So far in this blog series, we examined the workings of the Xank cryptocurrency and how it can exert stability to this ecosystem by virtue of its stablecoin functionality. Any platform that offers a reduction in cryptocurrency price volatility lends itself to becoming a solid foundation for additional financial services. In our previous post, we explored the positive effects that stablecoin functionality could provide for cryptocurrency exchanges and how Stable Pay could boost merchant adoption. In this post, we delve into how businesses and startups, communities, activist organizations, and individuals can benefit from the Xank network.
Funding for Businesses and Start-Ups
Businesses face new challenges as the industrial age gives way to the digital age. Businesses that adopt relevant digital practices are able to bring down their costs for advertising which gives them a wider reach. Digital communication and the advent of blockchain currencies allow unprecedented access to new and distant markets.
Businesses going digital are also faced with increased data security costs. Governments put pressure on businesses to ‘know their customers’ — particularly in the financial realm. Retaining and protecting customer data, while maintaining legal compliance, is increasingly burdensome. At the same time, modern businesses face increasing pressure to comply with environmental sustainability concerns. These increased costs are easily absorbed by well-capitalized incumbent businesses and make it difficult for new businesses and startups to enter markets. Governments are reducing their research and development grants which further inhibit startups.
All these forces combine to stifle innovation, particularly at a time when we need innovative ideas to permeate our societies. How are we to combat environmental concerns and widespread poverty and disease? How can we increase wellbeing and make business practices sustainable?
The Xank Constitution preamble, which is outlined in the Whitepaper, sets the scene for funding initiatives that are outside the Xank network. The constitution outlines the principles that are imbued in the network. Any business and start-up initiatives that are based on principles that align with the constitution can be considered for funding. Initiatives that are sustainable, aim to reduce harm and increase well-being will be considered. The self-funding Xank treasury grows as the network grows, and as Xank becomes more widely adopted.
Community Driven Organizations and Worthwhile Causes
The most worthwhile causes often require people to step outside of their comfort zones. This usually means that good causes are also poorly organized and funded. A growing reliance on government to act as a safety net and look after the neediest cause increased tax burdens. If you are unlucky enough to live in a land where government corruption is rife, very little money makes it to causes that actually increase human well-being.
In essence, at the base level of cryptocurrencies is the network of users that adopt them. What good is a network if it cannot be used to benefit its users? Decentralized networks are characterized by removing the power from the center of the network and distributing more power to the edges of the network, to the nodes — the users. If designed and managed correctly, cryptocurrencies give us an opportunity to re-think how our communities interact.
Under the centralized nation-state model which dominates our societies, tax revenues disappear into black holes. Even the most democratically liberal states are unable to fund grassroots initiatives and more of the tax budgets are directed towards weapons and wars. In the nation-state model, both democratic and authoritarian, citizens have very little access to the decision making process. Is it any wonder that the most worthwhile causes are the last to receive funding?
As described above for businesses and start-ups, activists, communities and non-governmental organizations that align with the principles of the Xank network can submit funding proposals. Causes that improve and foster human relationships, eliminate inequality, seek recognition for minorities and offer all people improved access to opportunity will be eligible for consideration. Causes that are aimed at reducing ignorance and bigotry, that improve conditions for the poor and the disabled, promote women’s rights, protect people’s sexual preferences and that promote sustainable environmental practices are all causes that are congruent with the Xank network.
New Economies, New Governance Systems
As the Xank economy grows, its capacity to fund such projects will increase. The Xank governance model also means that as it grows it will become increasingly decentralized and less permeable to external influences. This means that the network can be used as a tool in society and become a stabilizing force in the world. It becomes increasingly apparent that the current nation-state model is not fit for facing the challenges of ever-increasing populations competing for the earth’s resources.
Our institutions and the largest corporations are dragging their feet and are not fit to face the environmental concerns we all face. Profit motive alone is not enough to direct resources to these causes. We not only run the risk of the poorest and the weakest being left behind, if we continue down a non-sustainable path, we will run out of time to set things right.
It is the grassroots efforts that need to rise to face these challenges. We need to rethink how to organize our societies into networks of people that benefit each other. The rise of cryptocurrencies has shone the light on ways networks can benefit when the users are well incentivized. Societies are networks of people. Why not give our societies the tools to face these challenges? Xank is designed to act as such a tool, to incentivize and empower our societies, to be a tool that can be used to have a positive lasting impact in our world.
