A Merchant’s Guide To Using Karmaship
In the current Karmada distribution phase of Karmaship, Karmics (KMX) are designed to work in harmony with both fiat and Bitcoin.
Karmaship and its current Karmada distribution phase is a grand experiment. Never before has a cryptocurrency of this kind been developed and released in this way, where organic adoption and value consensus is achieved by giving the coin away in exchange for proving experience and where the community is empowered to create the economy, not whales or centralized exchanges. By using the underground festival circuit as a venue for this economic development, Karmaship hopes to create a truly fair and practical currency for all by first creating adoption in this space. If we can get it to work organically in this smaller micro-economy we can then let it grow and bubble out into the larger macro-economies of the world as Proof of Experience is developed in full.
Because the Karmada is currently locked within this framework of festivals and music events, it depends heavily on the merchants there accepting the coin to provide immediate value to the new ecosystem. The purpose of this article is to highlight some of the benefits of accepting Karmics (KMX) at an event and illuminate merchants on the overall strategies Karmaship aims to implement in future events. The end goal here once again is to create a new currency based on the value of individual experiences and the exchanges between people within those experiences. By doing this, we can free ourselves from the shackles of debt-based instruments and create new wealth based on our own intrinsic ability to create and experience. By becoming more self-sufficient with the way we create and transact value, we can empower humanity to take charge of their own money supply and enrich each other towards a new era of self-perpetuating economic freedom.
Karmaship As A Marketing Tool
The most immediate use case for Karmaship at events is in its ability to draw interest at vendor’s booths. We saw this happen in real time at Outside In Equinox once festival goers began Gathering Karmics. As this new currency started appearing in their accounts, they wanted to do something with it. Immediately vendor activity picked up a hundred fold and overall there was an air of excitement about the growth potential this new coin could bring for festival commerce.
At OI Equinox, Vendors were free to take the currency however they like, with a $500 cash buyback offered by Outside In Movement at the end of the event. The smart vendors used Karmics as a rewards discount for purchasing at their booth. This allowed them to maximize their sales while moving towards the $500 cap buyout. Those who accepted 100% Karmics to immediately get to their cash buyout found themselves quickly at the cap with less room to use the currency as a motivator for additional purchases.
As Karmaship deploys airdrops at more and more festivals these next few months and the amount of Gatherers grows in leaps and bounds, there will be a new crowd seeking a place to spend this currency. Vendors can use this to their advantage to bring more eyes to their products and hopefully more sales if used correctly. For example, food and drink vendors can offer ‘Karma Happy Hours’ where specific items for a specific time are available in exchange for 100% Karmics or a 50% discount or whatever they choose. This allows vendors to bring in more business at a time that may usually lag in sales and for products they have a surplus in. In the same way a drink ticket or coupon is used, Karmics can be implemented to increase interest for further sales.
Karmaship As A Tax Shelter For Profits
One way merchants can view the value of Karmaship is in its simple, beautiful ability to act as an immutable ledger for sales and tax discounts. Because it runs on blockchain technology that is completely public and transparent, every transaction on the chain can be easily audited by an accountant or tax attorney. Vendors can use this to their advantage to show how Karmics were taken as a representation of profit for specific transactions. Used in unity with fiat currency, vendors and merchants can accept their local fiat currency at events to cover their costs for a specific item while accepting full retail value in Karmics for their profit. (Because Karmics were not sold in an ICO or offered on an exchange, there is no way they can be deemed anything other than a measurement device on the ledger.) Karmics are not a security or official currency in the eyes of the state so in this way, merchants have a tax haven mechanism they can use to shelter their profits within Karmaship.
As merchants accrue these profits in Karmics they can then decide how to convert these profits into value for their daily needs. Within the festivals, they can spend the coin with other merchants in the same way experiencers did at their booth. They can use it to barter and trade with as well. Once Karmaship releases the crowdfunding Karmafund app in the near future (goal: Q1 2019) they can use their Karmics profits to crowdfund Bitcoin for future projects and business costs. All in a way that is completely tax free! Then, as the Proof of Experience protocol is further developed and the Experience Marketplace opens up, they can use their Karmics to buy into other experiences and earn Karma Experience points (KEX) which will then allow them to go to the DEX (decentralized exchange) and convert their Karmics to Bitcoin. Because this is all completely decentralized there are no tax obligations. Only once conversion to fiat takes place will capital gains taxes kick in.
Karmaship As A Financing Tool
As mentioned above, Karmics in the near future can be used to drive Karmafunding (planned for Q1 2019 release). This is basically a way entrepreneurs and businesses can raise funds for future projects and business development. Much like Kickstarter or IndieGoGo, Karmafund allows anyone with Karmics to raise an equal amount in Bitcoin for whatever their heart desires. The benefit to using Karmafund is that it leverages your Karmics balance to incentivize outsiders to bring in Bitcoin as they are rewarded with an equal dispensation of Karmics for their Bitcoin investment and Karmafunding experience. Because Karmics are valued 1 to 1 with Bitcoin this is easy to do. Smart contracts are used to initiate the exchanges and agreements and cross chain atomic swaps the transactions. All is completely decentralized and out of tax scope. This will be a powerful way businesses can use Karmaship to grow while bringing liquidity to the ecosystem.
The Key Is In The Merchants!
There is no doubt that in its current Karmada phase, the value growth of Karmics relies heavily on adoption by merchants and vendors in the festival space. The Karmaship team will work closely with them and offer resources such as a vendor handbook and Karma associates to talk to and communicate their ideas, concerns, needs etc to. We hope to free merchants from the heavy tax burdens and concerns they currently face while improving the overall sales experience. A POS system is in the works which will expedite sales, protect against chargebacks and work with our future KarmaMesh system to provide internet access in the most remote locations. The goal here in the end is to allow for a more free and easy-to-use commerce platform that empowers merchants while enriching the entire community.
— Mike Winner, Co-Founder of Karmaship and Alfa Vedic
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