We believe that the distribution of CENTUS among existing CENTUS holders is the fundamental basis for the stability of the entire system. Moreover, we are sure that this speculative component gives stability to our “Stable Cent”.

When a сеньораж (dividend) is distributed between the holders of CENTUS, the coin gets 2 sources of value: A stable coin CENTUS itself and a seigniorage, which is paid to people twice a week. The stable coin CENTUS is pegged to 1 US CENT (￠). Since CENTUS owners regularly receive seigniorage, the cost of CENTUS is 1￠+ seigniorage. This means that as long as people expect upcoming coin accruals, they will ignore the basic 1 cent peg and be ready to buy CENTUS at prices more than 1 US CENT.

In fact, if market participants expect that there will be a seignorage distribution in the near future and new CENTUS will be distributed among their owners, they hardly would be motivated to sell their CENTUS at a price less than 1￠ + expected seignorage.

We estimate that this dynamics will not lead to high volatility of the CENTUS price, as quite a large amount of coins will be distributed on the market through their recipients. This will stabilize the price of CENTUS by putting predictable pressure on it.

In the case above, we believe that if market participants would expect new payments to CENTUS owners in the near future, they would buy CENTUS for speculative reasons. The CENTUS algorithm will respond to this increased demand through minting new CENTUS in order to recover price of the coin to 1 US CENT.

And although this may encourage speculators to buy CENTUS even more in order to receive these new coins, and cause long periods of artificially increasing and keeping prices at the level above 1 cent, the algorithm decreasing a rate of the seigniorage when a price of CENTUS increases will stabilize CENTUS at a level about 1 US CENT.

It is natural to assume that the distribution of new coins among the existing CENTUS owners will only increase the value of CENTUS, as this creates an attractive speculative component that rewards people for adopting CENTUS.

We believe that the addition of this speculative component will stimulate constant demand, and a seignorage with floating interest will only increase the usefulness of CENTUS, without jeopardizing its stable value.

According to our forecasts, this will significantly increase the real and long-term value of CENTUS for market participants.

We intentionally set such a high seigniorage level for CENTUS, because, according to some calculations, there should be 3–4 times more small coins in the economy than paper money. Just like in real life, the bulk of small coins In the CENTUS economy is usually not used in circulation, but accumulated in wallets, piggy banks, pods as a change. The principal difference between it and metal coins is that you never will lose your change, your CENTUS will always remain with you.

CENTUS is not “minted” for future use: Each unit is created at the time of purchase and is destroyed in the case of reverse exchange. Thus, the bulk of CENTUS will be secured by assets that will fall into the reserve.

The primary purpose of CENTUS is to serve as a means of accumulating and generating income for ordinary people, holders of it, as well as a means of settling between thouse people, and not for speculations by traders.

We do not seek external financing from outside investors, for the reason that they will require high returns in exchange for early investments later. We sincerely believe that these high incomes can be directly sent to people who buy CENTUS without these first intermediaries.

The CENTUS affiliate program implies that the coins will be owned by any people in the world, not just those who have the means to purchase them. At the same time, we achieve the network effect, which is so important in the blockchain economy.

We like “Libra” — an ambitious project, promoted by the social network Facebook accompanied by global technology leaders. But with all advantages like a stable currency and a global nature, this project provides for partnership only with the largest companies which potentially will receive a huge seigniorage from the currency issue in the future.

However, not every ordinary person can become a holder of Libra, because if you don’t have enough money to buy cryptocurrency, you actually can’t use it, no matter how global it is.

On the contrary, CENTUS with its affiliate program aimed at broad masses of ordinary people will allow anyone in the world to hold stable coins and receive an income not only from affiliate program, but also from seigniorage, although previously seigniorage was a prerogative of states, central and commercial banks.