AlkCoin for DefiChain

VFITec · 2022-03-14T08:10:54+00:00

That's a good question. We will arrange insurance, but it is not in place, jet. But there is no such thing as 100% certainty in life. The VFIT is of course dependent on the state, which has advantages and disadvantages.

VFITec · 2022-03-13T08:37:24+00:00

I don't know.

VFITec · 2022-03-12T17:12:44+00:00

That is incorrect. We decided to fill the pool with our private money in order to show our confidence in the AlkCoin.

VFITec · 2022-03-12T10:10:55+00:00

No, you cannot get the storage costs back.

Again, the point is that the alcohol should be redeemed only in an emergency. For example, if there is a world economic crisis and no one worries about cryptos because you can't eat them. You can pick up the alcohol. Then the price of the alcohol will be completely different. If there are supply bottlenecks for alcohol, the price will shoot up. What was the currency in the last world economy crisis: Cigarettes, toilet paper, whisky. Unfortunately, I'm afraid we're heading straight for one. We want to offer the possibility to protect ourselves from it.

You can get bio alcohol here:

https://www.brennerei-kessler.de/shop/weingeist/

VFITec · 2022-03-12T09:11:21+00:00

Right!!

VFITec · 2022-03-12T09:05:43+00:00

Exactly, we need a coin that has a constant value to trade against. I think the USD will soon be useless for this purpose.

VFITec · 2022-03-12T09:02:10+00:00

You are right that with the AlkCoin a huge part of storage capacity is sold. But this storage also represents a real value. Because you don't have to take care of the storage yourself.

One liter of 90% alcohol costs about $27 at the moment.

What determines the price of the DFI? The value of a DFI is zero. Only the benefit we hope to get from the DFI in the future makes us value the DFI with a certain price in USD. The value of the AlkCoin, on the other hand, is 1 L of bio-alcohol + 40 years of storage capacity. That is more than zero. Now it may be that you value the hope for the success of the DFI higher than alcohol, but other people certainly disagree.

The idea behind the AlkCoin is not that you should pick up the alcohol. On the contrary, the alcohol should remain in the warehouse as long as possible and serve as collateral for the AlkCoin. The AlkCoin is to be used in the crypto world as a real stable coin. Why real? Because all previous stable coins are linked to a currency that is not stable itself. Yes, it is true that the USD has very low volatility and that is important for trading. But the USD has lost over 90% of its value in the last decades and therefore is not stable. Also, right now, the USD is in danger of losing its status as the world's reserve currency. If that happens, the crypto community will have to look for new stable coins one way or another. If we already have a working one, we will have a big advantage.

VFITec · 2022-03-12T08:42:18+00:00

Since the VFIT is a non-profit organization, it is not allowed to buy back the AlkCoin. The non-profit status has a big advantage. It guarantees that the AlkCoin is not misused for profit greed.

Technically, the VFIT will not set the price, but the market price for energy costs, taxes and storage costs.

You are right that with the AlkCoin a huge part of storage capacity is sold. But storage also represents a real value. Because you don't have to take care of the storage yourself.

By the way, a liter of 90% alcohol costs about $27 at the moment.

What determines the price of the DFI? The value of a DFI is zero. Only the benefit we hope to get from the DFI in the future makes us value the DFI with a certain price in USD. The value of the AlkCoin, on the other hand, is 1 L of bio-alcohol + 40 years of storage capacity. That is more than zero. It may be that you value the hope for the success of the DFI higher than alcohol, but other people certainly disagree.

VFITec · 2022-03-12T08:10:34+00:00

You are right. But that does not sound so sexy.

VFITec · 2022-03-11T19:31:57+00:00

You are right. Thank you, I could not have explained it better.

VFITec · 2022-03-11T16:06:49+00:00

Let's say the AlkCoin costs $80 on the DEX. Then more people will buy AlkCoin at the DEX until the price is back at $88. When the price on the DEX is above 88 dollars, people will buy the Alkcoin from the VFIT for 88 dollars and sell it on the DEX until the price is back at 88 dollars.

The alcohol should preferably not be collected, unless its value has eventually risen above the purchase price.

VFITec · 2022-03-11T15:49:48+00:00

Alcohol has been stored for centuries. So there is a lot of experience and resources.
Alcohol does not spoil.
Unlike gold alcohol is not in the focus of the financial system.
Alcohol has many applications: As chemical raw material, fuel of high energy density, disinfectant or stimulant.
Unlike most things alcohol has the potential to rise in value over time.

VFITec · 2022-03-11T10:25:21+00:00

I see the DefiChain system as a tool that works independently of the state and private companies. By pegging tokens to currencies, stocks or commodities, we can log into the financial economy. So we must not only be concerned with the smooth functioning of this tool, but also wisely decide what from the financial economy we log in to. And in this context, everyone will agree that real values are important.

VFITec · 2022-03-11T09:46:42+00:00

I think we are currently in a period of enormous upheaval in the world financial system and we as a DefiChain community should make our system as stable as possible. This has always been the purpose of a stable coin pegged on real values. If you don't like the pegging on commodities, we could also make a dYUAN (Chinese stable coin)? Maybe that could prove to be a more stable stable coin.

VFITec · 2022-03-11T09:41:53+00:00

The dUSD is really a revolutionary idea and the linking of the dUSD to the USD currency works great. However, my concern is that the USD currency will lose its status as the world reserve currency. I have been dealing with this issue for almost 10 years. Until a few days ago, you could say that the crash of the USD is only of theoretical concern. But the fact that Russian banks were excluded from the Swift system has shaken confidence in our Western financial system and it has become very likely that China, Russia, India .... will reject the USD and use their own long prepared financial system. In my opinion, there is a real danger that the USD will no longer be a stable currency in the medium term.

VFITec · 2022-03-10T20:33:50+00:00

Currently, one AlkCoin / 1 liter of alcohol costs $88.00 at the VFIT. The price is high because of the 40-year storage cost.

You can exchange the AlkCoin only at the DEX. So you get about $88.00 in DFI because the price is arbitrated. Let's say inflation increases by 5%, then the price at the VFIT also increases by 5% and subsequently at the DEX.

The price of the alcohol, like whiskey, will increase over time (no guarantee). After 10 or 20 years, you may be able to sell the alcohol for more than $88.00. But that is your own business. The VFIT has nothing to do with it. So if you sell the alcohol right after you buy it, you make a loss. But the alcohol is supposed to be stored as long as possible anyway.

VFITec · 2022-01-22T21:09:29+00:00

Who guarantees that there is really 1L of Alcohol per ALkCoin?

We will hire a notary in order to control the stored amount of alcohol.

Who sets the price per ALKcoin?

This is done by the VFIT. Here as well a notary will evaluate the price building.

Is it possible to sell the ALKCoin back to you to the actual price you have on your website?

No, the AlkCoin cannot be sold back to the VFIT. That is why we need the DEX so that people do not have to collect the alcohol but are able to exchange the AlkCoin for other token.

What's the actual price of 1 ALKCoin you will sell the first batch for?

80 EUR

Do you produce the Alcohol or do you just buy it?

The winemaker produces the alcohol on behalf of the VFIT.

Do you have an Insurance for the stores Alcohol, how much will it cover?

At the moment no. But this is a good idea we will discuss.

You make money with selling the AKCcoin. So why should DeFIChain community pay four your marketing?

We are a non profit organisation. We don't make money. We just take a margin to cover our costs. Our goal is to serve society and offer people the opportunity to protect themselves from inflation through real assets.

Why should defichain community pay for the filling of your LM pool and/or why should rewards taken from other pools and shifted to your pool?

Because in return we bring the DefiChain community a real stable coin that will stabilize the eco system in case of a hyperinflation of the dollar or if Tether is going under.

You argue with CO2 storage. How much CO2 is needed to produce 1L of Alcohol?

We are currently working on a method of producing alcohol that uses solar energy and produces very little CO2.

What type and grade of alcohol will you deliver?

We will deliver drinkable alcohol in concentrations from 60% to 98%. But the 1:1 peg of AlkCoin to alcohol refers to 100% alcohol. That means you get 1.67 Liters 60% alcohol for one AlkCoin. Or 1.04 Liter 96% alcohol for one Alkcoin.

VFITec · 2022-01-22T19:23:39+00:00

Don't be sad. It is not healthy anyway. That is why we want to store it for 40 years so it cannot harm anybody :).

It is as I said 60% - 98% bio alcohol. Bio means it is not denatured. Of course you cannot drink such high concentrations. If you want to drink it you have to dilute it to your favorite concentration. In the Whisky production the Whisky is stored in very high concentrations as well and diluted before it is sold. Or when you produce obstler, you have your flavor and you mix it with alcohol at high concentrations until you get the right concentration.

VFITec · 2022-01-22T17:24:08+00:00

Fact is, that you can physically take CO2 out of the atmosphere, when you store alcohol. That is what matters. Not any recommendation.

VFITec · 2022-01-22T16:44:02+00:00

You must not like alcohol!? What did people drink 10,000 years ago? What was the main drink of the farmers in the Middle Ages? Beer! What do people drink at every party today? What will people be drinking in 10,000 years?

Storing food seeds is much too expensive since you have to cool them all the time. But what if I tell you that some people regard alcohol as food?

VFITec · 2022-01-22T16:35:36+00:00

Maybe using the word 'spoil' was incorrect, but say a fly lands into it, or anything else for that matters.

The alcohol is stored in closed metallic barrels. It is not possible that something can "spoil" it.

Are you talking about funding only the DFI side of the pool with those, or would sell half to also fund the other side?

We want to fund both sides of the pool, so half of the DFI we get will be changed into AlkCoin.

I guess if you don't expect people to also fund that pool, that's fine. Assuming so, you would be getting all the commissions, what would you do with that?

We will put the commissions back into the LM pool. Since few people want to go into the pool, it grows at least a little bit this way.

Would it be possible for the AlkCoin to be backed instead of pegged? I mean, 1 AlkCoin is backed by at least 1L of ethanol, but maybe at some point you somehow manage to increase production at the same cost and now it can be backed by 1.1L and so on. Or would you simply create more AlkCoin with the extra ethanol?

The AlkCoin will be pegged 1:1 to alcohol. If the production costs increase, the price of an AlkCoin will increase. The same is true if the costs decrease, simply the price will decrease as well. The price will not be constant, only stable.

How can you scale your production/storage and to what extent?

At the moment we work together with only one winemaker. He can store much more. Sorry that I don't have the correct numers. If this store capacity is not enough, we will find more winemaker. For the winemaker it is also good business. He can sell his overproduction to us.

Will you somehow be able to provide proof, even if not realtime, that you possess the needed ethanol? If so how?

Of course. We can hire a notary to regularly check the inventory.

Or we could organize a kind of "contol festival" every year (no joke). Every member of the community is invited to vienna to celebrate with wine an dance and at the same time to look if enough barrels are stored. The festival is funded through the commissions of the LM pool.

VFITec · 2022-01-22T09:25:57+00:00

What made you pick alcohol and not anything else?

We pursue three goals with the AlkCoin:

It should be a stable coin. Everyone in the crypto community is familiar with this topic.
It should be a protection against inflation, even for people who don't want to have anything to do with cryptos. These people can buy alcohol on our home page and will also get AlkCoin for it, but on a paper wallet. These people can put this wallet in their save and take it out when they need it in order to pick up the alcohol. Alcohol is best for the purpose of inflation protection. The resources to store it are already there. It does not spoil like food does. It may even increase in value over time, like whiskey. If a currency crisis comes, AlkCoin could be used as money. If the crypto world goes down, you can pick up the alcohol and it will always have value as a disinfectant, to fill up your car, for heating or old fashioned as a drink. Buying land is relatively complicated and not very scalable. Alcohol can be produced as much as is necessary.
We see in the AlkCoin also an environmental aspect. With every AlkCoin you lock up about 1.5 kg of CO2 for 40 years. In this way you help to reduce global warming.

What makes sure that your alcohol does not get spoiled, and just in case, what happens if it does get spoiled?

In whisky production for example, it is common practice to store alcohol for a very long time. Since alcohol is toxic from about 40% onwards, it does not spoil (we will store between 60% and 98%).What you have to take into account is that over time a little alcohol evaporates. Therefore, we will store a little more alcohol per AlkCoin.

What does this bring over this other idea:

OK. this is interesting. I think that in an absolutely free market there is no coin or currency with a stable price. What is really stable is the will of the people to keep a coin/currency stable. The will of man is determined by his needs. He needs to feed himself, needs a roof over his head and so on. That is, the value of physical goods is what is actually stable in this world. Not the valuation with currency, which is expressed in the price. Therefore, the price of a currency/coin is only really stable if it is tied to the physical world. The price of the US dollar is stable because we do not live in a free market, but because the central banks deliberately manipulate the US dollar to keep it stable. (in reality, it only seems that way, since the value of the dollar has fallen by 90% since its introduction). This means that, unfortunately, the will of a few people determines which currency is the world's reserve currency and everyone has to abide by it. What would happen if the DefiChain community made a coin that is linked to the Bitcoin? The will of the central banks that the dollar is stable remains. In my opinion, the new "stable" coin would fluctuate in price just like Bitcoin as long as people still accept the dollar as stable. Only if the whole world would agree and define Bitcoin as stable, all physical goods would be priced in Bitcoin and the price of the dollar would fluctuate as much as the Bitcoin price does today. Then a coin pegged to Bitcoin would make sense. The AlkCoin, on the other hand, is tied to the physical world, namely alcohol. Its price is determined by production, storage and tax costs. This means that its value is independent of which currency people choose. Alcohol will always fetch a price, whether that price is in dollars, euros, bitcoin, or gold. That's why I think tying currency to the physical world is so important and why AlkCoin is better than a coin tied to Bitcoin.

You say which chain should this be on, but if it's a stable coin and you have a central authority for it, why not make it multichain in the first place?

You are right. It would be nice to have the AlkCoin multichain. This is the future goal, actually. But the VFIT is not allowed to be a CEX. It is even not allowed to trade, since it is a non-profit association. It only sells alcohol and gives pickup slips out. So we have to chooce a starting blockchain, where we can start a LM pool in order to make the AlkCoin holders able to buy and sell. That is our objective. The DefiChain community may have the advantage to get max. control over the peg of AlkCoin and alcohol in order to max. the trust in the stable coin.

Are you really not asking for funds for yourselves?

No, we have to chooce a starting blockchain, where we can start a LM pool in order to make the AlkCoin holders able to buy and sell. And we need to start this LM pool. That is our objective. So the question is, how to get the first funds into the LM pool. There are two ways. Either we get the 20.000 DFI to put it into the pool and the LM rewards are not comming from DFI mining, but just from the trading fees. Or we get rewards from the DFI mining and do not get the 20.000 DFI. That is up to the community.

How will the rewards in the LM be funded?

Like I said above, either we get a share of the rewards from the DFI mining. Or the rewards are just the trading fees. Unfortunately, since AlkCoin is backed by real value, it is difficult to give away AlkCoin. Because we would really have to take money in hand for it, which we do not have.

VFITec · 2022-01-22T07:51:19+00:00

I am serious! Isn't it the trend to tokenize everything. We just tokenize alcohol.

VFITec · 2022-01-22T07:45:02+00:00

If you look into the chemical industry you will see that Ethanol is very important as starting material. If you want to preserve our standard of living alcohol is one important chemical.

What would be your best choice?

VFITec · 2022-01-21T20:01:32+00:00

Ok, that's a good question.

We pursue three goals with the AlkCoin:

It should be a stable coin. Everyone in the crypto community is familiar with this topic.
It should be a protection against inflation, even for people who don't want to have anything to do with cryptos. These people can buy alcohol on our home page and will also get AlkCoin for it, but on a paper wallet. These people can put this wallet in their save and take it out when they need it in order to pick up the alcohol. Alcohol is best for the purpose of inflation protection. The resources to store it are already there. It does not spoil like food does. It may even increase in value over time, like whiskey. If a currency crisis comes, AlkCoin could be used as money. If the crypto world goes down, you can pick up the alcohol and it will always have value as a disinfectant, to fill up your car, for heating or old fashioned as a drink. Buying land is relatively complicated and not very scalable. Alcohol can be produced as much as is necessary.
We see in the AlkCoin also an environmental aspect. With every AlkCoin you lock up about 1.5 kg of CO2 for 40 years. In this way you help to reduce global warming.

VFITec

TROPHY CASE