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As explained earlier, when a Vivo signs up to be a member of the VIVAconomy, he or she will be provisioned with two accounts – a VIVA current account and a VIVA liquidity pool account.
The VIVA current account is used for immediate spending while the VIVA liquidity pool account is for longterm savings. The sum of all the VIVA liquidity accounts of all Vivos comprises the global VIVA Liquidity Pool.
For an economic engine to be successful it must be strong, robust and sustainable over the long haul. The VIVAconomy is designed with four distinct components that work together to achieve this stability and dependability: VIVAcoins, vX, the VIVA Liquidity Pool and VIVA Crowns.
The liquidity pool is funded entirely by individual Vivos and acts as the people’s voice in the VIVAconomy.
All VIVAcoins that are minted in the VIVAconomy are first borrowed from the global liquidity pool.
One simple page that explains how the VIVAconomy can help you reach your financial goals. Includes a direct link to our complete white paper.
The liquidity pool charges the mints interest for this and maintains a spread between what it charges in interest and what it pays in dividends.
This spread is split into three parts:
• 50% to liquidity pool participants as a dividend
• 25% to the VIVA Awards Committee
• 25% to the VIVA Social Media Platform.
The first 50% of the spread is immediately paid proportionally as a dividend to each Vivo in the liquidity pool. If your account is in compounding mode, this is used to acquire more stake in the pool, otherwise it’s credited directly to your current account in your wallet to spend as you wish.
It is important to note that the principle purpose of the VIVA Liquidity Pool is to provide each and every Vivo a longterm financial asset that can guarantee them a sustainable living wage.
A Vivo’s liquidity pool account can be set to one of two modes: compounding mode and withdrawal mode.
When in compounding mode all dividends and awards are used to increase the Vivo’s stake in the global liquidity pool. Like a traditional retirement account, this balance is compounded daily and with time will convert itself into a sizable asset.
When in withdrawal mode dividends are directly deposited into the Vivo’s current account along with a target daily income. This money can and should be spent.
For example, our present target is $5.30 per hr. Or 24 VIVAcoins per day.
Dividends in retirement mode are paid first and then your account is drawn by the remainder.
In this way you always have an income you can rely on and basically everyone sees about the same amount daily for life if they’ve been compounding for 10 years or more.
If the dividends exceed the target then they are used to buy back into the LP to offset future dry spells.
This target amount is set once a week by Crown Holders.
This works out to about $127.20 per day and you get this so long as you are active in the system and it pays daily until your liquidity pool balance is too low to support you anymore.
The reason for using this system is to give Vivos a useful amount of money daily without making anyone uber rich. Also it dramatically reduces any incentive for hoarding since 10 years of daily compounding on a couple of dollars daily should net about a 30 year draw down.
This works out to $3862/mo or $46.3k annually.
It is important to note that no one can instantly cash out their stake in the liquidity pool. This rule makes sure that the overall stability of the VIVAconomy is secure and that no single player or group of players can undermine the viability of the entire system.
Dennis H. Lewis is our CMO and is a serial entrepreneur and self-proclaimed digital storyteller. An author of three books, he has an uncanny knack of being able to distill complex technologies and explain them in ways that are fun and approachable. Over his extensive career he has lead startups both in Europe and the United States and currently runs a successful digital marketing firm in Orlando, FL. He has been featured on mainstream media outlets like The New York Times, Good Morning America and the BBC.