No. 03 of 15The idea
A charge you can see
Inflation charges every holder of money and sends no bill. VP2.0 states its charge in advance.
- Keynes: by inflation, “governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
- Smith asked that a charge be “certain, and not arbitrary”: its time, manner and amount “clear and plain to the contributor”.
- VP2.0’s holding fee sets all three in advance: a time, “a defined interval, such as a monthly interval”; a manner, a deduction from “the unspent balance”; and an amount, a rate that can change only “at the effective ledger interval” (claim 2), in the example “approximately 0.5% to 2%”.
- Fisher said where his stamp’s charge falls: “Hoard, and the tax is heavy; spend (or invest or deposit), and the tax is light.”
Inflation costs you for holding money, and it never sends a bill. VP2.0 names its charge on idle money in advance: when it is taken, how, and how much.
The sources in fullevery quotation on this page, where it stands
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.”
Keynes, The Economic Consequences of the Peace (1919), ch. VI
“The holding-fee mechanism may, for example, periodically deduct a portion of the unspent balance at a defined interval, such as a monthly interval.”
VP2.0 specification
“The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.”
Smith, Wealth of Nations (1776), Book V, ch. II, pt. II, maxim II
“each validation node is configured to verify the parameter-state package, activate the constrained parameter-state update as an activated parameter state at the effective ledger interval responsive to the verification, and apply the activated parameter state during ledger operation to control transaction admission, validation operation, and ledger-record formation, and”
VP2.0 · Claim 2
“An illustrative, non-limiting holding-fee rate may fall within a range of approximately 0.5% to 2% of the unspent balance per interval, while an illustrative, non-limiting spending-reward rate credited to a network participant 110 responsive to a transaction may fall within a range of approximately 5% to 10% of the transaction value.”
VP2.0 specification
“Hoard, and the tax is heavy; spend (or invest or deposit), and the tax is light.”
Fisher, Stamp Scrip (1933), ch. III