KYC verification, the first plug-ins of the DEPS platform and the wallet for HRN transactions. The process is partially implemented. The forum and the DEPS account, through which users can verify their citizenship and confirm their identity, are created (update: November 3, 2018 — currently all communications are transferred to our Telegram group because of attempts of flooding attack at our initial forum). The other activities from this item are under development.
4. Notarization of rights using blockchain on the basis of which all the following activities will be implemented. Implemented, the rights of the Ukrainian people are notarized.
5. Distribution of the created cryptocurrency among citizens of Ukraine through the AirDrop, Bounty and Refer-A-Friend programs. The process is launched; interest in the new digital hryvnia is high, that is proved by the number of applications for receiving the cryptocurrency, without even investing in an advertising campaign.
6. Marketing. The launch of an advertising campaign.
7. Attracting investors. Finalization of all necessary documentation for investors.
8. Public Relations communications, growing a new national trend. Starting a PR campaign.
9. Start of the development (within DEPS and HRN projects) of decentralized international stock exchanges for all traded assets: commodity, stock, currency, futures, options and labor exchanges. All exchanges will be pegged to HRN. Exchange commissions/fees and tax deductions will be absent, and there will be the total transparency of blockchain transactions, which will help these exchanges quickly gain momentum, creating a steady demand for HRN. Launching of the process for the first DEPS exchange development.
10. Cross promotion activities with international blockchain communities which will attract foreign assets and international support for the project. Start of international information activities.
11. Beginning of the development of the decentralized bank and the insurance fund of DEPS in which HRN will be the main payment instrument.
12. The pre-election presidential campaign of the project’s creator will help bring information about the project even to remote villages and attract many new supporters and users to the new system.
13. The launch of the national bank and the insurance fund of HRN.
14. Linking HRN to payment cards.
15. HRN testing by territorial communities in internal payments within a local self-government.
16. On July 1, 2019, the AirDrop, Bounty and referral programs will end. All spare HRN will be burned, and the HRN rate will be recalculated at the rate of 1 HRN equal to the real GDP of Ukraine divided by the total number of HRNs. This date will close the opportunity for additional issue of HRN or their burning; the fixed amount of HRN as of July 1, 2019, will remain unchanged for the entire remaining time.
17. The launch of HRN, as a bonus and payment systems, will be in the first smart city of Ukraine.
18. Start of trades on the first decentralized exchange using HRN in transactions.
19. Preparation of the legal framework to use HRN in the transactions at the state level.
20. Ukraine’s transition from the fiat system to the HRN payment system.
Conclusion: At the moment, 1 HRN conditionally costs 10 USD but at the start of trading on the DEPS exchange, the price of 1 HRN can range from 15 USD to 150 USD depending on the number of HRNs as of July 1, 2019, real GDP of Ukraine and turnover of the DEPS exchanges.
If the HRN supply exceeds demand, the price will not be reduced but HRN trading will be determined through smart program sequence; this means that the internal price of 1 HRN in the DEPS system will not be lower than 10 USD, and the project team will be interested in working on increasing real Ukraine’s GDP and increasing demand for HRN using all financial instruments.
E-Ukraine creates a stable cryptocurrency pegged to real resources and the economy of the real country (real GDP) which has everything necessary in the roadmap to become a valuable and liquid financial asset for years to come.
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