Complex Made Simple

Cities, entire countries, taking birth with sovereign cryptos as their only currency

Say hello to 4 sovereign cryptos that cities or countries entirely on the blockchain use or plan as their only currencies. There, fiat is out. Period.

Akon City is ready to begin construction, with a plan to use the Akoin cryptocurrency exclusively The SOV will be the world's first sovereign digital currency Liberland has half a million citizens, runs on the EOS blockchain, and uses its own Merit (LLM) cryptocurrency

What is a VAR, an Akoin, a SOV, and a Merit? 

Say hello to 4 sovereign cryptos that cities or countries entirely on the blockchain use or plan to use as their only currencies. 

Fiat is out. Period.

We know that Facebook’s cryptocurrency, Libra , and numerous countries (most notably China, E-Yuan) have begun working on their own versions of a Central Bank Digital Currency (CBDC). But entire countries based on cryptos? That’s new. 

There are more island cities planning the same, but out of these 4 cryptos, it’s important to mention that one, VAR (1 ETH= 14,750 VAR), may not have survived its initial launch in 2018.

Varyon conceptAs reported by AMEinfo in 2018, we have yet to see evidence of this futuristic floating city named Varyon, a project in Tahiti by Blue Frontiers, composed of modular platforms – either 50 x 50 m2, or pentagons with 50 meter sides, at a projected cost of approximately $167 million.

But Akoin, SOV and Merit are very much on, so let’s get to it.

Read: Frost & Sullivan Presents a Strategic Framework for a Blockchain-enabled World

A new Crypto city starring….. Akoin

Akon City, a $6bn “futuristic cryptocurrency themed city in senegal” founded by famous singer Akon, is ready to begin construction in July, with a plan to use the Akoin cryptocurrency exclusively, according to News.Bitcoin.com

Akon City is founded by Senegalese-American singer, songwriter star and philanthropist Akon, and has awarded its building contract to US-based engineering firm KE International which secured $4bn from investors. Dubai based Bakri & Associates Development Consultants will lead the architectural designs.

Phase 1 is expected to complete by end of 2023 while phase 2 will run from 2024 to 2029. 

Akon hopes his akoin crypto will be used all over Africa where a significant portion of the population remains unbanked but smartphones are widely used.

Read: The Origins of Blockchain, the need for use cases and Bitcoin’s successor

Island dreams with SOV

In 2017, Malta adopted Software Engineer Steve Tendon’s dream of a “Blockchain Island”, according to Decrypt.

Tendon believes that if a country adopts a blockchain, it could accelerate the speed of commercial transactions, unify databases across healthcare records, taxation, public disbursements, pensions, and licenses, as well as a host of benefits for identity and residency. 

Three years later, Malta’s blockchain dream is dead—but not Tendon’s dream. It migrated across oceans and continents, to another tiny island republic: Now, the Republic of the Marshall Islands (RMI).  

RMI is about to issue its own hybrid-cryptocurrency, and the ramifications could change the world.

SFB Technologies, was working on a sovereign digital token for the RMI and enlisted Tendon. 

An enclave of more than 1,100 tiny, Pacific islands, RMI is facing environmental catastrophe due to rising sea levels, and the aftermath of 12 years of US nuclear testing, centered on Bikini Atoll.  

The RMI gained independence from the United States in 1979 but the islands are increasingly isolated from the financial world and reliant on the US dollar as current currency. 

Image: SFB TechnologiesThe Marshall Islands Sovereign (SOV) is expected to launch later this year and forcibly governance, e-residency, digital infrastructure for public services will all move onto a blockchain in the next development phase, according to Tendon.

The SOV will be the world’s first sovereign digital currency. 

The RMI has no central bank, instead it will have computational power as its monetary regulating element. Capped at 24 million SOVs, monetary supply will increase by 4% per year, with the figure encoded on a blockchain, and each new issue will go directly to the stakeholders: RMI citizens, and other investors.   

The Marshall Islands will receive half of the 24 million SOV units issued. Image: SFB TechnologiesMeanwhile, other Pacific Island countries with scant funds and their own international banking problems have already said they want to follow the Marshall Islands’ lead

Read: Media, big tech, authenticating and validating transactions via Blockchain!

A crypto with Merits 

Techopedia tells us the story of the decentralized state of the Free Republic of Liberland

It uses blockchain and cryptocurrency, has minimal laws, no taxes, no police, and no borders. 

Liberland has half a million citizens. Its government runs on the EOS blockchain and the country uses its own Merit (LLM) cryptocurrency.

The Free Republic of Liberland was established April 13, 2015, by three people plunging its black and yellow flag into a sliver of land between Croatia and Serbia. 

Citizenship would be capped at 140,000 people. 

Liberland’s e-government is built on the Decentralized Autonomous Organization (DAO) Stack or DAOstack to share and discuss regulations in real-time and to solve its problems. 

The platform also serves as its registry, hub for insurance agencies (among other business that include 1,200 architects), for licences for vehicles, property management, meeting groups (such as Liberland athletes), and so forth. It’´s also the spot for Liberland citizens to settle their disputes.

Liberland became the first country to use the blockchain for state governance.

By January 2020, Liberland had two Vice Presidents, five Ministers, and 20 ambassadors, with plans to expand to 20 members. Ali Kassab is the newly appointed Finance Minister. 

Liberland´s right to vote depends on the number of Merits you own reflecting what you did “that actually make the country possible and contributed to its creation”. 

Merits could also prevent jail. If you have enough collateral to pay for the damage that you have created, you might not even go to jail.  

Finally, Merits buy citizenships. Just pay $10,000 in Merits.  

Liberland has embassies in more than 100 cities including Portugal and Mexico

Merits are earned by building infrastructure, helping with administration, carrying out manual labor, promoting the country, or promising to reside there permanently and contribute to the community.

Merits can be found on the crypto trading Altilly exchange, where they are paired with USDT, as well as with cryptocurrencies BTC, ETH, and XQR.

As of February, 14, 2020, Merit (LLM) has an overall market capitalization of roughly $1.1 million and each coin trades for $1.02 USD.

Liberland’s trove of Merits is capped at 700 million Merits and is controlled and distributed by the DAO.