An overview of KLU Utility Tokens for New Age DApps and The Matrix-8 Solution
This is Original Content (a re-write of this page which will be updated after posting here), first posted here by @atma.love at the request of and written by @matrix-8 John Huckel . All Hive rewards to New Age DApps Community
What are tokens?
Tokens are the cryptocurrency usually offered in an Initial Coin Offering (ICO). There are basically two types of tokens issued in ICO’s: those that fall under the jurisdiction of the US Securities and Exchange Commission, and those that do not. The tokens the SEC is interested in are known as Security or Equity Tokens. With Security or Equity Tokens, a token purchaser is buying something which gives them contracted rights to receive value from, or ownership participation in the enterprise – very much like owning shares in a company.
Utility Tokens are different in that they confer no fiduciary or managerial rights to the holder. Utility Tokens are also called App Coins, App Tokens, or User Tokens. Although they give no rights to the holder as regards the enterprise itself, they are a utility in that they provide coin holders with a Currency with which to exchange with other Members of the enterprise issuing them. The issuing authority may also offer discounted access to future products or services in the business conducting the ICO.
Simply put, the key difference is that Equity Tokens entitle the holder to ownership rights, while Utility Tokens function as Currency or coupons and do not provide holders with an ownership stake in a company’s platform or any other asset. They are similar however, in that both Equity and Utility Token prices may fluctuate as the perceived valuation of the underlying enterprise fluctuates.
“Knowledge, like air, is vital to life. Like air, no one should be denied it.”
– Alan Moore, “V for Vendetta”
KLU tokens are Utility Tokens
And New Age DApps (NAD) will endeavor to create itself so that no government in any jurisdiction will ever have an excuse to meddle in its affairs or the affairs of its Members. None of what follows is set in concrete, and by the time we initiate an ICO (if we ever do) we will have had the input of experts in this and all areas of our venture. So, much of what we are currently presenting may change as we grow membership in our Group. And if you join us as a Member, you will have a voice in determining the details of the rules and regulations of our KLU tokens. Basically, all our Members in congress assembled—the Mob (see definition below) —make up their own rules as they go along. This is known as Associative Anarchy.
Leadership Image Source: Preview on Google Images from The Enterprisers Project (no longer online).
So, what is a KLU?
KLU is an acronym from the first letters of Knowledge, Leadership, and Understanding; KLU’s are pronounced, Clues. That name was selected because we want our tokens to constantly emphasize the importance of continual Recruitment – in order to maximize the Network Effect, which states that no matter the product or service, the value of a platform grows by acquiring more Members. If there were a platform with only 10 Members, and each Member had 1000 tokens, those tokens would have next to zero value. But once we are 10 million – those tokens would have great value, because they would allow us to exchange within a huge community. That's the Network Effect. And, as the value of our platform increases, so does the value of the token it issues. The more Members we have, the greater will be the value of the KLU Coins we issue. And where other platforms will grow as individuals are informed about its value, New Age DApps will grow by 100's and 1000's at a time. Its utility doesn't really kick in until it is servicing Groups in the 100's.
Size of the network provides Value to the tokens, so does being the first utilizing the innovative Matrix-8 Solution. There will inevitably be copycats once Matrix-8 makes a splash. But just as Bitcoin has a huge advantage because it was the first of its kind – so will the first platform using our system.
How do I get a KLU?
There are 2 easy ways to accumulate KLU's. They are by increasing your own knowledge about the Matrix-8 Solution, and by also recruiting new Members. Each new Member adds Value to the Mob per the Network Effect; and then when a Member increases their understanding about Matrix-8, that too increases the Value of the Mob overall. And, of course, in order to be a successful recruiter, you, yourself, should gain Knowledge about the mechanics of the Matrix-8 Solution. You understood its obvious value, and became a Member. Now, you must assume a Leadership position and seek out others who might see the benefit from such a platform. And to get them to join – you must bring them to Understanding. Once they become Members—because they too see its obvious value—it is expected that they will also seek out new recruits.
Thus, there are levels of membership in the Mob. Anyone can be a Member without doing much of anything – it's free! But to reach the next level, a Vested Member, a new Member must pass a test showing their basic knowledge of: Blockchain; Tokens; Smart Contracts; the Mob; MultiLevel Governance; the Matrix-8 Platform; the Organizing Structure; the Division of Governance vis-à-vis the US Constitution; and the concepts of Donation, Gifting, Exchange, Barter, Money, Currencies, and the Real Bills Doctrine. As a Member you have access to the Mob; a Vested Member also has access to participating in the Organizing Structure of NAD.
Right now, for every new Member you recruit, you will be awarded 10 KLU's; and for proving your Knowledge by passing a test – you will be awarded 5 KLU's. And since you will share in all the rewards your Downline receives (personally recruited Members, plus their recruits), it is expected that you will take the responsibility to make sure they too pass the test, and that they too recruit. It is very likely that as the Mob grows, and recognizes other fonts of Value for itself – it will establish more levels and other badges of honor to recognize various types of individual Contributions. Presumably, the Mob will be moved to to make KLU Donations in appreciation to those specific Members responsible for tapping those other fonts of Value.
Just another MLM recruitment scheme?
Not at all! The Matrix-8 Solution is offering a real and currently unique service. Never before has True Democracy been possible in large Groups. The best we have been able to do is Representative Democracy – which obviously has its shortcomings. Recognize that Matrix-8 Platform's customers will be both individuals and groups who are servicing large numbers of individuals. As an example, a stockholders meeting may include 100's, if not 1000's of Participants. Governmental voting services may include 1000's, if not 1,000,000's of Participants. Similar numbers could be expected sending a birthday greeting to Katy Perry or Donald Trump. It would be expected that each Participant would pay a small fee to access the platform. So, you can readily see that the potential as a commissioned salesperson would be enormous. Plus, if any of those participants recognized the value of becoming a Member, those new Members would be within the downline of that salesperson. Someone successful in sales could make a comfortable living off of commissions alone – plus, the potential residual income from the efforts of his or her downline could be considerable. When you help create the platform, you will be rewarded with KLU's, MLM-style.
Additionally, there will be fortunes to be made by those first few who create their own Matrix-8 Platforms and set about targeting specific types of end-users. The Matrix-8 Solution is open source, and as such, all entrepreneurs are welcome. Assuming that someone tailored the platform to be particularly attractive to their chosen markets, they could charge a premium to those entities using their services. Plus, of course they could reap the benefits of any new Members that their platform brought to the Mob.
Just another Bitcoin clone?
A KLU Coin is similar to Bitcoin in that it is a speculative, faith-backed Currency. Like most tokens generated in ICO’s, KLU’s are backed solely by Confidence. And like Bitcoins, KLU's have the potential of being used by millions of Members over time. Their value will be subject to fluctuations based on the public’s confidence in the underlying business model. If we are correct in thinking that the Matrix-8 Solution will explode in membership once it is seen that NAD has terrific societal value – and being the first of its kind, different from anything else out there – the value of its tokens—like Bitcoin's—is expected to experience a similar explosion straight up. But of course, the value of the KLU's issued by New Age DApps will rise and fall over time.
Different from Bitcoins, KLU’s will not have a limited number, nor will they come into existence through mining. They will come into existence exclusively through being issued by the Mob in congress assembled on the NAD's Matrix-8 Platform. They are Donations from the Mob itself in recognition to those Mob Members who have themselves donated Value to the larger Group. In this case – Value donated in to the Group, will be matched by donated Value back out to its Members in a 1 : 1 ratio. Value In equals Value Out. Aside from fluctuations due to speculation, the value of the enterprise will stay in balance with the value of the tokens issued. There is neither programmed Inflation nor Deflation as a function of the system. This is one of the characteristics which traditionally defines Money: it is a store of Value.
KLU's are unique!
And here is where we really distance ourselves from other Cryptocurrencies. This is solely our Currency – of, by, and for, the Mob. As now planned, NAD will issue its KLU Coin Utility Tokens, only in response to an increase in the Value of the Matrix-8 Platform. And that Value will have been donated by the Members themselves. It's basically, Value In, in the form of energy donated by Members – as New Members, Increased Knowledge, Goods, Services, and Cash – and then a corresponding Currency Out of KLU's gifted to the donors in gratitude. In this way a balance between the number of tokens issued will be maintained relative to the Value of the platform. So, as X Value is donated by our Members – an appropriate number of tokens will be issued – as determined by the Mob (you and the other Members). Individuals like you, will donate to the Group, and in its appreciation, the Group will gift tokens to you. No Contracts!
Don't forget, the NAD Matrix-8 Solution Mother Organization will be owned by the Members themselves. There will be no need for contracts to be involved, the underlying trust of the Members in themselves will be enough to hold the Group together. Blockchain will keep track of each Member's Donations, so no one's efforts will be forgotten. And it is the Members themselves (aka the Mob) that will decide how to make all donations of KLU’s to its deserving Members. If you're a Member – you get an equal voice in deciding KLU allocations. It is expected that you and other Members in congress assembled will decide to issue KLU's on a monthly basis. Who can you trust better than yourself?
KLU's cannot be purchased into existence
Unlike other tokens, which can be directly purchased by anyone interested – KLU's are different, i.e. they cannot be sold by the Mob to outsiders. But if someone were to become a Member—which is free—and chooses to donate $1000 to the cause, then when it comes time for the Mob to donate KLU's to those who have donated to NAD, it is expected that the new Member would be rewarded by the Mob for helping out. The number of KLU's the Mob would donate to the $1000 donor would be determined according to some algorithm decided at the time of the monthly disbursements of the Mob, by the Mob, and for the Mob. Those who had helped the cause would be rewarded as the Mob determined at that time. But there are no Contracts! There is just faith in the Mob to be fair in its disbursements.
KLU’s will be used exclusively within the Mob itself
This is to insulate the Mob from any governmental agencies monitoring real-world exchanges. In order for KLU's to be used for purchases or payments to someone outside the Mob, they would first have to be converted into a suitable currency through sale to someone within the Mob; or the intended recipient would have to become a Mob Member too. In fact, when NAD donates KLU’s into existence, there is a stated caveat that one aspect of them is that they can never leave the aegis of the Mob. We never want any governments meddling in our dealings – and KLU's going outside the Mob would set off all manner of alarms.
So, all exchanges using KLU’s are always Member-to-Member affairs within the Mob. Basically, if someone owns a KLU, it is assumed they are a Mob Member. Part of the Blockchain for KLU’s will contain the Smart Contract stating that ownership, or use of a KLU is prima facie evidence of membership in the Mob.
This KLU Coin/s is not guaranteed to have any value. It is to be used only between Members of NAD. It is not intended to be used for any purposes outside the aegis of NAD. By your accepting this KLU Coin/s, you are by adhesion contract a Member of NAD. If you do not want to be considered by the Mob to be a Member, do not accept this coin – which by Blockchain will forever be prima facie evidence that you did willingly connect yourself with the Mob and agree to abide by the stated rules of NAD.
If you are new, we hope you will accept our Donation and become the newest Member of the Mob.
It's totally free to be a Member of the Mob – but you must be a flesh and blood human! No artificial entities, or Groups of any kind can hold membership in NAD, neither can they own a KLU. If you want to buy a Big Mac with KLU's, the owner of the McDonald's in question would have to be a Mob Member, and you would be exchanging your KLU's with him or her – not with any corporate entity.
There is a nice accompanying motto:
If you aren’t in the Mob – you haven’t got a KLU!
So, what’s all this Mob business about?
There are a number of commonly used words which need to be re-evaluated. Just as the winners of wars get to write its history, those same winners over time have defined various words in their favor. Mob, Anarchy, and Speculator, are three such words. They denigrate the independent action of the common man and woman, and assert that only the Elite do things right. We are Sovereign Individuals – let’s redefine these words in our favor:
- A Mob is a group of Sovereign Individuals who are fed up with the status quo, and without the guidance of their Betters (the Powers that Shouldn't Be) – they are taking responsible associative action in coordination with their Peers.
- Anarchy is that same unruly crowd getting along just fine over an extended period of time… with no Leaders!
- And Speculators are investors who make huge profits outside of the Good Ol’ Boy Network.
The Matrix-8 Solution can literally reboot Western Civilization
This is quite obviously a boastful statement. But, as we grow – it will be with people (hopefully like yourself) who can see the potential of the proposed platform, and are willing to add to the motion towards that utopian goal. Once we have proven successes in the Real World, and our platform is established, the public will flock to it for its unique utility – and many of the users will become Members. That's when the Network Effect will really kick in.
We at NAD are advocates of Associative Anarchy; we embrace the Mob; and we want to help create as many successful Speculators as possible. NAD is actively recruiting for the Mob. Join us! Together we can do it!
To learn more about The Matrix-8 Solution, how it works and what what it can do to benefit humanity, please read other posts in the New Age DApps Community.
A good starting point could be this Matrix-8 Questions and Answers page
Please reply below this or any other post with questions or comments, and Join the New Age DApps Community to help bring The Matrix-8 Solution into being and be rewarded with KLU's for your efforts. If you do not have a Hive account you will need to join Hive to be able to comment and to join the New Age DApps community. You can get a free Hive account here.