SYNVERTO AND ECONOMIC MODEL

Synverto is a concept of Asymmetric Monetary System based on Blockchain.

While in a Symmetric Monetary System debtor repays the debt to the creditor directly, the Asymmetric Monetary System means that debtor’s debt is repaid by spending money for goods or services by purchasers (the debtor or its employees or forgers) while the money is withdrawn from the economy after settlements with counterparties. In this system, the creditor is the Issuing Web which finances all producers of goods or services in an amount sufficient to cover the planned costs each time it is necessary for each producer. The speed rate of repayment of each debt is equal to the speed rate of spending of these debt money for goods or services by producer or its employees.

This system has three types of wallets. First one is for producers, second one is for consumers and third one is for forgers. Newly issued money enters the economy directly credited to the producer wallets. Each part of newly issued money carries a digital signature containing information about the producer, the amount of the credit and its serial number for the producer. The consumer wallet is needed in order for a producer to pay an employee a salary. Finally, the forger wallet is designed to receive transaction processing fees for maintaining the system.

After paying for goods or services, the debtor's debt decreases and money is eliminated from the economy simultaneously. I called it Money-Debt-Elimination Swap or Synversion. This procedure is necessary in order to prevent the growth of the money supply faster than the growth of production of goods or services.

The Asymmetric Monetary System excludes the function of money as a means of accumulation. Therefore, in order to ensure that money does not accumulate in the wallets of consumers for expensive purchases, there is asymmetric peer-to-peer credit system for all consumers. Each lender receives back his money with an interest from the Issuing Web. The interest rate is set by the algorithm depending on the economic activity of consumers which is based on the rates of production of goods and services and consumption. Peer-to-peer credit system does not allow the rate of consumption to decrease but rather increases consumption over time.

Since money is eliminated after payment in this system and producers get money from the Issuer Web, there is no sense in the pursuit of profit for producers. Therefore, all goods and services are sold for cost price which is directly or indirectly based on the cost of labor. The labor cost is determined on the basis of factors such as the economic relevance and effect of the profession, qualification and cost of goods and services in the region.

This economic model also contains such key factors as the rate of production of goods and services, the rate norm of sales, the service life of a product or service and its consumption rate norm.