UD (Universal Dividend)
The daily amount of money created by each G1 currency co-creator.
The Universal Dividend is a key concept for Libre Currencies (Link). It is the daily amount of currency that each individual in the web of Trust automatically creates by just being part of the network.
This precise number is calculated by a specific formula. Every G1 currency co-creator creates an amount of money that is proportional to the monetary mass (the total amount of G1 currency in circulation) divided by the number of G1 currency co-creators (link).
UD = c × (M/N)
- UD = Universal Dividend created everyday by G1 currency co-creator
- c = Coefficient which has a value of 0.0488 (4.88%)
- M = Monetary mass or total amount of G1 currency in circulation
- N = Total number of G1 currency co-creators in the Web of Trust
This money, which is automatically created every day on each G1 currency co-creator's wallet is called the Universal Dividend or UD. In the G1 currency there is only one G1 currency co-creator wallet per living human being.
This UD is what defines a "Libre Currency" in accordance with the RTM.
UD re-evaluation at every equinox
The ğ1UD is re-evaluated every 6 months (at every equinox).
The derivative money creation formula is: (you don't explain what derivative money is??)
UD(t+1) = UD(t) + c2 × (M/N)(t) what is c2, c squared??
- See legend above for UD, c, M and N
- UD(t) = Value of the UD today
- UD(t+1) = Value of the UD tomorrow, after the re-evaluation
Value measuring Unit
The ğ1UD is a space and time constant: Whatever the time or the place, a human being creates 1 ğ1UD per day, and this ğ1UD always represents the same proportion of the global monetary mass (approximately).
By using this daily ğ1UD as a value measuring unit, the evolution of prices are not related to the monetary mass, but to external factors of the currency: offer/demand, weather, and other inestimable criteria.