Belgian e-Frank: A first draft

Submitted by damien on Mon, 02/12/2018 - 20:07

Introduction

The name "BeFrank" is short for the Belgian e-Frank. BeFrank is our plan-b for Belgium in terms of monetary and financial turmoil. We intend to provide all the infrastructure and incentives to democratise money. BeFrank is money by Belgians, for Belgians and under the control of Belgians, or anyone who feels part of our community for that matter.

Logo

 

 

 

 

 

We deliberately chose English at this point of time, because we want to avoid any bias towards any part of the country. Of course, we welcome all translations as we progress in this journey.

The "Belgian Frank" has been a distinct unit of currency in Belgium since 1832, two years after the founding of our nation. We have chosen to reuse the name for educational and nostalgic purposes, since it has been replaced by the Euro at New Year of  1999 (*).

The "Frank" or "Franc" therefore is a very well-known term, with very strong associations with "money" not only in Belgium, but many other nations, such as France and Luxemburg. It sounds familiar to people, which makes it more easy to adopt and teach.

It has been resurrected in the digital form of cryptocurrency, based upon proven and tested technology.

(*) We want to party like it's 1999 once again.

The Founders

We are no strangers to each other, and neither should we be to you. Unlike most creators of cryptocurrencies, we are not afraid to put our names behind the coin.

  1. Andre
  2. Damien
  3. Maarten
  4. Stijn


Mission Statement

Provide all the infrastructure and incentives to democratise our money. Easy to use and free to receive via Airdrop for every Belgian. We reserve a 10% fund of the money supply to provide for social welfare, especially for the millennial generation. All under democratic governance.

Goals and Values

Honesty: At the time of launching the BeFrank, we are plagued with Ponzi schemes and exit scams in the crypto-currency scheme. We therefore value honesty and a long term approach to this next-generation form of money. The world-play on to "Be Frank" and "Get Frank" are no coincidence. We put our name and reputation behind the BeFrank, since we believe in democratising money.

Ecology: We chose the CryptoNote variant, since it employs many techniques preventing specialised hardware to be engineered that consume ludicrous amounts of energy to safeguard its blockchain. A regular computer is necessary to "mine" BeFranks, which is not only more democratic, but also far more ecological.

Stability: Miners are rewarded BeFranks which are added to the money supply for auditing the transactions. Low transaction fees will slowly become sufficient to, once there is enough critical mass. In the seed phase of the project we will use our own funds in fiat an BFR (BeFrank) to guarantee the purchasing power of 50 BFR to purchase a beer. 

Social Welfare : Belgium is still has affordable health care and a high standard of living. Nothing lasts forever and we merely want to provide a plan-b for the future. Especially the millennials are in danger and left stuck with paying the bill for a collapse in a fiat (government decreed) monetary system that requires infinite growth and capitalism turning into  an oligarchy. We reserve 10% of the monetary supply, a legit "silver fund" to save for the future.

Democracy: None of us want to be in sole control of the money supply and reserve fund. Therefore we are open to work with the government and work with multi signature transactions and allow the same privileges to anyone in the system as users, and also as developers to improve the system.

Sharing is Caring: We pledge to provide every Belgian with at least 5 BFR for free in multiple ways including an airdrop (simple registration in return for free money) and free beer (we provide the BFR and the beer, it is up to you to make the transaction and be witness of the birth a new form of money by using it.)

Education: We hope by providing every Belgian with 5 BFR, the software and training sessions to educate everybody who wants to on how money works. Have you ever wondered what money is, where it comes from, how much money there is and who controls it? It is half of every transaction you and what you receive or give for labour and time.

Monetary Philosophy

BeFrank is based on principles of the Austrian school of economics which emphasizes the spontaneous organizing power of the price mechanism and holds that the complexity of subjective human choices makes mathematical modeling of the evolving market practically impossible. Its scholars eschew what they consider "naïve" and pointless mathematical modeling of the economy, considering much of mainstream economics a form of economic charlatanism. Its proponents tend to emphasize the organic, subjective and evolving nature of market dynamics, advocating the strong protection of private property rights and the strict enforcement of voluntary contractual agreements between economic agents as the best way of facilitating economic exchange, and generally advocate a laissez-faire approach to the economy, arguing that the smallest imposition of coercive force (especially government-imposed force) on commercial transactions is the most effective way to secure long-run economic stability and well-being.

In particular, they voice serious concerns about the distorting and damaging effects of government involvement in commerce, arguing that few government regulations in this area are necessary or desirable and often trigger a "ratchet effect" as problems associated with existing regulations are often blamed on the free market, thereby justifying further damaging, coercive incursions into the market. They are particularly critical of long-standing governmental incursions into the area of private money production, advocating instead the immediate abolition of all coercive legal tender laws and the return to full reserve - or free - banking, where the financial system is decentralized and not dominated or controlled by coercive monopoly government or a monopoly central bank.

One of the most known scholars, Noble Prize laureate, economist and philosopher Friedrich Hayek it it's book The Denationalization of Money states that instead of a national government issuing a specific currency, use of which is imposed on all members of its economy by force in the form of legal tender laws, private businesses should be allowed to issue their own forms of money, deciding how to do so on their own. Hayek advocates a system of private currency in which financial institutions create currencies that compete for acceptance.

BeFrank is proposed as one of such free exchange medium – egalitarian, decentralized system with enhanced privacy, where value of its units is based solely on supply and demand in the market, emission depends on constant mathematical algorithm, where everyone can participate in emissions of BeFrank, receiving them as a reward for the provided computing resources of their regular PC to support the network.

We are not purists in the Austrian school. Although we do believe in real money, we also believe in a community taking care of itself. Therefore we are open to co-operate with the government to dedicate funds to improve the standard of living and provide the option of voluntary donating a percentage of a transaction to the fund so there is self-regulation.

Fungibility and privacy of BeFrank

Anonymity is implemented by ring signatures to hide the sender and one-time addresses that are hiding the recipient.

Privacy

Transactions in BeFrank are untraceable and unlinkable, if you chose them to be. BeFrank provides complete anonymity and privacy using cryptographic technology ring signatures. All transactions signed on behalf of a group so that it is impossible to determine who exactly from the group signed the transaction and, accordingly, one can not say with certainty who carried out the payment. The more participants in the group, the more confidential operation is. In addition, the transactions cannot be associated, – even if outgoing transactions are untraceable, everyone may still be able to see the transactions you have received. However, by using a variation of the Diffie-Hellman exchange protocol, a receiver has multiple unique one-time addresses derived from his single public key. After funds are sent to these addresses they can only be redeemed by the receiver and it would be impossible to cross-link these transactions.

Fungibility

Unique one-time addresses and ring signatures of transactions are providing resistance to blockchain analysis. Every transaction only increases entropy and creates additional obstacles for those who wish to dig into financial operations with BeFrank.

Resistance to the analysis, in turn, provides a very important characteristic inherent in real money. Fungibility of money means that all units of one denomination have the same purchasing power.

Fungibility is the key difference and advantage over Bitcoin. All the BeFrank are interchangeable and uniform, unlike bitcoins. It is because in Bitcoin everyone can at any time view all transactions on the accounts of any and all participants and see how many Bitcoins is at the balance of an address. This can lead to censorship of the assets of people. Using BeFrank you have enchanced privacy, independence, and freedom as if you used cash.

The Specifications

Based upon the Cryptonote blockchain technology, with easy to choose level of privacy.
100 000 000 000 (100 billion) BFR will be the total money supply.
10% allocated reserve fund, only spendable with multi signature transactions.
10% allocated as founders compensation for investing our time, own money and reputation.

Emission factor of 18 with 120 seconds difficulty adjustment.
 

Money Supply vs Tim
BeFrank Money Supply vs. Time

P2P port is 18320 (Testnet: 28320)
RPC port is 18322 (Testnet: 28322)

Solo mining is now sufficient (pools are coming) and provide high rewards.
 

http://github.com/befrank-project/befrank-cli

Screenshots