The Axio is an asset-backed cryptocurrency that will be issued by the Axios Foundation and will be held in accounts managed by the Foundation. All axios will be issued as loans. The outstanding loans will represent all axios in circulation.
The Axio is a novel asset-backed cryptocurrency modeled on an asset-backed security (ABS). A traditional ABS is a financial security collateralized by assets such as loans. While an ABS is linked to a specified pool of underlying assets priced in a fiat currency, assets issued by the Axios Foundation will be denominated in axios. As a result, unlike an ABS, each Axio, as a security, doesn’t have to be linked to an underlying asset in order to determine its value. And unlike an ABS issued for a pool of underlying assets, the Foundation will issue a number of axios for a single asset corresponding to its face value. The market value of the Axio in terms of fiat currencies will depend on the portfolio of assets held by the Foundation, and a securities market will determine this value by trading the Axio vs. fiat currencies.
The Axios Foundation will grant loans and collect interest on them. Thus, the Axio will be backed by the intrinsic value of borrowers’ efforts to pay off their loans. That is, the Axio will be directly backed by the intrinsic value of work that represents the real value rather than a by-product of work such as gold. And unlike commodity-backed cryptocurrencies that have a fractional reserve value, the Axio will be fully backed by the full faith and credit of the borrowers.
The Foundation will disburse profits from its operations as interest payments to all Axio accounts. The interest payments will be paid on a regular basis, providing an incentive to invest in axios, and keeping them on deposit with the Foundation.
The Axio is backed by the value of loan interest payments that represent a certain amount of work. Since the value of work is a stable commodity, the intrinsic value of the Axio will be stable.
The Axios Foundation will support a variety of payment methods that will allow axios to be used seamlessly, just like any other currency. Among these are the mobile payments that will allow the Foundation to bypass the existing payment infrastructure, and the very high fees associated with it. Additionally, all transactions that do not require a currency conversion will be free for both consumers and retailers.
The Axios Foundation will operate a distributed computer system that will process transactions in real time.
Most cryptocurrencies, like the Bitcoin, provide a publicly available record of all transactions that have ever taken place. Hence they have a low level of privacy, although even with this limitation many people still entrust their financial history to a public blockchain. To address this issue the Axios Foundation will not publish any information relating to accounts. Additionally, the Foundation will not sell or share members’ personal information without explicit permission.
The Axios Foundation will operate openly and transparently to benefit its members. To achieve this, all details of its operations, including operating expenses, outstanding loans, amounts on deposit, amounts in reserves, profits, etc. will be published in a blockchain to show the financial status of the Foundation. The Foundation itself will be democratically operated by its members in a similar way to a credit union.
Because the system is self-contained, accounts managed by the Axios Foundation can be made more secure than regular bank accounts.
Certain business transactions cannot be performed without a legal framework supported by some form of dispute resolution, and an ability to reverse transactions due to error, fraud, etc. This makes dispute resolution a vital component of any monetary system. To allow for dispute resolutions, transactions between Axio accounts will be reversible in whole or in part. To support the dispute resolution process, the Axios Foundation will abide by relevant court decisions, and will also provide arbitration for a fee via smart contracts. The ability to redress grievances will make the Axio similar to a government-issued legal tender, which is something that no other cryptocurrency can offer.