RSB Rewards creating new models for business

As citizens of the globe we are most likely familiar with a process called ‘inflation’, a common effect of governments and their ability to print and increase the money supply. Although its meaning may get distorted through its use in politics, it is fairly simple to understand — every holder of the currency at the time of this money creation (by choice or not) is transferring value from their personal holdings to the destination these newly created monies ends up. It is a collective transfer of wealth and extremely efficient form of taxation. For example, if the current money supply of an economy is $1 trillion and an additional $250 billion are printed, the money supply has increased by 25%. Since holders are not compensated by an extra 25% on top of their holdings, their purchasing power goes down by a whopping 20%, that power transfers to wherever the newly minted money goes. This can make for a powerful tool so long as the community holding the currency (the ones giving up their wealth) has a say in how and where this money ends up, there is of course risks of this power being abused (usually from decisions by groups that suffer little consequence for their actions.

The opposite of inflation (deflation) can be just as powerful, simply working in reverse. It provides an efficient method of transferring wealth from one singular point to all holders of the currency of that particular time, a form of “reverse taxation”. Going back to the example above, if the government had decided to ‘burn’ $200 billion, Bill’s purchasing power of the same $10,000 would’ve risen to a staggering $12,500.

Deflation is how we plan on rewarding coin holders via our RSB mechanism. I will go into a few cases of how we can best leverage this model through business coupled with blockchains “proof of burn” technology. As a community we will work to build and support a network of businesses (i.e poswallet.com) whose proceeds are sent to their respective & assigned burner addresses causing an effect we have dubbed a “Revolving Stake Bonus” or RSB. We will limit the scope of these operations to ensure they are properly incentivized to perform the ‘proof of burn’.

There then can be a suite of applications built on top of these addresses analyzing in real time the health and statistics of our ecosystem. Holders will track exactly how much value these bonuses provide directly from within our wallet and which organizations are providing them. There are many models and layers you can build on this framework, let’s start with a popular one — financial services.

Hedge funds

It is important to understand the effects blockchain will have on the world of traditional financial services, in particular Hedge Funds. We are living in one of the most disruptive eras of growth in human history with massive amounts of wealth being generated in relatively short periods of time. A hedge fund model is perfectly positioned to capitalize on hyper growth industries as they have appropriate risk assessment and diversification models to benefit from these gains taking place. Our treasury (~.001% of total market cap a month) controlled by our masternode holders could in theory behave as an individual client of a chosen hedge fund. Through our budget/ proposal system fund managers would accept a principal from our MN holders and provide a transparent portfolio with audit-able gains and losses. Once their proposal is approved we (the community) assign them a burner address which they use to send their agreed upon proceeds. There would be little of an incentive for a fund manager to ‘run away’ with our budget if we work with reputable names as RSB provides transparency and trust. For the fund manager this will result in larger budget approvals for that given individual or firm as time goes on.

There will also be re inventions of these funds along with all other financial service models. One being that we could soon start to see ‘anonymous’ hedge funds where individual identities are concealed but their brands are reputable, verifiable and public. Just like an immutable blockchain being released in the wild we could see portfolios released getting popular whose origins are not traceable but results famous.

XSN Ventures

A common problem arising amongst treasuries is oversight. It is difficult to find a model (outside of delegating core team members themselves) that allows ongoing diligence after a budget is paid. This causes inefficiencies, delays and losses for investors. This current structure is also limited to shorter terms (months vs years) and is problematic for projects requiring long-term development and growth. One solution is to work with private venture firms, outsourcing day-to-day operations and larger investment projects which ensures our ecosystem will grow to scale and allow further degrees of organization while maintaining control to our Masternode holders.

A VC firm is a bit more dynamic vs a hedge fund as it deals with long term business development, equity distribution, and higher risk/ reward ratios. Focusing on development that services the XSN community however will strengthen our long term position and growth coupled with more traditional treasury operations. Using equity distribution mechanisms on the blockchain coupled with smart contracts ownership can be distributed accordingly to end users via the RSB burn passing the value to the average users.

Staking as a Service

Staking services, pools, masternode hosting etc. will easily integrate with our RSB model and will be the first to arise. Our proof of concept will be our very own poswallet.com, where by integration of our API into the QT wallet we will not only be able to provide information on the RSB address but also statistics relating to servers, nodes and other relevant operations to users and investors directly, in real time. Imagine having an interface where you can see data on each bonus address showing you not only the health and statistics of the given business but also the rewards it is providing to the holders of the currency as well.

Incentivized Prizes

Why is the free market so efficient? It is because individuals are racing to get a prize — profits. They will put time, energy, and pain to get them and many sacrifice to great lenghts. We can use this economic principle and put it on steroids offering ‘X’ amount from our treasury to whoever solves a given problem, adds a feature, builds a service that helps our community. If the prize is big enough there will be multiple teams competing against each other building entire businesses just to obtain the prize alone. We could track the progress of everyone from within our RSB interface giving real time data and statistics as they race against each other to the finish.

Final Word

Unlike modern nation states where governments are the sole executors of the national monetary policy, XSN’s monetary policy is based on hard-coded rules and consensus via our masternodes, any decisions of how inflation is used is left to the ones with large stakes. No group of people, whether elected or otherwise can unleash a tragedy of the commons. The possibilities that arise from this proof of burn model are limitless, with the very highest ones being prioritized and pursued on a strategic partnership and adoption level in the early stages. This is made possible due to XSN’s unique economic model via our RSB coupled with treasury and API integration, creating a powerful multi layer of financial protection and growth for its holders. Over the next few years we will see boundaries pushed on the disruption these self governing communities have not just on their respective organizations but greater society as a whole.

If you have any thoughts or ideas of your own please share!