Nov 1115 min read

How Freeos Works Part 3: Supporting Mechanisms

(This is a continuation of Part 1 and Part 2)

Freeos doesn’t just stop with being a democratically governed stable income concept for the blockchain world only. It also includes many real-world aspects.

Freeos is designed to be a useful currency through and through.

And this means designing a few features that are meant to connect it with the real world and to start with an informed, responsible populace who are naturally keen to start this economy on a good footing.

A number of characteristics were sought to help create a thriving system:

  1. Voucher Outreach Program
  2. Informed Participants
  3. Attracting local markets
  4. Conditionally Limited Supply
  5. Democratic Partner Incentives
  6. Sustainable DAO Revenue
  7. Voucher Outreach Program

One aspect that was realised early on, was the possibility if the price maintaining systems worked a little too well.

An attractive, stable income might be in high demand. This could put upwards pressure on the free market price of FREEOS to match that demand.

The community might not have the means — nor the inclination — to manage an upwards price pressure. After all, they may consider it to be in their collective best interest.

What might happen if the price skyrockets? Traders and speculators might enjoy this ride, but this dynamic puts a damper on the party in other ways.

The closest dynamic that comes to mind was played out with Masternode projects in the cryptocurrency space.

Masternode projects, such as DASH, created a valuable, ongoing passive income stream through staking enough coins to run a masternode.

Unfortunately — for most — this became quickly out of reach for most ordinary people as the demand shot up. It was great for the first people that were early enough to obtain a Masternode, however.

Freeos is not intended to reward only the early adopters.

Freeos is intending to create a system that allows anyone, from any means and any walk of life, that wishes to join.

In Part 2 it was explained how the Proof-of-Burn Access Fees, paid in FREEOS tokens, are burned and forever removed from circulation. And when an entire fee is burnt, Vouchers are minted and sent to FreeDAO (the decentralised organisation building Freeos).

These Vouchers are not currency-style tokens. They are more like coupons with limited functionality.

Also, unlike a currency token, they have an expiry date that limits their already limited functionally further.

But what are Vouchers used for?

The primary purpose is to provide an alternative method of onboarding new people into Freeos. We call this our Voucher Outreach Program.

Especially people who might not have the financial means to pay for the access fee.

Especially if the Proof-of-Burn Access Fee unintentionally is steered by the community in a way that becomes too expensive for many prospective participants.

But doesn’t this bypass the access fee — mentioned in Part 2 — that is designed to maintain value?

That is the reason these Vouchers have an expiry date. They aren’t intended to circulate and be traded. Few traders will want to hold on to an asset that may expire and become worthless.

Informed Participants

Besides onboarding those that may not be able to afford the Proof-of-Burn Access Fee, the Voucher Outreach Program works well to help onboard informed participants.

These new participants will be exposed to a deeper understanding on how to be good stewards of the Freeos economy.

This may end up being an important aspect that allows Freeos to function well as a “dynamic democracy”.

Seems more important than ever.

Vouchers are to be offered alongside workshops that introduce people to the concepts of cryptocurrencies, as well as how to be informed stewards of the Freeos economy.

Having a growing body of good stewards amongst the participants will help Freeos become the dynamic and thriving economic system it is intended to be.

Attracting Local Markets

Many cryptocurrencies end up staying firmly planted in the world of traders, speculators and HODL’ers.

Few gain any real traction as actual useful currencies outside of a few niche use cases (international remittances, underground markets, tipping etc.).

Part of the problem is related to the percentage of the world population that owns cryptocurrencies. Even those that do, typically only have a limited amount they have purchased or cleverly traded. Often this is locked up and not very liquid.

Very few individuals earn an ongoing revenue in liquid cryptocurrencies that can be readily spent on goods and services.

Even the few people that do use cryptocurrencies often are distributed around the globe and number in low concentrations, and therefore very few markets cater to rarely found individuals.

This makes it difficult for local merchants and services to make the commitment to receive cryptocurrencies as payment.

Add the typical volatility that is common with most cryptocurrencies and it is a wonder that any local merchants or services would ever accept tokens as payments.

Vouchers provide a precise instrument needed to target local communities where a sizable percentage of local people may come to consistently earn a stable, cryptocurrency as an income.

If ten percent of a community was earning income that had a history of price stability and a meaningful value, might a few businesses start to accept this cryptocurrency as payment?

What if it was twenty percent?

Or sixty percent?

What types of numbers would trigger local businesses to open the floodgates?

That question is hard to know, especially considering that the owners of these businesses might earn enough to pay for their own access fee for themselves, family, in-laws and friends.

This is the potential of the Vouchers. They provide ways to target local communities and potentially transform them by supplementing their existing incomes. This in turn has potential to create local markets using FREEOS tokens as a currency.

And as more of these communities pop up, it allows individuals to travel and find that their FREEOS tokens are accepted and useful elsewhere.

Conditionally Limited Supply

Freeos is already historic in how it allows the participants of an economy to govern their own Fiscal Policy through direct democracy.

But it is historic in another key way.

The way the system places value on the active participants over a potential lifetime of activity.

A lifetime of activity? That’s a bold prediction of how long Freeos will stick around isn’t it?

Perhaps. Who knows? Maybe money in all forms will be obsolete in a few decades?

It is hard to predict the lifetime of such a system like Freeos. But who might have predicted, in 2008, that Bitcoin would be thriving today?

Might as well plan for the upside.

So, exactly how are participants assigned a lifetime value?

How to Value a Participant for Life

Since our Max Supply dynamically changes the “max”, we call this a Conditionally Limited Supply.

It is a new concept where every new participant increases the size of the pie by an estimated maximum lifetime of earnings.

And that effectively keeps the earnings for each individual relatively stable as they slowly slice off a percentage of a diminishing — but very large — pie.

This essentially says that every participant comes with a potential lifetime of value that can be realised if participating long enough.

Each new participant’s value is combined with the rest of the other participants’ potential earnings. Then they all slice weekly and share this slice evenly.

And when participants become inactive, the system slowly shrinks away this Conditionally Limited Supply by the amount of missed earnings each week.

This prevents the system from overinflating due to inactive, or deceased members.

This would be akin to a country’s Central Bank lowering the inflation rate as people emigrated or passed on. It would be as if the country took into account how much the economy was potentially losing due to that person’s value to the economy.

And increasing the inflation rate as new people were born, or immigrated to that country.

This would represent a living acknowledgement of the value each individual potential brings as a base level to a country’s economy.

As far as we know, no economic system values it’s participants this way. So we reckon this is a first.

And we hope this acknowledgement of a value each individual brings helps the Freeos participants feel worthwhile and right at home in this new economy.

Democratic Partnership Incentives

Now, it wouldn’t be too audacious to assume that a strong, healthy community draws from a variety of supporting groups, would it?

It is our opinion that healthy communities interface with others in a reciprocal way.

And that is why there are two additional votes that the participants make that has nothing directly to do with the Democratic Fiscal Policy.


Willing Non-Profits will be listed in the Governance dApp where the participants can place weighted votes on those in the list.

Although the majority of the minted FREEOS goes to the participants (90%), a small percentage is allotted for Non-Profits (3%).

It might seem small, but if the economy gets cranking, this percentage may be fairly significant.

This allotment can be voted on, to distribute amongst the many partnering Non-Profits.

In this process, participants will receive 10 votes that can be allocated to one, or many, Non-Profits in the list.

At the end of the voting period, for that week, the collective votes will be weighed and each Non-Profit will receive a corresponding percentage of the allotment.

Not only does this allow the community to support Non-Profits that they support, it allows the Non-Profits to support the Freeos community through onboarding their existing supporters.

Creating a group of giving-oriented, cooperative participants that all wish to work together to make Freeos succeed.

But… That only adds to 93%!?

You’re right, and that brings us to the next section. The Decentralised Autonomous Organisation (DAO) that is creating and maintaining the software that underpins Freeos.

Sustainable DAO Revenue

The group that is working on Freeos is a new type of blockchain-based organisation called FreeDAO.

FreeDAO is a group dedicated to creating systems and tools dedicated to bringing about greater cooperation and freedom.

It is our opinion that freedom within human society requires strong levels of cooperation.

Since it is also our opinion that tools and systems can help make this likelihood far stronger, so we are working to build some of these tools and systems and passing them on to you — and to all others willing to use and improve what we have built.

Historically, in the blockchain space there have been a few ways to fund projects.

Originally Bitcoin led the way in it’s model. Launch a project, and have people earn the coin through mining. The first believers — and those that are clever enough to set up better methods to mine more efficiently — got rewarded.

Traders and investors would then buy from the miners and either trade, or hold on (HODL) to make profits based on the changing valuation.

This worked sometimes, but soon, many good projects never had enough of a budget to continue development nor to spread the word effectively about their project’s advantages.

Not long after the launch of Bitcoin, and their derivatives (1st altcoins), blockchain projects began to shift their strategy.

Coins were pre-minted (pre-mined) and sold — and often given to early developers as a type of sweat equity.

This led to the concept of an “ICO” or Initial Coin Offering. This concept was spurred on by the rise of Ethereum, and the blockchain-based “smart contract” programming that allowed for more complex and nuanced transactions.

ICOs seemed great — at first. A project could raise funds without having to take on loans or raise investments. Many good projects were launched and a rich landscape of interesting projects tackling a variety of use-cases appeared.

But this had its drawbacks as well.

  • Some projects ran afoul, or walked a tight line with Security laws.
  • Other ICOs ended up spoiling well-intended projects due to being flush with cash and a poor strategy to spend this wisely, especially when the market dropped in 2018 and the funds gathered were now worth less (or even near "worthless").
  • Many ICOs ended up just being scams that severely hurt the landscape.
  • Many of the original cryptocurrency enthusiasts lost faith and trust, as they saw a glut of greed and mismanagement rush into the space.
  • Many new buyers of coins watched with helplessness as the bubble crashed, and the majority of their value lost (often around -90%)

So, how to launch a project that respects the early spirit of cryptocurrencies being a tool for freedom, while ensuring that modest, but sustainable funds are provided to development, maintenance and marketing?

Fortunately blockchains have evolved since these early days, and more complex economic and governance structures are now possible.

Enter the DAO

The rise of Ethereum — and other smart contract platforms — allowed a novel, new type of governance structure to form: The Decentralised Autonomous Organisation, commonly called a DAO (pronounced “Dao”).

This led to the realisation that if a sustainable, ongoing income could be powered through direct democracy on the blockchain, then a sustainable allotment of development funds could continue as long as the system did.

Now you are probably reminded of the missing 7% of the mint, right?

Your hunch is correct. FreeDAO receives 7% of the mint. This is used, initially, for the continued development, maintenance and onboarding (also using Vouchers).

Later, this will be used to create additional tools and systems to be offered to the world.

A few of the ones on our radar include:

  • FreeDAO itself:

We are looking to build a novel, new type of democracy and share this system for any organisation that wishes to utilise it.

  • United Peoples:
  • This utilises everything we’ve built — up to this point — to create a grassroots-style, decentralised version of the United Nations — intended to lobby and represent a new type of scalable, democratic voice on behalf of the people of the world directly.

    And, instead of relying on token sales with limited funds for the development, Freeos provides FreeDAO with a small amount of ongoing revenue — which further limits any whale-like activity from FreeDAO.

    To support these efforts, you, and all other participants only need to sign up, vote, earn and repeat — then watch as more tools for freedom and cooperation are built and deployed.

    Currency First Principle

    The FREEOS token is designed to be a stable and useful currency through-and-through.

    It is important to note this, as many other cryptocurrencies have been designed to be holdings that are hoped to raise in value, or to provide additional rights and privileges.

    The FREEOS token does not inherently grant any privileges.

    It can be used to pay for access to engage in the Democratic Fiscal Policy and accompanying Community Activated Minting where it may earn a Self-Governed Cooperative Income.

    As other cryptocurrencies can also be used to pay for this Proof-of-Burn Access Fee, FREEOS is but one of a number of currencies.

    Additionally, participation in the Freeos system requires active stewardship — the token itself does not grant special privileges.

    And with good governance and wise stewardship over time, it is expected that the FREEOS currency will become stable, and limit any temptations to speculate. This will help ensure usefulness as a currency — and as a source of income.

    This design is not by accident, it was designed with strong consideration of various nations’ security laws to steer the token towards being a currency used to earn, and pay for services and goods.

    It is just an unusual, novel type of currency — being democratically minted after all.

    Series Conclusion

    In conclusion we will summarise this 3-part series with a number of key highlights that work to make the Freeos system a genuine attempt of creating a working, democratically run economic system.

    Ten key highlights that were covered in this series are as follows:

    1. Self-Governed Cooperative Income
    2. Democratic Fiscal Policy
    3. Community Activated Minting
    4. Burn Valuation Dynamics
    5. Voucher Outreach Program
    6. Conditionally Limited Supply
    7. AirClaim Initial Distribution
    8. Democratic Partner Incentives
    9. Arbitrage Trading Opportunities
    10. Sustainable DAO Revenue

    These 10 Highlights — and the many dynamics they enable — help you, and other participants, to steer the Freeos economy towards a healthy value.

    This positively impacts your own self-interest as well as all others. You can feel confident that others are incentivised to make this system work — just as much, or more, than you are.

    It also improves the economic outcome of other participants, partners, and FreeDAO — which furthers the creation of additional freedom-oriented tools and systems.

    And did we mention that this just might be a historic event?

    As far as we know, no other economic system is governed directly by the participants in that economy — and rewarded for their efforts.

    And, also as far as we know, no other economic system dynamically assigns potential earnings and value to each active participant, and reduces these potential earnings and value when participation drops off.

    An economy not only designed for growth, but for stability and economic sustainability. And it has systems designed and engineered to help make this a reasonable likelihood.

    Why not take a small chance to sign-up, join and be a part of this historic, new re-imagining of what an economy can be?

    And you might just earn a not-to-shabby supplementary income while you’re at it.

    Sign Up here.

    And if you'd like to ask questions directly, Join our Discord Channel.

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