Managing the Cryptocurrency Challenges
Crypto Management is why Universal Real Estate Wealth Protection Solutions, LLC™ (UREWPS™, the Company) exists. The primary duty of the Company is to actively monitor and manage the CuBitDAO™ Asset Ledger balances. This means, we take all reasonable and legal measures to keep the asset balances in the CuBitDAO™ Asset Ledger (the Ledger) within tolerances. Above all, we take actions that support the value of CuBit™.
The Ledger won’t usually get to an out of tolerance quickly. Experience suggests out of bounds conditions occur when we can’t take corrective actions within current limitations.
At times, we may preemptively request a CuBitDAO™ (the DAO) vote to increase or decrease the supply of CuBit™. We constantly analyze market conditions and opportunities. If analysis indicates, we may contract or expand the currency supply to support CuBit™ value and stability.
1.0 Crypto Management – Limited Control
Controlling the supply of a currency is essential to protecting it from inflation. CuBit™ gives you a direct hand in that control. It is almost like you have become a member of the US Congress, telling the Federal Reserve how much money they are authorized to print. In this scenario CuBit™ is the money, and UREWPS™ is in the place of the Federal Reserve. As a member of the CuBitDAO™, you are in control.
Our ability to increase or decrease the supply of CuBit™ is limited by you. We can only mint CuBit™ up to the limit of the current Minting Authorization or the Coin Cap, whichever is lower. We can buy CuBit™ off the market and into the treasury. The Company can take these limited actions without a vote from the CuBitDAO™. Taking CuBit™ out of circulation (burning) can only be authorized by the CuBitDAO™. Increasing the Coin Cap can only be authorized by the CuBitDAO™
Burn or Buy
When CuBit™ is minted, it doesn’t automatically go into circulation. Instead, it is placed in the CuBit™ Reserves (Reserves). Other than during Pre-Launch, when you deposit money into the CuBitDAO™ CuBit™ is moved from the Reserves into your wallet. That puts CuBit™ into circulation.
When we buy CuBit™ off the market, if we are buying it for our own account, the CuBit™ is still in circulation because the Company has exchanged our money for CuBit™. If the DAO directs us to buy CuBit, then we are exchanging DAO deposits for CuBit™, and the CuBit™ is then removed from circulation and put back into Reserves.
Only when the DAO directs can we burn CuBit™. When that happens, we either buy back sufficient CuBit™ with DAO deposits, or we move sufficient CuBit™ from Reserves into the Burn Wallet. Then, we execute the authorized CuBit™ Burn. Burning indirectly decreases the CuBit™ in circulation. Burning directly decreases the CuBit™ Reserves, which are available to put into circulation.
1.1 Methods
The primary mechanism we use to maintain the balance within tolerances is through the acquisition and divestiture of real estate. Acquisition converts liquid assets in the CuBitDAO™ Treasury (Treasury) into real estate assets in the Treasury. Divestiture converts real estate assets into liquid assets, within the treasury.
When liquid assets are excessive, we buy more real estate. Alternatively, with the permission of the DAO, we can fund related strategic endeavors. We can redeem Hostage CuBit™ (see related documents on Hostage CuBit™), essentially retiring a loan from the Founders of the CuBitREvolution™. We can submit a proposal to the CuBitDAO™ to burn coins. We can do any combination of these actions.
When real estate assets are excessive, we have several alternatives. First, we can liquidate real estate assets. Second, we may ask the CuBitDAO™ to raise the Coin Cap. With an increased Coin Cap, we will mint and exchange additional CuBit™. Third, we may do a combination of these actions. All our alternatives have the effect of increasing liquid assets relative to real estate.
2.0 Crypto Management – Options
The preferred resolution for out of balance conditions is, in order of preference, to:
- Mint and exchange more CuBit™, investing in additional real estate to increase the value of CuBit™
- Invest in strategic efforts related to CuBit™ that will indirectly bolster its value
- Buy back and burn CuBit™.
2.1 Minting More
Minting more CuBit™ gives more people the chance to store their wealth where it is safe from volatility and inflation. Liquid assets flow into CuBit™ as you deposit your wealth here. We park 35% of your deposit and use the other 65% to buy real estate. The appreciating value of our real estate drives up the balances in the Asset Ledger. As the value of real estate exceeds the amount invested your wealth grows. Appreciation-based value creation is part of the secret sauce that makes CuBit™ a currency instead of a security.
Your routine liquidity needs are easily handled. The 35% of your deposits kept in liquid assets make this possible. That luxury isn’t available to you when you invest directly in real estate. For more on how controlling the monetary supply helps protect your wealth click here.
3.0 Crypto Management – Strategic Efforts
One of the most important strategic efforts UREWPS™ is targeting to enable sovereigns’ management of real estate interests is through the blockchain. This is both important and difficult. We call this effort The Worldwide Property Rights Registry™ (TWPPR™). When we succeed, it will help catapult CuBit™ forward onto the world stage. That means more growth for your wealth.
Much of the crypto world reeks of the spirit of piracy. It often seems like the “wild west” frontier of finance. Everyone, except the pirates, will benefit by taming this frontier. Taming the frontier is done best with a thoughtful combination of self-governance and sovereign regulation. The CuBitREvolution™ will lead the way.
4.0 More CuBit™
To avoid routinely asking the DAO for permission to mint CuBit™, the DAO has created the Minting Authorization Limit. This limit is well below the Coin Cap, and will likely be below the Coin Cap for many years of DAO growth. The Minting Authorization Limit is also greater than the amount the Company needs for immediate release. The Company mints and releases CuBit™ incrementally up to the current Minting Authorization Limit as the DAO grows. This gives CuBit™ room to grow in value. When we near the Minting Authorization Limit, the Company will ask the DAO to increase the limit. The DAO Members will need to vote to change the Minting Authorization Limit.
The difference between the Minting Authorization Limit and the quantity of CuBit™ that is minted and released is at the discretion of the Company. This effectively gives the Company the authorization to mint CuBit™ up to the Minting Authorization Limit.
5.0 Conclusion
Subjecting all the actions of the Company to voting of the CuBitDAO™ will impede the ability of the Company to react quickly to protect the interests of the DAO in the middle of rapidly evolving situations.
In addition to the measures discussed here the DAO has created the Administrator Contract to govern the relationship between the DAO and Company. This agreement sets boundaries, within which the Company can operate without requiring a vote of the CuBitDAO™. Actions and situations which fall outside those boundaries require the Company to bring recommendations for actions (Proposals) to the DAO for the consideration and vote of the Members.
Managing CuBit™ to protect the interests of the DAO is a challenging endeavor. The use of the Company as a DAO Administrator is wise. Wiser still is the codifying of the agreement between the DAO and the Administrator into a smart contract on the blockchain. Additionally, requiring the Company use the CuBitDAO™ Asset Ledger to demonstrate its compliance with the Administrator Contract and putting the Asset Ledger on the blockchain is brilliant.
The CuBitDAO™ has taken unprecedented measures to make its operations in the interest of DAO Members effective, efficient, and transparent. We predict that others will seek to imitate this powerful and thoughtful approach to cryptocurrency management.
Glossary: CuBit™ Glossary
About the Author: CuBit™ Roots
Disclaimers
This does not constitute an offer to sell or buy a security. Any such offer would be accompanied by all legally required documentation. CuBit™ is a receipt currency. Distributed Regional Affiliates shares are regulated under the securities laws of the United States of America.
Although the design of CuBit™ incorporates inherent protections against volatility and Universal Real Estate Wealth Protection Solutions, LLCTM (UREWPSTM, the Company) is committed to support the asset-based valuation of CuBit™, as with any currency there is nothing to prevent speculators from taking unforeseen actions which might cause the price of CuBit™ to vary without reference to the underlying value proposition. The Company cannot prevent and is not responsible for the actions or results of such speculative behaviors.
CuBit™ may lose value. Deposits in CuBit™ are not insured by the FDIC or any other entity. CuBit™ is not a bank product.
The graphics utilized the Universal Real Estate Wealth Protection Solutions, LLC™ (UREWPS™) and CuBitREvolutionTM websites and in the Company and product documentation include both AI-generated images and licensed content sourced from Deposit Photos and Shutterstock via TechSmith. While we strive to ensure the accuracy and relevance of all visuals, all graphics are intended for illustrative purposes and may not fully reflect actual products or services. The use of AI in graphic creation is subject to limitations, and we encourage users to verify information independently. The company disclaims any liability for decisions made based on the content provided. For specific inquiries or further information, please contact us directly.
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